HomeMy WebLinkAboutCC Resolution 15216 (Economic Development Strategic Plan)RESOLUTION NO. 15216
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL ADOPTING
THE ECONOMIC DEVELOPMENT STRATEGIC PLAN
WHEREAS, economic recovery has been identified as one of the four policy focus areas
in the City of San Rafael City Council 2021-2022 Goals and Objectives; and
WHEREAS, an Economic Development Strategic Plan (EDSP) was identified as a key
project to build back the San Rafael economy from the impacts from the COVID-19
pandemic; and
WHEREAS, the City engaged the San Rafael Chamber of Commerce, and business and
community leaders for industry focus groups to create the scope of work focus areas for
the development of an EDSP; and
WHEREAS, on June 21, 2022, City Council approved a professional services agreement
with the Kosmont Companies for the creation of an EDSP; and
WHEREAS, Kosmont Companies completed a series of community engagements with
key business and community stakeholders and launched a community-wide economic
survey; and
WHEREAS, the Economic Development Strategic Plan was presented to the City Council
Economic Development subcommittee on February 9, 2023 and April 13, 2023 on publicly
noticed meetings; and
WHEREAS, the project is exempt from California Environmental Quality Act pursuant to
section 15062 because the San Rafael Economic Development Strategic Plan is a policy
document to guide the future of the City’s economic development activities and policy
approaches.
NOW, THEREFORE BE IT RESOLVED, that the City Council hereby adopts the
Economic Development Strategic Plan (Exhibit A). This adoption is based on and
supported by the following findings and determinations:
1. The public interest would be served by the adoption of the EDSP in that it provides
targeted economic development tasks and activities to increase the economic
vitality and resilience. Specifically, it identifies foundational economic development
programs and identifies revenue and partnership initiatives to support economic
opportunity.
2. As drafted, the EDSP would be consistent with the General Plan 2040, specifically
the Economic Vitality element. The EDSP provides recommendations for
Economic Vitality Policies: EV1.1 Quality of Life; EV1.2- Strategic Planning; EV1.3-
Relationship Building; EV1.4-Business Retention and Support; EV1.5-Business
Attraction; EV1.6- Monitoring; and EV1.7 – Marketing and Branding. The EDSP
program recommendations would: 1) provide economic data and information; 2)
create a strategic plan; 3) strengthen strategic partnerships; 4) create a retention
and support program; 5) diversify the economy; 6) monitor economic development
program outcomes; and 7) support marketing and branding programs.
3. The project is statutorily exempt from the California Environmental Quality Act
pursuant to section 15262 of the California Environmental Quality Act Guidelines
because the EDSP is a policy and planning document which guides possible future
actions which have not been approved, adopted or funded.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing
Resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council of the City of San Rafael, held on Monday, the 15th day of May 2023, by the
following vote, to wit:
AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Kate
NOES: Councilmembers: None
ABSENT: Councilmembers: Hill
Lindsay Lara, City Clerk
ECONOMIC DEVELOPMENT STRATEGIC PLAN
El Segundo, CA
TEL: 424-297-1070 | URL: www.kosmont.com
CITY OF SAN RAFAEL
ECONOMIC DEVELOPMENT STRATEGIC PLAN
May 15, 2023
ECONOMIC DEVELOPMENT STRATEGIC PLAN
KOSMONT COMPANIES | 2
CITY OF SAN RAFAEL
ECONOMIC DEVELOPMENT STRATEGIC PLAN
Kosmont Companies Staff San Rafael City Council San Rafael Staff & Other Advisory
Ken K. Hira, President
Thomas Jirovsky, Senior Advisor
Robert Valenti, Vice President
Kate Colin, Mayor
Maika Llorens Gulati, Councilmember, District 1
Eli Hill, Councilmember, District 2
Maribeth Bushey, Councilmember, District 3
Rachel Kertz, Councilmember, District 4
Jim Schutz, City Manager
Christine Alilovich, Assist. City Manager
Micah Hinkle, Director of Economic Development
Victoria Lim, Senior Management Analyst
San Rafael Chamber of Commerce
Joanne Webster, President / CEO
Joshua Townsend, Government Affairs
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TABLE OF CONTENTS
Section Pages
1 Background & Overview 4 -18
2 Economic Development Strategies 19 -34
3 Economic Development Toolkit 35 -53
4 Economic / Land Use Trends & Case Studies 54 -76
Data Appendix (Separate Document)
Business / Community Survey Results Appendix (Separate Document)
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1. BACKGROUND & OVERVIEW
San Rafael Economic Development Strategic Plan
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SAN RAFAEL
REGIONAL
CONTEXT
San Rafael is the County Seat and largest city
in Marin County,with a population of over
61,000 spread over 16 square miles of land
adjacent to the San Francisco bay.It was
settled by the Spanish in 1817 with the
construction of Mission San Rafael
Archangel.It was incorporated as a City in
1874 and grew substantially as it was
connected to the national railroad network.
With the construction of the Golden Gate
bridge and the Richmond-San Rafael bridge,
the City has excellent vehicle access to both
the San Francisco Peninsula and the East Bay.
The City also provides easy access to the
Sonoma /Napa Valley wine country and the
Mendocino Coast.
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BACKGROUND
Kosmont Companies ("Kosmont") was retained by the City of San Rafael (“City”) to prepare this Economic
Development Strategic Plan (“EDSP”).
The EDSP addresses existing economic conditions, regional real estate trends and opportunities and provides
tactical recommendations on business attraction, expansion, and retention through place-making recommendations
and community feedback.
Given shifting consumer preferences and changes in land use, uncertain economic realities, it is imperative that San
Rafael identify opportunities within the City to spur development and increase revenues.
The EDSP includes an assessment of economic / market conditions, an assessment of key commercial districts and
sites, as well as insights from community / stakeholder outreach.
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APPROACH
Kosmont’s approach to preparing the Economic Development Strategic Plan included the following tasks:
Review of City Budget and Planning documents, together with a daylong tour of the City and its business
and residential districts
Interviews with City staff, Council members, and community stakeholders
Assessment of regional economic trends
Assessment of local demographic and market conditions
In person and virtual community outreach to gain insights as to needs and challenges and present
preliminary findings
Detailed assessment of major commercial districts
Identification of key opportunities and short-term / long-term strategies
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VISION AND OBJECTIVES
Vision:
The EDSP is designed to help strengthen the local economic base and fiscal health of the City;provide a wide range of
employment and educational opportunities for its residents;enable the City to leverage State and Federal grants,loans
and policy tools;and achieve greater resiliency in light of the Covid-19 pandemic .
Core Objectives:
1.Increase fiscal revenue;
2.Enhance City’s commercial and residential market by attracting a healthy balance of local and national businesses
and developing a wide range of housing options;
3.Enhance employment,educational and business opportunities;
4.Create job opportunities for younger generations;
5.Fund critical physical improvements to infrastructure.
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GOALS & CHALLENGES
The City has identified several challenges:
Restore Downtown’s economic vibrancy
Maintain/expand industrial and office job opportunities
Capitalize on the access to SF,east Bay and Wine Country
Absentee /nonresponsive landlords
Goals to be addressed as part of long-term planning efforts:
Economic recovery from Covid impacts
Sustainability /Climate Change
Racial Equality
Housing /Homelessness
Neighborhood Vitality
Improve Public Safety
Provide more Public Assets
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COMMUNITY AREAS
Downtown
A thriving commercial center in the 1950’s with several major department
stores,the Downtown still holds a major concentration of City’s commercial
core with 25%of the office inventory and 30%of the retail inventory.New
hotel and residential units are under construction,as well as regional transit
center.City owns several surface parking lots and two structures that may need
reimagining.
Northgate
Suffering from loss of retail anchors due to growth of e-commerce and big box
cannibalization,Northgate Mall is undergoing a major redevelopment process,
shrinking retail square footage and adding over 1,000 new MF units.The
Northgate Industrial Park /Smith Ranch area is home to a variety of flex
industrial /office /retail spaces,and could be have an opportunity for
revitalization.The 8-acre movie theater site at 280 Smith Ranch Road is an
opportunity site for higher density development.
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COMMUNITY AREAS
Canal Area
The Canal Area plays an important part in the City’s
economy,and is an industrial backbone for Marin
County:
Over 80%of the industrial/flex space
30%of the retail space and most high-volume car
dealerships
15%of the office space
20%of apartments,serving predominantly low-
moderate income households who represent a major
part of the service industry workforce
Federal Opportunity Zone,with tax advantages for
certain types of real estate and business investment
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COMMUNITY AREAS
Central San Rafael
This area of the city encompasses residential neighborhoods to the south-
west and north-east of Downtown /Canal areas,such as Gerstle Park,West
End,Sun Valley,Dominican,and Montecito.Dominican University is a major
anchor institution in the area,educating ~1,800 students.These areas are
home to neighborhood-serving retail along 4th Street and Lincoln Ave .
San Pedro Peninsula
This area is located east of Central San Rafael,and is home to residentialareassuchasCountryClub,Loch Lomond,and Peacock Gap.China CampStateParkislocatedinthenorthernpartofthisarea,featuring hiking,biking,
and open space.The McNear –Dutra Quarry is an operating quarry andmajorsupplierofconstructionmaterialtotheregion,and there is somelong-term opportunity in the future after quarry is closed /reclaimed.Thisareaisalsoservedbysomeneighborhood-serving retail along Point San
Pedro Road.
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ECONOMIC OVERVIEW
The City retained Kosmont to prepare the EDSP to develop a strategy that better positions San Rafael to face the economic forces that are reshaping the modern economy:
Today’s consumers are using online websites for purchasing a broad array of goods. As e-commerce continues to take an increasing percentage of consumer spending, cities must take new approaches to land use that explore concepts for public amenities and private attractions that help cities capture trips and thus “sales”.
Younger consumers, with increased use of media and digital communication, seek gathering places with restaurants, entertainment venues and experiential retail, rather than simply a collection of traditional store fronts.
Telework dynamics have drastically changed work patterns over the past few years and are poised to reshape
office needs. Creative class professionals are attracted to communities with clustered centers, which provide a
sense of vitality, diversity, convenience and a mix of work, entertainment, services, arts and culture.
Kosmont is assisting the City in achieving its economic objective by providing strategies, market analysis and recommendation –both citywide, as well as focused on particular commercial districts in the City. The goal is to foster economic vitality throughout the business districts of San Rafael, improving business conditions and resident quality of life.
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DEMOGRAPHIC OVERVIEW
San Rafael has a population of ~61,500, with ~8% growth over the past 20 years
Average Household Size is 2.6 persons, and the Median Age is 42.3 years; residents are well
educated, with ~57% achieving at least a bachelors degree
City Average Household Income is $164,800, approx. ~14% less than County and 27% higher
than statewide levels
San Rafael sees a Net Inflow of ~14,300 jobs, with workers coming from San Rafael, Novato, San
Francisco, and Petaluma
Jobs in the City are primarily in the Healthcare / Social Assistance, Retail Trade, Construction, and
Professional / Scientific / Technical Services sectors
Residents of the City are primarily employed in the Health Care / Social Assistance, Professional /
Scientific / Technical Services, Accommodation / Food Services, and Retail Trade sectors.
Note: Additional demographic data / analysis is available in Appendix
Source: ESRI BAO, Census Bureau OnTheMap, California Department of Finance
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FISCAL & BUDGET OVERVIEW
The city receives ~89% of its General Fund revenue from taxes. The
majority (52%) of City tax revenue comes from sales taxes, and
~37% from property taxes. The remainder comes from franchise,
business, and transient occupancy taxes.
Sales tax revenues have grown ~7% annually since 2012, driven by
Measure E and Measure R rate increases and dramatic growth in
county pool revenues.
Property taxes have grown ~7% annually since 2012, with assessed
value growth driven by high real estate values and mark-to-market
reassessments. San Rafael collects an estimated 12.2% of the 1%
Property Tax general levy.
Source: San Rafael 2022-23 Proposed Budget, 2022 ACFR
FY2022-23 Budget
Property Taxes $ 24,409,721
Property Tax -VLF Backfill 6,700,000
Sales Tax 25,085,742
Sales Tax -Measure E 14,694,975
Sales Tax -Measure R 4,898,325
Franchise Tax 4,182,016
Business Tax 2,669,567
Transient Occupancy Tax 2,483,067
Taxes Subtotal 85,123,413
Revenues from Other Agencies
CSA #19 Fire Service 2,442,513
Other Agencies 1,903,252
Other
Permits & Licenses 3,010,159
Fine & Forfeiture 186,732
Interest & Rents 47,500
Charges for Services 2,568,965
Other Revenue 588,196
Total 95,870,730Note: Additional fiscal data / analysis is available in Appendix
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MARKET OVERVIEW
San Rafael saw limited growth in commercial, industrial, and apartment markets over the past decade. Commercial real estate rents and occupancy have been fairly stable over the past 10 years.
The retail market is facing challenges as e-commerce reshapes consumer preferences –straining demand for regional shopping centers as well as downtown retail districts
The office market is also undergoing changes as telework restructures employer needs and commute patterns –reshaping downtown business districts and office parks
The industrial market is strong, driven by high demand for logistics / warehouse; San Rafael serves as the industrial heart of Marin with a large amount of construction / building spaces; strong demand for R&D / lab space in Bay Area could be increase demand in San Rafael
The multifamily residential market continues to see high demand due to the housing shortage in California
While San Rafael only represents less than
25% of Marin County’s population, the
City represents a much more significant
share of Marin County economic activity:
•Retail: 38% of inventory, rents are 12%
lower and vacancy is 0.2% lower
•Office: 43% of inventory, rents are 3%
lower and vacancy is 3.4% lower
•Industrial: 62% of inventory, rents are
2% higher and vacancy is 2.9% lower
•Flex / R&D: 32% of inventory, rents are
5% lower and vacancy is 1.1% lower
•Multifamily: 40% of inventory, rents are
16% lower and vacancy is 0.3% lower
Note: Additional market data / analysis is available in Appendix
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ILLUSTRATIVE FISCAL REVENUE OF NEW DEVELOPMENT
To evaluate San Rafael economic opportunities and understand their impact on City revenues,the table below provides an
illustration of incremental tax revenues potentially generated from various types of development on a typical 1-acre parcel:
10,000 SF
Commercial
Services
10,000 SF
Retail
10,000 SF
Restaurant
Blended-Use
Multifamily /
Retail
60-room
Upscale Hotel
Property Taxes +
VLF $10,000 $10,000 $15,000 $55,000 $40,000
Direct Sales Taxes $25,000 $50,000 $85,000 $25,000 $20,000
Indirect Sales Taxes $20,000 $20,000
Hotel TOT $370,000
Annual General
Fund Revenues $35,000 $60,000 $100,000 $100,000 $450,000
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STAKEHOLDER / COMMUNITY OUTREACH OVERVIEW
Kosmont worked with the City to conduct a variety of outreach efforts to solicit feedback from stakeholders and
community members, including interviews / group meetings, a business survey, and a community survey.
Stakeholder Interviews Business Survey Community Survey
Interviews emphasized the importance of the
San Rafael economic engine, entrepreneurial
spirit, artistic / historic character, and engaging
events and activities.
Challenges identified include development costs
and processes, beautification improvements
needed, and flood risks.
Opportunities include better utilization of the
waterfront area, more events to attract visitors,
and a stronger connection to Dominican
University.
Results show that top challenges facing
businesses include High Rent / City Fees,
Retaining / Hiring Employees, Safety /
Cleanliness.
Top City priorities include Homelessness,
Cleanliness / Appearance / Illegal Dumping,
Improving Public Safety, Housing, and
Sustainability / Climate Change
Respondents value a wide variety of new
developments in the Downtown and North San
Rafael areas, including Arts / Cultural /
Educational options, Shopping / Other Retail,
Fine Dining, Family Restaurants, Gathering
Places, and Multifamily Housing.
Results also show support for City investment
in civic improvements / amenities, with the top-
ranking choices including Cleanliness /
Appearance, Traffic Flow, Safety, Mobility /
Walkability / Bike-ability / Transit, Public Art /
Plazas / Walkways, and Streetscape / Design.
Note: Additional stakeholder / survey / community outreach data is available in Appendix
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2. ECONOMIC DEVELOPMENT STRATEGIES
San Rafael Economic Development Strategic Plan
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ECONOMIC DEVELOPMENT STRATEGIES
The following section prioritizes strategies for the City to consider to achieve the economic goals.Action Items for each strategy are
identified,as well as responsible organization.An estimated investment range for each strategy is identified below,recognizing that the
City has $300,000 per year currently available for Economic Development programs,in addition to the two professional staff members.
1.Support Business /Development ($$$)
2.Downtown Reimagination ($$$)
3.Analyze Implementation of Enhanced Infrastructure Financing District (EIFD)($)
4.Strengthen Local Partnerships ($)
5.Attract High-Tech Industrial Uses ($)
6.Outreach for Private and Business Development Opportunities ($$)
7.Workforce Development Programs ($$)
$=$50,000 to $200,000
$$=$200,000 to 500,000
$$$=$500,000 to $750,000
Estimated new annual investment of $500,000 is needed to implement the Economic Development Strategies over next 3-5 years
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STRATEGY 1: SUPPORT BUSINESS / DEVELOPMENT
City Economic Development –Cost $$$
Business-friendliness is a vital component to support the needs of businesses, developers and to foster entrepreneurship in the City,
bolstering the local economy.
Action Item 1.1: Create a Business Expansion, Attraction, and Retention (BEAR) program. Modify existing economic development
program to provide enhanced customer service to support business development.
Action Item 1.2:Develop or sponsor technical assistance programs to support emerging businesses/entrepreneurs living or doing
business in San Rafael’s designated Opportunity Zone.
Action Item 1.3:Maintain enhanced business and development data analytics to track economic and market trends.
Action Item 1.4: Increase bi-lingual staffing with cultural and language capacity to support and enhance access to business
development programs.
Action Item 1.5: Sponsor “Shark Tank” type competition and other networking events to promote new entrepreneurial ideas and
bolster the local entrepreneur network.
The Economic Trends section identifies key aspects to fostering entrepreneurship in a community, and the Case Study section
highlights approaches that the City of Thousand Oaks and the City of Corona took to foster entrepreneurship in their communities.
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STRATEGY 2: DOWNTOWN REIMAGINATION
City Economic Development –Cost $$$
Activating Fourth Street is the key for successful downtown revitalization in San Rafael.
Action Item 2.1:Consider programs that can help existing businesses thrive (such as façade improvement programs,streetery /
outdoor retail)and help existing properties utilize their space (such as expanding allowable uses in storefront spaces,sales tax in-lieu
payment for non-retail uses,etc).Prioritize program implementation to Opportunity Zones and under-invested commercial areas in
the City.
Action Item 2.2:Explore conversion or expansion of the Business Based Improvement District to a Property Based District to support
enhanced cleaning,security,marketing and physical improvements in downtown.(revenue generating /funding capacity)
Action Item 2.3:Evaluate publicly-owned opportunity sites in the downtown area –such as the surface parking lots and parking
garages –to evaluate potential reuse strategies that aim to add gathering places,activities,and other amenities.
As shown in Trends /Case Studies,property owners are exploring new uses and programming to activate underutilized parking lots,
ranging from short-term temporary reuses for special events to semi-permanent reuses that provide spaces for people to gather.The
Real Estate Strategies Toolkit section identifies key aspects of real estate strategies as well as an overview of potential publicly-owned
opportunity sites,such as under-utilized parking properties.
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DOWNTOWN REIMAGINATION -CONTINUED
Action Item 2.4:Invest in physical improvements that can create sense of place and further activate the downtown area—through
pedestrian-oriented improvements such as plazas and outdoor spaces,water features,running/walking paths,street improvements,
sidewalks,transit /micro-transit services,and pedestrian malls.
