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RETAIL COMMITTEERegular MeetingWednesday, October 16, 2024Community Meeting Room & Hybrid9:00 AMAmended AgendaAmended agenda items appear below in REDRetail Committee meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. The meeting will be broadcast onCable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamedto Midpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/85845544145)Meeting ID: 858 4554 4145 Phone: 1(669)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heardfor 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.Public Comments for agendized items will be accepted both in person and via Zoom for up tothree minutes or an amount of time determined by the Chair. Requests to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item you are referencing in your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other types of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. CALL TO ORDER PUBLIC COMMENT Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. ACTION ITEMS 1.Planning for November Study Session on Filling Retail Vacancies, Title Updated, Late Packet Report 2.Economic Development Activity Report October 2024, Title Updated, Late Packet Report FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s) ADJOURNMENT PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments for agendized items using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4. Spoken public comments for agendized items using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 858‐4554‐4145 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. California Government Code §84308, commonly referred to as the "Levine Act," prohibits an elected official of a local government agency from participating in a proceeding involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $250 from a party or participant, including their agents, to the proceeding within the last 12 months. A “license, permit, or other entitlement for use” includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures. A “party” is a person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. A “participant” is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a proceeding, and you have made a campaign contribution to a Council Member exceeding $250 made within the last 12 months, you must disclose the campaign contribution before making your comments. 2 Regular Meeting October 16, 2024 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. Wh>/KDDEd/E^dZhd/KE^ DĞŵďĞƌƐŽĨƚŚĞWƵďůŝĐŵĂǇƉƌŽǀŝĚĞƉƵďůŝĐĐŽŵŵĞŶƚƐƚŽƚĞůĞĐŽŶĨĞƌĞŶĐĞŵĞĞƚŝŶŐƐǀŝĂĞŵĂŝů͕ ƚĞůĞĐŽŶĨĞƌĞŶĐĞ͕ŽƌďǇƉŚŽŶĞ͘ tƌŝƚƚĞŶƉƵďůŝĐĐŽŵŵĞŶƚƐŵĂǇďĞƐƵďŵŝƚƚĞĚďǇĞŵĂŝůƚŽĐŝƚǇ͘ĐŽƵŶĐŝůΛĐŝƚǇŽĨƉĂůŽĂůƚŽ͘ŽƌŐ͘ &ŽƌŝŶƉĞƌƐŽŶƉƵďůŝĐĐŽŵŵĞŶƚƐƉůĞĂƐĞĐŽŵƉůĞƚĞĂƐƉĞĂŬĞƌƌĞƋƵĞƐƚĐĂƌĚůŽĐĂƚĞĚŽŶƚŚĞ ƚĂďůĞĂƚƚŚĞĞŶƚƌĂŶĐĞƚŽƚŚĞŽƵŶĐŝůŚĂŵďĞƌƐĂŶĚĚĞůŝǀĞƌŝƚƚŽƚŚĞůĞƌŬƉƌŝŽƌƚŽ ĚŝƐĐƵƐƐŝŽŶŽĨƚŚĞŝƚĞŵ͘ ^ƉŽŬĞŶƉƵďůŝĐĐŽŵŵĞŶƚƐĨŽƌĂŐĞŶĚŝǌĞĚŝƚĞŵƐƵƐŝŶŐĂĐŽŵƉƵƚĞƌŽƌƐŵĂƌƚƉŚŽŶĞǁŝůů