Description
A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.
DRAFT
Business Development Plan
Business Development Division
City of Menlo Park
November 18, 2008
prepared by
City of Menlo Park Business Development Division
Business Development Plan Menlo Park Business Development Division
DRAFT
VISION
To preserve and enhance Menlo Park’s business climate to ensure the City is financially stable and partners with the community in its commitment to improve quality of life.
MISSION
To provide services and resources to the business and development communities with the purpose of retaining, attracting and expanding business and employment opportunities for area residents, stimulating the local economy and expanding local retail sales, transient occupancy, and commercial property tax bases, while maintaining a positive balance between growth, social equity and the economic vitality of the City.
VALUES
To adhere to the sound fundamental principles of traditional economic development: business retention, by supporting and retaining established businesses; business attraction, by actively pursuing private investment and new business; business expansion, by nurturing both established and emerging companies; and, all supported by improved public infrastructure vital to retaining, attracting and expanding business entities.
Business Development Plan Menlo Park Business Development Division
Table of Contents
I. II. II. III. IV. V. VI. VII. VII. VIII. Executive Summary Introduction Economic Development Fundamentals Business Development Division Goals Economic Activity Center Boundaries and Maps Economic Activity Center Objectives Economic Activity Center Strategies Division Administration Measuring Economic Vitality Appendix Exhibit A - General Plan Policy Document (Applicable Excerpts)
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i 1 3 5 8 12 15 22 23 26 27
Exhibit B – Las Pulgas Community Development Project Area Plan (Applicable Excerpts) Exhibit C – Map of Eight Economic Activity Centers (To be included in final approved document)
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EXECUTIVE SUMMARY
DRAFT
The Business Development Division’s (“Division”) Business Development Plan (“Plan”) serves as the blueprint for policy considerations guiding the City’s investment in economic development initiatives, programs, and projects. The Plan also provides direction in anticipating and responding to changes in the local economy. The Division will provide essential services and resources to the business and development communities that result in economic vitality to preserve and enhance the unique environment that contributes to the high quality of life in Menlo Park. The Business Plan establishes a vital foundation, as it defines the Vision, Mission, and Values for the Business Development Division. The Plan is presented in six chapters: I. Economic Development Fundamentals • • • Answers to the question: Why is economic development important to Menlo Park? Defines the core values of economic development Establishes the essential components of a thriving local economy
II. Business Development Division Goals • • • • To build strategic relationships with external partners by fostering and supporting the business and development communities and with internal partners by cross-departmental coordination To monitor economic conditions and respond to opportunities and threats; To enhance key public and private assets To ensure the local business environment is dynamic, diverse, and thriving
III. Economic Activity Center Boundaries and Maps Menlo Park has eight distinct economic activity centers where commercial and industrial activity takes place and where retail sales, transient occupancy (TOT), and commercial property tax revenues are generated. These commercial and industrial/research and development districts are located throughout the city and are clearly defined on page 8. They are generally known by these names: • • • • • • Downtown El Camino Real Sand Hill Road Willow Road – East Willow Road – West Willow and Middlefield Roads
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• •
Menalto Industrial/Research & Development
IV. Economic Activity Center Objectives Due to the uniqueness in size, location, and purpose of each of the Menlo Park’s eight economic activity centers, economic development objectives for each area have been developed. By developing specific objectives for each activity center Division staff is addressing the following needs: • • • • • • • Identifying and responding to business retention, attraction and expansion Forming strategic partnerships with business representatives Facilitating development Maintaining full occupancy Maintaining public infrastructure Conducting marketing and outreach Generating new employment opportunities
V. Economic Activity Center Strategies The strategies are the core of the Business Plan. They define specific economic development initiatives, programs, and projects. The strategies support the objective for each of Menlo Park’s retail, commercial, and industrial/research and development economic activity centers. The strategies provide value, improve the business climate, and enhance the City’s fiscal health by increasing municipal revenues. Currently, there are major strategies that include: • • • • • • • • • • • • Addressing business retention, attraction and expansion projects Creating a potential brand for the City Conducting regular outreach to business and property owners, developers, venture capitalists and other strategic partners Monitoring economic conditions and responding to opportunities and threats Partnering with the Community Development Agency staff Facilitating tenant improvements and aiding in site selection Assisting developers with master plans for various sites Facilitating public infrastructure needs Ensuring Downtown, El Camino Real, and neighborhood shopping areas are vibrant, attractive, and competitive Ensuring full occupancy Promoting events, celebrations, and grand openings Supporting start-up business incubators
VI. Measuring Economic Vitality Monitoring the economic health of the community is a critical component of the Plan. Effective reporting tools measure economic vitality, describe what is being
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measured, provide demonstrable evidence of progress, and ensure performance measures are linked to established goals. The recommended measures are: City Measures • Retail Sales Tax Per Capita • Revenues (Sales Tax and TOT) by Business Sector • Revenues (Sales Tax and TOT) by Economic Activity Center • Retail Sales Tax Revenue Performance for Neighboring Cities • Growth/Decline in Revenue Generating Space in the City • Revenue Growth from Business Licenses • Business Environment Survey Market Measures • Commercial Vacancy Rate Trends • Commercial Rent Trends • Commercial Properties for Sale or Lease Innovation Measures • Venture Capital Invested in Menlo Park Companies • Venture Capital Invested by Industry Classification • Start-ups and Early Stage Companies • Patents Issued in Menlo Park Plan Summary The Division’s purpose is to maximize revenues from retail sales, transient occupancy, and commercial property taxes. This Plan is the initial instrument in achieving greater community knowledge of and involvement in the City’s economic development issues and opportunities in pursuit of the overarching revenue objective. In that regard, the following items represent the Division’s highest priorities for the next six (6) month period: • Downtown/El Camino Real Visioning – work closely with Planning Department colleagues to launch Phase II, while ensuring steps are taken to include a quantifiable economic development component to the plan and that the focus on the Stanford University parcels receive immediate attention Marriott Hotel and Office Complex – complete evaluation of the critical impact documents (i.e., Administrative Environmental and Fiscal Impacts Reports) and work with Council and colleagues to prepare a Development Agreement for public review Rosewood Resort – complete construction and open for business on April 1, 2009 General Motors 22-acre Site – work closely with General Motors Corporation executives and its agents to sell this property and present a viable purchaser and development plan to the City Council
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• •
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Haven Ave – continue efforts to work with property owners and other stakeholders to prepare this highly visible and accessible Community Development Area for redevelopment AMB 55-acre Willow Park Site – work with property owners to complete an architectural consistency campus plan and to further refine its companion plan to reposition and upgrade this dated industrial property to focus on life science, clean technology, and biotechnology enterprises Current Economic Crisis – redouble efforts to reach out to major revenue producers to ensure staff and Council are doing all that can be done to understand threatening business situations and initiate appropriate retention efforts
The Business Development Division will collaborate, consult, and coordinate with City department colleagues, City Council and other civic leaders, business representatives, real estate and development communities, and other partners in this effort. It is recommended that this Plan is reviewed annually to monitor progress, ensuring alignment with other initiatives and planning efforts within the City. In addition to recommending an annual Plan update, the Division is recommending semi-annual economic vitality reports to the City Council regarding the state of the local economy. This reporting approach provides appropriate policy oversight for the efficient and effective delivery of local government services to Menlo Park’s business and development communities. The Business Development Plan’s goals are grounded in essential economic development principals that emphasize connecting with business and commercial property owners, so that City stakeholders’ ideas and concepts are continuously evolving, thereby producing a thriving community.
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INTRODUCTION
DRAFT
The Business Development Division’s Business Plan is a Blueprint This document serves as a guide for City policy considerations to shaping Menlo Park’s economic growth. The Business Plan emphasizes economic vitality, as the City of Menlo Park pro-actively focuses on supporting the local economy’s ability to adapt to changing conditions in order to thrive. This business plan links the vision of the Business Development Division with its mission and sets forth an action plan for continuous community renewal and growth essential to ensuring both short- and long-term fiscal stability. The plan will be reviewed annually to monitor progress, ensuring alignment with other planning efforts within the City. This approach enables efficient and effective local government services to be provided to Menlo Park’s business and development communities. Efforts to improve local economic vitality will be measured by the quantitative and qualitative City, Market and Innovation performance measures established by the Division and adopted by the City Council. As economic development professionals, the Business Development Division employs the fundamentals and best practices of local, regional, and state economic development programs. This plan reflects guiding values and principles for economic development by a focus on the fundamentals of business retention, attraction, expansion, and creating an attractive physical environment through infrastructure improvements. The Importance of the City’s Eight Economic Activity Centers The City of Menlo Park offers amenities many businesses require for success. Its eight economic activity centers have attracted key firms to the City and have created ideal conditions for local firms to expand. While the downtown district is the center-piece and most visible economic activity center in the City, the industrial/research and development district currently generates 68% of Menlo Park’s retail sales tax revenue and boasts the largest employment sectors. Business-to-business sales are a key component of this condition, requiring our constant attention to retain, attract and expand businesses in this extensive area composed of eight distinct sub-areas. The City has eight economic activity centers: downtown, El Camino Real, Sand Hill Road, Willow Road east of 101, Willow Road west of 101, the Willow Road & Middlefield Road district, Menalto district and the industrial/research and development district (composed of eight sub-areas). Each of these areas is different in its land uses, size, and location within the City. The composition of revenue generating businesses in each area is also unique, requiring a distinct economic development objective. The plan begins with overarching elements, including the Division’s vision, mission and goals, and ultimately focuses on the
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objectives and strategies and their measures for the economic vitality of each individual economic activity center. The General Plan: The community’s “Constitution” This document represents the foundation for the City’s economic development plan. It is a legal document required by State law. As a result, any discussion of the direction of economic development for the community must begin at this point. While the current General Plan was adopted in 1994, its comprehensive, long-term, and detailed proposals for the physical development and land use for the community are valid today. The plan is designed to define the community’s economic goals with “low environmental and traffic impacts.” The General Plan establishes specific policies, standards, and implementation strategies. It clearly defines the role economic development should play in maintaining Menlo Park’s special character by including definitive economic development goals in the two Plan “elements” covering land use and circulation/transportation. Those parts applicable to the mission of the Business Development Division can be summarized as follows: “To provide guidelines for the development of the City’s remaining vacant land, for revitalization of existing development, and for development of a transportation system and other public facilities in a manner that … minimizes the adverse impacts of development on the City’s public facilities and services…, promotes the rehabilitation of existing housing and commercial development…, allows for the orderly development of the City’s employment and commercial base…, and maintains and enhances the City’s economic vitality and fiscal health.” 1 Specific goals and policies within the General Plan related to commercial and industrial development are important foundational elements providing direction for the work performed by the Business Development Division. Those that directly relate to the Division’s goals, objectives, and strategies are found in the General Plan, Part I: Section I and II which are included in Exhibit A.