Action Item 2.5:Invest in other enhancements such as gateway signage and wayfinding,public art,thematic street and sidewalk
enhancements,and public open space .
Action Item 2.6:Grow social media engagement channels,social medial influencer/engagement channels,as well as marketing/trade
publications to promote Downtown businesses and events.
Pedestrian mall and related case studies explain how pedestrian-oriented improvements,events,and other placemaking strategies /
interventions are used to drive activity and engagement in downtown areas –improving the experience for residents and visitors and
bolstering the local economy.
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STRATEGY 3: ANALYZE IMPLEMENTATION OF EIFD
City Economic Development –Cost $
Enhanced Infrastructure Financing Districts are a type of tax increment financing district that allows local governments to capture new
assessed value creation and finance public projects (such as infrastructure,affordable housing)using property tax revenue from new
development.
Action Item 3.1:Conduct feasibility analysis,develop plan for district formation.
Action Item 3.2:Work with Marin County to identify mutually beneficial investments to encourage sharing of a portion of County tax
increment.(revenue generating /funding capacity)
Action Item 3.3:Pursue grants that align with goals of the district,particularly those that give preference to EIFDs –Infill
Infrastructure Grants,Affordable Housing and Sustainable Communities Grants,and Transformative Climate Communities grants.
(revenue generating /funding capacity)
As explained in the Economic Toolkit section below,EIFDs may be well suited for San Rafael’s opportunity areas such as Northgate
that have significant infrastructure needs (roads /connectivity,water /sewer,electricity,telecom /broadband).These districts are
being utilized by communities across California to induce private sector investment,accelerate growth,create jobs,grow fiscal
revenues and capture value .
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STRATEGY 4: STRENGTHEN LOCAL PARTNERSHIPS
City Economic Development –Cost $
Local organizations such as the Chamber of Commerce,Canal Alliance,and Downtown BID are important partners to improve theeconomicenvironmentforallareasoftheCity.By strengthening these partnerships,the City will develop a greater capacity to pursueeconomicdevelopmentinitiativesandfacilitatecooperation/collaboration across public,private,and non-profit entities.
Action Item 4.1:Explore the formation of a Countywide Tourism Improvement District or increasing the San Rafael TransientOccupancyTaxorothertourismfundingmodeltosupporttourismmarketingandincreasetourismsectorgrowth.(revenuegenerating/funding capacity)
Action Item 4.2:Evaluate current list of community events &programming (e .g.,Dining Under the Lights,Block Parties,
festivals/cultural events,outdoor athletic events,live music/concerts,performing arts,etc .).Expand special events in Canal,Terra Linda
and Downtown area –such as block parties,public markets,outdoor dining,outdoor music /movies,and other events.
Action Item 4.3: Establish partnerships and leverage cross promotional opportunities between City, Marin County, business owners, and other organizations. Regional marketing is a more cost-efficient way to attract new industry and encourage visitors to use Marin County as a base for regional tourism.
Action Item 4.4: Pursue tourism marketing, San Rafael as a gateway to the Mendocino Coast and Sonoma/Napa Valley wine country.
Action Item 4.5: Coordinate with arts organizations to integrate arts programming with events and economic development initiatives,
building upon the Cultural Arts District designation.
Action Item 4.6: Collaborate with service organizations such as Canal Alliance to support programs that address workforce development, entrepreneurship, and economic resiliency.
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STRATEGY 5: ATTRACT HIGH-TECH INDUSTRIAL USES
City Economic Development –Cost $
As shown by the success of BioMarin,San Rafael is well positioned to attract bio-tech and other high-tech industrial businesses.LifeSciencesareoneofthekeyexpandingeconomicclustersinMarinCounty,driven by the flourishing tech economy of the greater BayArea.
Action Item 5.1:Revise industrial zoning restrictions and entitlement policies/processes to ensure that they facilitate new industrial uses.
Action Item 5.2:Pursue new sectors that can expand the breadth and variety of its industrial core and jobs base .Potential growthopportunitiesincludebiotechnology,research and development,and e-commerce fulfillment.
Action Item 5.3:Identify target areas for tech industrial development (e .g.Smith Ranch,Canal)and consider overlay zoning to facilitatedevelopment.
Action Item 5.4: Conduct outreach to existing businesses, develop relationships with industry groups to foster collaboration, and identify / address business feasibility issues (infrastructure, procedural, etc.).
The Strategic Land Use Policies Toolkit section identifies key aspects to revising zoning and entitlement processes to facilitate desired development activity. Economic Trends section identifies key aspects to promoting biotech and life sciences businesses (such as access to necessary infrastructure, local tax / administrative policy, and availability of housing and transit).The Case Study highlights the approach that the City of San Diego took to advance the biotech sector in the La Jolla area of the City.
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STRATEGY 6: OUTREACH FOR PRIVATE AND BUSINESS
DEVELOPMENT OPPORTUNITIES
City Economic Development –Cost $$Proactively work with property-owners to understand challenges and opportunities that may align with the City’seconomicdevelopmentgoals.Action Item 6.1:Identify and analyze key privately-owned sites that are well-positioned for reuse or redevelopment.
Action Item 6.2: Conduct outreach and collaborate with property owners to explore development opportunities and address challenges that can bring new uses to privately-owned sites.
Action Item 6.3: Pursue businesses and developers, in coordination with property owners.
Action Item 6.4: Increase Cannabis business opportunities through release of new cannabis licenses and creation of cannabis specific business programs targeting growth and capacity building of existing permittees. Business opportunities should include exploration of retail storefront cannabis licenses and other State allowed business types in appropriate commercial locations. (revenue generating / funding capacity)
Action Item 6.5: Mobile Vendor Ordinance Update: Update the City’s Mobile Vender Ordinance to create a legal pathway for mobile vending in appropriate commercial locations. Utilize community partners with language and cultural capacity for vendor outreach and permitting technical support.
The Real Estate Strategies Toolkit section identifies key aspects of real estate strategies as well as an overview of potenti al privately-owned opportunity sites, such as the Smith Ranch movie theater site and the Marin Square shopping center site.
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STRATEGY 7: WORKFORCE DEVELOPMENT PROGRAMS
City Economic Development –Cost $$
Expand Workforce Development programs to help local residents gain access to career pathways –setting low-income workers on a
path to higher wage careers,improving their economic situations and also helping area businesses gain access to a higher-quality
pipeline of talent.
Action Item 7.1:Coordinate with Workforce Alliance of the Northbay,Dominican University,local school /community college
districts,the Chamber of Commerce,Canal Alliance,and other area nonprofit organizations to encourage collaboration with
local/regional educational and workforce-development organizations for training,mentorship,and job placement programs.
Action Item 7.2:Conduct outreach to local businesses to assess skills gaps and other issues with finding workers,and conduct
outreach to local aid organizations to better understand barriers that impact workforce readiness (such as language,childcare,transit,
and internet accessibility).
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PERFORMANCE METRICS
Performance metrics will allow the City to identify progress made and determine what barriers to economic development continue to
exist,what responses have proven successful or otherwise,and which projects are scheduled for development.The following metrics
are recommended to be measured each calendar year and compared to the prior year’s results:
1.BEAR Program Participation –Track number of BEAR program participants,investment captured,and jobs created
2.Annual Reports on EIFD Funding –identify the revenues received and specify the planned investments
3.Commercial Building Permits in Key Areas –measure commercial developer interest
4.Assessed Value of Commercial and Industrial Property –show increased private sector investment
5.Number and Type of Business Licenses –measure new business formations
6.Employment by Industry –show success in commercial and industrial business attraction and employment growth
7.Sales Tax Revenues by Geographic District –measure success in attracting businesses and economic activity
8.Hotel Tax Revenues –measure success in attracting more visitors
9.Hotel Visitor Survey –identify types of visitors,short term vs longer term stays
10.Annual Survey of Business Owners –identify issues regarding City permitting /zoning process and other programs toinformCitystaffofprogress/shortcomings
11.Special Event Data:number of events,attendance estimates –show success of community outreach efforts,revitalization efforts,and general marketing
ECONOMIC DEVELOPMENT STRATEGIC PLAN
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1: Support Business / Development
#Action Item Cost Workload Timeframe
1.1 BEAR Program $Year 1
1.2 Technical Assistance
Programs $Year 2
1.3 Business /
Development Data $Ongoing
1.4 Bi-lingual Staff $$$$Ongoing
1.5 Entrepreneurial
Events $$Year 1
2: Downtown Reimagination
#Action Item Cost Workload Timeframe
2.1 Business Programs $$$Year 3 -4
2.2*
Explore conversion
of the BBID to a
PBID $Year 1
2.3
Evaluate publicly-
owned sites for
reuse $Year 2-3
2.4 Placemaking physical
improvements $$$$Year 3-5
2.5 Other physical
enhancements $$$Year 3-5
2.6 Marketing / social
media $Ongoing
3: Analyze Implementation of EIFD
#Action Item Cost Workload Timeframe
3.1 Feasibility analysis /
plan $Q1-Q3
3.2*Explore County
Partnership $Year 1-2
3.3*Pursue Grants $Ongoing
ACTION ITEM RESOURCES
Estimated Workload During Timeframe
10-20% of employee workload
20-40% of employee workload
40-60% of employee workload
60-100% of employee workload
Star (*) -items that generate revenue / funding capacity
Estimated Cost thru Year 5
$<$50,000
$ $$50,000 to $150,000
$ $ $$150,000 to $300,000
$ $ $ $>$300,000
Cost does not include allocation of current Econ Dev
staff salaries
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4: Strengthen Local Partnerships
#Action Item Cost Workload Timeframe
4.1*Explore tourism
funding models $Year 1-2
4.2
Explore / expand
events and
programming $$$Year 1-3
4.3 Marketing
partnerships $Year 1
4.4 Tourism marketing $Year 1
4.5 Arts programming $Year 1
4.6 Collaborate with
service organizations $Year 2
5: Attract High-tech Industrial Uses
#Action Item Cost Workload Timeframe
5.1
Revise zoning /
processes for
industrial uses $$Year 3-5
5.2 Pursue new
industrial sectors $Year 1-2
5.3
Evaluate tech
industrial overlay
zoning $$Year 2
5.4
Conduct outreach
businesses, industry
grps $Year 1-2
6: Outreach for Private / Business
Development Opportunities
#Action Item Cost Workload Timeframe
6.1 Identify / analyze
sites for reuse $Year 1-2
6.2
Outreach /
collaborate with
property owners $Year 1-2
6.3 Pursue businesses /
developers $Year 2
6.4*Cannabis business
opportunities $$Year 2-3
6.5 Update Mobile
Vender Ordinance $$Year 2-3
7: Workforce Development Programs
#Action Item Cost Workload Timeframe
7.1
Coordinate with
orgs. for workforce
development $Year 3-5
7.2
Conduct outreach
to local businesses /
orgs.$Tear 3-5
ACTION ITEM RESOURCES
Estimated Workload During Timeframe
10-20% of employee workload
20-40% of employee workload
40-60% of employee workload
60-100% of employee workload
Star (*) -items that generate revenue / funding capacity
Estimated Cost thru Year 5
$<$50,000
$ $$50,000 to $150,000
$ $ $$150,000 to $300,000
$ $ $ $>$300,000
Cost does not include allocation of current Econ Dev
staff salaries
ECONOMIC DEVELOPMENT STRATEGIC PLAN
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SAN RAFAEL STRENGTHS
▪Economic Engine for Marin County:the City is home to major employers,retail centers,downtown district,industrial uses,
civic /cultural institutions,entrepreneurs,and essential workers.
