HomeMy WebLinkAboutStaff Report 2410-3578 / Staff Report 2409-3533CITY OF PALO ALTO
Retail Committee
Regular Meeting
Wednesday, October 16, 2024
9:00 AM
Agenda Item
2.Economic Development Activity Report October 2024, Title Updated, Late Packet Report,
Presentation
Retail Committee
Staff Report
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: October 16, 2024
Report #:2410-3578
TITLE
Economic Development Activity Report
This report will be a late packet report published on October 10, 2024.
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Retail Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: October 16, 2024
Report #:2409-3533
TITLE
Economic Development Activity Report October 2024
RECOMMENDATION
Staff recommends that the Retail Committee receive this Economic Development Activity Report
for the month of October 2024.
EXECUTIVE SUMMARY
This October 2024 Economic Development Activity Report presents a snapshot of Economic
Development activities occurring and underway throughout the organization, including updates
on priority objectives approved by the City Council under Economic Development and Transition,
retail business reporting, as well as communication and coordination with internal and external
stakeholders.
BACKGROUND
The Palo Alto City Council approved Palo Alto’s comprehensive Economic Development Strategy
in August 2023. The full strategy is available on the City’s business website.1 As part of its 2024
priority setting process, the City Council once again selected Economic Development and
Transition. In March 2024, the City Council approved the workplan for this priority which
consisted of twelve objectives.2 These objectives were informed by the Economic Development
Strategy and other community needs. These objectives are the focus of the City’s economic
development work for 2024 and the quarter three updates on progress towards accomplishing
these objectives are included in this report.
1 The Economic Development Strategy is available online here:
https://www.cityofpaloalto.org/Business/Comprehensive-Economic-Development-Strategy
2 2024 Council Priorities and Objectives Q2 Report
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=5648&meetingTemplateType=2&comp
iledMeetingDocumentId=11540
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ANALYSIS
This report will provide quarter three Economic Development and Transition objective updates,
information on efforts underway to enhance the City’s ability to report out on retail businesses,
work underway to further enhance relationships with brokers and property owners, and
meetings, coordination, and communication efforts underway.
Quarter Three Updates on Economic Development and Transition Objectives
As discussed in the background section, the objectives within the City Council’s priority of
Economic Development and Transition represent the workplan for 2024. Advancing these
objectives represents the core function of the City’s central economic development staff. The
quarter three updates for Economic Development and Transition are included in this report as
Attachment A and will be transmitted to full City Council as part of the next quarterly report.
Engaging with New Retail Businesses
In order to better engage with retailers that are opening in town, Economic Development Staff
have been coordinating with Planning and Development Services to enhance communication and
collaboration.
This enhanced coordination has already yielded results through a meeting between Economic
Development, Planning and Development Services, and the new owners of 321 California
Avenue. This address was formerly Antonio’s Nut House. Staff will provide updates on the site as
they become available.
Planning and Development Services and Economic Development staff are also collaborating on
facilitating new business openings. Attachment B to this report provides some information about
the Certificate of Use and Occupancy and how it is used as well as a list of all applications for
Certificates of Use and Occupancy that indicated a ‘retail’ business type. Based on this report,
staff is now tracking and engaging on proposed new businesses, such as New Balance, Marugame
Udon, and Show De Carnes. Work is also underway for Miniso at 281 University, the former site
of Restoration Hardware.
Enhancing Relationships with Brokers and Property Owners – Broker Interviews
Staff has partnered with the Good City Co. to enhance relationships with commercial property
brokers and property owners in town. Since establishment of Economic Development staff,
outreach with these important stakeholders has been ongoing. To further enhance these
relationships, staff and Good City Co. have specifically asked brokers what they perceived as the
strengths and weaknesses of Palo Alto as a market for potential tenants.
These conversations took place throughout September and grouped into three themes: Palo
Alto’s reputation, changing trends in retail, and constraints and barriers. Many of the brokers
also offered thoughts on how to address issues in each area. It should be noted that much of the
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feedback affirms the discussion the Retail Committee held on September 183 regarding changes
to the City’s zoning code.
Palo Alto’s Reputation
Brokers identified that the City has a reputation as being difficult to work with, but that it
still remains a prime location for national retailers.
Some brokers reported having better experiences due to the efforts of staff over the past
year working on zoning and permitting items.