1
City of Menlo Park. 1994. “General Plan Policy Document.” pg. 2-3.
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Business Development Plan Menlo Park Business Development Division
ECONOMIC DEVELOPMENT FUNDAMENTALS
DRAFT
Why is economic development important to Menlo Park? Stimulating the local economy, expanding the tax base, creating quality jobs, and maintaining a positive balance between growth and social equity creates a thriving economy and generates revenues for public services. The need to direct private investment toward projects, programs, and initiatives that results in generating new wealth within Menlo Park is a critical component of the City’s General Plan. The General Plan serves as a long-range plan providing clear direction and an action plan for development policies that include economic development, among other standards and implementation programs. The City of Menlo Park and the Division have a keen interest and legitimate role to play in economic development efforts aimed at increasing economic vitality and the overall quality of life for Menlo Park residents, employees, and visitors. A successful economic development program will produce results, including a thriving and growing economy, economic opportunities, a competitive environment for the business and development communities, and revenue growth for City-wide services. According to the California Association of Local Economic Development, “Economic development is a concerted effort on the part of the responsible governing body to influence the direction of private sector investment toward opportunities that can lead to sustained economic growth.” 2 Moreover, economic development should yield real net positive impacts on business and development growth, or at the very least, the potential for growth with the outcome of producing economic opportunity and prosperity. The Division partners with the business and development communities to spawn private investment generating wealth through increased employment opportunities, local tax base expansion, new development, and raising property values. Public and private partnerships are essential to the success of the economic development program. It is important to add that private investment, if done correctly, is the only viable way to increase tax revenues and public services for local community benefit without increasing taxes. Core Values Economic development will continue to help shape the future of Menlo Park by employing guiding values and principles of business retention, attraction, expansion, and infrastructure improvements. Business retention is the process of supporting and retaining established businesses in order to achieve a reliable and diverse revenue stream that continually improves the City’s fiscal health. Business attraction includes actively pursuing private investment and new
2
California Association of Local Economic Development, et. al. 2003. “Economic Development Handbook: Second Edition.” pg. 10.
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business aimed at stimulating the local economy and generating employment opportunities. Business expansion capitalizes on both established and emerging companies that are prepared to grow and invest in their operations. Lastly, improvements to public infrastructure strengthen staff’s ability to create an environment that results in retaining, attracting, and expanding business. The aforementioned core values and guiding principles are practiced daily by the Business Development Division in adhering to strategic planning methods of assessing the strengths, weaknesses, opportunities, and threats to the businesses located in Menlo Park. The Components of a Thriving Local Economy A major component to Menlo Park’s economic development plan is ensuring that businesses and developers compete in a healthy environment. Locally, a sustainable economic base will be measured by the ability of Menlo Park to retain and attract local-serving and export-oriented business sectors resulting in a greater return on investment of staff time and limited resources. Local-serving businesses provide residents the opportunity to conveniently procure goods and services from eateries, bookstores, banks, dry cleaners, home furnishing stores, convenience stores, pharmacies, etc. Export-oriented businesses sell goods and services to consumers anywhere outside of our community. Office supplies stores and home furnishing stores are good examples of both local-serving and regional exporters of goods. Software, micro-electronics, and medical device companies and firms providing services with a national and global presence are examples of larger export-oriented companies. The difference between the local-serving and export-oriented sectors is critical because they depend on distinct revenue bases and infuse wealth into the local economy in different ways. Once again, it is expected that both sectors will grow and thrive, if Menlo Park’s local economic environment is competitive.
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BUSINESS DEVELOPMENT DIVISION GOALS
DRAFT
Goals are integral parts to any business plan. Goals state the specific outcomes an organization expects to accomplish in support of its vision and mission. All strategies and action items comprising the output of the Business Development Division are aimed at achieving its goals. The Division has four goals: • To build strategic relationships: with external partners by fostering and supporting the business and development communities, and with internal partners by cross-departmental coordination. To monitor economic conditions and respond to opportunities and threats. To enhance key public and private economic assets. To ensure the business environment is dynamic, diverse, and thriving.
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These four broad goals provide the framework for Council direction in connecting with key stakeholders, assessing and evaluating situations and circumstances related to local and regional economic development, addressing the needs of the community in caring for and expanding the physical environment for commerce, and putting it all together to ensure the vibrancy of Menlo Park’s local economy. To understand these concepts better, the goals are further defined below. GOAL: Build strategic relationships: with external partners by fostering and supporting business and development communities and with internal partners by cross-departmental coordination The outcome of this goal is to establish clear, effective, and on-going communication internally and externally resulting in realistic expectations and objective solutions. Externally, Division staff will listen, learn and link with top revenue producing businesses, commercial real estate brokers, local developers, and property owners. Listening to and proactively responding to the ideas of the business and development communities will provide City staff and civic leaders’ critical information to develop flexible policies, programs, and services supporting Menlo Park’s reputation as a sought after and competitive commercial, industrial, and technological environment. Internally, enhanced cross-departmental coordination by collaborating, consulting, and coordinating will provide the internal cooperation necessary for all aspects of the economic development equation to work together toward achieving common goals with our civic leaders. Empowering City staff to take ownership of projects from concept to completion provides the community an opportunity to build strong and active relationships with staff for better
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coordinated communication and effective execution. Employees are better positioned to be more creative and committed in this type of environment. GOAL: Monitor economic conditions and respond to opportunities and threats. By building effective strategic relationships the Division will be better positioned to proactively monitor the local and regional business climate. The Division in executing this goal will continue managing sensitive relationships and information. Staff will review all relevant reports, data, and economic trends, gaining a better understanding of the strengths and weaknesses of the economic base within Menlo Park for a more strategic response. In addition, to more effectively monitor current economic conditions locally and regionally, the Division will participate in industry alliances, seminars and workshops to stay abreast of best practices and innovations in our profession for the benefit of the City and its stakeholders. A key component of this is the staff’s membership in the Silicon Valley Economic Development Alliance (SVEDA). As we now know, “The world’s top competitors and collaborators are not cities, states or countries per se, but regions. Economic regions are defined not by political boundaries, but economic resources such as industry concentrations, labor markets, and common infrastructure.” 3 The principle of this goal is to identify impediments to local economic growth that can be resolved at local and regional levels; to provide a forum for identifying opportunities and threats to Silicon Valley; and to garner reliable information about the region’s business climate for effective local decision-making by City staff as well as business executives making relocation and expansion decisions. GOAL: Enhance key public and private economic assets. The key economic assets of the City are its eight economic activity centers. All commercial activity generating revenue for the City takes place in these centers comprising both public and private assets. The private economic assets are the local serving and export-oriented businesses that call Menlo Park home, the talented local workforce, and Menlo Park’s institutions, such as Stanford Research Institute (SRI), the development and venture capital communities, and the real property that houses their operations. Public economic assets include public resources such as City staff, land uses, zoning, parking, public works infrastructure, and community facilities. The purpose of this goal is to ensure the economic activity centers and the components that comprise them are evolving. The Division is committed to
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Doug Henton, Collaborative Economics, 2008. “The Innovation Driven Economic Development Model: A Practical Guide For the Regional Innovation Broker.” pg. 4.
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creating a physical business environment that is attractive, safe, and relatively easy to travel to and from in an efficient manner. The City’s public infrastructure is a key asset that Division staff will ensure is viable, sustainable, and meets the needs of the business community. Enhancing key public, and in selected cases private, economic assets includes partnering with the City’s Community Development Agency. Redevelopment is one of the most effective economic development tools stimulating new business and private development. By partnering with the Community Development Agency and enhancing economic assets, City staff will be better positioned to achieve site assembly, implement public infrastructure improvements, improve transportation networks, generate employment opportunities, and develop available land to reinvigorate the business climate within the industrial/research and development area. Exhibit B contains more information on the Las Pulgas Community Development Agency Project Area Plan and its economic development strategies. GOAL: Ensure the local business environment that is dynamic, diverse, and competitive. Ensuring that Menlo Park’s business environment is dynamic, diverse, and competitive is the culmination of successfully achieving the three aforementioned goals. Building internal and external strategic relationships, monitoring local and regional economic conditions, understanding strengths and weaknesses, responding to opportunities and threats, and enhancing key economic public and private assets will achieve the desired outcome to stimulate the local economy. Economic vitality is created by an ever-changing, competitive, and market driven environment in which businesses have the opportunity to grow and prosper. Staff will continue to be an important resource to the business and development communities by being more flexible and business-friendly.
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ECONOMIC ACTIVITY CENTER BOUNDARIES & MAPS
DRAFT
The City of Menlo Park has eight distinct areas (see map on page 11 and economic activity center maps in Exhibit C) where commercial and industrial activity takes place. They are officially identified as zoning designations C-1 (Administrative and Professional District), C-2 (Neighborhood Shopping), C-3 (Central Commercial), C-4 (General Commercial), and M-2 (Light Industrial). These commercial and industrial districts are located throughout the community and are generally known by the names and boundaries identified below. These are the only areas in the City where retail sales, transient occupancy and commercial property tax revenues are generated. For these reasons the health and vitality of these economic activity centers is essential. The location and boundaries of the City’s eight economic activity centers areas are: Downtown (C-3 Zoning Designation) The area between El Camino Real, University Drive, Oak Grove Avenue, and Menlo Avenue, including Santa Cruz Avenue, the central business district’s primary, commercial arterial El Camino Real (C-1-A, C-3, C-4 and PD Zoning Designations) El Camino Real between the city limits of the City of Palo Alto on the south and the Town of Atherton on the north Sand Hill Road (C-1-X, C-1-C, C-2 Zoning Designations) Sand Hill Road between Highway 280 and Sharon Heights Road Willow Road – East (C-2-B and C-4 Zoning Designations) Willow Road east of Highway 101 to Bayfront Expressway Willow Road – West (C-2, C-3, and C-4 Zoning Designations) Willow Road west of Highway 101 to Gilbert Avenue Willow Road & Middlefield (C-4, C-1A, and C-1 Zoning Designations) The extended intersection of Willow and Middlefield Roads between Woodland Avenue and Ringwood Avenue on Middlefield and Willow Road west from Middlefield to Willow Place Menalto (C-2 Zoning Designation) Menalto Avenue at Gilbert Avenue Industrial/Research & Development (M-1 and M-2 Zoning Designation) There are eight light industrial/R&D “sub-areas” along Bayfront Expressway, Highway 101, Willow Road, and O’Brien Drive (see map on page 12):
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• • • • • • • •
Menlo Business Park – O’Brien Drive from Adams Drive to University Avenue Willow Park – AMB property on Hamilton Avenue, Hamilton Court, and Willow Road frontage O’Brien Drive – O’Brien Drive from Willow Road to Adams Drive Bayfront/Willow – Intersection of Bayfront Expressway and Willow Road including the General Motors and Tyco Electronics sites Sun Microsystems Campus – East side of Bayfront Expressway at the intersection of Willow Road Bohannon East – Independence Drive to Chilco Street and Bayfront Expressway to Commonwealth Drive Bohannon West – Scott Drive, Campbell Avenue, and Bohannon Drive near Highway 101 southbound Haven Avenue – East side of Haven Avenue at the intersection of Marsh Road
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ECONOMIC ACTIVITY CENTER OBJECTIVES
DRAFT
Due to the uniqueness in size, location, and purpose of each of the City’s eight economic activity centers, the Business Development Division has developed an economic development objective for each area. By tailoring the City’s economic development plan in this fashion the Division can maximize each center’s potential, address specific infrastructure issues, and focus marketing and outreach to fit the specific needs of the individual revenue producing centers. The economic development objective for each economic activity center is: Downtown Continue to work closely with interested stakeholders to ensure this center of economic activity is fully occupied, vibrant, clean, attractive and includes a diverse array of retail and commercial establishments serving the local and regional communities. El Camino Real Ensure that economic development activities for short-term development focus on sustainable revenue inflows via attractive facilities with functional infrastructure, while helping complete the border-to-border visioning process for the long-term vision and development. Sand Hill Road Help ensure this western gateway arterial to the City maintains its world-wide brand as the Epicenter of Venture Capital activity by helping to promote the brand, while supporting local-serving retail for Sharon Heights neighborhood residents. Willow Road East Work with retail business and property owners to ensure full tenant occupancy of primarily local-serving retail users and ensure that the City has on-going involvement with stakeholders and residents in determining retail and mixed-use development opportunities. Willow Road West Maintain attractive streetscape for this gateway arterial to Menlo Park, while ensuring commercial businesses are continually improving, predominately local serving, and fully occupied. Willow & Middlefield Roads Work with property owners to ensure full occupancy, building improvements minimize infrastructure impacts, and revenue producing businesses are considered as part of the tenant mix. Assist with new development opportunities on two vacant parcels on Middlefield Road.