▪Unique Character:The City is stepped in history and serves as a gateway between the Bay Area and Wine Country (Sonoma
and Napa Valley);City has Downtown Cultural Arts District and arts organizations;a “green”and active community with parks,
trees,outdoor activities,and waterfront;events bring liveliness and activity.
▪Commercial Sites:Key sites are available for development throughout the City.
▪Diverse Workforce:Strong local labor options;entrepreneurial spirit –from small businesses to tech entrepreneurs.
▪Anchor Institutions:Dominican University and BioMarin are major providers of education and employment opportunities;
County Civic Center and City offices play a role in providing services /programs /events;other nearby educational partners
include College of Marin.
▪Transportation Access:The City is accessible through SMART passenger rail service and local bus service,and US-101 and I-
580 –can support future transit-oriented development and connectivity.
▪Business Organizations:Chamber of Commerce is very active and meets with businesses regularly.
▪Relative Affordability:Lower cost single-family housing compared to Marin County and the San Francisco peninsula.
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SAN RAFAEL CHALLENGES
▪Commercial Vacancies:Some vacant /abandoned /blighted buildings and nonresponsive /absentee property owners.
▪Market Trends:Retail in downtown challenged by e-commerce,office parks challenged by telework.
▪Zoning /Development Code:Required Conditional Use Permits in Industrial Zoning is obstacle to high value development.
▪Worker Shortage:Long commutes for many workers impacts employee retention for many businesses.
▪Limited Development Activity:Previous hesitance to new housing development has historically stalled development.
▪Homeless /Crime:Perceptions of crime,homelessness,and parking challenges impact commercial activity.
▪Environmental Risk:Commercial areas are in flood-risk areas,such as the Canal district and parts of Downtown.
▪Development Costs:High cost of construction materials and labor due to the ongoing COVID-19 pandemic .
▪Economic Uncertainty:The uncertainty of economic conditions such as Federal Reserve restricting liquidity to reduce
inflationary pressures.
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SAN RAFAEL OPPORTUNITIES
▪Downtown Revitalization:Precise Plan takes a placemaking approach and brings predictability to downtown development,
paving the way for new activity.
▪City /County Partnership:Potential joint ventures with Marin County thru EIFD or CRD to fund infrastructure and affordable
housing.
▪Tourism:As a gateway to the Mendocino Coast and Sonoma/Napa Valley wine country,San Rafael can capture significant portion
of regional tourist visit.
▪Northgate Town Center:Development Agreement for conversion of the Northgate Mall into a blended use Town Center and
over 1,000 housing units can be major catalyst for North San Rafael.
▪Parking Structures and Parking Lots:City-owned parking structures and surface lots provide opportunities for reuse and
reactivation.
▪Federal Opportunity Zone (“OZ”):Canal Area development can benefit from OZ and EIFD’s to spur additional investment
in new development projects.
▪SMART:Regional rail service connecting the Sonoma Valley to San Rafael and connecting to the Ferry service to San Francisco,
provided transit-oriented development (“TOD”)opportunities.
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3. ECONOMIC DEVELOPMENT TOOLKIT
San Rafael Economic Development Strategic Plan
ECONOMIC DEVELOPMENT STRATEGIC PLAN
KOSMONT COMPANIES | 36
ECONOMIC DEVELOPMENT TOOLKIT OVERVIEW
Business Expansion, Attraction, and Retention
(BEAR)
Focus on business and developer outreach to deliver quality jobs and fiscal
revenue.
Real Estate Strategies
Use strategies to better utilize the value of city properties –performance-
based leases / ground leases, monetizing assets (such as parking garages,
selling property to private sector, etc.)
Special Districts for Infrastructure Financing
CFD’s, EIFD’s, CRD’s
Use TIF and other district tools (such as Enhanced Infrastructure Financing
Districts –EIFDs and Climate Resilience Districts) to capture taxes from
assessed value increases to fund infrastructure needs.
Zoning and Land Use Strategies
Development Opportunity Reserve (D.O.R.)®
Zoning and entitlements create value; capture the value from zoning
changes to link new density to community benefits and public amenities.
Revenue Replacement Tools Create general fund revenues through development agreements / public-
private partnerships.
Government Funding and Financing
Use government financing tools to generate enhanced revenues to fill
financial gaps of projects in order to encourage private investment and
other tax-generating development.
Grants and Other Public Funding Pursue grant funds available at the state and local level for infrastructure,
housing, and other projects.
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BEAR STRATEGIES
BUSINESS EXPANSION, ATTRACTION, AND RETENTION
Business Expansion, Attraction, and Retention (BEAR) strategies focus on business and developer outreach to deliver
quality jobs and fiscal revenue.
Different strategies to consider include:
•Support: Help existing business through regular check-ins, assistance with resources, and networking opportunities.
•Marketing: Highlight the city as a business-friendly destination with community assets, talented workforce, and success stories.
•Outreach: Conduct target outreach to developers, businesses, and brokers with opportunity site marketing collateral,
correspondence, meetings / site tours, and participation at industry events.
•Collaboration: Foster a supportive environment between businesses, universities, industry groups, and government entities.
•Incentives / Regulatory Reform: Consider regulatory reform efforts, such as permit streamlining, development code changes,
and other policies to foster a business-friendly environment.
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REAL ESTATE STRATEGIES
PUBLICLY-OWNED PROPERTY
Public agency land is often under-utilized, offering the potential to increase value
and revenues (e.g., property tax, sales tax, TOT). Local government-owned real
estate can be leveraged to increase revenue and help stimulate economic
development projects. The land can include former redevelopment Agency
(“RDA”) properties, public use properties (civic centers, fire stations,
recreation), and surplus property (city, school district, utility, other), rights of
way (streets, alleys, parking lots and parking structures).
The State, in its push to have cities develop more affordable housing, has made
subsequent legislative changes (e.g., AB 1486) to strengthen the Surplus Land
Act (SLA). The SLA now requires all public agencies in the State of California to
first offer a property for sale or lease to ‘housing sponsors’ and affordable
housing developers prior to the sale or lease of the asset (unless otherwise
exempt) and will assess penalties if a public agency is not in compliance.
Key Strategies include:
•Performance-Based Leases /Ground
Leases:San Rafael can maintain ownership and
leverage an income stream from an asset via a
ground lease (e.g.,lease revenues)as well as
establish a rent structure based on specific
performance benchmarks thereby reducing risk
for lenders/private investors.
•Monetizing Assets:San Rafael can raise
revenues by monetizing assets such as surface
parking lots /garages.
•Acquisition or Sale of Property:San Rafael
can make strategic acquisitions and/or sell
property for preferred private development
opportunities,as well as utilize strategies such
as lease-back strategies,continued operation of
existing use,and redevelopment of properties
into new uses.
ECONOMIC DEVELOPMENT STRATEGIC PLAN
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REAL ESTATE
STRATEGIES
PUBLICLY-OWNED
OPPORTUNITY SITES
DOWNTOWN CITY-OWNED
PARCELS
City Hall / Police
/ Parking
Fire
1
#APN(s)AC Use
1 011-212-15 0.38 Parking
2 011-221-07 0.27 Parking
3 011-224-05, 06 0.26 Parking
4 011-273-17 0.46 Parking
5 011-271-12,
13, 14, 16 0.44 Parking
6 011-252-10 0.17 Parking
Parking Structure
Parking
Structure
2
3Parking
Structure
456
Community
Center
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SPECIAL DISTRICTS FOR INFRASTRUCTURE FINANCING
Public agencies can utilize a variety of tax increment financing (TIF)district tools to fund infrastructure projects that can
help to motivate private investment.This includes Enhanced Infrastructure Financing Districts (EIFDs).EIFDs may be well
suited for San Rafael’s opportunity areas such as Northgate that have significant infrastructure needs (roads /connectivity,
water /sewer,electricity,telecom /broadband).
EIFDs utilize property tax revenues from an estimated +$500 million in new development to finance public infrastructure
projects without introducing new or increased taxes.EIFD project areas do not have to be contiguous,allowing them to
target specific areas of high development and high infrastructure need.
➢City receives approximately 16% of every $1 collected in property taxes (including Motor Vehicle In-lieu) (varies by Tax Rate Area)
➢County receives approximately 30%of every $1 collected in property taxes on average
The district commitment of revenues toward infrastructure can induce private sector investment,accelerate growth,create
jobs,and grow fiscal revenues.