ďĞĂĐĐĞƉƚĞĚƚŚƌŽƵŐŚƚŚĞƚĞůĞĐŽŶĨĞƌĞŶĐĞŵĞĞƚŝŶŐ͘dŽĂĚĚƌĞƐƐƚŚĞŽƵŶĐŝů͕ĐůŝĐŬŽŶƚŚĞůŝŶŬ ďĞůŽǁƚŽĂĐĐĞƐƐĂŽŽŵͲďĂƐĞĚŵĞĞƚŝŶŐ͘WůĞĂƐĞƌĞĂĚƚŚĞĨŽůůŽǁŝŶŐŝŶƐƚƌƵĐƚŝŽŶƐĐĂƌĞĨƵůůǇ͘ zŽƵŵĂǇĚŽǁŶůŽĂĚƚŚĞŽŽŵĐůŝĞŶƚŽƌĐŽŶŶĞĐƚƚŽƚŚĞŵĞĞƚŝŶŐŝŶͲďƌŽǁƐĞƌ͘/ĨƵƐŝŶŐ ǇŽƵƌďƌŽǁƐĞƌ͕ŵĂŬĞƐƵƌĞǇŽƵĂƌĞƵƐŝŶŐĂĐƵƌƌĞŶƚ͕ƵƉͲƚŽͲĚĂƚĞďƌŽǁƐĞƌ͗ŚƌŽŵĞϯϬ͕ &ŝƌĞĨŽǆϮϳ͕DŝĐƌŽƐŽĨƚĚŐĞϭϮ͕^ĂĨĂƌŝϳ͘ĞƌƚĂŝŶĨƵŶĐƚŝŽŶĂůŝƚǇŵĂǇďĞĚŝƐĂďůĞĚŝŶ ŽůĚĞƌďƌŽǁƐĞƌƐŝŶĐůƵĚŝŶŐ/ŶƚĞƌŶĞƚǆƉůŽƌĞƌ͘KƌĚŽǁŶůŽĂĚƚŚĞŽŽŵĂƉƉůŝĐĂƚŝŽŶŽŶƚŽ ǇŽƵƌƐŵĂƌƚƉŚŽŶĞĨƌŽŵƚŚĞƉƉůĞƉƉ^ƚŽƌĞŽƌ'ŽŽŐůĞWůĂǇ^ƚŽƌĞĂŶĚĞŶƚĞƌŝŶƚŚĞ DĞĞƚŝŶŐ/ďĞůŽǁ͘ zŽƵŵĂǇďĞĂƐŬĞĚƚŽĞŶƚĞƌĂŶĞŵĂŝůĂĚĚƌĞƐƐĂŶĚŶĂŵĞ͘tĞƌĞƋƵĞƐƚƚŚĂƚǇŽƵ ŝĚĞŶƚŝĨǇǇŽƵƌƐĞůĨďǇŶĂŵĞĂƐƚŚŝƐǁŝůůďĞǀŝƐŝďůĞŽŶůŝŶĞĂŶĚǁŝůůďĞƵƐĞĚƚŽŶŽƚŝĨǇǇŽƵ ƚŚĂƚŝƚŝƐǇŽƵƌƚƵƌŶƚŽƐƉĞĂŬ͘ tŚĞŶǇŽƵǁŝƐŚƚŽƐƉĞĂŬŽŶĂŶŐĞŶĚĂ/ƚĞŵ͕ĐůŝĐŬŽŶ͞ƌĂŝƐĞŚĂŶĚ͘͟dŚĞůĞƌŬǁŝůů ĂĐƚŝǀĂƚĞĂŶĚƵŶŵƵƚĞƐƉĞĂŬĞƌƐŝŶƚƵƌŶ͘^ƉĞĂŬĞƌƐǁŝůůďĞŶŽƚŝĨŝĞĚƐŚŽƌƚůǇďĞĨŽƌĞƚŚĞǇ ĂƌĞĐĂůůĞĚƚŽƐƉĞĂŬ͘ tŚĞŶĐĂůůĞĚ͕ƉůĞĂƐĞůŝŵŝƚǇŽƵƌƌĞŵĂƌŬƐƚŽƚŚĞƚŝŵĞůŝŵŝƚĂůůŽƚƚĞĚ͘ƚŝŵĞƌǁŝůůďĞ ƐŚŽǁŶŽŶƚŚĞĐŽŵƉƵƚĞƌƚŽŚĞůƉŬĞĞƉƚƌĂĐŬŽĨǇŽƵƌĐŽŵŵĞŶƚƐ͘ ^ƉŽŬĞŶƉƵďůŝĐĐŽŵŵĞŶƚƐĨŽƌĂŐĞŶĚŝǌĞĚŝƚĞŵƐƵƐŝŶŐĂƉŚŽŶĞƵƐĞƚŚĞƚĞůĞƉŚŽŶĞŶƵŵďĞƌ ůŝƐƚĞĚďĞůŽǁ͘tŚĞŶǇŽƵǁŝƐŚƚŽƐƉĞĂŬŽŶĂŶĂŐĞŶĚĂŝƚĞŵŚŝƚΎϵŽŶǇŽƵƌƉŚŽŶĞƐŽǁĞ ŬŶŽǁƚŚĂƚǇŽƵǁŝƐŚƚŽƐƉĞĂŬ͘zŽƵǁŝůůďĞĂƐŬĞĚƚŽƉƌŽǀŝĚĞǇŽƵƌĨŝƌƐƚĂŶĚůĂƐƚŶĂŵĞďĞĨŽƌĞ ĂĚĚƌĞƐƐŝŶŐƚŚĞŽƵŶĐŝů͘zŽƵǁŝůůďĞĂĚǀŝƐĞĚŚŽǁůŽŶŐǇŽƵŚĂǀĞƚŽƐƉĞĂŬ͘tŚĞŶĐĂůůĞĚ ƉůĞĂƐĞůŝŵŝƚǇŽƵƌƌĞŵĂƌŬƐƚŽƚŚĞĂŐĞŶĚĂŝƚĞŵĂŶĚƚŝŵĞůŝŵŝƚĂůůŽƚƚĞĚ͘ >/<,ZdK:K/EDĞĞƚŝŶŐ/͗ϴϱϴͲϰϱϱϰͲϰϭϰϱWŚŽŶĞ͗ϭͲϲϲϵͲϵϬϬͲϲϴϯϯ ŵĞƌŝĐĂŶƐǁŝƚŚŝƐĂďŝůŝƚǇĐƚ;Ϳ/ƚŝƐƚŚĞƉŽůŝĐǇŽĨƚŚĞŝƚǇŽĨWĂůŽůƚŽƚŽŽĨĨĞƌŝƚƐƉƵďůŝĐ ƉƌŽŐƌĂŵƐ͕ƐĞƌǀŝĐĞƐĂŶĚŵĞĞƚŝŶŐƐŝŶĂŵĂŶŶĞƌƚŚĂƚŝƐƌĞĂĚŝůǇĂĐĐĞƐƐŝďůĞƚŽĂůů͘WĞƌƐŽŶƐǁŝƚŚ ĚŝƐĂďŝůŝƚŝĞƐǁŚŽƌĞƋƵŝƌĞŵĂƚĞƌŝĂůƐŝŶĂŶĂƉƉƌŽƉƌŝĂƚĞĂůƚĞƌŶĂƚŝǀĞĨŽƌŵĂƚŽƌǁŚŽƌĞƋƵŝƌĞĂƵǆŝůŝĂƌǇ ĂŝĚƐƚŽĂĐĐĞƐƐŝƚǇŵĞĞƚŝŶŐƐ͕ƉƌŽŐƌĂŵƐ͕ŽƌƐĞƌǀŝĐĞƐŵĂǇĐŽŶƚĂĐƚƚŚĞŝƚǇ͛ƐŽŽƌĚŝŶĂƚŽƌĂƚ ;ϲϱϬͿϯϮϵͲϮϱϱϬ;ǀŽŝĐĞͿŽƌďǇĞŵĂŝůŝŶŐĂĚĂΛĐŝƚǇŽĨƉĂůŽĂůƚŽ͘ŽƌŐ͘ZĞƋƵĞƐƚƐĨŽƌĂƐƐŝƐƚĂŶĐĞŽƌ ĂĐĐŽŵŵŽĚĂƚŝŽŶƐŵƵƐƚďĞƐƵďŵŝƚƚĞĚĂƚůĞĂƐƚϮϰŚŽƵƌƐŝŶĂĚǀĂŶĐĞŽĨƚŚĞŵĞĞƚŝŶŐ͕ƉƌŽŐƌĂŵ͕Žƌ ƐĞƌǀŝĐĞ͘ 3 Regular Meeting October 16, 2024 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. ĂůŝĨŽƌŶŝĂ'ŽǀĞƌŶŵĞŶƚŽĚĞΑϴϰϯϬϴ͕ĐŽŵŵŽŶůǇƌĞĨĞƌƌĞĚƚŽĂƐƚŚĞΗ>ĞǀŝŶĞĐƚ͕ΗƉƌŽŚŝďŝƚƐĂŶ ĞůĞĐƚĞĚŽĨĨŝĐŝĂůŽĨĂůŽĐĂůŐŽǀĞƌŶŵĞŶƚĂŐĞŶĐǇĨƌŽŵƉĂƌƚŝĐŝƉĂƚŝŶŐŝŶĂƉƌŽĐĞĞĚŝŶŐŝŶǀŽůǀŝŶŐĂ ůŝĐĞŶƐĞ͕ƉĞƌŵŝƚ͕ŽƌŽƚŚĞƌĞŶƚŝƚůĞŵĞŶƚĨŽƌƵƐĞŝĨƚŚĞŽĨĨŝĐŝĂůƌĞĐĞŝǀĞĚĂĐĂŵƉĂŝŐŶĐŽŶƚƌŝďƵƚŝŽŶ ĞǆĐĞĞĚŝŶŐΨϮϱϬĨƌŽŵĂƉĂƌƚǇŽƌƉĂƌƚŝĐŝƉĂŶƚ͕ŝŶĐůƵĚŝŶŐƚŚĞŝƌĂŐĞŶƚƐ͕ƚŽƚŚĞƉƌŽĐĞĞĚŝŶŐǁŝƚŚŝŶƚŚĞ ůĂƐƚϭϮŵŽŶƚŚƐ͘͞ůŝĐĞŶƐĞ͕ƉĞƌŵŝƚ͕ŽƌŽƚŚĞƌĞŶƚŝƚůĞŵĞŶƚĨŽƌƵƐĞ͟ŝŶĐůƵĚĞƐŵŽƐƚůĂŶĚƵƐĞĂŶĚ ƉůĂŶŶŝŶŐĂƉƉƌŽǀĂůƐĂŶĚƚŚĞĂƉƉƌŽǀĂůŽĨĐŽŶƚƌĂĐƚƐƚŚĂƚĂƌĞŶŽƚƐƵďũĞĐƚƚŽůŽǁĞƐƚƌĞƐƉŽŶƐŝďůĞďŝĚ ƉƌŽĐĞĚƵƌĞƐ͘͞ƉĂƌƚǇ͟ŝƐĂƉĞƌƐŽŶǁŚŽĨŝůĞƐĂŶĂƉƉůŝĐĂƚŝŽŶĨŽƌ͕ŽƌŝƐƚŚĞƐƵďũĞĐƚŽĨ͕ĂƉƌŽĐĞĞĚŝŶŐ ŝŶǀŽůǀŝŶŐĂůŝĐĞŶƐĞ͕ƉĞƌŵŝƚ͕ŽƌŽƚŚĞƌĞŶƚŝƚůĞŵĞŶƚĨŽƌƵƐĞ͘͞ƉĂƌƚŝĐŝƉĂŶƚ͟ŝƐĂƉĞƌƐŽŶǁŚŽĂĐƚŝǀĞůǇ ƐƵƉƉŽƌƚƐŽƌŽƉƉŽƐĞƐĂƉĂƌƚŝĐƵůĂƌĚĞĐŝƐŝŽŶŝŶĂƉƌŽĐĞĞĚŝŶŐŝŶǀŽůǀŝŶŐĂůŝĐĞŶƐĞ͕ƉĞƌŵŝƚ͕ŽƌŽƚŚĞƌ ĞŶƚŝƚůĞŵĞŶƚĨŽƌƵƐĞ͕ĂŶĚŚĂƐĂĨŝŶĂŶĐŝĂůŝŶƚĞƌĞƐƚŝŶƚŚĞĚĞĐŝƐŝŽŶ͘dŚĞ>ĞǀŝŶĞĐƚŝŶĐŽƌƉŽƌĂƚĞƐƚŚĞ ĚĞĨŝŶŝƚŝŽŶŽĨ͞ĨŝŶĂŶĐŝĂůŝŶƚĞƌĞƐƚ͟ŝŶƚŚĞWŽůŝƚŝĐĂůZĞĨŽƌŵĐƚ͕ǁŚŝĐŚĞŶĐŽŵƉĂƐƐĞƐŝŶƚĞƌĞƐƚƐŝŶ ďƵƐŝŶĞƐƐĞŶƚŝƚŝĞƐ͕ƌĞĂůƉƌŽƉĞƌƚǇ͕ƐŽƵƌĐĞƐŽĨŝŶĐŽŵĞ͕ƐŽƵƌĐĞƐŽĨŐŝĨƚƐ͕ĂŶĚƉĞƌƐŽŶĂůĨŝŶĂŶĐĞƐƚŚĂƚ ŵĂǇďĞĂĨĨĞĐƚĞĚďǇƚŚĞŽƵŶĐŝů͛ƐĂĐƚŝŽŶƐ͘/ĨǇŽƵƋƵĂůŝĨǇĂƐĂ͞ƉĂƌƚǇ͟Žƌ͞ƉĂƌƚŝĐŝƉĂŶƚ͟ƚŽĂ ƉƌŽĐĞĞĚŝŶŐ͕ĂŶĚǇŽƵŚĂǀĞŵĂĚĞĂĐĂŵƉĂŝŐŶĐŽŶƚƌŝďƵƚŝŽŶƚŽĂŽƵŶĐŝůDĞŵďĞƌĞǆĐĞĞĚŝŶŐΨϮϱϬ ŵĂĚĞǁŝƚŚŝŶƚŚĞůĂƐƚϭϮŵŽŶƚŚƐ͕ǇŽƵŵƵƐƚĚŝƐĐůŽƐĞƚŚĞĐĂŵƉĂŝŐŶĐŽŶƚƌŝďƵƚŝŽŶďĞĨŽƌĞŵĂŬŝŶŐ ǇŽƵƌĐŽŵŵĞŶƚƐ͘ 4 Regular Meeting October 16, 2024 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. Retail Committee Staff Report Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: October 16, 2024 Report #:2410-3579 TITLE Discussion of Future Study Session on Filling Retail Vacancies This report will be a late packet report published on October 10, 2024. Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 1 Packet Pg. 5 of 23 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. Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 1 Packet Pg. 6 of 23 Retail Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: October 16, 2024 Report #:2410-3603 TITLE Planning for November Study Session on Filling Retail Vacancies RECOMMENDATION Discuss and provide feedback for a study session in November 2024 on filling retail property vacancies. EXECUTIVE SUMMARY The Ad Hoc Retail Committeehas expressed interest in further exploring options to address retail vacancies, especially in the city’s commercial cores of Downtown University Avenue and California Avenue. Addressing vacant spaces requires engagement and action by a variety of business stakeholders operating in these commercial cores. Through a study session, all parties can better understand the perspectives of stakeholders and perceptions of options for addressing retail vacancies. This report discusses how a study session could be organized to engage stakeholders and a potential outreach plan. BACKGROUND The Ad Hoc Retail Committee has met regularly since it was created in December 2023. It became a Brown-Act body in March 2024 and has met monthly since with the exception of June and July. The purpose of the ad hoc is to accelerate implementation of the Council-approved Economic Development Strategy. The ad hoc Retail Committee supports engagement with business and community stakeholders and facilitates feedback to staff on ongoing work. More information about the ad hoc Retail Committee can be found on its website1. Discussion about retail vacancies has surfaced in multiple ad hoc Retail Committee meetings; a focused study session on the topic could help advance the consideration of any recommendations from the Committee to the full Council. 1 Ad Hoc Retail Committee Website: https://www.cityofpaloalto.org/Departments/City-Clerk/City-Council-Committees/Retail-Committee Item 1 Item 1 Late Packet Report Item 1: Staff Report Pg. 1 Packet Pg. 7 of 23 ANALYSIS This section provides information on potential areas for discussion, information for feedback on the structure of the study session, and information about outreach to stakeholders. Potential Areas for Discussion To engage stakeholders in a constructive conversation about addressing retail vacancies, staff would like to accurately promote the study session and encourage stakeholder involvement. This will require staff to clearly