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Menalto Work closely with property owners to maintain full occupancy and to maintain an attractive and safe shopping district. Industrial/Research & Development The overall objective for this exceedingly important revenue producing area is to focus on the needs of existing businesses in order to grow the tax base and generate revenue for the City. The Division will also help keep vacant properties occupied with an infusion of new businesses in the technology industry that keeps Menlo Park on the cutting edge of innovation. Moreover, City staff will actively advance ideas and facilitate development of vacant land and at facilities whose economic life is ending. Resurrecting the Commercial Zoning Ordinance Update initiative could play an important role here. In addition to this general objective, which applies to the entire industrial and research and development area, there are objectives for each “sub-area” within this zoning district. The objective for each “sub-area” is: Menlo Business Park – In addition to a review of the campus Master Plan, work with Menlo Business Park, LLC to improve infrastructure and evaluate project processing in order to retain and attract high income generating tenants on the cutting edge of technology and innovation and to further develop its bioscience, life science, clean tech and green tech tenant mix. Willow Park - Work with AMB Property Corporation to further refine its preliminary design concepts including sustainable, green redevelopment with the goal of repositioning the property to focus on life science, clean tech and, biotechnical enterprises, while upgrading or replacing selected buildings with green construction components, providing new quality jobs, establishing a new public transportation hub and possibly adding new housing alternatives in a transit-oriented urban village along the Willow Road frontage, if supported by appropriate densities. O’Brien Drive - Work with individual business owners and property owners in this transitioning sub-area to improve its attractiveness by submitting a proposal to the City’s Community Development Agency for tax increment funds to improve the streetscape with the specific goal of retaining existing revenue generating business and attracting new ones. Bayfront/Willow (this sub-area has two significant property owners, and therefore two objectives) - Continue to work with General Motors’ executives and its agents to ensure that the sale and development of its 22-acre parcel provides the maximum benefit to the City; and, continue to work with Tyco Electronics to help with the expansion and improvement of its property to ensure that it continues its
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own successful operation and the operations of its important revenue producing tenants. Sun Microsystems Campus (formerly Carnduff site) - Continue to work with Sun Microsystems on its campus development plans, paying particular attention to its need to reduce energy consumption costs with the principle outcome of maintaining the corporate headquarters of this firm in Menlo Park. Bohannon East – Continue to work with all of the sub-area stakeholders to resolve the issue of maintaining the existing, revenue producing, industrial district or altering a portion of the sub-area to an alternative, revenue producing use, while continuing to retain existing businesses and attract new ones to available space with a focus on innovation driven technology companies. Bohannon West – Work with property owners to develop an overall vision for this sub-area with particular attention to the freeway onramp frontage property along Scott Drive, while keeping abreast of property improvement projects and the goal of maintaining full occupancy of existing buildings. Haven Avenue - Work with property owners and Planning staff to develop a viable plan for a portion of this blighted, yet visible and accessible, sub-area into revenue producing retail site and destination.
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ECONOMIC ACTIVITY CENTER STRATEGIES
DRAFT
Strategies are an integral part of business plans. A strategy is a plan of action, method, process, or specific step taken to accomplish an objective in a business plan. There are usually multiple strategies employed to accomplish a given objective. The following major strategies support the objectives established for each of Menlo Park’s retail and commercial economic activity centers and are indicators of the results to be achieved. Please note that since the industrial/research and development zoning district is composed of eight distinct “sub-areas,” individual sub-area strategies have been developed, in addition to overall strategies applicable to the entire industrial/research & development district. In the major strategies defined below, dates have been added where the deliverables and the target dates are known. In other instances, delivery dates are still being developed and will be included in the final document. Downtown • • • Further develop real estate broker relationships and related business attraction efforts in order to maintain a full commercial occupancy rate. While focusing on independent businesses as the preferred tenants, strive to strike a balance with appropriate regional or national brands to achieve the optimum tenant mix. Continue to help improve pedestrian and vehicular infrastructure, such as, improvements to Parking Plaza 2 by August 2009 and utility undergrounding concepts by November 2009. Downtown merchants will continue to be engaged as stakeholders in the development of improvements. Be an active participant or promoter of events, celebrations, task force(s), and forums, such as the Downtown Merchants Group, Block Parties, Acorn Awards, Chamber Mixers, Holiday Committee, and company grand openings. Provide expertise and help tenants/property owners maintain and improve their properties. Assist City staff in the Phase II visioning process by including economic development issues in the final product that address business growth and profitability. Assist City staff and Amici’s Pizzeria owner through permit processes, signage, and coordination of grand opening in May 2009. Work with Transportation Division to facilitate the Council approved Downtown Parking Study.
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El Camino Real • • • Partner with Stanford University to implement a short-term occupancy plan and long-term development plan for its five parcels on El Camino Real property. Help guide the 20,000 square foot retail space component of the Derry project. Assist City staff and Sandhill Property Company on the development process for the 1300 El Camino Real project, specifically, as it pertains to the configuration and occupancy of approximately 110,000 square feet of commercial space. Continue business attraction efforts on 1300 El Camino Real with such businesses as the Green Auto Exchange and Ethical Auto Approach Sales (Zap Motors) for 550 El Camino Real. Continue to collaborate on the proposed Hilligoss project resulting in commercial, residential, and theater complex development. Work with other property owners on El Camino Real to ensure full occupancy emphasizing retail sales tax generating establishments. Help ensure new retail space (11,300 square feet) at Safeway Shopping Center is occupied with primarily local serving businesses. Assist City staff in completing Phase II of the visioning process by implementing economic development strategies that stimulate business growth and profitability by April 2009 (including the Grand Boulevard regional efforts). Assist City staff and property owner on the development process for the Beltramo’s (1460 El Camino Real) mixed use project, specifically, as it pertains to tenant selection for the 27,000 square foot office building. Investigate resurrecting Stanford University’s Marguerite Shuttle to stimulate business on El Camino Real and Downtown.
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Sand Hill Road • • • • • • Continue to work with development team to complete the Rosewood Resort and Office Complex by the Feb. 7, 2009 due date. Work with Rosewood Resort staff to help ensure 70% occupancy by May 2009. Partner with Rosewood Resort on job fair to help generate 300 new jobs in Menlo Park. Work with property owners to ensure Sharon Heights retail complex is fully occupied with local serving tenants. Further develop strategic relationships with Venture Capitalists to ensure funded firms have knowledge and opportunity to locate in Menlo Park. Become more active in the VC Task Force, the Western Association of Venture Capital.
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Willow Road – East • • • • • Work with local stakeholders and developer of the new Police Substation retail space (2,500 square feet) to ensure appropriate local serving tenants occupy the space. Continue efforts to attract a community serving grocery store such as Grocery Outlet or other potential candidates. Organize merchants for more effective marketing and development growth in the district by final year end. Work with General Motors as the current property owner to maximize industrial/research and development and/or retail component of the site. Work with AMB on its proposed 55-acre property redevelopment with the goal of adding revenue generating mixed use development (housing and retail) along the Willow Road corridor.
Willow Road – West • • • Partner with the Community Development Agency to seek tax increment funds for further consideration of infrastructure improvements. Organize merchants for more effective economic activity center marketing by year-end. Contact Veterans Administration or its agents bi-annually regarding status of property and possible future development potential and plans.
Willow & Middlefield Roads • • Evaluate the potential for revenue generating business opportunities in this district by final year-end. Focus new commercial development attention on remaining two vacant parcels located at 40 and 100 Middlefield Roads by arranging meetings with the property owners by January 2009.
Menalto • • • Evaluate effectiveness of public and private improvements to date by final year end. Convene Phase II planning meeting with commercial property owners that involves adjacent residents by June 2009. Continue quarterly property owners’ meetings to plan upgrades and review safety concerns.
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Industrial/Research & Development Major Strategies • Develop an appropriate brand for the industrial/research and development district by drawing on the uniqueness and character (i.e., life sciences, medical device, clean energy, and green technology), of the sub-areas and creating a habitat for innovation. • Establish a marketing plan and unique selling proposition for each subarea culminating in business attraction outreach by February 2009. • By December 2008 initiate quarterly business roundtables for the purpose of keeping businesses up-to-date on developments affecting their subarea, and to initiate frequent communication to build strategic relationships, learn about site assembly, facilitate tenant improvements, improve public infrastructure, and determine business retention, attraction and expansion opportunities. • Meet at least quarterly with top tax revenue producers and businesses poised for growth, since 68% of all Menlo Park retail sales tax revenue currently is generated from this area. • By January 2009 advance a plan for employing Community Development Agency tax increment funding for economic development-related activities and infrastructure improvements in selected sub-areas. Major Sub-Area Strategies Menlo Business Park • • • • • During this fiscal year, continue deployment of “dark fiber network” pilot initiative for an improved infrastructure as a major market differentiator for attracting high tech companies to this sub-area. Develop a plan and timeline for further deployment of “dark fiber” to other industrial/research and development sub-areas, based on the outcome of the pilot initiative. By October 2008 meet with property owners and City staff to identify areas where plan and permit processing can be improved. Discuss the opportunity of a Master Plan amendment for business retention, attraction, and expansion efforts with City staff and Tarlton Properties by February 2009. Encourage innovation and creativity for the 21st century economy by supporting Menlo Labs business incubator in promoting growth in startups or early stage companies, and to ensure that they graduate and locate within the Menlo Business Park for business clustering.
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Business Development Plan Menlo Park Business Development Division
Willow Park • • • Work with AMB executives to further develop ideas for its 55-acre industrial park by the end of March 2009, which may include mixed-use, transit-oriented development, and research and development. Ensure that consideration in the proposed AMB master plan is given to adding local and regional serving businesses along its frontage on Willow Road in a mixed-use development format. Arrange a meeting within the Menlo Business Park, Willow Park, and O’Brien Drive sub-areas to engage and inform area businesses and property owners about AMB’s development proposal. Strategic relationships will be cultivated to allow staff to learn more about the current business climate by January 2009.
O’Brien Drive • • Evaluate the tenant mix to determine marketing and branding potential. Analyze the need for a dark fiber network for larger bandwidth and faster internet services for more efficient business operations, and initiate a pilot program, if it is determined by the business community that this program adds value. Conduct sub-area meeting with sub-area businesses before January 2009 to discuss the dark fiber network pilot program, business to business partnerships, and resource sharing. Investigate partnering with Job Training (formerly OICW) to ensure local job seekers are matched with local employers.
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Bayfront/Willow General Motor’s 22-acre site: • • • Keep stakeholders informed regarding the progress and direction on the sale of this property by maintaining daily contact with General Motors’ agents. Continue the effort to have General Motors select an alternative site in Menlo Park for a “scaled down” dealership presence; focus on the Cadillac brand. Work with prospective property buyers to assist with the due diligence process and provide value-added information to properly evaluate the site for purchase.
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Business Development Plan Menlo Park Business Development Division
Tyco Electronics’ 61-acre site: • • • Continue to assist City staff and Tyco representatives with existing projects to ensure that site improvements, noise abatement, related facility upgrades, and other issues conform to City standards. Keep abreast of Tyco’s master planning considerations for the remaining 61-acre property by November 2008. Work with leasing agents to ensure that revenue producing tenants are always a consideration in the Tyco tenant mix.
Sun Microsystems Campus (formerly Carnduff site) • • • Pursue utilities reduction strategies with PG&E by December 2008. Continue to work with suppliers, such as Skyline Solar, to help Sun install a solar power option. Step-up ongoing efforts to retain Sun Microsystems headquarters in Menlo Park.
Bohannon East • Help complete the Marriott Renaissance ClubSport hotel and office complex development-related reports, agreements, and other activities by their designated due dates so that the City Council and the Planning Commission have appropriate information for making informed decisions about the overall project. Provide information for and draw on information from the Marriott/office project Fiscal Impact Analysis (FIA) to complete this item. Assist high revenue producing companies like Xtent in retention efforts within the industrial/R&D activity center. Conduct a retail sales tax and cluster analysis of this sub-area to determine the revenue producing conditions as they now exist and their future potential. Support The Foundry business incubator as an innovation catalyst by promoting the growth of start-ups or early stage companies within the medical device sector to ensure that they graduate and locate within the industrial/research and development district.
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Bohannon West • Continue to work with the Fitness 101/Critchfield Mechanical, Inc. property owner (NW corer of Scott Drive and Campbell Avenue) to develop a plan for the site with consideration given to an appropriate revenue producing enterprise that can take full advantage of the property’s unusually good visibility and accessibility from US 101.
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Conduct a cluster analysis to determine potential for attracting related businesses into the sub-area by July 2009.
Haven Avenue • • • • Play a leading role in defining the site assemblage issues by January 2009 with the four principal property owners regarding the possibility of developing a large freeway visible, revenue generating project. Initiate meetings, if warranted, with property owners to review and consider alternative concepts that may result in a master development plan. Ensure that properties not considered for redevelopment are occupied with tenants beneficial to the City and that upgrades and improvements are completed according to City standards. Partner with Community Development Agency by January 2009 on behalf of economic development strategies including infrastructure improvements, site assembly assistance, and business retention and attraction.
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Business Development Plan Menlo Park Business Development Division
DIVISION ADMINISTRATION
DRAFT
The Business Development Division performs, coordinates, or directs many administrative duties and responsibilities that allow the staff to operate effectively and efficiently. In addition, there are several internal initiatives aimed at coordinating or improving permit processing and nurturing the general business environment. In that regard, the Division performs a broad range of administrative duties, including, but not limited to the following: • • • • • • • • • • • • • • • • • • • • Commercial Zoning Ordinance Update (CZOU) process task force member Consultant to Finance Director in matters involving quarterly sales tax summary and other revenue issues Analysis and follow-up on quarterly MBIA retail sales data Upgrade commercial and industrial/R&D property tracking system by contracting with LoopNet Revamp and implement monthly updates for the Division’s webpage Participate in marketing/outreach through the Chamber of Commerce Participate in regional Silicon Valley Economic Development Alliance (SVEDA) organization and its Wireless Silicon Valley and Green Opportunities Taskforces Create and distribute brochures, FAQ’s, etc. Initiate actions to streamline economic development processes Participate in Organizational Plan, Design Review Team, Development Agreement Team, Downtown/El Camino Real Visioning Process, and Organizational Development Initiative meetings as required Review contracts, development agreements, Planning documents, design plan sets, fiscal impact analysis, traffic studies, etc. Help facilitate Code Enforcement on parking and graffiti issues Maintain a business database (now evaluating new EDPro Software) Perform department-head operational duties and responsibilities Participate in relevant economic development, redevelopment, and land use seminars and workshops Coordinate economic development volunteers Provide information and follow-up on City Manager requests Answer community questions through Direct Connect Perform records management and fulfill public information requests Prepare and present Economic Vitality Reports to City Council (New)
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Business Development Plan Menlo Park Business Development Division
MEASURING ECONOMIC VITALITY
DRAFT
An important component of the City’s economic development Business Plan must include an effective way to evaluate progress to see if the benefits expected are being delivered at a cost the community is willing to pay. Staff’s desired evaluation outcomes are to: • • • Provide tools to employ demonstrable evidence of progress. Describe what is to be measured and methods used. Make certain performance measures are linked to goals.
It is also very important to produce trend data for the local economy so that policy makers can identify advancing or declining indicators early on and adjust direction or create initiatives based on that input. The Business Development Division suggests the Council adopt a set of reports and measures serving this purpose. The measures recommended provide a complete picture of the health of the local economy. The list was carefully compiled based on MBIA business sectors in other internal reports, local economic activity center definitions, and other readily recognized indicators of economic activity. The reports will show data over a time horizon, including measurements against specific goals or in relation to other jurisdictions or benchmarks. There are a variety of ways to measure economic activity. The measures recommended reflect outcomes associated with Division goals, objectives, and strategies. The measures reflect feasibility; cost of acquiring data on a regular and cost-effective basis, as well as staff time involved which include: CITY MEASURES Retail Sales Tax Per Capita – illustrates progress against Menlo Park’s “prebubble” per capita retail sales benchmark amount of $254 per capita. Revenues (Sales Tax and TOT) by Business Sector – shows the performance of Menlo Park’s five business categories generating retail sales tax; business-tobusiness, transportation, food products, general retail, and construction, plus TOT revenue from the hotel-motel business sector. Revenues (Sales Tax and TOT) by Economic Activity Center – provides a geographic version of the retail sales data above by showing the current and past revenue generating performance of Menlo Park’s eight economic activity centers. Retail Sales Tax Revenue Performance for Neighboring Cities – shows whether or not the City is getting its “share of the regional economic pie” by
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calculating Menlo Park’s percentage of total San Mateo County retail sales tax revenue and comparing that to selected cities in San Mateo County. Growth/Decline in Revenue Generating Space in the City – measures the net gain or loss in the total building space designated for uses generating retail sales and TOT; shows us if we are growing our base. Net New Business and Revenue Growth from Business Licenses – indicates a growing or declining local business climate, in addition to being an important revenue stream for the City. Commercial Building Permits – measures commercial building permits issued and permit valuation. Business Environment Survey – measures the overall perception of the City’s environment by business owners licensed in Menlo Park by a mail survey conducted at the time of the annual business license renewal. MARKET MEASURES Commercial Vacancy Rate Trends – illustrates the commercial vacancy rates for the by the City’s major geographic areas; a business attraction issue, for downtown, Sand Hill Road, and the US 101 Corridor. Commercial Rent Trends – presents average commercial rental rates for the City’s major geographic areas; a business retention and attraction issue for downtown, Sand Hill Road, and the US 101 Corridor. Commercial Properties for Sale or Lease – shows available commercial properties in Menlo Park; a significant business attraction issue. INNOVATION MEASURES Venture Capital Invested in Menlo Park Companies – illustrates venture capital invested in Menlo Park-based companies by funding amount and number of companies. Venture Capital Invested by Industry Classification – measures local venture capital activity in specific emerging industry sectors and specialized growth niches, such as biotechnology, and medical devices. Start-ups and Early Stage Companies – illustrates business incubator activity and number of companies that have “graduated” from two local business incubators.
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Patents Issued in Menlo Park – indicates local technological innovation and related economic growth for the community and the region. These recommended measures will be developed by staff and adopted by Council establishing realistic benchmarks as targets for sustainable growth. It is staff’s intent to begin providing reports semi-annually to the Council regarding local economic development.