TIF districts which involve a City /County joint effort are more likely to win state grant funding sources.
ECONOMIC DEVELOPMENT STRATEGIC PLAN
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SPECIAL DISTRICTS FOR INFRASTRUCTURE FINANCING
EIFD CITY / COUNTY PARTNERSHIP CASE STUDY
Placentia / Orange County EIFD Partnership
•300+ acres: Old Town Placentia Revitalization Plan, Metrolink
Station, TOD Packing House Area
•Infrastructure Financing Plan (IFP) will fund $13 million in
public infrastructure improvements for those areas
•Water, sewer, streets, parking, transit connectivity
•$460M+ expected in new AV from residential, retail,
restaurant development
•Net Fiscal Benefit: $22M to City, $15M to County
BEFORE
AFTER
Implementation
•EIFD feasibility analysis & formation process
•Led education/outreach meetings with County BOS
•Developed County EIFD Policy for City/County EIFD
•Completed first EIFD TIF Court Validation in the state
•Working on TIF Bond—expected by fall of 2022
ECONOMIC DEVELOPMENT STRATEGIC PLAN
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SPECIAL DISTRICTS FOR INFRASTRUCTURE FINANCING
OTHER DISTRICT TOOLS
Property Business
Improvement
Districts (PBID)
Property Business Improvement Districts are special assessments levied on real property to fund improvements and promote
activities the benefit the properties located within the PBID area. This includes capital improvements, parking facilities, s treet /
streetscape improvements, lighting and landscaping, marketing and promotion, and business attraction / retention.The special
assessment amount that each property owner pays must be directly proportional to the benefit received.
Community
Facilities District
(CFD)
Community Facility Districts are a new property assessment or ”special tax” that appears as a separate line item on a tax bill
and can be used to fund infrastructure / services that benefit the property. This includes transportation, parking, street / utility
improvements, hazardous waste remediation, street lighting / sidewalk, and public services.CFDs are useful because they
provide early financing for a variety of critical services and infrastructure.CFDs also pair well with EIFDs as a value capture
strategy –with CFDs providing early funding and EIFDs providing funds as projects are constructed, and tax increment grows.
Parking Authority
District
Parking Authority Districts can utilize a variety of funding sources –including bonds, ad valorem taxes, user fees, parking meter
charges, parking revenues, and City / County contributions –to fund improvements such as parking lots, structures, and
alterations to circulatory infrastructure to facilitate ingress and egress.
Climate
Resilience
District (CRD)
Climate Resilience Districts are a new type of district that can fund projects to mitigate climate change. These districts h ave
broad financing powers, and can fund a wide range of eligible projects, including projects that address sea level rise / floo ding,
extreme weather, wildfire, and drought.
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ZONING AND LAND USE STRATEGIES
ENTITLEMENT AND PERMITTING PROCESSES
Permitting processing delays (i.e.Zoning Variances,
Conditional Use Permits) have the potential to tie up
private resources and discourage investor interest, it
can have a significant impact on business formation and
economic activity.
Permit processing for new businesses can be an
expensive and high-risk endeavor –often featuring
multiple public meetings, and uncertainty whether
permits will ultimately be approved.
At the same time, planning and building departments
can have strained resources and staffing, increasing
application review time and limiting staff resources to
assist applicants.
Key Strategies include:
•Increase Flexibility:Review and revamp zoning and permitting
requirements to ensure flexible requirements that can accommodate
market and changing business and customer dynamics.
•Streamline Process:Identify business and project categories that are
particularly beneficial to the Downtown and create a fast and predictable
process for review /approval.
•Encourage Active Uses:Provide an easy permit process for interesting
and dynamic uses –such as pop-up users,live music /events,outdoor dining
permits,and artistic improvements /installations –that can enhance the
Downtown experience .
•Incentivize Reuse of Struggling Spaces:Provide flexible building
permit rules for properties suited for adaptive reuse and incentivize
conversion of vacant commercial buildings into other uses (such as office,
hotel,residential).
•Specialize:Tailor requirements for infill development to recognize the
often-challenging circumstances involved in infill developments.
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PERMITTED USES IN
INDUSTRIAL ZONES
The San Rafael Zoning Code requires many Technology /
Research & Development uses to get conditional use permits or
other administrative approvals that can be significant obstacles to
attracting these high value industries.
To encourage economic development, some cities re-evaluate
these requirements to ensure that they do not present an undue
burden on development. One strategy is to shift more toward
administrative or by-right approvals for select industries.
Cities still place some restrictions on particular uses, while
generally allowing a category of uses. For example, the City of
Richmond permits Research and Development uses in many of
its industrial districts but with a restriction that biological
research / commercial testing in a laboratory rated for a
Biosafety Level (BSL) 3 or higher requires a CUP. This addresses
the city’s safety concerns, while still providing the flexibility
needed to encourage development.
Note: For illustrative purposes only, refer to Zoning Code for requirements
Use Permit Requirements
Biotechnology firms Conditional Use Permit
Chemical manuf. / processing Conditional Use Permit or Not Allowed
Electronics Industry Conditional Use Permit and/or zoning administrator
Laboratories Conditional Use Permit / zoning administrator
Pharmaceutical manufacturing Conditional Use Permit
Research and Development Facilities Conditional Use Permit or Not Allowed
Research and Development Industry Conditional Use Permit and/or zoning administrator or not allowed
Medical Services (Clinics, laboratories, medical office)Conditional Use Permit or Not Allowed
Cannabis Testing / Lab, Delivery, Manufacture, Distribution Permitted; subject to additional regulations
Storage, Warehousing, Distribution Permitted
Maintenance and Repair Services Permitted; outdoor storage rules
Business Sales / Services Permitted
Personal Services Permitted
Motor Vehicle Sales / Service Varies: Conditional Use Permit, Administrative
Assembly / manufacture / processing Permitted by right unless <300 ft from residential district, Conditional Use Permit
Food service establishments, Brew Pubs Conditional Use Permit or Not Allowed
ECONOMIC DEVELOPMENT STRATEGIC PLAN
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ZONING AND LAND USE STRATEGIES
DEVELOPMENT OPPORTUNITY RESERVE D.O.R.®
Zoning and entitlements create value.Cities can avoid simply giving that value away, and instead capture
that value as currency to support community benefits and public amenities.
Old Playbook:
Rezone Areas for New Density
and Expect New Development
Rezoning gives the value of the new density to current property
owners: inflated land values, limited possibility of development.
New Playbook:
Bank Density with Development
Opportunity Reserve D.O.R.®
DOR allows cities to create a “bank” of new density in zoning /
specific plans, allowing them to give the density to projects that
deliver community benefits & public amenities.
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ZONING AND LAND USE STRATEGIES
DEVELOPMENT OPPORTUNITY RESERVE D.O.R.® -PROCESS
Create
D.O.R.
Step 1
Conduct market / economic density analysis to
understand development potential.
Identify sites and areas within community as
areas targeted for new development.
Step 2
Use planning process to create a reserve bank
of density to use in target areas and create an
amenity list of desired community benefits and
advance projects.
Implement
D.O.R.
Step 3
Development Projects apply for density from
the DOR in exchange for amenities and
community benefits delivered.
Step 4
City & Developer sign a Development
Agreement, assigning DOR density to project
with contractual commitment to deliver
amenities or infrastructure.
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ZONING AND LAND USE STRATEGIES
DEVELOPMENT OPPORTUNITY RESERVE D.O.R.® -CASE STUDIES
•Goal: Induce housing development in downtown area
•Benefits & Amenities:public restrooms, off-site improvements, public parking, parking district, public art, parks, green buildings, other
•Incentives:Increase density up to 40 units / acre, increase heights, reduce on-site parking , reduced setbacks, reduced traffic and application fees
Implementation Steps1.Conduct market housing / economic study
2.Discuss new density and public amenities with community
3.Create DOR mechanism as new Zoning / Specific Plan provision
•Goal: Increase downtown density along with community benefits and public improvements
•Benefits & Amenities: streets, bicycle facilities, parking, open space, beautification, transit,arts / cultural spaces, lot consolidation; developer can install amenities or pay into public improvement fund; value based on a portion of residual land value (~75%)
•Incentives: Increase density, heights, FAR, dwelling units per acre
Buellton Avenue of Flags El Monte Downtown Main St.
ECONOMIC DEVELOPMENT STRATEGIC PLAN
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REAL ESTATE STRATEGIES
PRIVATELY-OWNED PROPERTY
Cities can pro-actively reach out to select private property owners to facilitate real estate developments to advance
the City’s economic development goals.
Property Owner Outreach –collaborate with property owners to understand their plans for properties,
challenges that they face with development, and opportunities that may align with economic development goals.
Rehabilitation / Renovation –encourage rehabilitation and/or renovation of facilities, signage or store-front
facades; can include public programs such as façade improvement loans / grants, or assisting with identifying other
sources of funding.
Marketing –Conduct marketing activities, such as developer or building outreach, in coordination with
property owner.
Public-Private Partnerships (P3) –Enter into formal partnerships with property-owners that commit city
resources to fund improvements that will advance both the property owner’s goals for development and the
City’s goals for economic development.
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PRIVATELY-OWNED OPPORTUNITY SITE
280 SMITH RANCH ROAD
Owner Nationwide Theatres Corp
APN(s)155-121-09
Acreage 8.95
Current Use Century Regency Movie Theater
Assessed
Value (2022)$8,000,000
As a result of COVID impact to entertainment uses, many movie
theaters are challenged. The site currently generates a relatively
small amount of property and sales taxes. If redeveloped into a
blended-use project with multifamily residential and retail
components, it could generate substantially more tax revenue.
ECONOMIC DEVELOPMENT STRATEGIC PLAN
KOSMONT COMPANIES | 50
PRIVATELY-OWNED OPPORTUNITY SITE
MARIN SQUARE
Located at the junction of I-580 and US-101, this site may be
suited for higher value uses. Residential uses may be
problematic due to highway noise and pollution.