Changing Trends in Retail
Brokers discussed that more non-traditional retail uses want to locate in downtowns and
other neighborhood commercial areas.
Brokers noted that non-retail uses, including services, could bring back foot traffic to the
City’s commercial cores.
Constraints and Barriers:
Brokers view the current retail zoning regulations as too restrictive.
Brokers identified that when zoning does permit a business, delays in permit approvals
are costly for businesses.
o Once a lease is signed, any delay in opening leads to ongoing expenses without
the ability to start bringing in revenue.
Brokers also noted that parklets extending beyond the frontage of a storefront are
barriers to some new businesses.
The items raised by brokers are being addressed through continued work with City Council on
streamlining the City’s zoning approvals, as well as through site-specific facilitation of permitting
and timelines. The City will continue to engage brokers and other stakeholders and incorporate
feedback into ongoing work.
Meetings, Coordination, and Communication
Staff continues to hold meetings with external stakeholders, including the California Avenue
Merchant Meeting on September 25. During this meeting, Economic Development staff
partnered with Community Services staff to explore new event ideas and discuss ways to
optimize existing events with merchants. Merchants would like events during off-peak times
when foot traffic on the street is lower, and expressed a strong interest in year-round events.
Staff will continue to work with merchants on ways to activate the car-free street.
City Council approved a $40,000 contract amendment for 3rd Thursday on October 7,
implementing direction from the FY 2025 Budget. The 3rd Thursday event represents an
3 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14946
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important partnership between the city and community parties to activate the street. The event
consistently draws people to California Ave, and staff is continuing to further strengthen
connections between the event and local businesses.
In coordination with the posting of this report, staff will send out the October ‘Business Connect’
newsletter. This is also available on the City’s website (www.cityofpaloalto.org/business). This
month’s newsletter provides a reminder about this retail committee meeting, an update on
Caltrans’ El Camino Real repaving project, information about the minimum wage rate change,
upcoming workshops for small businesses, and an invitation to participate in the City’s ‘Uplift
Local’ holiday promotional campaign.
As in years’ past, the City will once again provide marketing for holiday promotions by local
businesses. The ‘Uplift Local’ holiday campaign encourages folks to eat, shop, and stay local
through the holidays. Promotions can be submitted through the form here
(bit.ly/UpliftLocalHolidayPromotions). Any local retailer is welcome to participate – discounts,
deals, and special offers are all eligible to be submitted. The campaign will run from the end of
November through January 17, 2025. To further raise awareness of the campaign, economic
development staff will be walking door-to-door in the City’s commercial districts and shopping
centers to discuss and leave fliers behind.
Internally, Economic Development staff continues to coordinate internally among various
stakeholders on topics including:
El Camino Real Repaving Project
Middlefield Fire property rehabilitation
Parklet Implementation
Utilities’ Sustainability Initiatives (such as Heat Pump HVAC Rebates)
Economic Development staff have also addressed inquiries from businesses on a range of topics
from minimum wage inquiries, rules for operating food trucks, and the City’s permitting process.
FISCAL/RESOURCE IMPACT
No additional funding is needed at this time for the actions described in this report. Additional
costs for project-specific investments will be refined and discussed with City Council when
appropriate as project elements continue to take shape. The City’s Economic Development and
Transition efforts may result in changes to revenues, which will be incorporated into future
projections and annual budget development as appropriate.
STAKEHOLDER ENGAGEMENT
Stakeholder engagement is a critical component of the City’s economic development function
and is discussed throughout the above report. Economic Development staff meets frequently
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with business stakeholders on the topics in this report and will continue to do so through
individual conversations, meetings with business districts, regular communication with the
Chamber of Commerce and through various other communication channels.
ENVIRONMENTAL REVIEW
Receipt and acceptance of this report is not a project under CEQA.
ATTACHMENTS
Attachment A: 2024 Economic Development & Transition Objectives Q3 Update
Attachment B: Permits (Retail) by type
APPROVED BY:
Ed Shikada, City Manager
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2024 Economic Development & Transition Objectives
Calendar Q3 Update
ED&T 1. Facilitate the establishment of sustainable business organization in the Cal Ave, DT, and
Midtown districts
Project Manager: Steve Guagliardo Lead Dept: CMO
Estimated Completion: Q4 Status: On Track
Project Description:
Work to meet monthly with local businesses on a ‘by district’ basis to increase communication,
collaboration, and foster business organizing in each district.
