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Agenda Item - 2021-12-21 - Number 5.1 - Presentation - Economic Development Strategy Community 8,Jk � 0 Development 0‘41ftil-P4, v �Arimo 0REGO \'' Economic Development Strategy: City Council Study Session December 21 , 2021 Purpose Traded • What types of investment and job Sector creation should the City support? • Which economic development services i p Economic should the City support and how? Prosperity 'Population Visitor Driven Potential 1!" 407'il ti. ___. . 'ilk ;N tif ., ,_ 1 ,V , , , ... _ ci,7 7 -r.:11 p•-• - OR 5 _ , , , .., _r fe ,. __ ,...,., P4'`,• Nui „•,-- — x . -,fr - TI — "3 I I .4,5.7, ,.:"...,-....--.---,-,,--,1:.,:.-.,r,---,I: Lake Osvvego . 7•,_ .1 1.I .Pr' _ -. 2 14 . i. I cot„..., Retail Sector __ nomING . ,, Li _,, 2020 and 2021 _ ____. _ t„. Ait - • }:.747H;: +��� j I . • - ------ -- ...-. ,c-.2.....„ ..,. v... . .1 j .;,.,.: .z: t ' , 1 4- Up and Up over last 10 months f S T E 1 Ni vy ,A yOccupancies are up $ _-- .t: . ,k' i ;;_i �; .,, _4 " • New & expanded businesses throughout :..... -- -,fry-- town - - ,. wli .._-___ ='� - �` - ,., Kruse Way i .' r.}, - `= J ' r j 7.7%vacancy (above 4.7% 5 yr av) e 'i` • 1, r „ede, fps New supply of 39,600 SF '''� :.,1 Av rents $29.31/SF up 0.8%YoY • 1-,.!.1 ‘ . .0.-...-.a..AIN* ,. I - iiiiimo.--- - - 4 ' , j ..�. ��� Lake Oswego/West Linn ' • f 6%vacanc (slightly higher than 5- r av) r,1��.� _ � � ; a, I -i- i 1 �' ... Avrents $26.21/SF up 1 %YoY eft . •• - .3►1 1— , L . �� Industrial Kruse Wav (420K SF) 1 .2% vacancy Current Situation : very tight supply New supply = 0 Av rents $12.58/SF, up 5.4%YoY Portland Region Lake Oswego/West Linn (1 .3M SF) • 225. 1M SF — majoritylogistics 7.7% vacancy = New supply = 0 • 3M SF under construction Av rents $10.81/SF, up 4% YoY • 4.9% vacancy - 4" - ';'' ' Ile �5¢l ,I fry -e. -f Ili � 3 roil _ - _00.0 -. Examples of Traded Sector Businesses Population-Serving Visitor-Serving kiverfrontlFoothills Other N. 1 Firms: Indus./ Lt Indus KinderCare HQ Kruse/Meadows/ (Ed Services) Bangy Biotronik Micrasystem �; (Medical NAVEX Equip) (Bus. Traded Sector Software) Other Firms: SW Emp Area Greenbrier Logical HQ(Rail Finance, Position Insurance, (Marketing Cars) Real Black& comets) Estate Veatch Yakima HQ �� _ (Eng/Const) (Rec. Equip) Strengths/Positioning (//// Pathways Free Downtown Parking Events Centers Arts & Culture STRs Visitor-Serving Population-Serving and Hotels Food and Drink Frog Ferry(Future) \\ Public Safety Top Schools High-Quality Water Neighborhoods Parks \\N. Sewer Capacity Highly-Educated Workforce Low •- Taxes (vs PDX) Traded Sector What is the City' s role ? CITY COUNCIL CONSTITUENCIESP CITY DIVISIONS PARTNERS PriorityDEPARTMENTS Business i i (Existing Projects Economic Dev. Business New) Initiatives Residents Economic Planning Visitors Dev. Finance Property Owners 0 I 0 elp q .‘,._ , Police Main Street, Chamber, N JFPs Parrs & Rec ressinalrs COORDINATE INFORM, Public Works ernment INTEGRATE, Building & Core Agencies Services SUPPORT Code Enforcement Goal : Enhance business investment and job-creation opportunities Economic Development Leadership Typical Roles & Responsibilities City Government Chambers of Commerce 1. Planning and zoning (land supply) 1. Voice of Business Community 2. Economic vision, goals, strategy — add value 2. Business Advocacy & Network-building 3. Business Retention Expansion & Attraction 3. Small Business Education 4. Redevelopment 4. Events — community & customer 5. One-stop business services re: location, 5. Tourism Marketing —some cities lead it planning and regulatory issues 5. Policy — Align EcDev and other city policies: transportation, land use, housing iies Overview C t 7 out of 10 Local Governments have Economic Development Departments Ha4 Canby llepy Oregon Wilsonville Estacada Milwaukie Molalla West Linn Sandy Gladstone Valley y Population 17.9K 22.5K 37.4K 24.9K 3.4K 21K 9.3K 26.7K 11.4K 12.3K Has an Economic No 1 Planner-no C No (part tf Development dept y Department Dev) #of Full-Time 2 1 3 1 1 1 0.33 FTE 0.33 FTE 1 - Staff Yes. Yes. Yes, Advisory No No Strategy No Downtown No Economic Yes Yes No Committee? Advisory Task Estacada Vitality Project Forces Commission Task Forces Business Business Business Site selection, Business resources Business Business attraction & outreach, Prop locator, attraction, Business Key City Location outreach Business Business Resources, licensing, retention retention & Business retention, Functions/ advisory Recruitment & Incentives and Relocation/Att Retention/Exp technical refers to Services Permitting Grant & tax retention expansion; resources, assistance raction ansion, 1-Stop abatement tourism, Downtown assistance/inc County & licensing procurement Marketing workforce vitality service entives support No, but city Handles supports Supports Active support Yes. Tourism Supports: Tourism? Yes No Yes Tourism brand No role No liaison for City brand & strategy Promo Comm; Council Direction on Economic Dev . Services A. Situation Awareness B. Customer Service c. Networking and Education D. Policy and Code Improvement E. Planning and Redevelopment F. Programming G. Branding and Marketing H. Others? A . Situation Awareness Inputs: • Meetings with Clackamas County, GPI, Business Oregon, and Non-Governmental Organizations • Meetings and interviews with businesses, brokers, etc. • 0. 