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APPENDIX
Exhibit A – General Plan Policy Document (Applicable Excerpts)
DRAFT
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Exhibit B – Las Pulgas Community Development Project Area Plan (Applicable Excerpts) Exhibit C – Individual Maps of the Economic Activity Centers
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Exhibit A CITY OF MENLO PARK GENERAL PLAN POLICY DOCUMENT
Adopted November 30 and December 1, 1994 (Applicable sections to Business Development) PART I SECTION I: LAND USE COMMERCIAL Goal I–B: To strengthen Downtown as a vital and competitive shopping area while encouraging the preservation and enhancement of Downtown’s historic atmosphere and character. Policies I-B-1 The Downtown should include a complementary mix of stores and services in a quality design, adding natural amenities in the development pattern. I-B-2 Parking which is sufficient to serve the retail needs of the Downtown area and which is attractively designed to encourage retail patronage shall be provided. I-B-3 New development shall not reduce the number of existing parking spaces in the Assessment District, on P-zoned parcels, or not private property where parking is provided in lieu of Assessment District participation. I-B-4 Uses and activities shall be encouraged which will strengthen and compliment the relationship between the Transportation Center and the Downtown area and nearby El Camino Real corridor. Goal I–C: Corridor. Policies I-C-1 New and upgraded retail development shall be encouraged along El Camino Real near Downtown, especially stores that will complement the retailing mix of Downtown. Adequate parking must be provided and the density, location, To encourage creativity in development of the El Camino Real
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and site design must not aggravate traffic at congested intersections. The livability of the adjacent residential areas east and west of El Camino Real and north and south of Downtown must be protected. I-C-2 Small-scale offices shall be allowed along most of El Camino Real in a balanced pattern with residential or retail development. Goal I–D: To encourage the rehabilitation and continued use of viable and appropriate neighborhood commercial uses or collections of stores servicing surrounding residential neighborhoods. Policies I-D-1 Special attention should be given to strengthen the neighborhood shopping centers throughout the city. This can be done by continuing the existing policy of removing marginal uses or vacant commercially-zoned properties from the present commercial zoning and placing them in a residential land use category or rezoning to the P District. I-D-2 Expansion of operations in neighborhood shopping centers shall be prohibited if they disrupt residential areas. Subject to obtaining a use permit or rezoning to a P District, development of additional parking spaces may be permitted to alleviate parking problems on residential streets caused by existing businesses which lack the required number of parking spaces. Goal I–E: To promote the development and retention of commercial uses which provide significant revenue to the City and/or goods or services needed by the community and which have low environmental and traffic impacts. Policies I-E-1 All proposed commercial development shall be evaluated for its fiscal impact on the City as well as its potential to provide goods and services needed by the community. I-E-2 Hotel uses may be considered at suitable locations within the commercial and industrial districts of the city. I-E-3 Retention and expansion of auto dealerships in the city shall be encouraged. Development of new auto dealerships or combined dealerships in an auto center shall be encouraged at suitable locations in the city. I-E-4 Any new or expanded office use must include provisions for adequate offstreet parking, mitigating traffic impacts, and developing effective alternatives to
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auto commuting, must adhere to acceptable architectural standards, and must protect adjacent residential uses from adverse impacts. INDUSTRIAL Goal I–F: To promote the retention, development, and expansion of industrial uses which provide significant revenue to the City, are well designed, and have low environmental and traffic impacts. Policies I-F-1 Industrial development shall be allowed only in already established industrial areas and shall not encroach upon Bay wetlands. I-F-2 Establishment and expansion of industrial uses that generate sales and use tax revenues to the City shall be encouraged. I-F-3 Modifications in industrial operations required to keep firms competitive should be accommodated, so long as any negative impacts on the environment and adjacent areas are satisfactorily mitigated. I-F-4 The City shall consider attaching performance standards to projects requiring conditional use permits. I-F-5 Convenience stores and personal service uses may be permitted in industrial areas to minimize traffic impacts. I-F-6 All new industrial development shall be evaluated for its fiscal impact on the City. IMPLEMENTATION PROGRAMS I-4 The City shall analyze the fiscal impacts of proposed development to determine the financial feasibility of providing needed services. I-5 The City shall prepare and adopt an economic vitality element to the General Plan that sets forth policies and programs to assure continued economic vitality for the city and adequate municipal revenues for City services. The development of the economic vitality policies and programs shall be a cooperative effort between the City and a task force reflecting a balance of business people and residents throughout the city.
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PART I SECTION II: CIRCULATION & TRANSPORTATION TRANSPORTATION DEMAND MANAGEMENT Goal II-C To promote the use of alternatives to the single occupant automobile. II-C-7 Commuter shuttle service between the industrial work centers and the Downtown Transportation Center should be maintained and improved, within fiscal constraints. The City shall encourage SamTrans and other agencies to provide funding to support shuttle services. PARKING Goal II-F To provide adequate parking in the Downtown area, especially for retail customers and Caltrain patrons. II-F-2 Short-term retail customer parking shall be first priority for the allocation of parking spaces in Downtown parking plazas. Long-term employee parking shall be located in such a manner that it does not create a shortage of customer parking adjacent to retail shops.
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Exhibit B CITY OF MENLO PARK AMENDED AND RESTATED LAS PULGAS COMMUNITY DEVELOPMENT PROJECT AREA PLAN
Adopted by Ordinance No. 826 Amended and Restated by Ordinance No. 826 September 10, 1991 (Applicable sections to Business Development)
III. Project Area Boundaries Project Area Name – Las Pulgas Community Development Project The original Spanish land grant for part of the Project Area was entitled Las Pulgas. To provide a specific name for the Community Development Project, which will differentiate, in name, Community Development activities from City activities. IV. Community Development Project Goals The State Community Redevelopment Law enables a local government to form a Community Development Agency when a determination is made that economic, physical or social blight or blighting influences encompass a broad spectrum, ranging from inadequate public improvements to physical characteristics that inhibit sound development of a particular site, as well as typical visual blight, such as deteriorated and dilapidated structures and facilities. Further, the State Legislature has declared that one of the fundamental purposes of redevelopment is to “expand employment opportunities for the unemployed…” which is particularly important for this project given the high unemployment rate within the Project Area. The Menlo Park Community Development Agency proposes to use the process of Community Development to eliminate blight and blighting influences presently existing within the City of Menlo Park and more specifically within the boundaries of the Project Area, as set forth in the Community Development plan.
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This action is necessary because within parts of the Project Area there presently exists an undesirable mixture of residential, commercial, and industrial uses. In some parts of the Project Area physical decline in the integrity of building improvements is apparent and it some areas there exist advanced stages of physical deterioration. In other parts of the Project Area, an inadequate circulation system thwarts the development of vacant or underutilized land. The Project Area is characterized by fragmented parcelization and multiple ownerships to the point that land assemblage for proper economic utilization of parts of the Project Area has been hampered. This misuse of land and the adverse effect the mixture of residential, commercial and industrial uses have in the Project Area taken as a whole, constitute a physical, social and economic blighting influence on the Project Area. General Goals (Only sections applicable to Business Development are shown) 3. To encourage sector investment together with the provision of additional public amenities. 4. To increase local employment opportunities and the expansion of existing commercial enterprises within the Project Area. 5. To promote commercial and industrial rehabilitation and infill construction in conformance with the Comprehensive Plan and Goals of this Plan. Lines of Action Goal 1 – Enhancement of the Project Area Living Environment D. The Agency should work with the City to continue and expand the successful efforts being undertaken by the City towards the undergrounding of utilities throughout the Project Area. Goal 3 – Encouragement of Private Sector Investment and the Provision of Additional Public Amenities A. Overall improvement of the curbs, gutters, sidewalks and streets in the Area should be undertaken. This line of action will markedly enhance the appearance of the area. The City will assure that the maintenance costs of the City will not be unduly increased due to Agency undertakings. B. The Agency should work closely with local business interests and financial institutions to determine what type of public improvements will most effectively lead to further private sector investment.
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Goal 4 – Increased Local Employment and the Expansion of the Existing Economic Base. A. The Agency should formalize a local hiring plan for new businesses building within the Project Area who avail themselves of any benefits provided by the Agency. The relatively unique and advantageous position of the Agency, in that there will be a substantial opportunity for additional employment due to the industrial development offers an opportunity to make this type of plan work. Further, the Agency should also pursue the possibility of encouraging various types of job training programs for the residents of the Project Area. B. The Agency should encourage local businesses to either form a Local Development Corporation or to work with the existing LDC in East Palo Alto. C. The Agency should make use of Industrial Development Bond tax-exempt financing for commercial and industrial rehabilitation and new construction. Use of the Agency general powers may make it possible for the Agency to provide financing at up to 35.0% below market for the specific business endeavors. Goal 5 – Commercial Rehabilitation and In-fill Construction Willow Road serves as one of the primary gateways to Menlo Park. As a major gateway, it should be fronted by successful and attractive commercial and residential development. Specific lines of action should include: A. A unified design for all rehabilitation and development along Willow Road, so that the entrance to the City of Menlo Park will work as a cohesive area which complements the balance of the community. B. The improvement of Willow Road, in a manner that complements the proposed development to be undertaken by Caltrans including the construction of curbs, gutters, sidewalks, complementary landscaping and, when appropriate, walls and fences. C. The rehabilitation of existing commercial uses as well as the selective redevelopment of certain properties that are not readily improved. D. The development of mixed-use housing-commercial along Willow Road to further stabilize the area.
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Goal 6 - Promotion of Affordable Rental and Ownership Housing D. The City should consider the rezoning and redevelopment of underutilized industrial parcels along Hamilton Avenue to housing. E. Mixed use elderly housing with convenient shops may be encouraged in the Project Area, especially along Willow Road, Pierce Road, and Hamilton Avenue. V. Development Techniques to Achieve Plan Objectives The development of the Las Pulgas Community Development Project will be undertaken in accordance with the provisions of the California Community Redevelopment Law. At this time, it is anticipated that the use of financial and tax incentives will provide sufficient incentive to the private sector for realization of the improvement of the Project Area and the eradication of blighting influences. The Agency proposes to strive for economic, social, and physical revitalization and beautification within the Project Area by: • • • • • • • Installation, construction, or reconstruction of streets, utilities, landscaping, and other on-site and off-site improvements. Encouragement of development of land by private enterprise for use in accordance with this Plan. Limited acquisition of real property. Relocation assistance to displaced residential and non-residential occupants. Limited demolition or removal of buildings and improvements. Provision of financing to those projects in conformance to the Community Development Plan as well as all appropriate City Codes and Plans. Utilization of tax-exempt financing vehicles available to the Agency, and the City, including but not limited to those authorized by the Redevelopment Construction Loan Act, those available through the General Powers of the Agency, and those available via the Parking and Assessment District Statutes of the State of California. The possible creation of an SBA 503 Development Corporation to be utilized in conjunction with private or public financing or grants from the State or Federal government to facilitate various developments.
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A. Participation by Owners and Business Tenants The following part of the Plan is concerned with assuring that existing business owners and tenants will receive maximum opportunity to work with the Agency in improving their property and participating in the Community Development efforts. 1. Opportunities for Owners and Business Tenants 34
Business Development Plan Menlo Park Business Development Division
The Agency shall extend reasonable preferences to persons who own property or are engaged in business in the Project Area, to continue in or re-enter into business within the Project Area if they meet the requirements prescribed in this Plan and the Agency’s “Rules for Business Tenant Preference and Owner Participation” (“Owner Participation Rules”). It is the policy of the Agency to encourage the participation of property owners and businesses within the Project Area, where consistent with achieving the goals and objectives of the Plan, as such is necessary if the development process is to be used in revitalizing the Project Area.