2024 Project Milestones:
Actively work with stakeholders in the California Ave, University Avenue Downtown, and Midtown
districts to convene on a regular basis and enhance communications between the City and business
stakeholders.
Quarterly Update:
California Avenue has been meeting monthly since December 2023. Staff convened University Ave
Downtown stakeholders in May and will continue to do so monthly. Midtown met monthly beginning
in the fall of 2023 but have asked for a brief pause so they can explore options to better organize
themselves. Staff will continue to partner with businesses in these districts to promote shared
stewardship of the City’s commercial districts.
ED&T 2. Engage Cal Ave merchants on high priority, rapid implementation projects, i.e. barrier
replacement, street cleaning, maintenance, access, signage and outdoor dining guidelines
Project Manager: Bruce Fukuji Lead Dept: CMO
Estimated Completion Q2* Status: Behind Schedule
Project Description: Work with California Avenue stakeholders on immediate improvements to the
street in parallel to the long-term car-free streetscape design.
2024 Project Milestones:
Project goals include Barrier Cover Replacement, enhanced street cleaning and maintenance, and
signage off El Camino Real directing folks to California Avenue parking garages, and outdoor dining
guidelines.
Quarterly Update:
Over the past few months, several short-term improvements have been made. The barrier cover
replacement has been completed, street cleaning and maintenance efforts have increased, and traffic
signage directing drivers to parking garages has been installed along El Camino Real. Bids have been
received for paving, bollard, planter, and planting projects. Design drawings for the paving, bollard,
and planter installations are being updated. Coordination with Caltrans is underway for stamped
crosswalks and bike lane markings at the El Camino Real intersection, while staff and Fehr & Peers are
completing the encroachment permit application to Caltrans. In July, meetings were held with
merchants to discuss their preferences for outdoor dining guidelines, and Urban Field Studio has been
tasked with preparing these guidelines.
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*Revised estimated completion date is now Q4.
ED&T 3. Develop permanent Cal Ave car-free streetscape design through engagement with Cal Ave
merchants and community stakeholders (h)
Project Manager: Bruce Fukuji Lead Dept: CMO
Estimated Completion Q3* Status: Behind Schedule
Project Description:
Develop a feasible, achievable community and business supported street design concept to modify
and permanently designate California Avenue as a car-free, bicycle friendly, outdoor dining, shopping
and public space environment, including guidelines for outdoor dining, signage and wayfinding.
2024 Project Milestones:
Develop near and long-term signage and wayfinding concepts; conduct merchant, resident, and
stakeholder engagement; analyze existing mobility and circulation; develop preliminary and
alternative streetscape design concepts and probable cost estimates; select and refine a preferred
design; evaluate legislative options; assess CEQA needs; and develop implementation plan.
Quarterly Update:
Staff and Urban Field Studio met with merchants to discuss their preferences for outdoor dining.
Additionally, staff addressed pedestrian and bicycle configurations as well as farmers’ market stall
layouts with Palo Alto Neighborhoods, the Pedestrian and Bicycle Advisory Committee (PABAC), and
the Farmers' Market. Urban Field Studio is completing the signage and wayfinding plan and will
prepare draft guidelines for outdoor patios. An online survey, which received 930 responses,
gathered community preferences for signage and street design elements. Staff are now developing
two street design alternatives incorporating feedback from the survey.
*Based on current progress, this objective will likely complete in Q4.
ED&T 4. Initiate preliminary analysis and stakeholder engagement on a car-free streetscape design
for Ramona Street
Project Manager: Ashwini Kantak Lead Dept: CMO
Estimated Completion: Q4 Status: On Track
Project Description:
Conduct environmental analysis and bring forward permanent closure of street for Council action.
Engage stakeholders and develop outdoor dining standards, wayfinding signage, and street
enhancements that reflect the historic designation of this portion of Ramona Street.
2024 Project Milestones:
Engage a consultant for CEQA and a consultant for the design and outdoor dining standards. Conduct
stakeholder engagement, perform environmental analysis to support permanent closure of a portion
of the street to vehicular traffic, and begin development of outdoor dining standards.
Quarterly Update:
Selected design consultant in late August and will be bringing contract approval forward for Council
consideration this year. CEQA analysis, stakeholder engagement, and development of outdoor dining
standards for Ramona will take place later in 2024.