articulate the value of engagement to stakeholders so that they understand how they can participate and outcomes from their participation. Detailing areas for potential discussion will help stakeholders gauge their interest and willingness to participate. Given the substantive nature of each topic and the potential of robust engagement, staff requests feedback on the topics identified below to incorporate into the title of the study session. Incorporating specific areas of interest into the title of the noticing for the study session better orients stakeholders and the public about what may be discussed. This will help market the study session and ensure that it productively advances the conversation about filling retail vacancies. Potential areas for conversation are listed below with some context based on previous conversations with the Ad Hoc Retail Committee and business stakeholders. •Entitlement (Planning) and Development Process: This sub-topic could further build on existing conversations held by the Ad Hoc Retail Committee and by Economic Development staff with brokers regarding perceived areas for improvement in the City’s development process. It could feature a conversation with brokers, property owners, and staff from the Planning and Development services department. This could identify priorities within work currently underway to revamp the City’s zoning code, consistent with prior discussion with the Ad Hoc Retail Committee, and work underway at the Development Center to enhance collaboration and streamline operations. •Uncertainty of Plans and Parking: This sub-topic could discuss some of the barriers that brokers have identified regarding uncertainty due to plans for frontages and parking that deters potential tenants. This includes issues such as compatibility of parklets from neighboring businesses impacting retail frontage, conditions on the street, and consistent parking access for patrons. This topic could cover both parklets as well as parking demand at different times and different days. This conversation would benefit from engagement with property owners, brokers, and parklet owners. •Trends in Brick-and-Mortar Retail: Item 1 Item 1 Late Packet Report Item 1: Staff Report Pg. 2 Packet Pg. 8 of 23 This sub-topic could discuss national, state, regional, and local trends that brokers are seeing in brick-and-mortar retail. Through conversations with staff, brokers have reiterated points that more and more retail-like uses are seeking to locate in commercial cores. This aligns with recent discussions with the Ad Hoc Retail Committee about zoning and what uses can be sited where, but additional focus on this sub-topic would facilitate greater engagement from brokers and property owners about the types of businesses they view as complementary to the commercial cores. This could then lead to further refinement of the City’s entitlement process. •Potential Vacancy Tax The Ad Hoc Retail Committee has