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Exhibit C MAPS OF EIGHT ECONOMIC ACTIVITY CENTERS (To be included in final approved document)
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doc_194068793.pdf
A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.
DRAFT
Business Development Plan
Business Development Division
City of Menlo Park
November 18, 2008
prepared by
City of Menlo Park Business Development Division
Business Development Plan Menlo Park Business Development Division
DRAFT
VISION
To preserve and enhance Menlo Park’s business climate to ensure the City is financially stable and partners with the community in its commitment to improve quality of life.
MISSION
To provide services and resources to the business and development communities with the purpose of retaining, attracting and expanding business and employment opportunities for area residents, stimulating the local economy and expanding local retail sales, transient occupancy, and commercial property tax bases, while maintaining a positive balance between growth, social equity and the economic vitality of the City.
VALUES
To adhere to the sound fundamental principles of traditional economic development: business retention, by supporting and retaining established businesses; business attraction, by actively pursuing private investment and new business; business expansion, by nurturing both established and emerging companies; and, all supported by improved public infrastructure vital to retaining, attracting and expanding business entities.
Business Development Plan Menlo Park Business Development Division
Table of Contents
I. II. II. III. IV. V. VI. VII. VII. VIII. Executive Summary Introduction Economic Development Fundamentals Business Development Division Goals Economic Activity Center Boundaries and Maps Economic Activity Center Objectives Economic Activity Center Strategies Division Administration Measuring Economic Vitality Appendix Exhibit A - General Plan Policy Document (Applicable Excerpts)
DRAFT
i 1 3 5 8 12 15 22 23 26 27
Exhibit B – Las Pulgas Community Development Project Area Plan (Applicable Excerpts) Exhibit C – Map of Eight Economic Activity Centers (To be included in final approved document)
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EXECUTIVE SUMMARY
DRAFT
The Business Development Division’s (“Division”) Business Development Plan (“Plan”) serves as the blueprint for policy considerations guiding the City’s investment in economic development initiatives, programs, and projects. The Plan also provides direction in anticipating and responding to changes in the local economy. The Division will provide essential services and resources to the business and development communities that result in economic vitality to preserve and enhance the unique environment that contributes to the high quality of life in Menlo Park. The Business Plan establishes a vital foundation, as it defines the Vision, Mission, and Values for the Business Development Division. The Plan is presented in six chapters: I. Economic Development Fundamentals • • • Answers to the question: Why is economic development important to Menlo Park? Defines the core values of economic development Establishes the essential components of a thriving local economy
II. Business Development Division Goals • • • • To build strategic relationships with external partners by fostering and supporting the business and development communities and with internal partners by cross-departmental coordination To monitor economic conditions and respond to opportunities and threats; To enhance key public and private assets To ensure the local business environment is dynamic, diverse, and thriving
III. Economic Activity Center Boundaries and Maps Menlo Park has eight distinct economic activity centers where commercial and industrial activity takes place and where retail sales, transient occupancy (TOT), and commercial property tax revenues are generated. These commercial and industrial/research and development districts are located throughout the city and are clearly defined on page 8. They are generally known by these names: • • • • • • Downtown El Camino Real Sand Hill Road Willow Road – East Willow Road – West Willow and Middlefield Roads
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• •
Menalto Industrial/Research & Development
IV. Economic Activity Center Objectives Due to the uniqueness in size, location, and purpose of each of the Menlo Park’s eight economic activity centers, economic development objectives for each area have been developed. By developing specific objectives for each activity center Division staff is addressing the following needs: • • • • • • • Identifying and responding to business retention, attraction and expansion Forming strategic partnerships with business representatives Facilitating development Maintaining full occupancy Maintaining public infrastructure Conducting marketing and outreach Generating new employment opportunities
V. Economic Activity Center Strategies The strategies are the core of the Business Plan. They define specific economic development initiatives, programs, and projects. The strategies support the objective for each of Menlo Park’s retail, commercial, and industrial/research and development economic activity centers. The strategies provide value, improve the business climate, and enhance the City’s fiscal health by increasing municipal revenues. Currently, there are major strategies that include: • • • • • • • • • • • • Addressing business retention, attraction and expansion projects Creating a potential brand for the City Conducting regular outreach to business and property owners, developers, venture capitalists and other strategic partners Monitoring economic conditions and responding to opportunities and threats Partnering with the Community Development Agency staff Facilitating tenant improvements and aiding in site selection Assisting developers with master plans for various sites Facilitating public infrastructure needs Ensuring Downtown, El Camino Real, and neighborhood shopping areas are vibrant, attractive, and competitive Ensuring full occupancy Promoting events, celebrations, and grand openings Supporting start-up business incubators
VI. Measuring Economic Vitality Monitoring the economic health of the community is a critical component of the Plan. Effective reporting tools measure economic vitality, describe what is being
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measured, provide demonstrable evidence of progress, and ensure performance measures are linked to established goals. The recommended measures are: City Measures • Retail Sales Tax Per Capita • Revenues (Sales Tax and TOT) by Business Sector • Revenues (Sales Tax and TOT) by Economic Activity Center • Retail Sales Tax Revenue Performance for Neighboring Cities • Growth/Decline in Revenue Generating Space in the City • Revenue Growth from Business Licenses • Business Environment Survey Market Measures • Commercial Vacancy Rate Trends • Commercial Rent Trends • Commercial Properties for Sale or Lease Innovation Measures • Venture Capital Invested in Menlo Park Companies • Venture Capital Invested by Industry Classification • Start-ups and Early Stage Companies • Patents Issued in Menlo Park Plan Summary The Division’s purpose is to maximize revenues from retail sales, transient occupancy, and commercial property taxes. This Plan is the initial instrument in achieving greater community knowledge of and involvement in the City’s economic development issues and opportunities in pursuit of the overarching revenue objective. In that regard, the following items represent the Division’s highest priorities for the next six (6) month period: • Downtown/El Camino Real Visioning – work closely with Planning Department colleagues to launch Phase II, while ensuring steps are taken to include a quantifiable economic development component to the plan and that the focus on the Stanford University parcels receive immediate attention Marriott Hotel and Office Complex – complete evaluation of the critical impact documents (i.e., Administrative Environmental and Fiscal Impacts Reports) and work with Council and colleagues to prepare a Development Agreement for public review Rosewood Resort – complete construction and open for business on April 1, 2009 General Motors 22-acre Site – work closely with General Motors Corporation executives and its agents to sell this property and present a viable purchaser and development plan to the City Council
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• •
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Haven Ave – continue efforts to work with property owners and other stakeholders to prepare this highly visible and accessible Community Development Area for redevelopment AMB 55-acre Willow Park Site – work with property owners to complete an architectural consistency campus plan and to further refine its companion plan to reposition and upgrade this dated industrial property to focus on life science, clean technology, and biotechnology enterprises Current Economic Crisis – redouble efforts to reach out to major revenue producers to ensure staff and Council are doing all that can be done to understand threatening business situations and initiate appropriate retention efforts
The Business Development Division will collaborate, consult, and coordinate with City department colleagues, City Council and other civic leaders, business representatives, real estate and development communities, and other partners in this effort. It is recommended that this Plan is reviewed annually to monitor progress, ensuring alignment with other initiatives and planning efforts within the City. In addition to recommending an annual Plan update, the Division is recommending semi-annual economic vitality reports to the City Council regarding the state of the local economy. This reporting approach provides appropriate policy oversight for the efficient and effective delivery of local government services to Menlo Park’s business and development communities. The Business Development Plan’s goals are grounded in essential economic development principals that emphasize connecting with business and commercial property owners, so that City stakeholders’ ideas and concepts are continuously evolving, thereby producing a thriving community.
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INTRODUCTION
DRAFT
The Business Development Division’s Business Plan is a Blueprint This document serves as a guide for City policy considerations to shaping Menlo Park’s economic growth. The Business Plan emphasizes economic vitality, as the City of Menlo Park pro-actively focuses on supporting the local economy’s ability to adapt to changing conditions in order to thrive. This business plan links the vision of the Business Development Division with its mission and sets forth an action plan for continuous community renewal and growth essential to ensuring both short- and long-term fiscal stability. The plan will be reviewed annually to monitor progress, ensuring alignment with other planning efforts within the City. This approach enables efficient and effective local government services to be provided to Menlo Park’s business and development communities. Efforts to improve local economic vitality will be measured by the quantitative and qualitative City, Market and Innovation performance measures established by the Division and adopted by the City Council. As economic development professionals, the Business Development Division employs the fundamentals and best practices of local, regional, and state economic development programs. This plan reflects guiding values and principles for economic development by a focus on the fundamentals of business retention, attraction, expansion, and creating an attractive physical environment through infrastructure improvements. The Importance of the City’s Eight Economic Activity Centers The City of Menlo Park offers amenities many businesses require for success. Its eight economic activity centers have attracted key firms to the City and have created ideal conditions for local firms to expand. While the downtown district is the center-piece and most visible economic activity center in the City, the industrial/research and development district currently generates 68% of Menlo Park’s retail sales tax revenue and boasts the largest employment sectors. Business-to-business sales are a key component of this condition, requiring our constant attention to retain, attract and expand businesses in this extensive area composed of eight distinct sub-areas. The City has eight economic activity centers: downtown, El Camino Real, Sand Hill Road, Willow Road east of 101, Willow Road west of 101, the Willow Road & Middlefield Road district, Menalto district and the industrial/research and development district (composed of eight sub-areas). Each of these areas is different in its land uses, size, and location within the City. The composition of revenue generating businesses in each area is also unique, requiring a distinct economic development objective. The plan begins with overarching elements, including the Division’s vision, mission and goals, and ultimately focuses on the
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objectives and strategies and their measures for the economic vitality of each individual economic activity center. The General Plan: The community’s “Constitution” This document represents the foundation for the City’s economic development plan. It is a legal document required by State law. As a result, any discussion of the direction of economic development for the community must begin at this point. While the current General Plan was adopted in 1994, its comprehensive, long-term, and detailed proposals for the physical development and land use for the community are valid today. The plan is designed to define the community’s economic goals with “low environmental and traffic impacts.” The General Plan establishes specific policies, standards, and implementation strategies. It clearly defines the role economic development should play in maintaining Menlo Park’s special character by including definitive economic development goals in the two Plan “elements” covering land use and circulation/transportation. Those parts applicable to the mission of the Business Development Division can be summarized as follows: “To provide guidelines for the development of the City’s remaining vacant land, for revitalization of existing development, and for development of a transportation system and other public facilities in a manner that … minimizes the adverse impacts of development on the City’s public facilities and services…, promotes the rehabilitation of existing housing and commercial development…, allows for the orderly development of the City’s employment and commercial base…, and maintains and enhances the City’s economic vitality and fiscal health.” 1 Specific goals and policies within the General Plan related to commercial and industrial development are important foundational elements providing direction for the work performed by the Business Development Division. Those that directly relate to the Division’s goals, objectives, and strategies are found in the General Plan, Part I: Section I and II which are included in Exhibit A.
