Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of July 12, 2022
Title
ADOPTION OF ECONOMIC DEVELOPMENT STRATEGY
(Continued from June 14, 2022)
(Community Development Director Jeannie Naughton)
Body
Recommended Action:
Recommendation
Staff recommends City Council:
1. Receive a staff presentation and public comments;
2. Approve a resolution (Attachment 1) adopting an Economic Development Strategy; and
3. Direct staff to begin work on identified first year implementation priorities.
Body
Executive Summary:
At its April 28, 2020 meeting, City Council approved the creation of the Economic Development Committee with a two-year sunset date. Once formed, the earliest actions of the committee were to form an Economic Development Stakeholders Advisory Working Group, comprised of business representatives and commercial property owners, and to discuss urgent matters related to the pandemic. Soon after, the committee directed development of an Economic Development Strategy as specified in the Governance Element of PLAN Hermosa.
On May 2, 2022, the Economic Development Committee held its final meeting at which the committee considered, and approved, the Economic Development Strategy. The proposed strategy is hereby presented for final adoption by the City Council.
Background:
The Economic Development Strategy is the result of two years of collective efforts by the Economic Development Committee, Stakeholders Advisory Working Group, Community Development Department staff, and City Manager’s Office to identify Economic Development objectives and actions. Over the course of the last two years, the Economic Development Committee met monthly and the Stakeholders Advisory Working Group met twice per month to explore and discuss Hermosa Beach business-related topics.
An Economic and Market Study (Attachment 4) was prepared to inform the Economic Development Committee and Stakeholders for preparation of the Economic Development Strategy.
The resulting Economic Development Strategy (Attachment 2) includes 30 strategic actions. These actions include steps that the City can take to enhance Hermosa Beach and strengthen the local economy through beautification; code changes; and other pro-active steps to encourage success and help our business partners as they serve and enhance quality of life in our community.
Past City Council, Commission, and Committee Actions
|
Meeting Date |
Description |
|
March 4, 2020 |
A joint meeting of the City Council and Planning Commission was held to discuss a vision for the Downtown District, among other topics. At that meeting, it was suggested that a subcommittee be formed, comprised of two City Councilmembers and two Planning Commissioners to focus on Economic Development. |
|
April 21, 2020 |
Planning Commission selected Peter Hoffman and David Pedersen to be appointed as Planning Commission representatives to the proposed committee. |
|
April 28, 2020 |
City Council established the Economic Development Committee and selected Mary Campbell and Michael Detoy to be appointed as City Council representatives, with a two-year sunset date. |
|
June 1, 2020 |
Economic Development Committee held its first monthly meeting to begin work on short-term economic recovery goals and long-term Economic Development goals to benefit the Downtown and citywide business districts. At the first meeting, the Economic Development Committee determined that a Stakeholders Advisory Group be formed to represent a variety of businesses and commercial districts. |
|
September 28, 2021 |
City Council Received a One-Year Progress Report on the Economic Development Committee and Economic Development Strategy initial actions approved. |
|
May 2, 2022 |
Economic Development Committee held its final meeting at which the committee considered, and approved, the Economic Development Strategy. |
Analysis:
The Economic Development Committee and the Stakeholders Advisory Working Group identified 30 strategic actions in the Economic Development Strategy, including 10 priorities for implementation in the first year. The strategic actions are divided into five categories: Citywide Beautification; Downtown; Municipal Code Amendments; Business Outreach; and City Economic Development work program.
The Economic Development Strategy is a long-term plan, with strategic actions divided into short-term (1st year), mid-term (2-3 years) or long-terms (3+ years) implementation. If approved by City Council, the Economic Development Strategy would become the work plan for implementation, beginning with the identified action priorities. A list of Economic Development Strategy First-Year Implementation Priorities is included as Attachment 3.
Implementation work would be completed by staff, the Hermosa Beach Chamber of Commerce and Visitors Bureau, and occasionally with consultant assistance as described the Economic Development Strategy. The Economic Development Strategy includes an action to report to the City Council twice annually to monitor progress, prioritize actions, and consider new opportunities. This bi-annual report would ensure that the Council and community are updated on Economic Development Strategy implementation.
General Plan Consistency:
PLAN Hermosa, the City’s General Plan, was adopted by the City Council in August 2017. The Economic Development Strategy supports several PLAN Hermosa goals and policies listed below.
