HomeMy WebLinkAboutStaff Report 14907 (2)
City of Palo Alto (ID # 14907)
City Council Staff Report
Meeting Date: 11/7/2022 Report Type: Study Session
City of Palo Alto Page 1
Title: Comprehensive Economic Development Strategy Update and Study
Session
From: City Manager
Lead Department: City Manager
Recommendation
Staff recommends that the Council receive this report and discuss the economic
development activities currently underway.
Executive Summary
Several milestones have recently been completed reflecting the City’s priority of
economic recovery and transition, including selection and onboarding a consultant
(Streetsense) and hiring a dedicated staff position. This report and study session
highlight economic development activities underway, provides an update on preparation
of a comprehensive economic development strategy, and seeks Council input.
As recognized by the Council when it directed staff to draft a comprehensive economic
development strategy, Palo Alto has a unique economic ecosystem. This ecosystem is
dependent on interconnected elements including residents, local businesses, Stanford,
employees, large employers, business travelers, and other visitors. Through a
comprehensive economic development strategy, the City will work not only to maintain
the vibrancy of our local economic ecosystem, but also better position to attract and
retain businesses that contribute to a sustained, desired community experience.
Streetsense and their subcontractor HdL will present preliminary findings on emerging
global, national, and regional trends. This includes factors such as spending, retail
recovery trends, impacts from hybrid work schedules, and changes to travel – both
business and leisure – as the world emerges from the pandemic. This study session
provides Council an opportunity to participate in the information collection and
interpretation phase that informs the drafting of the comprehensive economic
development strategy. Perspectives on challenges, areas seen as opportunities, and
areas of key focus will be incorporated in staff and consultant work underway.
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Background
Since 2019, the City of Palo Alto has actively engaged in conversations regarding
economic development, economic vitality, and the need for a dedicated economic
development function in the City. The COVID-19 pandemic highlighted this, as the City
took actions to support business and engaged with community stakeholders. In 2021,
the City Council adopted Community and Economic Recovery as one of its four priorities
for that year. The workplan for that priority included refining the scope of the City’s
economic development activities.
In FY 2022, the City contracted with the Good City Company to develop a scope of work
to create an economic development strategy and an internal staffing plan. The goal of
the Economic Development strategy is to sustain and enhance the economic vitality of
Palo Alto through short-term and longer-term projects. The scope of work approved by
the City Council in 2021 (Attachment A) was incorporated into the consultant search
and the recruitment of a staff position.
In February 2022, the City Council reaffirmed this area as a priority, choosing Economic
Recovery and Transition as one of the four City Council priorities for 2022. On April 4,
the City Council approved a workplan through CMR 14103. That workplan included 13
different work items that are currently planned or underway. Brief updates on each of
those work items is included as Attachment B of this report; the full update on all work
items for each of the four City Council priorities has been included as a separate packet
item for November 7. Additionally, a number of other related initiatives are underway.
At the end of August 2022, the City hired its first staff position dedicated to economic
development since 2016. In September 2022, the City Council awarded the contract for
development of a comprehensive economic development strategy to Streetsense’s
public sector/non-profit team through CMR 14724.
A full timeline of the City’s previous discussions regarding economic development
through the past few years at City Council is included as Attachment C to this report.
Discussion
The November 7 Study Session highlights economic development activities underway,
provides an update on the drafting of a comprehensive economic development strategy,
and seeks Council input on that comprehensive strategy. Streetsense and their
subcontractor HdL will present their preliminary findings on emerging global, national,
and regional trends.
This study session provides Council an opportunity to participate in the Immersion and
Discovery (information collection and interpretation) phase and inform the drafting of
the comprehensive economic development strategy. Specifically, staff seeks Council
feedback on the following areas:
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- Areas presenting challenges for economic development,
- Areas seen as opportunities for economic development, and
- Areas of key focus and consensus for prioritizing resource allocation.
Feedback, especially areas of general consensus from Council will be incorporated into
the ongoing staff and consultant work. As a study session, staff anticipate broad
discussion on this important topic. In anticipation of wide range of interests, the Council
may wish to confirm consensus through “straw polls” on priorities.
Economic Development Activities Currently Underway
In addition to the 13 work items detailed in the Economic Recovery and Transition
workplan, a number of economic development activities are taking place throughout the
organization.