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ED&T 5. Approve preferred alternative for the University Ave Streetscape Plan in preparation for
environmental review and funding options (i)
Project Manager: Holly Boyd Lead Dept: PW
Estimated Completion: Q3* Status: Behind Schedule
Project Description:
Develop and implement a streetscape plan for University Avenue that is approved by Council and
supported by property owners.
2024 Project Milestones:
Following approval of consultant contract amendment, approve concept plan and next steps to
secure capital funding.
Quarterly Update:
On June 3, 2024, Council provided direction on the vision, goals, design concepts and stakeholder
engagement strategy. Through summer 2024, staff is continuing to progress this work including
convening stakeholders to provide input on the streetscape project. The first stakeholder working
group meeting was held on September 10, staff will continue to engage this group and the
community at large. Updates on the project will continue to be provided through the Retail
Committee and staff anticipates that a preferred concept plan along with alternatives and cost
estimates will be presented to Council in December.
* Revised estimated completion is now Q4.
ED&T 6. Develop pre-approved parklet designs with stakeholder outreach, for Council approval
Project Manager: Ashwini Kantak Lead Dept: CMO
Estimated Completion: Q2 Status: Completed
Project Description:
To support business operations during the pandemic, outdoor dining and retail were allowed to
extend outdoors. A temporary parklet program within City rights-of-way was adopted by Council to
facilitate economic recovery efforts and provide guidance on structure regulations. The next phase of
the program formalizes the parklet program and creates an ongoing parklet ordinance.
2024 Project Milestones:
Develop a parklet prototype, conduct business engagement for Council adoption.
Quarterly Update:
Pre-approved parklet designs were approved by the Architecture Review Board in May 2024. On June
10, the City Council approved revisions to the ongoing parklet program regulations and the parklet
designs and draft user guide. Pre-approved parklet design shop drawings and associated user guide
were made available for use in mid-August.
ED&T 7. Implement ongoing parklet program in compliance with adopted parklet standards,
leveraging pre-approved designs (e)
Project Manager: Ashwini Kantak Lead Dept: CMO
Estimated Completion: Q4 Status: On Track
Project Description:
To support business operations during the pandemic, outdoor dining and retail were allowed to
extend outdoors. A temporary parklet program within City rights-of-way was adopted by Council to
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facilitate economic recovery efforts and provide guidance on structure regulations. The next phase of
the program formalizes the parklet program and creates an ongoing parklets ordinance.
2024 Project Milestones:
Develop pre-approved designs and user guide, conduct business engagement, and prepare an
ordinance for Council adoption.
Quarterly Update:
Updated standards for the ongoing parklet program were adopted by Council on June 10, 2024.
Through the summer the City worked with parklet operators to implement the ongoing parklets
program. Implementation and phased enforcement of the ongoing parklets program were carefully
coordinated to minimize disruption of outdoor dining in existing parklets through the summer
months and to allow re-built or new parklets to leverage the pre-approved designs.
ED&T 8. Advance Downtown Parking garage in conjunction with advancement of affordable
housing in the Downtown
Project Manager: Julia Knight Lead Dept: PDS
Estimated Completion: Q4 Status: On Track
Project Description:
Resume work on a new parking structure in the Downtown core on a City surface parking lot to help
attract visitors downtown. Pursue refined proposals for potential affordable housing development on
the Lytton / Kipling Lot T at 450 Lytton Avenue, or elsewhere, with parking for residents and the
public.
2024 Project Milestones:
Staff anticipates continuing through creation of a Request for Refined Proposals to identify a
development partner for this work.
Quarterly Update:
A request for refined proposals was sent in late September to the two firms that responded
to the initial request for information; responses are required by the end of October. It is
anticipated staff will bring the responses to Council for their consideration and potential
development partner selection in December.
ED&T 9. Complete build out of fiber pilot phase 1 with grid modernization
Project Manager: Alex Harris Lead Dept: UTL
Estimated Completion: Q4* Status: On Track
Project Description:
The City is advancing a pilot phase 1 of fiber with grid modernization to bring reliable and faster
broadband, high-speed internet services directly to companies and homes, supporting business and
remote workers. The City recently completed the pilot design for the Palo Alto Fiber project and
aligned with the electric grid modernization to capitalize on economies of scale and reduce
neighborhood disruptions.