Governance Element
Goal 6. A broad-based and long-term economic development strategy for Hermosa Beach that supports existing businesses while attracting new business and tourism.
Policies:
• 6.1 Long-term economic development. Support the development and implementation of long-term economic development strategies that seek to establish and keep new businesses and a strong middle class in Hermosa Beach over the decades to come.
• 6.2 Regional presence. Encourage economic development strategies that will make Hermosa Beach a driving force and jobs center behind the regional economy of the South Bay region.
• 6.3 Diversified economy. Encourage economic development strategies that allow the city to move beyond reliance on its two main industries - accommodation and food service and retail trade - and transform itself to a mature mix of economic activity and job opportunities.
• 6.4 Business support. Support the Chamber of Commerce, retailers, tourist service businesses, artists, and other agencies to develop an aggressive marketing strategy with implementation procedures.
• 6.5 Creative economy. Prioritize strategies that will create an economy full of diverse talents, trades and goods for the city. For long lasting economic success, a range of services, arts, entertainment and retail should be supported on all scales of the city’s economy.
• 6.6 Pop-up shops. Develop plans and programs for underutilized spaces, such as vacant buildings, utility corridors, parkways, etc., for temporary retail, restaurant, and community promoting uses.
• 6.7 Retail base. Encourage economic development reflective of the character of Hermosa Beach with small and medium scale retail development within Hermosa Beach in order to create a stronger tax base and increase the City’s tax revenue.
Land Use Element
Goal 1. Create a sustainable urban form and land use patterns that support a robust economy and high quality of life for residents.
Policies:
• 1.1 Diverse and distributed land use patterns. Strive to maintain the fundamental pattern of existing land uses, preserving residential neighborhoods, while providing for enhancement of corridors and districts in order to improve community activity and identity.
• 1.4 Diverse commercial areas. Promote the development of diversified and unique commercial districts with locally owned businesses and job- or revenue-generating uses.
• 1.5 Balance resident and visitor needs. Ensure land uses and businesses provide for the needs of residents as well as visitors.
• 1.8 Respond to unique characteristics. Enhance the unique character and identity of the city’s neighborhoods, districts and corridors through land use and design decisions. Allow policies and programs to be focused on each unique character area of the city.
Goal 3. A series of unique, destination-oriented districts throughout Hermosa Beach.
Policies
• 3.1 Unique districts. Encourage the development of local and city-wide districts and centers that address different community needs and market sectors and complement surrounding neighborhoods.
• 3.3 Diverse retail and office centers. Provide incentives to transform existing single-use commercial properties that are accessible into retail destinations by adding a diversity of uses, providing new pedestrian connections to adjacent residential areas, reducing the visual prominence of parking lots, making the centers more pedestrian-friendly and enhancing the definitions and character of street frontage and associated streetscapes.
• 3.4 Emerging employment sectors. Strive to create districts that support increased employment activity, particularly for growing or emerging economic sectors.
• 3.5 Compact office formats. New employment uses should be designed in a compact format with minimal front setbacks from the street, typical lease spans of 40 feet or less, and where feasible, combined with other commercial uses.
Fiscal Impact:
There is no fiscal impact associated with recommended action to adopt the proposed Economic Development Strategy. Any costs associated with implementation would be included in the annual budget adoption process. Adoption and implementation of an Economic Development Strategy would be expected to increase City revenues and strengthen the local economy.
Attachments:
1. Draft Resolution
2. Economic Development Strategy-Resolution Exhibit A
3. Economic Development Strategy First Year Implementation Priorities
4. Economic and Market Study by Economic and Planning Systems, Inc.
5. Link to March 4, 2020 City Council and Planning Commission Joint Meeting Agenda
6. Link to April 21, 2020 Planning Commission Agenda
7. Link to April 28, 2020 City Council Staff Report
8. Link to June 1, 2020 Economic Development Committee Staff Report
9. Link to September 28, 2021 City Council Staff Report
10. Link to May 2, 2022 Economic Development Committee Staff Report
Respectfully Submitted by: Christy Teague, Senior Planner and Business Liaison
Concur: Jeannie Naughton, Community Development Director
Noted for Fiscal Impact: Viki Copeland, Finance Director
Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager