Legislation Details

File #: HIST-21457    Version: 1 Subject:
Type: Historical Status: Action Item
In control: City Council Meeting Agenda
On agenda: 2/11/2013 Final action: 2/11/2013
Title: Receive and File Report Regarding the City’s Efforts to Create an Economic Development Strategy and Additional Outreach to Culver City Residents and the Culver City Unified School District.
Attachments: 1. Receive and File Report Regarding the City’s Effor - A-1__13-02-11_CDD__CITY COUNCIL__EconomicDevelopmentStrategyUpdate - COLE.pdf, 2. Receive and File Report Regarding the City’s Effor - A-1_13_02_11_ATT_Economic Development Strategy.pdf
City of Culver City, California Agenda Item Report Meeting Date: 2/11/2013 Item Number: A-1 CITY COUNCIL AGENDA ITEM: Receive and File Report Regarding the City’s Efforts to Create an Economic Development Strategy and Additional Outreach to Culver City Residents and the Culver City Unified School District. Contact Person/Dept.: Todd Tipton – CDD Kriss Casanova - CDD Phone Number: (310) 253-5783 (310) 253-5769 Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [] Public Hearing: [] Action Item: [] Attachments: [x] Commission Action Required: Yes [] No [X] Date: _______________ Public Notification: (E-Mail) Meetings and Agendas – City Council (02/05/13); Chamber of Commerce (02/05/13); Participants in Outreach Meetings (02/05/13). Department Approval: Sol Blumenfeld (01/30/13) City Attorney Approval: Carol Schwab (by H. Baker) (02/05/13) Chief Financial Officer Approval: Jeff Muir (02/05/13) City Manager Approval: John M. Nachbar (02/05/13) RECOMMENDATION: Staff recommends the City Council receive and file this report regarding the City’s proposed Economic Development Strategy. BACKGROUND: The City Council has previously discussed preparing an Economic Development Strategy (Strategy) in light of the economy and the dissolution by the State of California all redevelopment agencies throughout the state. Over the prior months, staff has been working to prepare the Strategy for the City Council’s consideration. The Strategy is intended to: • Guide Economic Development efforts in regard to increasing City sales tax and business revenues and business assistance, retention, and attraction efforts; • Provide the City with the data necessary to make fact-based economic development decisions; and, • More stringently identify the City’s economic base and analyze its strengths, weaknesses, opportunities and challenges. Staff has been working with Mr. Robert Gilmore of MuniServices, an economic development consulting firm. The fee for MuniServices assistance is $29,500 for the attached Scope of Work (Attachment No. 1). City of Culver City, California Agenda Item Report DISCUSSION: To date, MuniServices has collected and analyzed data (Attachment No. 2) and conducted three outreach meetings with business/property owners, brokers, and stakeholders in three geographic areas to ascertain the strengths and challenges of doing business in the City. The geographic areas represented were Fox Hills/Corporate Pointe, Downtown/east Washington/Hayden Tract/Jefferson, and west Washington/Sepulveda. During the outreach meetings, participants discussed: • Additional parking; • Fiber optic infrastructure; • Marketing and branding; • Area amenities; • Local way finding and connectivity; • Creating a Process Improvement Group; and • Establishing Business Associations/Districts. The attached matrix (Attachment No. 3) summarizes comments received during the outreach meetings, identifies and prioritizes work tasks, establishes a timeframe in which the work tasks are to be complete, identifies responsible parties, and establishes work programs. Many of the comments were similar from area to area. Some or all of the work tasks may ultimately be included in the draft Economic Development Strategy when it is complete. The document will be transmitted to the participants via a letter from the City Manager. The letter will also thank them for attending, summarize what was learned, identify what's next in regard to completing the Strategy, and propose a follow-up meeting date. Next Steps: Pursuant to the Scope of Work, MuniServices had initially proposed to prepare a Leakage Analysis showing where Culver City is leaking sales tax and analyzing economic segments most at risk of leaving the City and segments most likely attracted to the City. MuniServices