The recently hired Economic Development Coordinator has immediately contributed to
these efforts, helping departments connect and engage with partners. This has helped
departments align on various projects and enhanced outreach to various stakeholders,
including residents, businesses, and others.
Priorities Underway/Ongoing:
• In partnership with the Palo Alto Chamber of Commerce, staff are coordinating
with local restaurants and retail to increase community awareness about
opportunities to support local businesses throughout the holidays. Building on
experience gained in 2020 and 2021, the City will use “Uplift Local” platforms to
showcase holiday promotions to connect customers with local businesses.
Local businesses wishing to participate in this effort can contact
citymgr@cityofpaloalto.org with “Holiday Promotion” as the subject for more
information.
• Staff is in direct contact with various members of the community and connecting
with businesses and residents. This is being done through one-on-ones, small
groups, focus groups, and “on the street” visits. Engagements have resulted in
responding to questions and requests for assistance from the business
community, proactively understanding needs, coordinating and sharing
information about city projects and initiatives, and addressing new issues.
• Through this engagement, community feedback has been incorporated into
active City initiatives such as the permanent parklet program, alternatives for
California Avenue, and enhancing University Avenue.
Introduction to Streetsense: Comprehensive Economic Development Strategy
Streetsense and staff from HdL will share their in-progress work on November 7:
• The purpose and goals of the comprehensive economic development strategy,
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• The phases and timeline of the development of the City’s economic strategy, and
• Initial considerations and findings from work to date.
As noted, Streetsense will share their preliminary findings on emerging global, national,
and regional trends. This includes factors such as spending, retail trends, impacts from
hybrid work schedules, and changes to travel – both business and leisure – as the world
emerges from the pandemic.
Palo Alto’s geographic location in the heart of Silicon Valley complicates the challenge
the City faces. The City has not seen its daytime population return to pre-pandemic
levels. Furthermore, the City faces steep competition up and down the Peninsula and in
the greater Bay Area, not only for attracting employees but also for attracting and
retaining unique retail and restaurant experiences.
As part of addressing this competition, Streetsense will discuss the concept of
commercial districts’ ‘Life Cycles’. This discussion will highlight some attributes of
competitive “Class A” commercial districts compared to Palo Alto’s districts. Streetsense
will provide any needed clarification on their preliminary findings, their process, and
timeline.
This study session format provides a forum for engagement with Council on this
important strategy development process and inform next steps.
As Council approved in the RFP scope of work and subsequent contract, Streetsense’s
process includes three phases:
1) Immersion and Discovery (current phase),
2) Diagnostics - includes Strengths, Weaknesses, Opportunities, and Threats
(SWOT) assessment, and
3) Recommended Strategies - the comprehensive economic development strategy.
As part of the Immersion and Discovery (information collection and interpretation)
phase, in September StreetSense collected observations and conducted interviews with
stakeholders including residents, businesses, City staff, and others. Streetsense has also
engaged additional stakeholders through phone calls, video calls, and e-mail. They have
been reviewing numerous documents such as the Comprehensive Plan and pandemic-
period reports, and synthesizing how global, national, and regional trends are impacting
Palo Alto.
Timeline
Streetsense anticipates completing all three phases outlined in the scope of services by
summer 2023. At the study session, Streetsense will review the timeline, interim
milestones and work products for creating a comprehensive economic development
strategy. Staff anticipates the next discussion with the Council will be scheduled in the
first quarter of calendar year 2023 and will focus on the Diagnostics phase.
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Resource Impact
Although the discussion on November 7 is not anticipated to affect immediate resource
needs, the resources allocated to Economic Development are an important
consideration. The City has ongoing funding for the Economic Development coordinator
role and some ongoing funding for limited consultant support (less than $25,000
annually). As the City refines the scope of its economic development function, scaling to
align may require further budgetary action.
Staff will work with Streetsense to develop proposals that appropriately scale the City’s
economic development function to align with Council’s feedback and will return with
proposals for consideration through the development of the FY 2024 budget.
Policy Implications
The discussion, and ultimate adoption, of a comprehensive economic development
strategy is consistent with existing City policies, including the Business and Economics
Element of the Comprehensive Plan. That element of the comprehensive plan includes
goals and polices related to a thriving economy, compatability and interdependence of
businesses, a culture of innovation and business diversity, efficiency and predicatability
from the City government, and retail centers and business employment districts. This
work also addresses the 2022 Council priority of Economic Recovery and Transition.
Stakeholder Engagement
Community stakeholders, including residents and representatives from various business
sectors, including restaurants, retailers, hoteliers, property owners, and others, have
been engaged consistently through the City’s recent work on economic development.
Throughout the COVID-19 pandemic, the City hosted roundtables with local businesses
to hear areas of concern, connected businesses with grant opportunities, and created
new channels to connect local patrons with local businesses.
As the City transitions out of the pandemic, staff will continue to engage residents and
businesses in meaningful dialogue to help inform and maintain the City’s economic
vibrancy.
Environmental Review
Neither the City’s current economic development activities nor development of a
comprehensive economic development strategy of the type anticipated here will directly
or indirectly cause physical changes to the environment and therefore this study session
is not a project under the California Environmental Quality Act (CEQA).
Attachments:
• Attachment A - Streetsense Scope of Services
• Attachment B - Economic Recovery and Transition Priority Workplan Updates
• Attachment C - Previous Economic Development CMRs
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EXHIBIT A SCOPE OF SERVICES
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”.
CONSULTANT will produce an Economic Development Workplan for the City of Palo Alto, a roadmap for interventions and strategies that can be implemented in the near-term (within three years) and iterated upon for longer-term success by providing the services outlined below: Task 1.0 – Define Economic Development Goals and deliver a summary memo of the goal setting workshop
Task 1.1 – Document Review
•CONSULTANT will review any publicly available data and relevant background data, including
–but not limited to - area and comprehensive plans, business surveys, previous
demographic/market studies, and real estate industry reports (including that of competitive
submarkets) to inform understanding of conditions in Palo Alto.
•CONSULTANT will seek to identify gaps in background information and resolve with the CITY
at kickoff meeting.
Task 1.2 – Site Visit
•CONSULTANT will conduct a site visit to gather field data based on predefined study area
boundaries, including an observational assessment of the public realm public
realm/storefronts/access/visibility.
•CONSULTANT’s site visit will include stakeholder interviews.
Task 1.3 – Kickoff Meeting
•CONSULTANT will facilitate a kickoff meeting with all project stakeholders (as mutually
determined with the CITY) to establish baseline expectations for ongoing work.
•Kickoff meeting will cover topics including: communication channels to ensure timely and high-
quality delivery of project tasks, defining key commercial districts, discussing aspirational
markets for comparison, and aligning project objective s methodology, schedule, deliverables,
and protocols.
•Project managers will be identified for both the CONSULTANT and the CITY.
Task 1.4 – Goal Setting Workshop
•CONSULTANT will facilitate a visioning session with the steering committee of key
stakeholders in the City of Palo Alto to determine a set of measurable economic development
goals (or Key Performance Indicators (KPIs).
•CONSULTANT will work to elicit feedback from stakeholders on KPIs, which typically measure
impact through numbers or ratios, e.g. a 20% increase in overnight stays.
•The workshop will also identify potential tools for measuring those goals and lead partners to
measure the KPIs.
Task 2.0 – Economic Conditions Snapshot; Strengths, Weaknesses, Opportunities, and Threats (SWOT)
Matrix; Presentation Deck for public Distribution
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ATTACHMENT A - STREETSENSE SCOPE OF SERVICES
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Task 2.1 – Physical Environment Assessment
• CONSULTANT will gather field data on existing conditions of key commercial districts and
corridors through site visit and stakeholder conversations
• CONSULTANT will assess major economic assets such as office campuses, manufacturing
facilities, lodging facilities, and visitor destinations.
• CONSULTANT will assess the strengths and weaknesses of the public realm, private, realm, and
accessibility/visibility of each economic cluster
o CONSULTANT will evaluate the public realm, including roadways, sidewalks, rails &
trails, and public spaces that support access to, and mobility within and across,
communities
o CONSULTANT’S evaluation of the public realm shall include conditions and
accessibility of existing open spaces that offer people places to gather and participate in
economic activity
o CONSULTANT will evaluate the private realm, including private assets, properties and
buildings, and the balance of the physical environment.
o CONSULTANT’S evaluation of the private realm will consider existing built assets and
the location and site location characteristics (access to customer base, proximity to
existing nodes, the ability to create sufficient concentration of offerings to support a new
node) of underutilized opportunity sites as well as underlying ownership.
Task 2.2. – Business Environment (Economic Activity) Assessment
• CONSULTANT will explore and analyze the “Drivers” of the Palo Alto economy, including the
anchors/destinations, concentrations/clusters of business activity (economic clusters), and local
business mix and employment
• CONSULTANT will assess each cluster and develop asset maps that identify key business
anchors (Across sectors and industries) that drive economic activity and influence tenant mix
within each area.
• CONSULTANT will analyze the sales tax growth/contraction against baselines before COVID
and during COVID and conduct an economic base analysis to estimate general rate of growth of
business activity across sectors
• CONSULTANT will determine if there are any competitive sectors/industries that would benefit
from a focused strategy by the CITY in the future
Task 2.3 – Commercial Real Estate Market Assessment
• CONSULTANT will analyze qualitative and quantitative data to understand the supply and
demand of commercial real estate in the region
• CONSULTANT will identify if, and how much, latent demand exists in the Palo Alto submarket
for new office, retail, and industrial development based on historic real estate performance
• CONSULTANT will factor in submarket vacancy rates, construction rates, product type, price
points, quality of space, and future competition into its analysis of latent demand
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Task 2.4 – Produce Economic Development Brochure
• CONSULTANT will produce a succinct (two (2) to ten (10) page) brochure that can serve as a
marketing tool to help generate interest in Palo Alto as a business location from potential
businesses, investors, funders, and founders.
Task 2.5 – Regulatory/Administrative Capacity Assessment
• CONSULTANT will analyze the organizational capacity of the CITY to execute and implement
economic development programs and initiatives
• CONSULTANT will identify local leaders and partners (including anchor businesses and
institutions such as local non-profit organizations) engaged in economic development
• CONSULTANT will identify additional resources and funding that may be needed to
successfully support implementation of strategies
• CONSULTANT will assess the existing regulatory framework (including, but not limited to,
zoning and permitting/licensing processes) that shape what can be built where
o CONSULTANT will identify aspects of the regulatory framework that may impeded
economic development or encourage market distortion
• CONSULTANT will research and identify other operating challenges to local businesses through
stakeholder conversations and business survey input
Task 2.6 – SWOT Matrix of Assessment Findings
• CONSULTANT will organize key findings from the assessments of the physical environment,
businesses environment, commercial real estate, and administrative capacity into a SWOT matrix
• CONSULTANT will facilitate a discussion of the SWOT matrix with the CITY to focus on
priority areas for improvement
Task 2.7 – City Council Presentations
• CONSULTANT will present Economic Scan to City Council and conduct City Council outreach
through coordination with CITY’s project manager
• CONSULTANT will provide at least three City Council updates throughout the process at City
Council meetings
Task 3.0 - Summary Memo of Global and National Economic Trends
• CONSULTANT will research industry-wide changes in business operations, business travel, and
trends that serve as indicators for how consumer tastes/preferences are evolving
• CONSULTANT’s trend assessment will analyze secondary data from a variety of sources,
including, but not limited to,
o Real Estate Brokerage Experts (via CBRE)
o Real Estate Market Outlook Reports (e.g. JLL, Colliers, Newmark)
o San Francisco Travel Association
o World Travel and Tourism Council
o Destination Analysts
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o Tourism Economics (Annual Economic Impact Reports)
o Destination Palo Alto’s subscription data
o Other publicly available reporting
Task 4.0 – Draft Report of Strategies for Economic Development, Revisions, and Final Report of Strategies for Economic Development Task 4.1 – Research and Draft Report of Strategies for Economic Development
• CONSULTANT will draft an economic development plan and strategy that prioritizes readily
implementable short- and long-term actions and projects.
• CONSULTANT will clearly outline key steps that the CITY and stakeholders can take to
implement any project or recommendation.
• CONSULTANT will include geographic focus areas of investment which may include economic
clusters or specific opportunity parcels or sites.
• CONSULTANT’s draft report recommendations may include, but is not limited to, the following
areas:
o Redevelopment in the public realm: Includes any improvements to existing transportation
networks, public utility extensions, placemaking/tactical improvements, public space
capital projects, and signage and wayfinding.
o Redevelopment in the Private realm: includes programmatic interventions to support
and/or incentivize private sector investments in real property improvements.
o Business retention and attraction: includes programs that support business attraction,
expansions, and relocation (e.g. workforce training, relocation incentives, and other)
o Marketing and Promotion: includes tolls that will increase visits and raise awareness of
the City’s assets and retail/dining offerings, particularly through digital platforms.
o Administrative capacity: includes strategies to address issues of capacity that might
otherwise impede implementation of strategies (including capacity-building programs
and partnerships with anchor businesses) as well as recommendations to address
regulatory or zoning issues that may impede business growth and vitality.
Task 4.2 – Feedback from the City of Palo Alto
• CITY shall provide feedback on the draft report provided by CONSULTANT
• CONSULTANT will facilitate a City Council working session on draft strategies after CITY
feedback has been incorporated
Task 4.3 – Finalize and Present Report of Strategies for Economic Development
• CONSULTANT will incorporate feedback from the working session City Council to create a
Final Report on Strategies for Economic Development
Task 5.0 – Research and Draft Retail Market Analysis Report, Draft Tax Analysis Report, Revisions, and Final Market Analysis Report and Final Tax Analysis Report
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Task 5.1 – Research and Draft Retail Market Analysis Report and Draft Tax Analysis Report
• CONSULTANT will identify additional revenue opportunities through Market Analysis Report
and Draft and Final Tax Analysis Report
• CONSULTANT will analyze market-supported retail demand for the past five years through the
City’s core commercial cores (Downtown, Stanford Shopping Center, California Ave., and
neighborhood shopping centers)
• CONSULTANT will develop a comprehensive analysis of sales tax performance (including a
breakdown by major business categories and across each commercial core)
• CONSULTANT will transmit draft versions of:
o A sales tax gap leakage analysis: includes consumer demand and market supply
assessment to evaluate sales tax performance within Palo Alto and ability to draw
consumers from nearby communities and the greater trade area.
o Assessment of Palo Alto’s major sources of tax revenue (sales tax, property tax, and
transient occupancy tax) for pre-pandemic revenues, current revenues, and a three-year
projection.
o A SWOT analysis for Palo Alto to identify challenges and constraints along with
opportunities to recognize going challenges as well as future threats to the Palo Alto retail
marketplace
o A void analysis to identify market opportunities for Palo Alto to attract new retail and
restaurant possibilities that would be a good fit with the Palo Alto market place and
market analytics make-up
• CONSULTANT shall submit draft reports to the City of Palo Alto
Task 5.2 – Feedback from the City of Palo Alto
• CITY will provide feedback on draft reports to the CONSULTANT
Task 5.3 – Finalize Retail Market Analysis Report and Tax Analysis Report
• CONSULTANT will incorporate CITY feedback into final versions of Retail Market Analysis
Report and Tax Analysis Report
Task 6.0 – Research and Produce Draft and Final Hospitality Market Analysis Report Task 6.1 – Research and Draft Hospitality Market Analysis Report
• CONSULTANT will investigate and determine potential for hotel development in core
commercial districts based on diagnostic assessment of submarket
o Assessment will consider quality and quantity of existing hotel rooms, year-over-year
occupancy rates, price points, and future competitions
• CONSULTANT will determine any viable demand gaps in the market and provide estimates for
RevPAR and occupancy levels
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• CONSULTANT will develop a comprehensive set of recommendations to reinforce the City’s
branding to travelers, increase overnight stays and visitor spending, and bolster existing
community assets and priorities
• CONSULTANT will research questions around changes in corporate travel policies through
iterative conversations and a survey instrument with key companies, institutions, and
stakeholders.
• CONSULTANT will convene a focus group discussion with corporate stakeholders to uncover
potential competitive advantages from the perspective of business travel.
• CONSULTANT will prepare a draft a report synthesizing findings related to the hospitality
market which may include, but is not necessarily limited to:
o Strategies for growing demand from visitors: includes raising awareness of existing
assets through marketing, promotion, and branding, as well as strategies that improve the
accessibility and visibility of the region’s offerings.
o Strategies to improve supply of visitors and hospitality: includes the quality and quantity
of offerings that are unique to Palo Alto, with an emphasis on strategic destination drivers
that reinforce the brand of Palo Alto and further differentiate the City from other regional
destinations. May include capital investments to specific assets and/or public realm
enhancements that improve the visitor experience.