1
2
3
4
5
#Owner APN(s)AC Use
1 Chelsea Pacific
Investments LP
018-051-17, 20
018-063-04, 07, 08, 09,
10
10.58
Marin Square shopping
center, office, service
industrial, showroom
2 State of
California 018-051-12, 16 0.78 Industrial yard
3
Blue Oak
Development
LLC
018-051-13 0.53 Service industrial
4 Woodside
Holdings LP 018-051-01 0.21 Service industrial
5 City of San
Rafael 018-063-11 0.09 Landscaping
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GOVERNMENT FUNDING AND FINANCING STRATEGIES
The following financing mechanisms can be utilized to generate enhanced revenues to fill financial gaps of projects,in
order to encourage private investment and other tax-generating development.
Lease Revenue Bonds
Lease Revenue Bonds are issued by a public entity (e .g.,Joint Powers Authority)and can be used to finance vital capital improvements
to be leased to a public agency.The bonds are payable solely from lease payments paid by a public agency.
Lease-leaseback (P3)Structures
Lease-leaseback structures give cities the opportunity to cut costs and deliver public projects through strategic public-private
partnership (P3)project delivery.The lease and subsequent sublease of assets between two public agencies enables lease payments to
be leveraged (borrowed).These strategies can also come with procurement and project timing advantages.For example,an existing
building facility can utilize lease payments immediately without the need to fund capitalized interest.
Cash-Flow Management Programs
Improved cash flow management can generate enhanced revenues from cash resources.Customized cash flow modelling can maximize
portfolio size and increase funds that are available to the City.These enhanced short-term returns can then be utilized for community
revitalization projects.
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GRANTS AND OTHER PUBLIC FUNDING
There is a wide variety of grant programs and funding sources available through the state
and federal government.New grant programs are added every year,many with a focus
on housing and climate resiliency.Cities should periodically review available grant
sources and pursue grants that align with the city’s economic development goals (a
grant-writing firm can provide assistance if the City’s internal resources are limited).
Three current programs that give some preference to EIFDs are:
Infill Infrastructure Grants (IIG)
Grants for infill projects /areas,gap funding for infrastructure for residential /mixed-use
with some affordability requirements;awards range between $1 -$7.5 million
Affordable Housing and Sustainable Communities Program (AHSC)
Grants for affordable housing,housing infrastructure,transportation,related amenities,
and program costs;awards range between $1 -$30 million
Transformative Climate Communities (TCC)
Funds community-led development and infrastructure projects that achieve
environmental /health /economic benefits in the state’s most disadvantaged
communities.
Recent Economic Development &
Climate Grant / Funding Programs
•Regional Early Action Planning (REAP)
•Local Early Action Planning (LEAP)
•Infill Infrastructure Grants (IIG)
•Affordable Housing and Sustainable Communities
(AHSC)
•Community Economic Resilience Fund (CERF)
•Multifamily Housing Program (MHP)
•ICARP Regional Resilience Grant Program (RRGP)
•Infrastructure State Revolving Fund (ISRF)
•Homeless Housing, Assistance, and Prevention
(HHAP)
•Infrastructure State Revolving Fund (ISRF)
•Coastal Conservancy Grants
•Adaptation Planning Grant Program (APGP)
•Strategic Growth Council grants
•Infrastructure Investment and Jobs Act (IIJA)
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GRANTS AND OTHER PUBLIC FUNDING
Funding Source /
Grant Purpose
Infill Infrastructure
Grant (IIG) Program
(EIFD Preference)
-IIG provides grants for capital improvement projects for qualifying infill projects or qualifying infill areas-Used for gap funding to infrastructure improvements for residential or mixed-use developments-Eligible activities: construction, rehab, demolition, relocation, preservation, and acquisition of infrastructure-Affordability threshold: No less than 15% of units as “affordable” units-Assistance terms: Minimum award ($1M), maximum award ($7.5M)
Affordable Housing and
Sustainable
Communities (AHSC)
Program
(EIFD Preference)
-The AHSC Program assists project areas by providing grants and/or loans to a locality, public housing authority, JPA, developer, or facilities districts, that will achieve greenhouse gas (GHG) emissions reduction and benefit Disadvantaged communities through increasing accessibi lity of affordable housing, employment centers, and key destinations via low-carbon transportation-Assistance terms: Minimum award ($1M), maximum award ($30M)-Eligible activities: new construction, acquisition, or rehab of affordable housing; housing infrastructure; sustainable transportation infrastructure and related amenities, program costs (active transportation)-Affordability threshold: 20% of homes at 80% median household income (MHI)
Multifamily Housing
Program (MHP)
-MHP assist the new construction, rehab, and preservation of permanent and transitional rental housing for lower income households, or the conversion of a non-residential structure to rental housing-Eligible activities: property acquisition, land lease payments, construction and rehabilitation work, offsite improvements (e .g.sewer, utilities, and streets directly related to housing development)-Assistance terms: Maximum award ($20M), base loan various from $150K and $175K based on type of unit
Transit-Oriented
Development (TOD)
Housing Program
-Program offers low-interest loans as gap financing for rental housing developments near transit that include affordable units. Grants a re available to localities and transit agencies for infrastructure improvements necessary for the development of specified housing projects o r to facilitate connections between the project and the transit station-Eligible applicants: developers for rental housing projects; municipalities/transit agencies for infrastructure projects-Assistance terms: Maximum award for a single project is $15M
ECONOMIC DEVELOPMENT STRATEGIC PLAN
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4. ECONOMIC / LAND USE TRENDS & CASE STUDIES
San Rafael Economic Development Strategic Plan
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Housing is Not a
Loss Leader, it’s a
Growth Driver
Retail is Not Just
Retail Anymore
Telework is
Reconfiguring Office
Industrial /
Distribution is
Critical for Your
Economy
Housing Creation as
Economic Development
Retail Reimagination as
Economic Development
Office Conversions as
Economic Development
Industrial & Fulfillment as
Economic Development
•New housing can generate
significant new tax revenues and
support local jobs
•Housing is not necessarily a net
negative fiscal impact, especially
at current property values
•U.S. retail over-built and needs
“right sizing;” Covid accelerated
trends; today its about essentials,
experience & e-commerce
•Blended/mixed use projects
integrate multiple uses (housing,
retail, open space, creative office,
hotel)
•Telework and work from home
options are reshaping the needs
for office space and business
districts
•Job redistribution tied to housing
•Vacancies can lead to fiscal
impact pressure
•Modern industrial is not “your
father’s industrial” –not
smokestacks
•Retail can’t thrive without
distribution
•Booming demand for
distribution, e-commerce, and
data centers, blending for
fulfillment/delivery, job creators
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ECONOMIC AND LAND USE TRENDS
➢Retail
•Retail store closures, bankruptcies, and e-
commerce has changed economics of retail
centers. Many are being reimagined (e.g,
blended use)
•Retail is driven by trip-generators such as
entertainment, experience, and essentials
➢Office
•Downtown S.F. office building vacancy rising as
remote work becomes new normal; Social
distancing leads to offices resizing/reconfiguring
•Corporations see possible shift to suburban
offices -integrating office in blended use
environments
➢Industrial
•E-commerce growth has exploded
•Retail and industrial are merging, with space
being used for Buy Online Pick Up in Store
(BOPIS), fulfillment, last mile and warehousing
➢Residential
•Homes are live, play, and work environments
•Strength in suburban markets; home office is
the new amenity,apartment developments are
being designed to facilitate work
•New residential sites in shopping centers
➢Hospitality
•Hospitality sector hurt the most by Covid-19,
but leisure travel is rebounding
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TELEWORK GROWTH
Telework is changing where people choose to live,and increases
popularity of “15-minute communities”that offer amenities and
quality of life.
Census Bureau estimated that ~44% of workers are in jobs where
working from home is currently feasible, with only a quarter of
those in feasible telework jobs actually utilizing this capability.
Research shows the ability to telework likely varies by
educational attainment and income-level; many of the telework
occupations are Management / Business / Financial / Professional
occupations. Opportunity for San Rafael new residential units.
Other research shows that work-from-home represent ~30% of
days, significantly above pre-pandemic estimates of 5%.
Employers are expecting an average of 2.3 work-from-home days
per week, suggesting that hybrid home/office model is likely to be
well-utilized post-Covid.
Source: U.S. Census Bureau; St. Louis Federal Reserve; Survey of
Working Arrangements
0%
10%
20%
30%
40%
50%
60%
70%
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Percent Paid Full Days WFHEmployer Plans for Post-Covid WFH DaysWork-from-Home: Current Utilization and
Employer Plans for post-Covid
Employer Plans for Post-COVID WFH Days
Percentage of Days WFH
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E-COMMERCE GROWTH
E-commerce sales in the U.S.have increased steadily,
jumping by 30%to $800 billion annually by Q2 2020
due to increased utilization during the Covid-19
pandemic.This put additional pressure on local brick-
and-mortar retailers.Post pandemic retail mall
shopping has recovered somewhat.
According to UBS,e-commerce’s share of overall U.S.
retail sales will continue to increase over the next 5
years,resulting in a loss of brick-and-mortar sales,
primarily in clothing,office supply and sporting goods.
Consumer online shopping behavior has further
solidified during the Covid-19 pandemic,and is not
likely to revert to old patterns,thanks to free 1-day
delivery services,etc .
Source: U.S. Census Bureau; St. Louis Federal Reserve; UBS
0
2
4
6
8
10
12
14
16
0
100
200
300
400
500
600
700
800
900
1000
20002002200420062008201020122014201620182020E-Commerce Share of Total Retail Sales (Percent) E-Commerce Retail Sales (Billions of Dollars)E-Commerce Retail Sales
E-Commerce Sales
E-Commerce: Share of Total Retail Sales
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RETAIL TRENDS
Shopping centers across the U.S.are faced with dramatic decline in retail sales as the digital economy
converts the lifestyles and social patterns of every generation.Today’s consumers use online websites for
purchasing many hard and soft good commodities.
Several hundred regional malls have closed in past 5-10 years.By 2025,experts expect only Class-A malls
in high income communities are most likely to survive .