and staff agree that MuniServices should not prepare the Leakage Analysis because the information can be readily obtained from HdL Companies, the City’s sales tax consultant. Instead of a Leakage Analysis, MuniServices now recommends that additional outreach meetings be conducted with Culver City residents and representatives from the Culver City Unified School District (CCUSD) in order for the Strategy to consider City of Culver City, California Agenda Item Report all segments of the community which impact the local economy. MuniServices recommends that the outreach meeting with residents include 15-20 participants. During the additional outreach meeting with residents, MuniServices will determine why residents move to Culver City, why they stay in Culver City, what they like about their neighborhood, what is missing from the neighborhood, etc. During the outreach meeting with the school district, MuniServices will discuss the value the CCUSD adds to the community. To identify participants in the additional outreach meeting with residents, each City Council Member has been asked to provide the City Manager with names of three or four residents they believe would provide constructive input. The names of the Council’s recommendations will be announced by staff during the Council meeting. Staff will then contact the residents and arrange an outreach meeting date and time. Regarding the additional outreach meeting with the CCUSD, staff will contact the appropriate representatives and schedule a meeting date and time. Both outreach meetings will likely occur in late February. Timeline It is imperative that a draft Strategy be received no later than mid-March in order for the City Council to consider it as a component of the forthcoming budget process, which is scheduled to begin in May 2013. This will allow the City Council to discuss a work program for Fiscal Year 2013/2014 and appropriate necessary funds. FISCAL ANALYSIS: Because the additional outreach meetings are being conducted instead of a Leakage Analysis, there should be no additional cost to the City’s contract with Muniservices. ATTACHMENTS: 1. MuniServices Scope of Work; 2. Data collected by MuniServices; 3. Matrix summarizing comments received from outreach meetings with City business/property owners. MOTION: That the City Council: Receive and file this report. MEETING DATE: 02.11.13 AGENDA ITEM: Receive and File this Report Regarding the City’s Efforts to Create an Economic Development Strategy ATTACHMENTS Pages 1. MuniServices Scope of Work 1 2. Data collected by MuniServices 2-11 3. Matrices summarizing comments received from Outreach meetings with City Business/property owners 12-17 1 Scope of Work – Economic Development Work Plan 1.0 Develop Work Plan and Contract 1.1 Meet with City to review project scope and timeframe. 1.2 Develop work plan. 1.3 Develop contract for services. 2.0 Economic Base Analysis 2.1 Analyze the economic base of the City. 2.2 Hold two meetings with City and staff to review data and analysis of economic base. 3.0 Strengths, Weaknesses, Opportunities, and Threat Analysis (SWOT) 3.1 Facilitate three (3) focus groups to gather data and information on what the stakeholders believe are the strengths and challenges of doing business in the City. 3.2 Stakeholder participants in the focus groups will be determined by the City. . 3.3 Write a SWOT analysis utilizing the Economic Base Analysis and the information gathered from the focus groups. 3.4 Meet with City to review SWOT analysis. 3.5 Analyze designated commercial districts to ascertain the land use in each area. Determine the opportunities and challenges presented by each district. 4.0 Leakage Study 4.1 Develop a Leakage Study that shows where Culver City is leaking sales tax. 4.2 Analyze what economic segments are most at risk of leaving the City and what segments are most likely to be attracted to Culver City. 5.0 Market Analysis Report 5.1 Prepare a draft Report. 5.2 Meet with City staff to review. 5.3 Deliver a final Market Analysis Report. 6.0 Develop Work Plan 6.1 Work with City staff and key stakeholders to identify goals and strategies for implementing a successful economic development program. 6.2 Develop a matrix that identifies: Goals, Strategies, Tasks, Timelines, Responsible Parties 6.3 Submit Economic Development Work Plan to City Prepare Draft Work Plan and submit to City staff for comments. Submit one electronic and five hard copies of the final Work Plan after incorporation comments from City staff. 