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Home My WebLink About19G - ED ACCOMPLISHMENTS AND EFFORTSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 16, 2016 TITLE: ECONOMIC DEVELOPMENT ACCOMPLISHMENTS AND EFFORTS (STRATEGIC PLAN NO. 3) I CITY MANAGER Receive and file. DISCUSSION ❑ As Recommended ❑ As Amended ❑ Ordinance on It Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Economic Development continues to be a top priority for the City of Santa Ana. Over the past several years, the City has engaged in many economic development activities that have led to an increase in investment, the attraction and retention of businesses, and a more sustainable business - friendly environment. The attached memo (Exhibit 1) provides an update on the many economic development accomplishments and efforts during that time. These accomplishments satisfy many of the City's Strategic Plan Economic Development Goals by "bringing jobs and opportunity to the City and provide tax revenues for public services that benefit the entire community ". STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development. FISCAL IMPACT There is no fiscal impact associated with this item. EXHIBIT: 1. Memo on Econimic Development Accomplishments and Activities 19G -1 19G -2 i ll- To: Mayor and City Council Date: August 16, 2016 /p From: David Cavazos, City Manager ° �" OAJ Subject: ECONOMIC DEVELOPMENT ACCOMPLISHMENTS AND EFFORTS This memo provides an update on Economic Development accomplishments and efforts in the last two years. Public /Private Partnerships • The City, in partnership with the industrial property owners in the Warner industrial Community, has formed an Assessment District to fund roadway improvements within their boundary. The City and property owners will fund equally the costs to replace damaged concrete curbs, gutters, sideways and deteriorated pavement. As part of a Settlement Agreement with the South Main Merchants, the City will be investing over $4.7 million in the corridor for public improvements such as new shade trees, street lighting, bus shelters, and enhanced crosswalks. Gensler, a design firm, was hired by the S. Main Merchants to prepare a South Main Visioning Plan which was approved by the City in July 2016. An additional $2.5 million from former redevelopment bonds will also be received and invested into the S. Main corridor. It is anticipated that these improvements will be completed within the next 3 -5 years. 19G -3 Memo: Economic Development Update August 16, 2016 City Investment in Economic Development Projects i The following is the major funding available for economic development projects and efforts: Economic Development and Infrastructure Projects in $1.6 million ($400k each corridor) Corridors (Downtown, Harbor, S. Main, 17'h Street) *Note. General Fund Allocation for Economic Development staffing and admin = $465,000 Real Estate Investment • Over 1.9 million square feet leased since 2015 • Estimated over 1,000 new jobs created 2 19G -4 Top Leases (2015-2016) New Business Square Footage Lease Year Banco Califgrnia Deutsche Bank 136,269 2015 61;731' The Enthusiast Network 61,609 2015 Pac(fiCail� litsuranc� 60,000. : ,2t11,5 �!h ' American Cooling Tower 49,700 2015 GS OvemighYDellvery ` 47,765 2015 's Round 1 Entertainment 47,500 2015 2MHour Fitness ; 4 ?,300 .�015=`'_ ` Atlas International 46,600 2015 Jobber Wholesale =.46,417: Hobby Lobby 46,000 2015 qel Airiii Motoisports New American Funding 41,418 2015 2 19G -4 Memo: Economic Development Update August 16, 2016 • Santa Ana's Annual Unemployment rate in 2015 was 5.2% 16.0% _.____,._...._... ._..�,,.._._..�__.�._...._._ - -- 14.0% .1% 10.0% — 10.4 1043°/0 8.0% 6.s 4 5.2% 4.01b ___ 2.0% 0,00% 2006 2007 2008 2009 2010 209.1 2012 2013 2014 2015 —+ -Santa Ana — *—Orange County California 9E United States Business Attraction and Retention • Over 250 businesses have been visited by City /Chamber Business Retention team since 2015. • City provided bus tour to over 55 brokers and developers and highlighted several potential development opportunities currently in the City. • Negotiated and currently facilitating the completion of the sale of City owned property at 1232 -1244 S. Bristol for the creation of a dialysis center. This will result in over 65 new high - skilled, high paying jobs for the corridor. • Developed a hotel development incentive program designed to attract new 4 to 5 star hotel developments. • Completed a sales tax sharing agreement with Volvo to facilitate a renovation and increase in inventory for the Volvo dealership. This should result in a significant increase in sales tax to the City. • Facilitated installation of new 15x30 foot freeway sign for Kia Depot along the 5 Freeway. 3 19G -5 Memo: Economic Development Update August 16, 2016 • Worked with Penske Automotive (owners of the majority dealerships in the Auto Mall) to install new bollards and other street improvements in the Auto Mall. • Worked with over 30 companies to assist them with Planning and Building related issues this past year. • Worked with over 60 companies to find a site in the City of Santa Ana. Many have opened and are currently operating in the City. (Del Amo Motorsports, ALDI, IPC USA) • Staff attended the International Council of Shopping Centers (ICSC) convention in San Diego and Las Vegas and discussed several development opportunities with brokers and developers. Streamlining Business Processes In an effort to enhance the City's current economic development efforts, the City formed an Economic Development Taskforce. This taskforce comprised of local business leaders have reviewed and recommended several business friendly initiatives that have resulted in the hiring of staff to accomplish these initiatives: • Action: Hired 5 new inspector staff positions • Review Adaptive Reuse Ordinance (Action: Council approval of ordinance) • Recommend additional building plan checkers to meet acceptable turnaround times (Action: 4 new building engineer staff) • Interviewed consultant for Economic Development Strategic Plan (Action: Recommended hiring of RSG to develop plan) • Review Electronic Plan Review and Mobile Technology for City inspectors (Action: Move forward with E -Plan review and purchase mobile technology) Economic Development Partnerships /Events • Formed Orange County Recycling Market Development Zone (Santa Ana, Huntington Beach, Garden Grove, Orange, Stanton, County of Orange), which provides