The impacts from e-commerce will have major impacts on large shopping centers in the region,
particularly power centers.San Rafael is in relatively good position as community retail centers with the
strongest opportunity for future growth are those focused on essentials and experiences.
Shopping districts that are centered around experiences, entertainment, and essentials are best poised for economic resiliency and future success.
The future for retail centers in San Rafael lies in fostering experiential,entertainment uses andrestaurants.Blended use projects that bring additional uses to retail sites (such as hospitality,last-milelogistics,and multifamily residential)can bring more customers to the stores and thus be a moresustainableanddiversifieddevelopmentthatservesthecommunity.
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WHAT DRIVES AN ENGAGING RETAIL EXPERIENCE?
Thoughtful
Design
Programmed
Outdoor Space
Communal
Elements
Unique
Amenities
Unique Food
Offerings
Curated Retail
Tenants
•Feels like an
exciting
destination
•Celebrates local
character
•Fosters a
specific
vibe/feeling
•Feels fresh and
innovative
•Fun and
welcoming
environment to
gather and hang
•Fresh air
elevates dining
and shopping
experience
•Mood lighting
and aesthetics
lifts the
ambiance
•Shared
community
experiences
•Encourage
conversation
and connection
•Examples:
breweries,
distilleries,
coffee / tea
•Unexpected
entertainment
attracts and
retains
customers
•Memorable and
engaging
•Examples –
arcade games,
photo booths,
lawn games, art
installations
•Interesting and
culturally rich
food options
•Reflects local
flavor, authentic,
interesting
fusion
•Exciting to try,
drives additional
visits
•Tenants and
pop-ups create a
reason to come
•Digital brands
with brick-and-
mortar spaces
•Curated
products that
create a
desirable
shopping
experience
•Local / exclusive
products
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Communal Outdoor Spaces
Curated Retail & Food
Upscale Design Elements
ENGAGING RETAIL
EXAMPLES
Curated Food Outdoor Amenities
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EXPERIENTIAL ENTERTAINMENT RETAIL CONCEPTS
Experiential retail / entertainment concepts have been merging food, drinks,
and entertainment into engaging experiences. This includes:
Movie Theater concepts such as Alamo Drafthouse that deliver an improved theater
experience with better seating / design and elevated food / beverage.
Bowling concepts such as Bowlmor and Lucky Strike, which provide a more upscale
experience in a lounge setting
Smaller format sports / activities concepts such as Puttshack, Spin Ping Pong, rock
climbing gyms, ax throwing, escape rooms, laser tag, and trampoline parks.
Larger format sporting / activities, including Topgolf and SFC sports facilities
Personalized retail services, such as clothing and accessories stores that offer in-store
services and customization
Interactive exhibits, including art galleries, installations, and other cultural offerings
Gaming concepts such as arcade bars, pinball, virtual reality gaming, and e-sports
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Village Center / Rodeo 39 is an example of an experiential retail / housing blended
use project that serves as an entertaining destination and hub for the community. It
also demonstrates how adding residential can generate demand for retail on the
site and add value to a project.
The Village Center shopping plaza in Stanton was a blighted 24-acre shopping site
that had significant vacancy issues. The site’s retail component was rightsized down
to 10-acres of the site, with a “town square” environment anchored by the Rodeo
39 curated public market. A new multifamily housing project was built on the
remainder of the site.
Food and entertainment –particularly curated local offerings –was the foundation
of the public market, a new 41,000 SF retail and dining space. Rodeo 39 has been a
great success, with the local community embracing the eclectic destination.
The project also added a variety of entertaining and experiential offerings that
encourage people to spend more time –a wide variety of cultural dining, small
stage for live music performances, retro arcade / games, boutique tattoo artists,
pop-up shops, and a variety of indoor and outdoor seating and gathering areas.
EXPERIENTIAL RETAIL CASE STUDY
VILLAGE CENTER / RODEO 39
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FOSTERING ENTREPRENEURSHIP
Small business start-ups,and other entrepreneurial enterprises are an important component of a healthy local economy.These
enterprises can drive job retention and creation,innovation,vibrancy,and diversity.The City of San Rafael can foster a strong
entrepreneurial environment through targeted programs and a supportive regulatory environment.As a gateway community between
the Bay Area and wine country,the City can attract talent from across the region and build upon its existing economic clusters.
Talent
Investment in human capital builds and retains a talented workforce. Supporting educational and training
programs, as well as linking academic networks with local businesses, can help build a strong and innovative
workforce.
Density
Dense communities can foster innovation through greater opportunities for collaboration and larger local
customer base. Supporting cluster growth, creating hubs of activity, driving media awareness, and building
mentorship networks are components of dense startup hubs.
Culture Innovation clusters require a culture of innovation, support, learning, and entrepreneurship; this can be fostered
through partnerships that teach entrepreneurial skills and link businesses with employees.
Capital
Startup success requires experienced investors to provide funding, networking, and expertise. This can be aided
through programs geared toward linking startups with capital and other resources to grow businesses, as well
as tax incentives for investors.
Regulatory
Environment
Governments should help create a stable, predictable, and supportive regulatory environment to foster
innovation and entrepreneurship.
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FOSTERING ENTREPRENEURSHIP
CASE STUDIES
City of Thousand Oaks –Ventura County
The City of Thousand Oaks partners with a variety of groups and institutions to encourage entrepreneurship in their community :
•California Lutheran University –private university home to over 4,000 students that is primarily a liberal arts school with a variety of majors /
programs, including biology, chemistry, biochemistry, computer information, computer science and environmental sciences. CLU has a strong record
of encouraging business development from its students and graduates, offers a minor in entrepreneurship, and hosts other prog rams (such as events,
incubator grants, and mentorship opportunities).
•805 Startups –works with a number of Southern California cities to educate and connect startups to traditional businesses through a variety of
programs / services, including events, business development, marketing, skill development, and talent recruitment / retention .
•Ventura BioCenter –community of scientists / engineers / educators / business professionals to encourage scientific research and business
development. Biotech business incubator includes spaces and equipment available for some members.
•Hub101 –Coworking space, incubator, and community dedicated to supporting entrepreneurs via coworking, educational programs, mentorship,
and events.
City of Corona –Riverside County
City of Corona partnered with TriTech Small Business Development Center and Tech Coast Angels to hold a “Shark Tank”-style event where
entrepreneurs pitched ideas to a panel of investors. The event was part of a larger City program that aimed to facilitate sta rt-up businesses to capture
more jobs within the city.
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PROMOTING BIOTECH AND LIFE SCIENCES
The San Francisco / San Jose area is home to a strong biotech and life sciences cluster,
but limited availability of specialized lab / flex R&D / manufacturing spaces can delay
business expansions and push firms to move to other areas.
Fostering new developments in these science / tech sectors –from startups to major
firms –can be a key economic development strategy to creating good local jobs. Life
science firms look for cities with amenities, quality of life, and available housing for
workers.
Biocom is an industry group that advocates for life science in California through
advocacy, programs, and events. As noted in Biocom’s economic impact reports, the
Bay Area’s life sciences industry includes a range of sub-sectors, including Bio-
pharmaceutical, Bio-technology, Research & Manufacturing, Medical Devices /
Equipment, Scientific / Research Tools, and Food / AG Biotechnology. The life science
industry represents a workforce of over 146,000, with ~3,100 workers in Marin
County. Research and development is a strong growth area, adding almost 4,000 new
jobs in 2021. Average pay is over $148,000.
San Rafael may be well-positioned to provide less expensive space to develop into
campuses that serve some of these biotech sub-sectors.
Biocom California: Bay Area Priorities
Access to Water and Utilities
Access to water and other utilities is necessary for biotech firms’
research processes; mandatory water cutbacks can be challenging
Housing
The extreme housing shortage in the Bay Area is a challenge to
accommodate the biotech industry’s diverse workforce
Taxes & Administration
Local taxes and fees can have detrimental impacts on
development and firm expansion. Consistent permitting and
inspection processes needed.
Infrastructure
Preserving industrial land for R&D, manufacturing, and distribution
is needed for long-term stability / growth. Transportation is
critical for employee commutes, workforce attraction, and
transport of goods / products.
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PROMOTING BIOTECHNOLOGY & LIFE SCIENCES
CASE STUDY
Case Study: La Jolla / City of San Diego
The La Jolla area of San Diego was home to a
major biotech company in the 1970s
(Hybritech). After it was acquired by E.J. Lily,
many of the scientists did not want to be part of
a large corporate pharmaceutical company. The
City and other local non-profits/agencies worked
together to achieve this vision.
Today, San Diego’s biotech industry is
responsible for nearly $9 billion in annual
economic impact and employs over 44,000
people across 700 companies.
The following are approaches the City of San Diego and University of San Diego used to aid
the growth of the biotech industry in the City:
•City involved in making land use decisions incentivizing industrial development on City-
owned land
•City allowed for natural industry growth by taking a “hands-off” approach regarding
industry controls
•City worked collaboratively with biotech businesses in the area to address water
shortages
•City created an ombudsman position to interact with local biotech companies for fast
track permitting/processing, the development of long term relationships, and
City/industry collaboration to make quick informed decisions in times of need
•City staff supported industry growth by speaking at events and taking part in visits to
Washington D.C. and elsewhere to advocate for their local biotech research
community
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SMALL BUSINESS SUPPORT
Category Description
Small Business Liaison /
Ombudsman
Designate a city liaison / ombudsman to provide assistance regarding city processes / regulations /
policies, such as permitting, license, compliance, and development standards.
Access to Capital Connect firms with capital through loan programs, grants, and other financing opportunities for
businesses to start / grow / expand.
Business Incubators /
Accelerators
Support business incubator / accelerator programs to provide early -stage companies with resources,
workspace, mentorship, and networking.
Networking / Joint
Marketing
Host / support networking events, workshops, and other opportunities that connect small businesses
/ entrepreneurs with other firms, potential customers / clients, investors, and workers.