6.4 Present final Plan to City Council. ATTACHMENT 1 1Economic Base Study Initial Findings ATTACHMENT 2 2Home-Based Population 29% City Employment 71% Daytime Population Total City Employment 41,732 Home-Based Residents 16,930 Daytime Population 58,663 Jobs/Workforce Ratio Culver City 1.82 Los Angeles County 0.83 Culver City Economic Base Study ATTACHMENT 2 3Commercial Floorspace 33% 23% 21% 14% 5% 4% Retail Office Flex Industrial Accomodation Auto Retail Recreational|1010|1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Retail Office Flex Industrial Accomodation Auto Retail Recreational General Use Square Feet Retail 5,041,183 Office 3,431,989 Flex 3,195,819 Industrial 2,029,355 Accomodation 684,642 Auto Retail 523,385 Recreational 27,251 Culver City Economic Base Study ATTACHMENT 2 4Sales Tax Revenue Comparison Culver City Economic Base Study Total Revenue Population Revenue Per Capita Los Angeles County 1,074,728,821.00 $ 9,817,419 109.47 $ El Segundo 9,430,699 $ 16,476 572.39 $ Beverly Hills 18,059,598 $ 34,833 518.46 $ Culver City 14,204,493 $ 39,795 356.94 $ Santa Monica 24,656,180 $ 87,879 280.57 $ Torrance 37,583,456 $ 141,948 264.77 $ West Hollywood 7,978,491 $ 36,846 216.54 $ Manhattan Beach 7,051,891 $ 35,443 198.96 $ Malibu 1,962,803 $ 13,037 150.56 $ Hermosa Beach 2,658,251 $ 19,158 138.75 $ Gardena 7,203,054 $ 59,441 121.18 $ Redondo Beach 7,920,251 $ 65,598 120.74 $ Los Angeles City 351,744,263 $ 3,805,412 92.43 $ Hawthorne 7,204,520 $ 86,296 83.49 $ Long Beach 38,164,589 $ 472,734 80.73 $ Inglewood 8,409,013 $ 115,268 72.95 $ Lawndale 2,081,037 $ 32,463 64.10 $ ATTACHMENT 2 5Economic Sectors Culver City Economic Base Study Retail Information and Media Professional Services Manufacturing and Wholesale Food and Leisure Health Care FIRE Education Civic Construction Personal Services Transport and Shipping Rent and Lease Agriculture Utilities ATTACHMENT 2 60 1000 2000 3000 4000 5000 6000 7000 8000 Retail Information/Media Professional Services Manufacturing/Wholesale Food/Leisure Health Care FIRE Education Civic Construction/Contracting Personal Services Transportation/Shipping Rent/Lease Non-Classified Private Households Agriculture Utilities Establishments Employees Employment by Sector Culver City Economic Base Study ATTACHMENT 2 770% 2% 4% 12% 1% 1% 7% 3% Retail Information & Media Professional Manufacturing & Wholesale Food & Leisure Health Care F.I.R.E. Education Civic Construction & Contracting Personal Services Transportation & Shipping Rent & Lease Non-Classified Private Households Agriculture Utilities Sales Tax Revenues by Sector Culver City Economic Base Study ATTACHMENT 2 8Retail Sales Tax Comparison Culver City Economic Base Study Discount Stores (3) 90,352 $ 6.48 $ 4.40 $ Book Stores (5) 849 $ 5.04 $ 2.34 $ Large Format Stores 178,958 $ 5.76 $ 2.29 $ Garden Supply (7) 51,997 $ 3.62 $ 2.29 $ Gas Stations (16) 24,692 $ N/A 1.69 $ Auto Dealers (5) 129,641 $ N/A 1.48 $ Grocery - Liquor (5) 162,150 $ 3.10 $ 1.40 $ Men's Clothing (16) 4,119 $ 2.01 $ 1.39 $ Restaurants - Beer & Wine (21) 4,249 $ 2.39 $ 1.16 $ Fast Food (90) 2,376 $ 2.99 $ 1.11 $ Shoe Stores (28) 12,199 $ 2.80 $ 1.11 $ Jewelry Stores (20) 1,127 $ 2.33 $ 1.05 $ Department Stores 221,201 $ 1.52 $ 0.99 $ Women's Clothing (29) 3,193 $ 2.10 $ 0.83 $ Vitamins/Supplements (10) 3,338 $ 1.41 $ 0.73 $ Package Liquors (11) 1,557 $ 1.34 $ 0.70 $ Auto Repair (66) 1,230 $ 0.97 $ 0.50 $ Music Stores (4) 2,443 $ 1.12 $ 0.44 $ Electronics - Small Format (5) 2,326 $ 0.93 $ 0.42 $ Home Furnishings (50) 925 $ 0.33 $ 0.37 $ Bars (15) 2,170 $ 1.45 $ 0.30 $ Drug Stores (5) 14,723 $ 0.65 $ 0.29 $ Snacks (6) 641 $ 0.50 $ 0.23 $ Grocery Stores - Beer/Wine (10) 1,314 $ 0.40 $ 0.21 $ Coffee Houses (11) 387 $ 0.30 $ 0.16 $ Portrait Studios (11) 483 $ 0.28 $ 0.14 $ Hotels (4) 13,927 $ 0.06 $ 0.11 $ Donut Shops (5) 102 $ 0.16 $ 0.09 $ Internet Retail (5) 552 $ 0.14 $ 0.09 $ Grocery - No Alcohol (5) 299 $ 0.03 $ 0.02 $ Hair Salons (15) 38 $ 0.03 $ 0.02 $ Category Median Total Sales Tax ($) Median Sales Tax / SF of Floorspace Median Sales Tax / SF of Land Requirement ATTACHMENT 2 914% 16% 13% 8% 8% 6% 6% 3% 3% 2% 1% 1% 19% Retail Information & Media Professional Manufacturing & Wholesale Food & Leisure Health Care F.I.R.E. Education Civic Construction & Contracting