Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of September 28, 2021
Title
ECONOMIC DEVELOPMENT COMMITTEE PROGRESS REPORT
(Community Development Director Ken Robertson)
Body
Recommended Action:
Recommendation
Staff recommends City Council receive and file the Economic Development Committee Progress Report.
Body
Executive Summary:
At the August 10, 2021 City Council meeting, Councilmember Mary Campbell requested Cchriouncil consider directing staff to bring an item before City Council to provide a report and presentation on the activities of the Economic Development Committee to allow for a discussion and questions from City Council. As requested, this report summarizes the Economic Development Committee actions since establishment, from June 2020 through September 2021, and also outlines the future work program.
Background:
At its April 8, 2020 meeting, the City Council officially established the Economic Development Committee as a standing committee consisting of two Councilmembers and two Planning Commissioners. On June 1, 2020, the committee held its first monthly meeting and formed the Stakeholders Advisory Working Group. This progress report summarizes the committee’s activities since inception and was originally presented to the Economic Development Committee on July 12, 2021.
There are three primary goals of the Economic Development Committee:
1. To respond to the economic challenges facing the local business community during the pandemic, including business recovery support through emergency orders and other tools available to the City;
2. Establish an Economic Development framework and program to establish communications, resources, and programs to help retain, attract, and grow Hermosa Beach businesses; and
3. Develop an Economic Development Strategy to recommend for adoption by the City Council that includes short, medium, and long-term actions and an annual progress review.
Past Council and Planning Commission Actions
Analysis:
Stakeholder Advisory Working Group
The Stakeholder Advisory Working Group meets twice a month. This diverse group of business representatives includes retail shop owners, restaurant owners, hotel manager, salon owner, personal service owner, commercial property owners, commercial real estate brokers, Chamber of Commerce representatives, and others to assist and inform the Economic Development Committee. Economic Development Committee members rotate attendance at these meetings.
The Stakeholder Advisory Working Group has provided valuable feedback on City projects, including parking, land use, tenant mix, outdoor dining decks, shared streets, and monthly topics determined by the Economic Development Committee. They were updated and provided feedback on the Zoning Code parking updates. Member speakers have shared local information on topics such as Hermosa Beach commercial real estate trends and hospitality to inform the group and City staff. Members have become a resource to the City, assisting in areas including making suggestions for the recent community survey for outdoor dining and lane reconfigurations and a forming a subcommittee to help with the outdoor dining pilot program.
Formation of the Stakeholder Advisory Working Group has created a forum for two-way communications and synergy with businesses, establishing relationships between each other and with the City.
Economic Development Work in Progress
Community Development and City Manager’s Office staff work together to support the Economic Development Committee. Staff has been directed to concurrently identify opportunities for improved service to the business community to become more business friendly to retain our existing businesses and assist new businesses. Working with the Stakeholder Advisory Group, staff is continuously improving services and step-by-step working to support and build a more vibrant business community. Some actions underway include:
• Improved communications with businesses through establishment of the Outdoor Dining Permits, Stakeholder Advisory Group, email notifications for grant announcements, and health order updates. These proactive communications are building positive relationships with businesses;
• Website updates and expanded social media help support businesses and provide timely updates on health orders;
• Business friendly initiatives include a single point of contact Business Liaison at the City and a new email business@hermosabeach.gov;
• Welcome letters to new businesses from the City Manager;
• City Council approval of small business grants utilizing Community Development Block Grant (CDBG) funds;
• City Council-approved urgency ordinance to allow pre-recorded and live music as a pilot program; and
• Process Improvements Workshop with architects and contractors.
2020-2021 Economic Development Committee Progress
The Economic Development Committee was initially focused on urgent business recovery efforts and changing health orders affecting local businesses. At its October 5, 2020 meeting, the Economic Development Committee directed development of a long-term Economic Development Strategy, which is a goal of PLAN Hermosa and currently the major focus of the Economic Development Committee.
A summary of Economic Development Committee actions is provided for the meetings held from June 2020 through September 2021.
2021 Work Program
The primary focus for the July through December 2021 work program is development of the Economic Development Strategy, a strategic action plan with specific goals, timelines, assignments, and performance measures aligned with PLAN Hermosa. This includes working with the Stakeholders Advisory Working Group on Economic Development Strategy objectives and actions. Economic Development Strategy goals will be identified for short-term, mid-term and long-term implementation and is expected to include an annual progress report to the City Council to ensure implementation. A summary of approved Economic Development action topics is attached to this report.
It is anticipated that a draft Economic Development Strategy will be completed by year-end, including actions and PLAN Hermosa support for each topic. Once approved by the Economic Development Committee, it will be recommended to the City Council for consideration and adoption.
In addition to the Economic Development Strategy, staff will continue its Economic Development work to provide business resources, streamline processes, and continuously improve services to become increasingly business friendly.
General Plan Consistency:
PLAN Hermosa, the City’s General Plan, was adopted by the City Council in August 2017. The Economic Development Committee and Economic Development Strategy support several PLAN Hermosa goals and policies that are 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.
• 3.3 Diverse employment sectors. Strive to create districts that support increased employment activity, particularly for growing or emerging economic sectors.
• 3.4 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 the recommended action. Potential adoption and implementation of an Economic Development Strategy would be expected to increase City revenues and strengthen the local economy.
Attachments:
1. Economic Development Strategy Initiatives Approved by Economic Development Committee Through September 2021
2. Link to July 12, 2021 Economic Development Committee Meeting
Respectfully Submitted by: Christy Teague, Senior Planner
Concur: Ken Robertson, Director of Community Development
Approved: Suja Lowenthal, City Manager