10 - 0.20 FTE City staff (new or reorganization) Outputs: • Data/Analytics (inventories, interviews, publications) • Leads on business prospects and vulnerabilities Outcomes: • Business retention/expansion/attraction • Job creation Resources and Potential Partners i ____ business ►II LA .4140 ore • n rir■,1 GREATER C LAC KAMAS Cil .-1!).j:' COUNTY + PORTLAND ECONOMIC DEVELOPMENT LAKE 0SWEGO it Clackamas CHAMBER CIF COMMERCE C 4 Workforce i Partnership TRAVEL WORKFORCE DEVELOPMENT BOARD AClad(amas MI CommunityCollege rig OFLEIO ° - OREGON Small Business Mt HOOD Development Miim Ml ati Oeda Center explorers welcome Olik7AP1KONOMIe.DE4TIOPM F17ASSIXAnnOv WESISIDE ECONOMIC ALLIANCE L Metro Urban Land Fdq — r� ER ' cs ULI P •n, Institute OREGON B . Customer Service & Technical Assistance Inputs: • Single point of contact to align efforts across City departments: 0.50 - 1.0 FTE (new or reorganization) • Meetings with business owners, brokers, partners, etc. • Option to contract with others for some tasks Outputs: • Information and other resources shared with businesses • Permits and licenses issued, grants filed, trainings, etc. Outcomes: • Business retention/expansion/attraction; job creation • Storefronts filled, growth in wages, AV, lodging taxes, etc. C . Networking and Education Inputs: • Led by Non-Governmental Organization (s) • City supports, and serves as primary contact for other governments Outputs: • Meetings with government partners • Option to support work of NGOs with grants Outcomes: • Business retention/expansion/attraction; job creation • Leadership development/community-building • Storefronts filled, growth in wages, AV, lodging taxes, etc. Council direction requested . . . A. Situation Awareness. Does Council agree that this is a shared responsibility that requires City staff resources and coordination with other entities? B. Customer Service. Does Council agree that the City should provide a single contact to assist and advocate for business? Should the City also contract out some business assistance services (e.g., technical assistance with grants and loans)? c. Networking and Education . Should staff attend key County, Regional, and State economic development meetings and report back to Council (while also continuing to coordinate with the Chamber)? D . Policy and Code Improvement Inputs: • Input from property owners, businesses, brokers, etc. • City staff labor and outside services Outputs: • Data/Analytics ( permit process, parking utilization ) • Code audit and revisions; parking management plans Outcomes: • Reduce cost of opening or expanding a business • Business retention/expansion/attraction; job creation • Greater efficiency in parking/land use (public and private) • Improved permit process frees up staff to work on other goals E . Planning and Redevelopment Inputs: • Input from property owners, businesses, brokers, neighborhoods, etc. • City staff labor and outside services Outputs: • Land use plans, Capital Improvement Plan, funding sources Outcomes: • Clarity for property owners and neighborhoods on future development • Alignment of City land use policy and regs with community vision (build on quality of life) • Positive market response with business investment and job creation F . Programming Inputs: • Input from City, Chamber, and local arts and culture organizations • Business community support/sponsorships, etc. Outputs: • Coordinated events calendar ("Fusion") • Recommendations for process improvement Outcomes: • Successful programs and events, population-serving and visitor- serving, that lead to economic prosperity for the entire community • Alignment of programs with community vision (build on quality of life) • Build on LO "brand" - for business investment and job creation G . Branding and Marketing Inputs: • Professional branding and marketing study • Should be led by non-City entity with broad community buy-in Outputs (potential) : • Website • Branding and Marketing toolbox (media kits, etc.) • Advertising campaigns • Wayfinding program (signs, app, etc.) Outcomes: • Business investment and job creation consistent with vision • Storefronts filled, growth in wages, AV, lodging taxes, etc. Council direction requested . . . D. Policy and Code Improvement. Should staff audit City codes and fees and recommend removal of unnecessary impediments to business (while maintaining codes for quality-of-life)? E. Planning and Redevelopment. Should the City periodically review its existing plans for the business districts and employment areas, and update the plans as needed (at least once every 5-10 years)? F. Programming. Should staff develop an overall community events calendar (annual with 2-3 year projection) in collaboration with NGOs? Should the economic development specialist be tasked with reviewing and identifying process improvements for the City's special events? G. Branding and Marketing Should the City provide ongoing support to an NGO to develop and implement a citywide branding & marketing plan? Council direction requested . . . Are there any other services the Council would like to see? Thank you