Personal Services Transportation & Shipping Rent & Lease Non-Classified Private Households Agriculture Utilities Sector Employment Breakdown Culver City Economic Base Study ATTACHMENT 2 10Core Sectors Culver City Economic Base Study Information & Media Retail and Food & Leisure Sector Assets Professional Services Health Care Manufacturing/Wholesale FIRE Sector Deficits Corporate Headquarters & Regional Offices Effective Utilization of Commercial Land Research & Development Continuous Retail Corridors Activity Generators New Media Design Sector Opportunities ATTACHMENT 2 11Projects Priority* Duration Applicable Area** Responsible Party*** Work Program Tasks|1010|Increasing the Parking Supply H 3-12 months 12-36 months Citywide CDD/PW Short - Term - Reduced cost of metered parking (e.g., Uplander) - Council consideration required - Parking stall restriping (e.g., Uplander) - identify applicable streets, conduct outreach, implement - Automated surplus parking - research, Code amendment, Council consideration required Long - Term - Private parking iniatatives - identify properties, work with owner(s) - CFD public parking iniatatives/parking garages - identify properties, outreach, bond financing, create CFD|1010|Fiber Optic Infrastructure H 1-6 months 6-18 months FH, HT, Jefferson IT/PW/CDD Short- Term - Meet with Santa Monica to determine project scope - Identify specific areas/path, infrastructure and budget - Conduct outreach with businesses/property owners Long - Term - Council consideration and project implementation |1010|Marketing, Branding & Identity H 1-6 months 6-18 months Citywide ED/Consultant Short - Term - Conduct preliminary research Long - Term - Draft RFP, Council consideration (WW, HT, FH) - Outreach with City and individual districts - Create broad based City branding campaign and logo/materials, etc. - Brand individual districts Preliminary Summary of Outreach Comments & Follow-up Fox Hills Area Economic Development Strategy - Outreach Discussion Items ATTACHMENT 3 124 Area Amenities M 3-9 months 9-18 months FH, HT ED/Planning Short-Term - Temporary events, shops & services (monthly food trucks, farmers' markets, printing, dry-cleaning) Long - Term - Site identification - Land planning (identify new retail, office and open space areas) - Create a Main Street |1010|Local Wayfinding & Connectivity H 1-6 months 6-18 months Citywide, HT, DT CDD/PW/ Transportation/ Consultant Short Term -Wayfinding Long Term - Based on identity program, create wayfinding and regionally oriented signage - Bike lanes and bike sharing - Shuttle - Pedestrian paths|1010|Process Improvement Group M 6-18 months Citywide CDD/PW/Fire /Finance /City Manager Long Term - Expediting - Informational handouts (e.g., "How to Guide") - Master studies - Development fees - Review of City requirements, processes and solution orientation |1010|Business Associations H 3-9 months 9-24 months FH, HT, AD CDD/Consultant Short Term - Conduct business outreach Long Term - Council consideration - District establishment **Applicable Area - Fox Hills (FH), Hayden Tract (HT), Arts District (AD), Downtown (DT), West Washington (WW) *Staff Prioritization - H - Immediate Need, M - Future Need. ***Responsible Party - Community Development Department (CDD), Public Works (PW), Information Technology (IT), Economic Development (ED), City Attorney (CA) ATTACHMENT 3 13Projects Priority* Duration Applicable Area** Responsible Party*** Work Program Tasks|1010|Increasing the Parking Supply H 3-12 months 12-36 months Citywide CDD/PW Short - Term - Reduced cost of metered parking (e.g., Jefferson) - Council consideration required - Parking stall restriping (e.g., Stellar) - identify applicable streets, outreach, implementation - Automated surplus parking - research, Code amendment, Council consideration required Long - Term - Private parking Iniatatives - identify properties, work with owner(s) - CFD public parking iniatatives/parking garages - identify properties, outreach, bond financing, create CFD|1010|Fiber Optic Infrastructure H 1-6 months 6-18 months FH, HT, Jefferson IT/PW/CDD Short- Term - Meet with Santa Monica, project scope - Identify specific areas/path, infrastructure and budget - Conduct outreach with businesses/property owners Long - Term - Council consideration and project implementation |1010|Marketing, Branding & Identity H 1-6 months 6-18 months Citywide ED/Consultant