Technical / Business
Assistance
Seek mentors with business expertise, including business planning, financial management, legal
services, market research, e-commerce strategies, etc.
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WORKFORCE DEVELOPMENT
Workforce development programs aim to improve and diversify a City’s workforce. They address the needs of
workers to be better prepared for higher-paying jobs; these programs also help local employers attract and retain
they talent needed for their businesses to be successful. These programs often focus on four key themes:
Collaboration –Fostering relationships between current / potential employers, educational institutions, and
local nonprofits to identify and address worker skill gaps.
Training –Connecting workers to programs to build skills that improve workforce readiness (certification
programs, licensure, English as a Second Language, etc.).
Networking –Connecting employers, educational / training institutions, and workers via networking programs,
mentorship programs, internships / apprenticeships.
Addressing Barriers –Encouraging programs that will alleviate pressures on workforce readiness, such as
childcare, transit, and internet / computer accessibility.
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PLACEMAKING THROUGH DISTRICTS AND EVENTS
Programming downtown areas via the
use of micro-districts can encourage
nodes / clusters of focused business
activity –such as areas focused on arts /
entertainment, hospitality, office, health /
wellness, and dining / restaurants.
While downtown areas should still aim
to integrate many different uses in
mixed-use districts, micro-districts that
place some emphasis on particular
themes can allow business clusters to
thrive and improve the overall
downtown experience.
Entertainment / Arts Districts: Focused on cultural and recreational
amenities, such as theaters, music venues, art galleries, and experiential activities.
These districts can attract residents and tourists and create a vibrant and lively
urban environment. Districts can focus on supporting the development of new
facilities / venues / restaurants to revitalize the area and attract new visitors.
Hospitality Districts: Focused on hotels, conference centers, recreation, and
other tourism-related amenities. These districts can help attract tourists and
boost the local economy by focusing on new hotel development and visitor-
serving amenities.
Technology Districts: Focused on office space to support new employers and
high-paying jobs, attracting workers and visitors into the area and driving
economic growth. These districts aim to provide the spaces, technology
infrastructure, and amenities needed to attract tech industry investment and
workers to the area.
Restaurant Districts: Focused on restaurants, bars, cafes, and food-related
amenities as well as entertainment. These districts can create a vibrant and lively
urban environment that is desirable to residents, workers, visitors, and tourists.
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PLACEMAKING THROUGH DESIGN, DISTRICTS & EVENTS
The MedicalMainStreetdistrictinLancaster,CAaimstobeablendeduseareacenteredaroundmajormedicalanchorsthatincludesmanycomplementaryuses.
Murals in downtownProvidence,RI addcharacterandhighlightlocalartistsandthemes.
Events like the CicLAvia bike /walk fairs inLosAngelesandtheMissionInnFestivalofLightsinRiverside,CA are memorable andengagingactivationsofpublicspaces.
Distinctive signs –
such as the neon
signs in Fillmore andtheStarTheatreinOceanside–can giveanareaadistinctivesenseofplace.
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REACTIVATING UNDERUTILIZED PARKING &
CATALYST SITES
Cities and property owners are exploring new uses and
programming that reactivates underutilized parking space,
parking lots, and parking structures:
•Temporary reuses for special events such as outdoor
movie screenings, block parties, farmers markets, and
craft fairs
•Short-term reuses such as parklets that allow for
extra outdoor seating for dining, music performance
spaces, gardens, waiting areas, or retail display tables
•Semi-permanent reuses such as converting parking
garage roofs into “people decks” that provide spaces for
people to gather / relax / socialize, and façade / space-
planning revisions that reactivate the sides of structures /
lots that face the street (enlivening the pedestrian
experience in the area with micro-retail, art, and activity)
Some parking structures set up
temporary movie screenings on their
roofdecks –converting underutilized
parking into fun events with chairs,
lights,turf,&restaurant partners.
One proposal for a city-ownedparkingstructureindowntownSan
Jose aimed to convert the roof into
a “people deck”community space.
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WALK DISTANCE COMPARISON
NORTHGATE MALL VS. DOWNTOWN SAN RAFAEL
Walking distances from the downtown parking
structures to the main business district along
4th Street are comparable to the walk to the
middle of the Northgate Mall from an average
parking spot.
The map below shows a walking route (red)
from a parking space to a point in the center of
the Northgate Mall (~700 ft). The map at right
shows the ~700 ft walking distance areas (blue)
around the three primary downtown parking
structures.
Note: Maps not to scale
The 5-minute
walking distance
boundary from each
of the garages covers
an even larger area
of the downtown –
suggesting that much
of the downtown
area is well-served by
these facilities.
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PEDESTRIAN MALLS
IN DOWNTOWN
DISTRICTS
Pedestrian malls and significant public spaces
help activate downtown districts through
vibrant, engaging activity, given proper
circumstances, location, design, and
implementation.
Even before Covid-19 pandemic, increasing the
amount of public space dedicated to pedestrians
became particularly popular, with many cities
allowing parking spaces, sidewalks, and roadways
to be used for commercial and pedestrian
activity.
Many cities have found these changes have
contributed to more vibrant and enjoyable
commercial districts and have found ways to
make some of these changes permanent.
Successful Pedestrian Mall Indicators
Population Most successful pedestrian malls are in areas with populations less than 100,000.
Short Length Most successful pedestrian malls are 1-4 blocks long; most tend to have small block sizes, with
lots of corners and cross streets to bring cars and activity.
Minimally
Disruptive
Do not impact high levels of vehicular traffic; many mid-century pedestrian malls closed city’s
main vehicular arteries, and surrounding streets were not able to handle the additional volume.
Anchors Usually need nearby anchor institutions to drive foot traffic throughout the day, such as
universities (Boulder, Iowa City, Burlington, Charlottesville), transit hubs (Denver, Salem), or
office/financial core (Denver, Boston).
Variety of
Uses and
Services
Successful malls need a vibrant mix of active uses: retail, residential, & commercial; late-night
services (bars & restaurants, movie theater) to attract crowds all day; convenience-related
businesses, unique shopping experiences, entertainment attractions, programming/public
events; balance of chains & independents, retail & restaurants, indoor & outdoor.
Amenities Attractive landscaping (gardens, fountains, monuments), public art, public tables / chairs, stages,
artists, and vendors.
Programming Festivals, concerts, sports, food trucks, performers drive vibrancy and create a sense of place
and destination.
Accessibility,
Walkability,
and Visibility
Centralized parking allows convenient access to visitors; successful malls need to be easily
reachable and accessible, with numerous entrances, cross-streets, nearby parking, public transit.
They should also incorporate walkable neighborhood structures, amenities, and visible interest.
Visibility of the pedestrian area should not be overly blocked by buildings or landscaping.
Management Coordinated activities to ensure area management / maintenance; dedicated agency/business
improvement district to oversee maintenance, security, planning, programming, retail mix, etc.
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Best Practices –Creating Pedestrian Malls
Step 1 Car
Dependency
Ensure that there are nearby parking alternatives with
proper wayfinding. Reliance on cars can be hard to assess
without testing the concept temporarily.
Step 2 Pedestrian Mall
Concept Testing
Start by closing streets for a few days (a holiday; a regular
weekend day; a whole weekend, etc), treating each as a
test. Stay flexible to see which arrangements work best.
Step 3 Temporary
Closure
When confident to make the car ban permanent, first
use temporary materials: epoxy gravel, potted plants,
small trees, movable tables and chairs.
Step 4 Adding
Permanence
if it works well, shift to better pavement and permanent
plants / trees / fixtures. Focus on programming rather
than design; let it evolve over time. Partner with key
institutions, strategically locate equipment needed for
targeted activities. Resist adding immovable barriers to
cars.
Pedestrian Malls require the right locational
circumstances, design, business selection, and
other considerations. Success “depends more
on location and access than materials and
beauty.” Full street closure takes time to assess
current conditions, clarify goals, test concepts,
and build community support. Partial closures
and events are a good way to test concepts.
Cities can also explore other interventions in a
similar spirit –such as parklets, expanded
outdoor dining on sidewalks / patios / parking
areas, slower traffic speeds and infrastructure
that prioritizes pedestrians, and public
gathering spaces.
Source: Walkable City Rules, Jeff Speck
PEDESTRIAN MALLS IN DOWNTOWN DISTRICTS
IMPLEMENTATION
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PEDESTRIAN MALLS AND DOWNTOWN DISTRICTS
CASE STUDIES
The Pearl Street Mall is a four-block pedestrian mall in
downtown Boulder, Colorado, and is one of the country’s
most successful pedestrian malls.
▪Amenities include public art, fountains, gardens,
sculptures, sandbox, street performers, musicians
▪Business Mix includes restaurants, cafes, personal
services, local independent retailers, national brands
▪Destination for restaurants, independent businesses,
tourists, festivals, entertainment
▪Anchors nearby include the University of Colorado,
Boulder; Boulder County Courthouse; Boulder Theatre;
Boulder Museum of Contemporary Art
▪Core Clientele includes Leisured Middle (out-of-state
tourists, suburban day-trippers and CU Boulder parents),
Yupsters (artsy and progressive Baby Boomers), and
Students
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DISCLAIMER
The analyses,projections,assumptions,rates of return,and any examples presented herein are
for illustrative purposes and are not a guarantee of actual and/or future results.Project pro
forma and tax analyses are projections only.Actual results may differ from those expressed in
this analysis,as results are difficult to predict as a function of market conditions,natural
disasters,pandemics,significant economic impacts,legislation and administrative actions.
ECONOMIC DEVELOPMENT STRATEGIC PLAN
El Segundo, CA
TEL: 424-297-1070 | URL: www.kosmont.com
CITY OF SAN RAFAEL
ECONOMIC DEVELOPMENT STRATEGIC PLAN
May 15, 2023
El Segundo, CA
TEL: 424-297-1070 | URL: www.kosmont.com
CITY OF SAN RAFAEL
ECONOMIC DEVELOPMENT STRATEGIC PLAN
BUSINESS & COMMUNITY SURVEY RESULTS APPENDIX
January 2023