State funded low interest loans, technical assistance, site selection, permitting assistance, and assistance with obtaining recycle materials for manufacturing companies that locate in the City. Co- hosted 3rd Annual GROW Conference at the Discovery Science Cube with over 400 developers, real estate brokers, and community leaders attending. This was a sharp increase in attendance over last year's event (83 attendees). • Financially supported the ART (Anaheim Resort Transportation) bus which brings visitors from the Anaheim Resort area to Santa Ana amenities: Downtown, Bowers Museum, Westfield MainPlace and the Discovery Cube. • Established an Economic Development Council with Chamber of Commerce to bring together active stakeholders in the city who all desire the same collective outcome: a vibrant, sustainable and healthy business climate that allows for both revenue and tax growth, but also paves the way for the growth of social capital. Ell 19G -6 Memo: Economic Development Update August 16, 2016 • The City was the Silver sponsor for the 2016 Taste of Santa Ana, an event hosted by the Chamber of Commerce at Main Place Mall. • The City sponsored the Santa Ana Street Breakfast with over 1,000 people attending this event. Small Business Development • Provided over 42 small business incentive program (CDBG) grants since inception (FY13/14) with a 70% success rate in businesses still being open and viable (6 businesses closed). Statistics show only 2/3 of businesses survive for 2 years, half survive for 5 years and 1/3 will survive for ten years. New Development Projects along Harbor Blvd • The Line — 228 -unit mixed -use development with 4,000 square feet of retail along future fixed - guideway line • C&C Harbor /Hazard - 70 -unit affordable development project on 2.16 acres. • 5`h and Harbor - 99 residential units and 10,700 square feet of commercial /retail. • 520 S. Harbor - North of Harbor /McFadden —35 single - family detached homes on 2.27 acre site • Tribella Mixed Use Development - North Harbor between 11`h and Washington_ 15 live /work units and 95 single - family detached homes. Downtown Development • It is anticipated that the City will begin the installation of the new Downtown Wayfinding signage system in August- September 2016. • In May 2014, the City unveiled a valet parking program at the parking lot of 3rd and Bush from 8pm to tam. • Continued administration of the City's Downtown Business Improvement District (BID), with over 700 businesses, generates over $400,000 in marketing and promotional revenue for the area. In June 2016, the City launched a midweek lunch trolley in partnership with the Downtown Santa Ana Restaurant Association. The free trolley service connects City Hall and the OC Courthouse to Downtown Santa Ana's 70+ restaurants. • The City continues to partner with the Downtown BID groups to host special events that attract visitors and promote downtown Santa Ana. In 2016, these special events include: the Santa Ana Media Summit, the Santa Ana Street Breakfast, and Savor Santa Ana. • From January to June 2016, City staff led more than twenty tours highlighting Downtown Santa Ana. Tours included real estate developers, prospective new businesses, brokers, and investors. • Modernized parking meters downtown has resulted in over $800,000 in additional revenue. 5 19G -7 Memo: Economic Development Update August 16, 2016 In process of modernizing parking operations at downtown garages which will result in increased revenue to be invested back into the downtown area. Marketing and Promotion • To continue to promote and support a vibrant business climate, the City of Santa Ana unveiled a new "Shop Local Santa Ana" campaign. Staff coordinated with Mayor and City Council to unveil a new Shop Local, Shop Santa Ana video. • Utilizing Strategic Plan funding, staff worked with the South Main Merchants to install banners along the corridor. • Created business corridor profiles to market business districts to brokers and developers to attract investment. Over 1,000 pieces have been disseminated at the ICSC conventions. • The City has contracted with North Star Destination Strategies to design and implement a citywide branding strategy. Workforce Development Santa Ana WORK Center Service highlights • 26,910 people served • 4,121 Individuals received one -on -one resume assistance • $774,562 Funds invested in training • 68% of program participants employed • Over 4,000 people attended a varietyjob search assistance workshops Job Fairs The WORK Center also coordinated various job fairs including: • Summer Youth Job Fair- Attended by over 300 job seekers and 42 employers were present. • OC Job Fair Expo 2016 - Held in collaboration with other Orange County's Workforce Agencies. Over 4,OOOjob seekers and 100 employers attended. Youth Service Provider Network (YSPN) • Enrolled over one hundred at -risk Santa Ana youth participants in Program that focuses on academic improvement and workforce preparation. • More than 70 youth have increased the basic reading and /or math grade level that were basic skills deficient 13 have enrolled into college • 40 have received H.S. Diplomas and /or Occupational Certifications 72 are receiving training and are on track to accomplish one or all of the above by June 2016 Bridges to Engineering Program • Enrolled 290 students in the Orange County Bridge to Engineering Program that focuses on increasing the participation of unrepresented minorities, women, and veterans in the field of engineering. • Created 157 internships with NASA Jet Propulsion Labs, Precision Optical, Grupo SMS, Benchmark and Sandvik, and Freedom Innovations, Inc. 6 19G -8 Memo: Economic Development Update August 16, 2016 • 49 program participants have earned their Engineering degree. 14 have achieved an Associate's degree. Next Steps IZil 1. Economic Development Strategic Plan - Will be presenting a draft of the Economic Development Strategic Plan prepared by RSG at the August 16th City Council Work Study Session. 2. Economic Development Initiatives RFP— Will be presenting the process for soliciting proposals for the $1 million in funding for economic development initiatives at the August 16" City Council Work Study Session. 3. Direct Allocation of $1 million funding - Alternative option to allocate $1 million in economic development project funds directly to an organization(s) in a public /private partnership that forgoes the RFP process. 7 19G -9 19G -10