Short - Term - Conduct preliminary research - Banner program research Long - Term - Draft RFP, Council consideration (WW, HT, FH) - Outreach with City and individual districts - Create broad based City branding campaign and logo/materials, etc. - Brand Individual districts East Washington - Hayden Tract - Downtown - Expo Preliminary Summary of Outreach Comments & Follow-up Economic Development Strategy - Outreach Discussion Items ATTACHMENT 3 144 Area Amenities M 3-9 months 9-18 months FH, HT ED/Planning Short-Term - Business attraction - Develop electronic email database - Temporary events, shops & services (art walks, monthly food trucks, farmers' markets, printing, dry-cleaning) Long - Term - Code amendments - Restaurant/service uses|1010|Local Wayfinding & Connectivity H 1 -6 months 6 -18 months Citywide CDD/PW/ Transportation/ Consultant Short Term - Proximity Maps (market adjacencies - Expo, HT, AD, DT, Ballona Creek) - Simple signage additions to existing wayfinding - Trial shuttle - Bike sharing Long Term - Wayfinding study, Council consideration, project implementation - Bike lanes & bike path (Ballona Creek) - Shuttle - Security (lighting from Expo station) - Pedestrian paths and other streetscape improvements|1010|Process Improvement Group M 6 -18 months Citywide CDD/PW/Fire /Finance /City Manager Long Term - Expediting - Informational handouts (e.g., "How to Guide") - Gross Receipt Tax review - Review of City requirements, processes and solution orientation |1010|Business Associations H 3 - 9 months 9 -24 months FH, HT, AD CDD/Consultant Short Term - Research Culver City Alliance (collaborative effort between the City and Chamber dedicated to nurturing a vibrant, healthy and profitable business climate in Culver City). - Conduct business outreach to determine interest Long Term - Council consideration - District(s) establishment ***Responsible Party - Community Development Department (CDD), Public Works (PW), Information Technology (IT), Economic Development (ED), City Attorney (CA) **Applicable Area - Fox Hills (FH), Hayden Tract (HT), Arts District (AD), Downtown (DT), West Washington (WW) *Staff Prioritization - H - Immediate Need, M - Future Need. ATTACHMENT 3 15Projects Priority* Duration Applicable Area** Responsible Party*** Work Program Tasks|1010|Increasing the Parking Supply H 3-12 months 12-36 months Citywide CDD/PW Short-Term - Reduced cost of metered parking (e.g., Washington near 405 in process) - Council consideration required - Email updates to affected businesses on parking projects Long - Term - Develop catalytic projects with surplus public parking |1010|Marketing, Branding & Identity H 1-6 months 6-18 months Citywide ED/Consultant Short - Term - Conduct preliminary research (west Washington is CC, freeway accessibility, destination, cache) Long - Term - Draft RFP, Council consideration (WW, HT, FH) - Outreach with City and individual districts - Create broad based City branding campaign and logo/materials, etc. - Brand Individual districts|1010|Area Amenities M 3-9 months 9-18 months FH, HT, WW ED/Planning Short-Term - Business attraction to expand success of improvement areas Long - Term - Streetscape improvements to city westerly boundary |1010|Local Wayfinding & Connectivity H 1 -6 months 6-18 months Citywide CDD/PW/ Transportation/ Consultant Short Term - Proximity maps - Bike sharing, bike sharrows Long Term - Wayfinding consultant, Council consideration (identify Culver City from 405 Freeway/marina) West Washington - Sepulveda Economic Development Strategy - Outreach Discussion Items Preliminary Summary of Outreach Comments & Follow-up ATTACHMENT 3 165 Process Improvement Group M 2-5 months 6-15 months Citywide CDD/PW/Fire /Finance /City Manager Short - Term - Economic development staff to assist projects through plan review and construction Long Term - Expediting (green iniatatives) - Informational handouts (e.g., "How to Guide") - Master studies (e.g., traffic) - Development fees (e.g., tree fund) - Review of City requirements, processes and solution orientation **Applicable Area - Fox Hills (FH), Hayden Tract (HT), Arts District (AD), Downtown (DT), West Washington (WW) ***Responsible Party - Community Development Department (CDD), Public Works (PW), Information Technology (IT), Economic Development (ED), City Attorney (CA) *Staff Prioritization - H - Immediate Need, M - Future Need. ATTACHMENT 3 17