Task 6.2 – Feedback from the City of Palo Alto
• CITY will provide feedback on the draft report to the CONSULTANT
Task 6.3 Finalize Hospitality Market Analysis Report
• CONSULTANT will incorporate CITY feedback into final version of Hospitality Market
Analysis Report
Task 7.0 – Summary Memo and Business Profile of the City based on business registry
Task 7.1 – Assess Business Registry
• CONSULTANT will analyze and identify ‘gaps’ in the retail mix through examining the existing
supply/landscape of businesses
• CONSULTANT will identify gaps in information currently detailed in the business registry for
future revisions
Task 7.2 – Business Profile for the City of Palo Alto
• CONSULTANT will compare information from the business registry and other research to
accurately determine any unmet market demand and potential new retail opportunities/expansions
• CONSULTANT will prepare a summary memo detailing their findings
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ATTACHMENT A - STREETSENSE SCOPE OF SERVICES
ERT ‐ ECONOMIC RECOVERY AND TRANSITION
ERT1. Downtown Business Improvement District (BID)
Status: On Track Progress: 25%
Update: Staff is working in partnership with the Chamber to re‐establish support for the BID, and
explore options for the future of BID management, and the re‐establishment of the BID levy. On June 6,
2022 Council voted not to levy assessments against businesses within the Downtown Palo Alto Business
Improvement District or FY 2023. Staff will continue work on this item and return to City Council for
consideration of next steps for FY 2024.
ERT2. Economic Development Request for Proposal (RFP)
Status: Completed Progress: 100%
Update: The contract for the development of a near‐term and longer‐term Economic Development
Strategy was brought before the City Council on September 12, 2022 and approved unanimously.
Streetsense was the firm selected and they will be participating in a study session to discuss the creation
of a comprehensive economic development strategy at the City Council meeting on November 7.
ERT3. Economic Development Committees for Downtown and California Avenue
Status: On Track Progress: 60%
Update: Staff is working on the establishment of Economic Development Committees, one focused on
the University Avenue downtown area and another for the California Avenue area. Outreach to
potential members of the committees has begun and scheduling of the first committee meetings will be
the next step.
ERT4. Retail and Retail‐Like Land Uses and CUP Thresholds:
Status: On Track Progress: 85%
Update: Staff brought a permanent ordinance before the Planning & Transportation Commission (PTC)
for their recommendation to City Council on August 31, 2022. PTC recommended extending the interim
ordinance, allowing more time to holistically address the City’s retail recovery strategy before adopting
ATTACHMENT B: ECONOMIC RECOVERY AND TRANSITION PRIORITY WORKPLAN UPDATES
a permanent ordinance. It is anticipated that this will be brought before City Council in November 2022
with a recommendation to conclude this effort and focus more on ERT12 and ERT13.
ERT5. University Avenue Streetscape Design Project
Status: On Track Progress: 10%
Update: Staff has begun the work to implement the community engagement strategy, complete data
collection, develop concept alternatives, and prepare cost estimates, per the scope of work approved by
Council in the consultant contract.
ERT6. California Avenue Closure (closed to vehicular traffic)
Status: On Track Progress: 40%
Update: Council has asked staff to return with a short‐term recommendation on an interim design
strategy for California Avenue to explore whether the streets should remain closed or should open to
vehicular traffic. This work is underway, and staff anticipates returning to City Council with a progress
update in winter 2022 or early 2023. A longer‐term recommendation is pending a consultant
Alternatives Analysis study.
ERT7. Ramona Street Closure (closed to vehicular traffic)
Status: On Track Progress: 40%
Update: Council has also asked staff to return with a short‐term recommendation on whether Ramona
should remain closed to vehicular traffic or should open to vehicular traffic. Staff anticipates that the
work for Ramona will be in tandem with the work for California Ave., building on lessons learned from
the pandemic and preliminary engagement. As with California Ave., this work is underway, and staff
anticipates returning to City Council with a progress update in winter 2022 or early 2023. A longer‐term
recommendation for Ramona is also pending a consultant Alternatives Analysis study.
ERT8. Build Out Fiber Backbone as Foundation for Fiber‐to‐the‐Premises (FTTP)
Status: On Track Progress: 25%
Update: On November 2, 2022 staff will present options for next steps to the Utilities Advisory
Committee (CMR 14845) and will incorporate their feedback and direction into the item scheduled for
City Council December 19, 2022 (CMR 14800). A joint Council/Utilities Advisory Committee study
session was previously held on September 19, 2022. At that meeting, the Council and Committee
discussed risks and advantages of City provided fiber and approved the current direction.