1
City of Menlo Park. 1994. “General Plan Policy Document.” pg. 2-3.
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ECONOMIC DEVELOPMENT FUNDAMENTALS
DRAFT
Why is economic development important to Menlo Park? Stimulating the local economy, expanding the tax base, creating quality jobs, and maintaining a positive balance between growth and social equity creates a thriving economy and generates revenues for public services. The need to direct private investment toward projects, programs, and initiatives that results in generating new wealth within Menlo Park is a critical component of the City’s General Plan. The General Plan serves as a long-range plan providing clear direction and an action plan for development policies that include economic development, among other standards and implementation programs. The City of Menlo Park and the Division have a keen interest and legitimate role to play in economic development efforts aimed at increasing economic vitality and the overall quality of life for Menlo Park residents, employees, and visitors. A successful economic development program will produce results, including a thriving and growing economy, economic opportunities, a competitive environment for the business and development communities, and revenue growth for City-wide services. According to the California Association of Local Economic Development, “Economic development is a concerted effort on the part of the responsible governing body to influence the direction of private sector investment toward opportunities that can lead to sustained economic growth.” 2 Moreover, economic development should yield real net positive impacts on business and development growth, or at the very least, the potential for growth with the outcome of producing economic opportunity and prosperity. The Division partners with the business and development communities to spawn private investment generating wealth through increased employment opportunities, local tax base expansion, new development, and raising property values. Public and private partnerships are essential to the success of the economic development program. It is important to add that private investment, if done correctly, is the only viable way to increase tax revenues and public services for local community benefit without increasing taxes. Core Values Economic development will continue to help shape the future of Menlo Park by employing guiding values and principles of business retention, attraction, expansion, and infrastructure improvements. Business retention is the process of supporting and retaining established businesses in order to achieve a reliable and diverse revenue stream that continually improves the City’s fiscal health. Business attraction includes actively pursuing private investment and new
2
California Association of Local Economic Development, et. al. 2003. “Economic Development Handbook: Second Edition.” pg. 10.
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business aimed at stimulating the local economy and generating employment opportunities. Business expansion capitalizes on both established and emerging companies that are prepared to grow and invest in their operations. Lastly, improvements to public infrastructure strengthen staff’s ability to create an environment that results in retaining, attracting, and expanding business. The aforementioned core values and guiding principles are practiced daily by the Business Development Division in adhering to strategic planning methods of assessing the strengths, weaknesses, opportunities, and threats to the businesses located in Menlo Park. The Components of a Thriving Local Economy A major component to Menlo Park’s economic development plan is ensuring that businesses and developers compete in a healthy environment. Locally, a sustainable economic base will be measured by the ability of Menlo Park to retain and attract local-serving and export-oriented business sectors resulting in a greater return on investment of staff time and limited resources. Local-serving businesses provide residents the opportunity to conveniently procure goods and services from eateries, bookstores, banks, dry cleaners, home furnishing stores, convenience stores, pharmacies, etc. Export-oriented businesses sell goods and services to consumers anywhere outside of our community. Office supplies stores and home furnishing stores are good examples of both local-serving and regional exporters of goods. Software, micro-electronics, and medical device companies and firms providing services with a national and global presence are examples of larger export-oriented companies. The difference between the local-serving and export-oriented sectors is critical because they depend on distinct revenue bases and infuse wealth into the local economy in different ways. Once again, it is expected that both sectors will grow and thrive, if Menlo Park’s local economic environment is competitive.
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BUSINESS DEVELOPMENT DIVISION GOALS
DRAFT
Goals are integral parts to any business plan. Goals state the specific outcomes an organization expects to accomplish in support of its vision and mission. All strategies and action items comprising the output of the Business Development Division are aimed at achieving its goals. The Division has four goals: • To build strategic relationships: with external partners by fostering and supporting the business and development communities, and with internal partners by cross-departmental coordination. To monitor economic conditions and respond to opportunities and threats. To enhance key public and private economic assets. To ensure the business environment is dynamic, diverse, and thriving.
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These four broad goals provide the framework for Council direction in connecting with key stakeholders, assessing and evaluating situations and circumstances related to local and regional economic development, addressing the needs of the community in caring for and expanding the physical environment for commerce, and putting it all together to ensure the vibrancy of Menlo Park’s local economy. To understand these concepts better, the goals are further defined below. GOAL: Build strategic relationships: with external partners by fostering and supporting business and development communities and with internal partners by cross-departmental coordination The outcome of this goal is to establish clear, effective, and on-going communication internally and externally resulting in realistic expectations and objective solutions. Externally, Division staff will listen, learn and link with top revenue producing businesses, commercial real estate brokers, local developers, and property owners. Listening to and proactively responding to the ideas of the business and development communities will provide City staff and civic leaders’ critical information to develop flexible policies, programs, and services supporting Menlo Park’s reputation as a sought after and competitive commercial, industrial, and technological environment. Internally, enhanced cross-departmental coordination by collaborating, consulting, and coordinating will provide the internal cooperation necessary for all aspects of the economic development equation to work together toward achieving common goals with our civic leaders. Empowering City staff to take ownership of projects from concept to completion provides the community an opportunity to build strong and active relationships with staff for better
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coordinated communication and effective execution. Employees are better positioned to be more creative and committed in this type of environment. GOAL: Monitor economic conditions and respond to opportunities and threats. By building effective strategic relationships the Division will be better positioned to proactively monitor the local and regional business climate. The Division in executing this goal will continue managing sensitive relationships and information. Staff will review all relevant reports, data, and economic trends, gaining a better understanding of the strengths and weaknesses of the economic base within Menlo Park for a more strategic response. In addition, to more effectively monitor current economic conditions locally and regionally, the Division will participate in industry alliances, seminars and workshops to stay abreast of best practices and innovations in our profession for the benefit of the City and its stakeholders. A key component of this is the staff’s membership in the Silicon Valley Economic Development Alliance (SVEDA). As we now know, “The world’s top competitors and collaborators are not cities, states or countries per se, but regions. Economic regions are defined not by political boundaries, but economic resources such as industry concentrations, labor markets, and common infrastructure.” 3 The principle of this goal is to identify impediments to local economic growth that can be resolved at local and regional levels; to provide a forum for identifying opportunities and threats to Silicon Valley; and to garner reliable information about the region’s business climate for effective local decision-making by City staff as well as business executives making relocation and expansion decisions. GOAL: Enhance key public and private economic assets. The key economic assets of the City are its eight economic activity centers. All commercial activity generating revenue for the City takes place in these centers comprising both public and private assets. The private economic assets are the local serving and export-oriented businesses that call Menlo Park home, the talented local workforce, and Menlo Park’s institutions, such as Stanford Research Institute (SRI), the development and venture capital communities, and the real property that houses their operations. Public economic assets include public resources such as City staff, land uses, zoning, parking, public works infrastructure, and community facilities. The purpose of this goal is to ensure the economic activity centers and the components that comprise them are evolving. The Division is committed to
3
Doug Henton, Collaborative Economics, 2008. “The Innovation Driven Economic Development Model: A Practical Guide For the Regional Innovation Broker.” pg. 4.
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creating a physical business environment that is attractive, safe, and relatively easy to travel to and from in an efficient manner. The City’s public infrastructure is a key asset that Division staff will ensure is viable, sustainable, and meets the needs of the business community. Enhancing key public, and in selected cases private, economic assets includes partnering with the City’s Community Development Agency. Redevelopment is one of the most effective economic development tools stimulating new business and private development. By partnering with the Community Development Agency and enhancing economic assets, City staff will be better positioned to achieve site assembly, implement public infrastructure improvements, improve transportation networks, generate employment opportunities, and develop available land to reinvigorate the business climate within the industrial/research and development area. Exhibit B contains more information on the Las Pulgas Community Development Agency Project Area Plan and its economic development strategies. GOAL: Ensure the local business environment that is dynamic, diverse, and competitive. Ensuring that Menlo Park’s business environment is dynamic, diverse, and competitive is the culmination of successfully achieving the three aforementioned goals. Building internal and external strategic relationships, monitoring local and regional economic conditions, understanding strengths and weaknesses, responding to opportunities and threats, and enhancing key economic public and private assets will achieve the desired outcome to stimulate the local economy. Economic vitality is created by an ever-changing, competitive, and market driven environment in which businesses have the opportunity to grow and prosper. Staff will continue to be an important resource to the business and development communities by being more flexible and business-friendly.