expressed interest in further discussing a vacancy tax. This topic was also discussed at the Planning and Transportation Committee meetings on zoning changes to enhance retail throughout the City, the most recent of which was August 14, 20242. This topic would provide a forum for property owners, brokers, and others to provide their perspective on the advantages and disadvantages that a potential commercial vacancy tax might have. This discussion would necessarily be preliminary but could provide an important flow of communication and conversation on the topic between the City and stakeholders. Following this discussion, the Committee might recommend that Council make evaluation of this concept a priority objective for 2025. •Interim Activations of Vacant Storefronts: This sub-topic could feature a conversation with brokers, property owners, and city staff (such as staff from Public Art) on ways to site temporary art or other aesthetic enhancements in vacant storefronts. This would focus on ways to improve upon some of the current treatments seen in vacancies, such as clear windows with empty interiors, plain window coverings, or “For Lease” signs. Examples could include temporary art installations, more visually compelling window treatments, or spotlights on community attractions to help activate the space. This conversation could be complemented by a discussion of temporary pop-ups with property owners and brokers. •Business Improvement District The general purpose of a Business Improvement District (BID) is to provide funding for activities within a defined geographic area that sustain and enhance commercial activity. For example, BIDs in neighboring jurisdictions sponsor events and concert series as ways of drawing people to commercial cores. The inactive Business Improvement District for University Avenue downtown was administered by the Palo Alto Downtown Business and Professional Association (PADBPA). PADBPA ceased operating during the COVID-19 pandemic. The City Council has expressed interest in reactivating the BID, but this takes 2 Planning and Transportation Committee Meeting: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13695 Item 1 Item 1 Late Packet Report Item 1: Staff Report Pg. 3 Packet Pg. 9 of 23 willing partners from the business community to step into stewardship of assessed funding. This sub-topic could explore what is needed to reactivate a BID. Competing commercial centers in Palo Alto, such as Town and Country, centralize promotions and activations to reach better outcomes than outreach and advertising from individual stores. Structure & Format of the Study Session The ad hoc Retail Committee is governed by the Brown Act, but there is still potential for greater dialogue than the standard structure of the meeting. At the regular ad hoc Retail Committee meetings, public comment allows the speaker to make points, but it typically is not used to have a conversation between Ad Hoc members and those speakers. Given the critical need for dialogue with business stakeholders on a topic like addressing retail vacancies, a different format that fosters interaction could contribute to a better flow of information. To achieve this, staff recommends a semi-structured discussion to receive testimony and facilitate dialogue between members of the ad hoc Retail Committee and stakeholders. This could feature a specific set of questions for discussion that the ad hoc Retail Committee might want to explore or pose to stakeholders to hear their feedback. Conversation could still flow back and forth enabling discourse and two-way communication between individual stakeholders and the ad hoc. If the ad hoc Retail Committee wants to focus on specific areas for discussion, identifying those in advance would also contribute to productive conversations. While the structure would not permit stakeholders to chime in whenever they like, it would still represent a more robust engagement than the standard format. An alternative that is not recommended by staff could be a panel conversation. While a panel conversation would also enable testimony and conversation it would be on a far more limited scale than the recommended option. The two-way dialogue and communication would be limited to panelists, staff, and the members of the ad hoc retail committee, which could limit engagement from additional stakeholders and limit the breath of feedback resulting in a process of selecting the panel, potentially leaving key stakeholders feeling left out. Regardless of which style is selected, compliance with the Brown Act will still be required. This means the discussion will need to stay within the agendized topics, and each member of the public must be given an opportunity to speak during public comment irrespective of their viewpoint on an agendized topic. In any style, a facilitator would also be helpful to serve as a moderator of the conversation. The City’s Economic Development Coordinator can serve this role, which may benefit from existing relationships with stakeholders. Participant Outreach An open invitation to stakeholders presents the best option to engage with a variety of sectors on the topic of addressing retail vacancies. This includes property owners, commercial real estate brokers, existing retailers as external stakeholders. Staff will also work to coordinate Item 1 Item 1 Late Packet Report Item 1: Staff Report Pg. 4 Packet Pg. 10 of 23 internally within the City organization depending on which sub-topics the committee would like to focus on. For example, if the committee would like to discuss options for enhancing vacant storefronts through public art, staff from the City’s public art program can discuss options for short-term installations in partnership with property owners and brokers. Next Steps Following the October 16, 2024, discussion, staff will conduct outreach to stakeholders. This outreach effort will take place through various channels, including e-mails, conversations, and information on the City’s website. To the extent specific areas for discussion can be identified, that will help staff better promote the study session. Staff will also prepare a report laying out the structure for the study session that complies with the Brown Act and encourages stakeholder engagement, as well as areas for potential discussion, based on the October 16, 2024 conversation. This report will be used as an additional marketing tool to encourage participation from stakeholders. Staff will work to agendize this study session for the November 20, 2024, Ad Hoc Retail Committee Meeting. FISCAL/RESOURCE IMPACT The development of a November study session would not have any resource nor fiscal impacts beyond resources already approved for focus on priority goals for economic development activities in FY 2025. STAKEHOLDER ENGAGEMENT This outline has been informed by conversations with stakeholders such as property owners, brokers, businesses, and the Chamber of Commerce. Further stakeholder engagement will occur to solicit active contributions to a study session based on discussion with the Ad Hoc Retail Committee about purpose, format, participants, and potential sub-topics. ENVIRONMENTAL REVIEW The discussion of a November study session does not qualify as a project under CEQA. ATTACHMENTS None. APPROVED BY: Ed Shikada, City Manager Item 1 Item 1 Late Packet Report Item 1: Staff Report Pg. 5 Packet Pg. 11 of 23 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 Item 2 Item 2 Late Packet Report Item 2: Staff Report Pg. 1 Packet Pg. 12 of 23 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 Item 2 Item 2 Late Packet Report Item 2: Staff Report Pg. 2 Packet Pg. 13 of 23 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 Item 2 Item 2 Late Packet Report Item 2: Staff Report Pg. 3 Packet Pg. 14 of 23 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 Item 2 Item 2 Late Packet Report Item 2: Staff Report Pg. 4 Packet Pg. 15 of 23 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 Item 2 Item 2 Late Packet Report Item 2: Staff Report Pg. 5 Packet Pg. 16 of 23 1 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. Item 2 Attachment A - 2024 Economic Development & Transition Objectives Q3 Update Item 2: Staff Report Pg. 6 Packet Pg. 17 of 23 2 *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. Item 2 Attachment A - 2024 Economic Development & Transition Objectives Q3 Update Item 2: Staff Report Pg. 7 Packet Pg. 18 of 23 3 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 Item 2 Attachment A - 2024 Economic Development & Transition Objectives Q3 Update Item 2: Staff Report Pg. 8 Packet Pg. 19 of 23 4 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: Item 2 Attachment A - 2024 Economic Development & Transition Objectives Q3 Update Item 2: Staff Report Pg. 9 Packet Pg. 20 of 23 5 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: Item 2 Attachment A - 2024 Economic Development & Transition Objectives Q3 Update Item 2: Staff Report Pg. 10 Packet Pg. 21 of 23 6 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. Item 2 Attachment A - 2024 Economic Development & Transition Objectives Q3 Update Item 2: Staff Report Pg. 11 Packet Pg. 22 of 23 RetailBuildingPermitsByType:July2024ͲSeptember2024 RetailPermitsbyType Description PermitNo DateIssued Address Record Status TenantName Proposed Use Category ProposedUse Classification UseandOccupancy 24BLDͲ 01847 7/8/2024 2680MIDDLEFIELDRD PermitIssued KIRK'SSTEAK BURGERS Retail Eatinganddrinking service UseandOccupancy 24BLDͲ 02253 8/14/2024 339UNIVERSITYAV Finaled KHAZANA Retail Eatinganddrinking service Commercial Remodel/Repair 24BLDͲ 00421 7/8/2024 855ELCAMINOREAL,STE127 PermitIssued KOHLER Retail Shoppingcenter Commercial Remodel/Repair 24BLDͲ 00666 7/25/2024 180ELCAMINOREAL,STEE711 PermitIssued PACIFICCATCH BldgE#711 Retail Shoppingcenter Commercial Remodel/Repair 22BLDͲ 00920 7/26/2024 2103ELCAMINOREAL PermitIssued SCHAPER/TASTY DUMPLINGAND TEA Retail Eatinganddrinking service Commercial Remodel/Repair 23BLDͲ 01544 8/8/2024 250UNIVERSITYAV,STE101 PermitIssued MARUWUSEICHA Retail Retailservice Commercial Remodel/Repair 23BLDͲ 02463 8/29/2024 180ELCAMINOREAL,STEC10B PermitIssued LELAND STANFORDJR UNIVERSITY BOARDOFTR Retail Shoppingcenter Commercial Remodel/Repair 24BLDͲ 01402 9/6/2024 180ELCAMINOREAL,STE011 PermitIssued OUTERKNOWN Retail Shoppingcenter Commercial Remodel/Repair 24BLDͲ 02437 9/16/2024 3398ELCAMINOREAL PermitIssued SHOWDECARNES Retail Eatinganddrinking service Commercial Remodel/Repair 24BLDͲ 01595 9/23/2024 2190WBAYSHORERD,STE170 PermitIssued "WOOFGANG BAKERYAND GROOMING" Retail Retailservice CommercialAddition& Remodel 23BLDͲ 02502 7/9/2024 541RAMONAST PermitIssued THEPRO Retail Eatinganddrinking service CommercialAddition& Remodel 24BLDͲ 00930 7/23/2024 180ELCAMINOREAL,STEV840 PermitIssued NEWBALANCE Retail Shoppingcenter CommercialAddition& Remodel 24BLDͲ 00736 9/10/2024 855ELCAMINOREAL,STE63 PermitIssued PAPERSOURCE Retail Shoppingcenter CommercialAddition& Remodel 24BLDͲ 00662 9/24/2024 383UNIVERSITYAV PermitIssued MARUGAME UDON Retail Eatinganddrinking service ThetableaboveincludesCertificatesofUseandOccupancyissuedtoretailersbetweenJulyandSeptember2024.The CertificateofUseandOccupancyisrequiredforallbusinessesoperatingwithincommercialtenantspaces.Thisenables theCitytoreviewtheproposedlanduseandassignoccupancylimitationsbasedonfactorssuchasusage,square footage,andexiting.TherequirementfortheCertificateofUseandOccupancycanbetriggeredbyseveralfactors, includinganewbusiness,anamechange,achangeinownershipofthebusinessorproperty,oramodificationtothe sizeofthetenantspace.Acertificateofuseandoccupancydoesnotconferpermissiontooccupy,whichisgrantedwhen thebuildingpermitis'finaled'. Item 2 Attachment B - Permits (Retail) by Type Item 2: Staff Report Pg. 12 Packet Pg. 23 of 23