ERT9. Electronic Plan Review RFP to integrate with Accela
Status: On Track Progress: 60%
Update: A Request for Proposals (RFP) was posted on August 22, 2022; vendor selection is targeted for
the end of November. The City Council action to award the contract is expected to be brought forward
in the first quarter of 2023.
ATTACHMENT B: ECONOMIC RECOVERY AND TRANSITION PRIORITY WORKPLAN UPDATES
ERT10. Development of New Parking Facilities in the University Avenue Downtown (potential BMR
site)
Status: On Track Progress: 50%
Update: The Request for Information (RFI) has been drafted and is expected to be posted no later than
December 2022, with Council review expected in the first quarter of 2023.
ERT11. California Avenue Subscription Parking Program (Commercial Uses)
Status: Dropped Progress: 0%
Update: Recent changes to State law (AB 2097) make this effort unnecessary. Commercial and
residential land uses on California Avenue within ½ mile of qualifying public transit (Caltrain & certain
bus lines) are exempt from parking requirements. Land uses, starting January 1, 2023, can intensify
without the need of a subscription parking program. This program was intended to create an
opportunity for restaurants and other more parking‐intensive land uses to establish on California Ave
utilizing existing public parking resources.
ERT12. Citywide Retail Recovery Ordinance
Status: On Track Progress: 25%
Update: As part of the development of a comprehensive economic development strategy (ERT2)
Streetsense will conduct a retail market analysis. Data gathering, including stakeholder interviews, are
underway. The report will outline retail best practices and recommendations and is expected to be
completed in the summer of 2023.
ERT13. Retail Preservation
Status: On Track Progress: 25%
Update: As part of the Citywide Retail and Recovery effort, a consultant is reviewing the City’s retail
preservation policy and identifying potential implications that support or hinder the City’s policy
interests and recommendations for change as appropriate. Consultant work is underway and expected
to be shared with the Planning and Transportation commission by end of the second quarter 2023.
ATTACHMENT B: ECONOMIC RECOVERY AND TRANSITION PRIORITY WORKPLAN UPDATES
ATTACHMENT C – PREVIOUS ECON. DEV CMRS
Previous City Manager Reports Related to Economic Development
The dates of some of the previous conversations with the City Council regarding Economic
Development, dating back to November 30, 2020, are included below. These conversations shaped and
informed the scope of services included the Request for Proposals.
Following the date, a brief description, the CMR number, and a link to the pertinent report is included.
November 30, 2020 – Study Session on Community and Economic Recovery Strategies (CMR 11790)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2020-2/id-11790.pdf
January 19, 2021 – Feedback and Direction on Economic Recovery Workplan (CMR 11877)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2021/id-11877.pdf
February 2021 – The City Council adopted its calendar year 2021 Priorities, including Community and
Economic Recovery (CMR 11957)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2021/id-11957.pdf
March 22, 2021 – Community and Economic Recovery workplan adopted including item “G: Refine the
scope and breadth of the city’s economic support activities” (CMR 12111)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2021/id-12111.pdf
May 3, 2021 – Update on Community and Economic Recovery (CMR 12206)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2021/id-12206.pdf
June 1, 2021 – Discussion and Direction on the Scope of Economic Development (CMR 12232)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2021/id-12232.pdf
June 21, 2021 – Update #2 Community and Economic Recovery Workplan (CMR 12362)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2021/id-12362.pdf
September 13, 2021 – Discuss and Provide Direction on a Request for Proposals (RFP) for an Economic
Development Strategy Consultant and an Internal Staffing Plan to Support Economic Development
Issues (CMR 13433)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-
council-agendas-minutes/2021/09-september/20210913/20210913pccsm-amended-linked-final-
council-qa.pdf
April 4, 2022 – Review and Approval of Workplans Implementing 2022 City Council Priorities (CMR
14103)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-
council-agendas-minutes/2022/20220404/20220404pccsmamendedlinked1.pdf
ATTACHMENT C – PREVIOUS ECON. DEV CMRS
September 12, 2022 – Approval of Contract C23183740 with StreetSense CA, LLC for Economic
Development Consulting Services (CMR 14724)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-
council-agendas-minutes/2022/20220912/20220912pccsm-amended-v2.pdf