2024 Project Milestones:
Complete buildout of fiber and grid modernization pilot. Issue RFP for Operating Support
Systems/Business Support Systems (OSS/BSS) and invitation for construction bids for phase 1
implementation.
Quarterly Update:
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The start of fiber construction in the pilot areas depends on two key milestones: the installation of
the fiber hut at the Colorado power station and the completion of pole replacement and preparation
work. Staff is finalizing the fiber hut design and collaborating with vendors to prepare the internal
building and fire permits for review. The fiber hut is expected to be installed by the end of Q1 2025.
Electric pole work, including pole replacements and hanging messenger wires, is currently underway
and on track for completion by Q1 2025. Fiber cables can be strung once this work is finished. The RFP
for the OSS/BSS software is also in progress. Existing fiber construction and IT networking equipment
contracts will be utilized to build out the pilot area, while new RFPs for the remaining areas in Phase 1
will be issued next year.
*Based on estimated progress, the objective may be completed by Q1 2025.
ED&T 10. Establish regular engagement with retail brokers in the area to create stronger
connections and understand how the City may be able to help promote available spaces
Project Manager: Steve Guagliardo Lead Dept: CMO
Estimated Completion: Q4 Status: On Track
Project Description:
Strengthen relationships with commercial brokers, address perceived deficiencies identified by
brokers in City processes, and work with brokers to reduce vacancies and increase economic vitality.
2024 Project Milestones:
Create a directory of commercial brokers operating in Palo Alto and develop a calendar of regular
outreach to brokers. Address information gaps that brokers identify through conversations.
Quarterly Update:
Staff has met with brokers numerous times on an ad hoc, issue-by-issue basis and raised the idea of a
more formal meeting with different brokerages. This has been met with interest and staff will
develop options to convene brokers with City staff to further strengthen relationships. This could
include a ‘broker breakfast’ or similar event.
Staff also conducted semi-structured interviews with several brokers. These interviews gave brokers a
forum to discuss how the City could better support their efforts. These discussions have already
produced positive outcomes, including increased broker engagement at our Retail Committee
meetings.
ED&T 11. Research and evaluate options for implementing a public-private small and local business
and incubation and vacant storefront program connecting landlords experiencing vacancy with
small and local-businesses that may be seeking brick and mortar spaces
Project Manager: Steve Guagliardo Lead Dept: CMO
Estimated Completion: Q3* Status: Behind Schedule
Project Description:
Explore options for activating vacant spaces, either through short-term activations of vacant
storefronts or coordinating longer-term public/private partnerships
2024 Project Milestones:
In 2024, staff will be researching other cities’ programs, including Santa Cruz Downtown POPS! as well
as San Francisco’s “Vacant to Vibrant” program.
Quarterly Update:
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Staff has begun preliminary research and is working to schedule interviews with Economic
Development counterparts in Santa Cruz and San Francisco to discuss each city’s respective program.
Staff anticipates discussing this topic with the Retail Committee in Q4 of 2024.
*Revised estimated completion date is Q4
ED&T 12. Conduct stakeholder outreach and present recommendations to Council for a citywide
retail zoning strategy and receive direction for zoning ordinance implementation.
Project Manager: Jonathan Lait Lead Dept: PDS
Estimated Completion: Q2* Status: Behind Schedule
Project Description:
Prepare a report identifying recommendations for Council consideration and direction to support a
thriving retail environment through zoning code changes related to retail land use definitions,
permitted or conditionally permitted uses, the retail preservation ordinance and related
recommendations from the Streetsense Economic Development Strategy Report.
Following acceptance of a consultant-prepared findings and strategy report, prepare an ordinance
amending the City’s zoning code as directed by Council.
2024 Project Milestones:
Continue consultant and staff work that involves evaluating the City’s current land use zoning
regulations in commercial areas, conduct outreach to learn more about local business experiences
and best practices regionally, prepare associated analysis, and review and incorporate Streetsense
Economic Development Strategy Report recommendations. Present findings and obtain a
recommendation from the Planning and Transportation Commission (PTC). Present findings and
strategy report to City Council and receive implementation direction. (Phase I: Q2)
Quarterly Update:
The Planning and Transportation reviewed the consultant recommendations on May 8, 2024 and
August 14, 2024. The PTC identified near-, mid- and long-term retail zoning recommendations. The
Council’s Retail Committee reviewed the recommendation on September 18, 2024. Staff anticipates
bringing the Ad Hoc’s immediate and near-term recommendations to the full Council for adoption by
the end of the year.
*Revised estimated completion date is now Q4.
Retail Building Permits By Type: July 2024 ‐ September 2024
Retail Permits by Type
Description Permit No Date Issued Address
Record
Status Tenant Name
Proposed
Use
Category
Proposed Use
Classification
Use and Occupancy 24BLD‐
01847
7/8/2024 2680 MIDDLEFIELD RD Permit Issued KIRK'S STEAK
BURGERS
Retail Eating and drinking
service
Use and Occupancy 24BLD‐
02253
8/14/2024 339 UNIVERSITY AV Finaled KHAZANA Retail Eating and drinking
service
Commercial
Remodel/Repair
24BLD‐
00421
7/8/2024 855 EL CAMINO REAL, STE 127 Permit Issued KOHLER Retail Shopping center
Commercial
Remodel/Repair 24BLD‐
00666
7/25/2024 180 EL CAMINO REAL, STE E711 Permit Issued PACIFIC CATCH
Bldg E #711
Retail Shopping center
Commercial
Remodel/Repair 22BLD‐
00920
7/26/2024 2103 EL CAMINO REAL Permit Issued SCHAPER / TASTY
DUMPLING AND
TEA
Retail Eating and drinking
service
Commercial
Remodel/Repair
23BLD‐
01544
8/8/2024 250 UNIVERSITY AV, STE 101 Permit Issued MARUWU SEICHA Retail Retail service
Commercial
Remodel/Repair 23BLD‐
02463
8/29/2024 180 EL CAMINO REAL, STE C10B Permit Issued LELAND
STANFORD JR
UNIVERSITY
BOARD OF TR
Retail Shopping center
Commercial
Remodel/Repair 24BLD‐
01402
9/6/2024 180 EL CAMINO REAL, STE 011 Permit Issued OUTERKNOWN Retail Shopping center
Commercial
Remodel/Repair
24BLD‐
02437
9/16/2024 3398 EL CAMINO REAL Permit Issued SHOW DE CARNES Retail Eating and drinking
service
Commercial
Remodel/Repair
24BLD‐
01595
9/23/2024 2190 W BAYSHORE RD, STE 170 Permit Issued "WOOF GANG
BAKERY AND
GROOMING"
Retail Retail service
Commercial Addition &
Remodel 23BLD‐
02502
7/9/2024 541 RAMONA ST Permit Issued THE PRO Retail Eating and drinking
service
Commercial Addition &
Remodel 24BLD‐
00930
7/23/2024 180 EL CAMINO REAL, STE V840 Permit Issued NEW BALANCE Retail Shopping center
Commercial Addition &
Remodel
24BLD‐
00736
9/10/2024 855 EL CAMINO REAL, STE 63 Permit Issued PAPER SOURCE Retail Shopping center
Commercial Addition &
Remodel
24BLD‐
00662
9/24/2024 383 UNIVERSITY AV Permit Issued MARUGAME
UDON
Retail Eating and drinking
service
The table above includes Certificates of Use and Occupancy issued to retailers between July and September 2024. The
Certificate of Use and Occupancy is required for all businesses operating within commercial tenant spaces. This enables
the City to review the proposed land use and assign occupancy limitations based on factors such as usage, square
footage, and exiting. The requirement for the Certificate of Use and Occupancy can be triggered by several factors,
including a new business, a name change, a change in ownership of the business or property, or a modification to the
size of the tenant space. A certificate of use and occupancy does not confer permission to occupy, which is granted when
the building permit is 'finaled'.
October 16, 2024 www.cityofpaloalto.org/business
Steve Guagliardo,
Assistant to the City Manager
Economic
Development
Activity Report –
October 2024
Retail Committee
Comprehensive Economic Development Strategy
(Approved August 2023)
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•Strategy included: 3 Guiding Principles → 10 Recommendations → 28 actions
•Priority actions in the approved Economic Development Strategy included in the City Council
2024 Economic Development & Transition objectives
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2024 Economic Development &Transition Objectives: Q3 Updates
5 Focus on Commercial Corridors, Downtown and California Ave
6 N Facilitate the establishment of sustainable business organization in the Cal Ave, DT, and Midtown districts
7 N Engage Cal Ave merchants on high priority, rapid implementation projects, i.e. barrier replacement, street cleaning, maintenance, access, signage and outdoor dining guidelines
8 R Develop permanent Cal Ave car-free steetscape design through engagement with Cal Ave merchants and community stakeholders (h)
9 N Initiate preliminary analysis and stakeholder engagement on a car-free streetscape design for Ramona Street
10 R Approve prefrerred alternative for the University Ave Streetscape Plan in preparation for environmental review and funding options (i)
11 N Develop pre-approved parklet designs with stakeholder outreach, for Council approval
12 R Implement ongoing parklet program in compliance with adopted parklet standards, leveraging pre-approved designs (e)
13 N Advance Downtown Parking garage in conjunction with advancement of affordable housing in the Downtown
14 N Advance complete build out of fiber pilot phase 1 with grid modernization
15 Support Economic Development and Business Transition
16 N Establish regular engagement with retail brokers in the area to create stronger connections and understand how the City may be able to help promote available spaces
17 N Research and evaluate options for implementing a public-private small and local business and incubation and vacant storefront program connecting landlords experiencing vacancy with
small and local-businesses that may be seeking brick and mortar spaces
18 R Conduct business stakeholder outreach and present to Council recommendations for a citywide retail zoning strategy and receive direction for zoning ordinance implementation (k)
R- Returning Objective N-New Objective
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Retail Building Permits by Type
Description Permit No Date Issued Address Tenant Name
Use and Occupancy 24BLD‐01847 7/8/20242680 MIDDLEFIELD RD KIRK'S STEAK BURGERS
Use and Occupancy 24BLD‐02253 8/14/2024 339 UNIVERSITY AV KHAZANA
Commercial Remodel/Repair 24BLD‐00421 7/8/2024855 EL CAMINO REAL, STE 127 KOHLER
Commercial Remodel/Repair 24BLD‐00666 7/25/2024 180 EL CAMINO REAL, STE E711 PACIFIC CATCH Bldg E #711
Commercial Remodel/Repair 22BLD‐00920 7/26/2024 2103 EL CAMINO REAL SCHAPER / TASTY DUMPLING AND TEA
Commercial Remodel/Repair 23BLD‐01544 8/8/2024250 UNIVERSITY AV, STE 101 MARUWU SEICHA
Commercial Remodel/Repair 23BLD‐02463 8/29/2024180 EL CAMINO REAL, STE C10B LELAND STANFORD JR UNIVERSITY BOARD
OF TR
Commercial Remodel/Repair 24BLD‐01402 9/6/2024180 EL CAMINO REAL, STE 011 OUTERKNOWN
Commercial Remodel/Repair 24BLD‐02437 9/16/20243398 EL CAMINO REAL SHOW DE CARNES
Commercial Remodel/Repair 24BLD‐01595 9/23/2024 2190 W BAYSHORE RD, STE 170 "WOOF GANG BAKERY AND GROOMING"
Commercial Addition & Remodel 23BLD‐02502 7/9/2024541 RAMONA ST THE PRO
Commercial Addition & Remodel 24BLD‐00930 7/23/2024180 EL CAMINO REAL, STE V840 NEW BALANCE
Commercial Addition & Remodel 24BLD‐00736 9/10/2024855 EL CAMINO REAL, STE 63 PAPER SOURCE
Commercial Addition & Remodel 24BLD‐00662 9/24/2024383 UNIVERSITY AV MARUGAME UDON
Coming Soon …
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Enhancing Relationships with Brokers and Property Owners
Staff has partnered with Good City Co. to strengthen relationships with
commercial property brokers and property owners.
Through conversations with brokers in town by assessing the strengths
and weaknesses of Palo Alto as a market.
Three Key themes emerged:
1.Palo Alto’s Reputation
2.Changing Trends in Retail
3.Constraints and Barriers
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Meetings, Coordination and Communication
▪California Avenue Monthly Merchant Meetings
o Topic covered: event activations
▪City Council Approved a $40k contract amendment for 3rdThursday
▪October Business Connect newsletter distributed
▪Uplift Local 2024 Holiday Campaign
▪Active internal and external initiatives underway:
o El Camino Real Repaving Project
o Middlefield Fire Property Rehabilitation
o Parklet Implementation
o Partnering with Good City Company to work with Brokers and Hoteliers
Steve Guagliardo
Assistant to the City Manager
Steve.Guagliardo@CityofPaloAlto.org
650-329-2261