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ECONOMIC ACTIVITY CENTER BOUNDARIES & MAPS
DRAFT
The City of Menlo Park has eight distinct areas (see map on page 11 and economic activity center maps in Exhibit C) where commercial and industrial activity takes place. They are officially identified as zoning designations C-1 (Administrative and Professional District), C-2 (Neighborhood Shopping), C-3 (Central Commercial), C-4 (General Commercial), and M-2 (Light Industrial). These commercial and industrial districts are located throughout the community and are generally known by the names and boundaries identified below. These are the only areas in the City where retail sales, transient occupancy and commercial property tax revenues are generated. For these reasons the health and vitality of these economic activity centers is essential. The location and boundaries of the City’s eight economic activity centers areas are: Downtown (C-3 Zoning Designation) The area between El Camino Real, University Drive, Oak Grove Avenue, and Menlo Avenue, including Santa Cruz Avenue, the central business district’s primary, commercial arterial El Camino Real (C-1-A, C-3, C-4 and PD Zoning Designations) El Camino Real between the city limits of the City of Palo Alto on the south and the Town of Atherton on the north Sand Hill Road (C-1-X, C-1-C, C-2 Zoning Designations) Sand Hill Road between Highway 280 and Sharon Heights Road Willow Road – East (C-2-B and C-4 Zoning Designations) Willow Road east of Highway 101 to Bayfront Expressway Willow Road – West (C-2, C-3, and C-4 Zoning Designations) Willow Road west of Highway 101 to Gilbert Avenue Willow Road & Middlefield (C-4, C-1A, and C-1 Zoning Designations) The extended intersection of Willow and Middlefield Roads between Woodland Avenue and Ringwood Avenue on Middlefield and Willow Road west from Middlefield to Willow Place Menalto (C-2 Zoning Designation) Menalto Avenue at Gilbert Avenue Industrial/Research & Development (M-1 and M-2 Zoning Designation) There are eight light industrial/R&D “sub-areas” along Bayfront Expressway, Highway 101, Willow Road, and O’Brien Drive (see map on page 12):
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• • • • • • • •
Menlo Business Park – O’Brien Drive from Adams Drive to University Avenue Willow Park – AMB property on Hamilton Avenue, Hamilton Court, and Willow Road frontage O’Brien Drive – O’Brien Drive from Willow Road to Adams Drive Bayfront/Willow – Intersection of Bayfront Expressway and Willow Road including the General Motors and Tyco Electronics sites Sun Microsystems Campus – East side of Bayfront Expressway at the intersection of Willow Road Bohannon East – Independence Drive to Chilco Street and Bayfront Expressway to Commonwealth Drive Bohannon West – Scott Drive, Campbell Avenue, and Bohannon Drive near Highway 101 southbound Haven Avenue – East side of Haven Avenue at the intersection of Marsh Road
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11
ECONOMIC ACTIVITY CENTER OBJECTIVES
DRAFT
Due to the uniqueness in size, location, and purpose of each of the City’s eight economic activity centers, the Business Development Division has developed an economic development objective for each area. By tailoring the City’s economic development plan in this fashion the Division can maximize each center’s potential, address specific infrastructure issues, and focus marketing and outreach to fit the specific needs of the individual revenue producing centers. The economic development objective for each economic activity center is: Downtown Continue to work closely with interested stakeholders to ensure this center of economic activity is fully occupied, vibrant, clean, attractive and includes a diverse array of retail and commercial establishments serving the local and regional communities. El Camino Real Ensure that economic development activities for short-term development focus on sustainable revenue inflows via attractive facilities with functional infrastructure, while helping complete the border-to-border visioning process for the long-term vision and development. Sand Hill Road Help ensure this western gateway arterial to the City maintains its world-wide brand as the Epicenter of Venture Capital activity by helping to promote the brand, while supporting local-serving retail for Sharon Heights neighborhood residents. Willow Road East Work with retail business and property owners to ensure full tenant occupancy of primarily local-serving retail users and ensure that the City has on-going involvement with stakeholders and residents in determining retail and mixed-use development opportunities. Willow Road West Maintain attractive streetscape for this gateway arterial to Menlo Park, while ensuring commercial businesses are continually improving, predominately local serving, and fully occupied. Willow & Middlefield Roads Work with property owners to ensure full occupancy, building improvements minimize infrastructure impacts, and revenue producing businesses are considered as part of the tenant mix. Assist with new development opportunities on two vacant parcels on Middlefield Road.
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Menalto Work closely with property owners to maintain full occupancy and to maintain an attractive and safe shopping district. Industrial/Research & Development The overall objective for this exceedingly important revenue producing area is to focus on the needs of existing businesses in order to grow the tax base and generate revenue for the City. The Division will also help keep vacant properties occupied with an infusion of new businesses in the technology industry that keeps Menlo Park on the cutting edge of innovation. Moreover, City staff will actively advance ideas and facilitate development of vacant land and at facilities whose economic life is ending. Resurrecting the Commercial Zoning Ordinance Update initiative could play an important role here. In addition to this general objective, which applies to the entire industrial and research and development area, there are objectives for each “sub-area” within this zoning district. The objective for each “sub-area” is: Menlo Business Park – In addition to a review of the campus Master Plan, work with Menlo Business Park, LLC to improve infrastructure and evaluate project processing in order to retain and attract high income generating tenants on the cutting edge of technology and innovation and to further develop its bioscience, life science, clean tech and green tech tenant mix. Willow Park - Work with AMB Property Corporation to further refine its preliminary design concepts including sustainable, green redevelopment with the goal of repositioning the property to focus on life science, clean tech and, biotechnical enterprises, while upgrading or replacing selected buildings with green construction components, providing new quality jobs, establishing a new public transportation hub and possibly adding new housing alternatives in a transit-oriented urban village along the Willow Road frontage, if supported by appropriate densities. O’Brien Drive - Work with individual business owners and property owners in this transitioning sub-area to improve its attractiveness by submitting a proposal to the City’s Community Development Agency for tax increment funds to improve the streetscape with the specific goal of retaining existing revenue generating business and attracting new ones. Bayfront/Willow (this sub-area has two significant property owners, and therefore two objectives) - Continue to work with General Motors’ executives and its agents to ensure that the sale and development of its 22-acre parcel provides the maximum benefit to the City; and, continue to work with Tyco Electronics to help with the expansion and improvement of its property to ensure that it continues its
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own successful operation and the operations of its important revenue producing tenants. Sun Microsystems Campus (formerly Carnduff site) - Continue to work with Sun Microsystems on its campus development plans, paying particular attention to its need to reduce energy consumption costs with the principle outcome of maintaining the corporate headquarters of this firm in Menlo Park. Bohannon East – Continue to work with all of the sub-area stakeholders to resolve the issue of maintaining the existing, revenue producing, industrial district or altering a portion of the sub-area to an alternative, revenue producing use, while continuing to retain existing businesses and attract new ones to available space with a focus on innovation driven technology companies. Bohannon West – Work with property owners to develop an overall vision for this sub-area with particular attention to the freeway onramp frontage property along Scott Drive, while keeping abreast of property improvement projects and the goal of maintaining full occupancy of existing buildings. Haven Avenue - Work with property owners and Planning staff to develop a viable plan for a portion of this blighted, yet visible and accessible, sub-area into revenue producing retail site and destination.
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ECONOMIC ACTIVITY CENTER STRATEGIES
DRAFT
Strategies are an integral part of business plans. A strategy is a plan of action, method, process, or specific step taken to accomplish an objective in a business plan. There are usually multiple strategies employed to accomplish a given objective. The following major strategies support the objectives established for each of Menlo Park’s retail and commercial economic activity centers and are indicators of the results to be achieved. Please note that since the industrial/research and development zoning district is composed of eight distinct “sub-areas,” individual sub-area strategies have been developed, in addition to overall strategies applicable to the entire industrial/research & development district. In the major strategies defined below, dates have been added where the deliverables and the target dates are known. In other instances, delivery dates are still being developed and will be included in the final document. Downtown • • • Further develop real estate broker relationships and related business attraction efforts in order to maintain a full commercial occupancy rate. While focusing on independent businesses as the preferred tenants, strive to strike a balance with appropriate regional or national brands to achieve the optimum tenant mix. Continue to help improve pedestrian and vehicular infrastructure, such as, improvements to Parking Plaza 2 by August 2009 and utility undergrounding concepts by November 2009. Downtown merchants will continue to be engaged as stakeholders in the development of improvements. Be an active participant or promoter of events, celebrations, task force(s), and forums, such as the Downtown Merchants Group, Block Parties, Acorn Awards, Chamber Mixers, Holiday Committee, and company grand openings. Provide expertise and help tenants/property owners maintain and improve their properties. Assist City staff in the Phase II visioning process by including economic development issues in the final product that address business growth and profitability. Assist City staff and Amici’s Pizzeria owner through permit processes, signage, and coordination of grand opening in May 2009. Work with Transportation Division to facilitate the Council approved Downtown Parking Study.
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El Camino Real • • • Partner with Stanford University to implement a short-term occupancy plan and long-term development plan for its five parcels on El Camino Real property. Help guide the 20,000 square foot retail space component of the Derry project. Assist City staff and Sandhill Property Company on the development process for the 1300 El Camino Real project, specifically, as it pertains to the configuration and occupancy of approximately 110,000 square feet of commercial space. Continue business attraction efforts on 1300 El Camino Real with such businesses as the Green Auto Exchange and Ethical Auto Approach Sales (Zap Motors) for 550 El Camino Real. Continue to collaborate on the proposed Hilligoss project resulting in commercial, residential, and theater complex development. Work with other property owners on El Camino Real to ensure full occupancy emphasizing retail sales tax generating establishments. Help ensure new retail space (11,300 square feet) at Safeway Shopping Center is occupied with primarily local serving businesses. Assist City staff in completing Phase II of the visioning process by implementing economic development strategies that stimulate business growth and profitability by April 2009 (including the Grand Boulevard regional efforts). Assist City staff and property owner on the development process for the Beltramo’s (1460 El Camino Real) mixed use project, specifically, as it pertains to tenant selection for the 27,000 square foot office building. Investigate resurrecting Stanford University’s Marguerite Shuttle to stimulate business on El Camino Real and Downtown.
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Sand Hill Road • • • • • • Continue to work with development team to complete the Rosewood Resort and Office Complex by the Feb. 7, 2009 due date. Work with Rosewood Resort staff to help ensure 70% occupancy by May 2009. Partner with Rosewood Resort on job fair to help generate 300 new jobs in Menlo Park. Work with property owners to ensure Sharon Heights retail complex is fully occupied with local serving tenants. Further develop strategic relationships with Venture Capitalists to ensure funded firms have knowledge and opportunity to locate in Menlo Park. Become more active in the VC Task Force, the Western Association of Venture Capital.
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Willow Road – East • • • • • Work with local stakeholders and developer of the new Police Substation retail space (2,500 square feet) to ensure appropriate local serving tenants occupy the space. Continue efforts to attract a community serving grocery store such as Grocery Outlet or other potential candidates. Organize merchants for more effective marketing and development growth in the district by final year end. Work with General Motors as the current property owner to maximize industrial/research and development and/or retail component of the site. Work with AMB on its proposed 55-acre property redevelopment with the goal of adding revenue generating mixed use development (housing and retail) along the Willow Road corridor.
Willow Road – West • • • Partner with the Community Development Agency to seek tax increment funds for further consideration of infrastructure improvements. Organize merchants for more effective economic activity center marketing by year-end. Contact Veterans Administration or its agents bi-annually regarding status of property and possible future development potential and plans.
Willow & Middlefield Roads • • Evaluate the potential for revenue generating business opportunities in this district by final year-end. Focus new commercial development attention on remaining two vacant parcels located at 40 and 100 Middlefield Roads by arranging meetings with the property owners by January 2009.
Menalto • • • Evaluate effectiveness of public and private improvements to date by final year end. Convene Phase II planning meeting with commercial property owners that involves adjacent residents by June 2009. Continue quarterly property owners’ meetings to plan upgrades and review safety concerns.
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Industrial/Research & Development Major Strategies • Develop an appropriate brand for the industrial/research and development district by drawing on the uniqueness and character (i.e., life sciences, medical device, clean energy, and green technology), of the sub-areas and creating a habitat for innovation. • Establish a marketing plan and unique selling proposition for each subarea culminating in business attraction outreach by February 2009. • By December 2008 initiate quarterly business roundtables for the purpose of keeping businesses up-to-date on developments affecting their subarea, and to initiate frequent communication to build strategic relationships, learn about site assembly, facilitate tenant improvements, improve public infrastructure, and determine business retention, attraction and expansion opportunities. • Meet at least quarterly with top tax revenue producers and businesses poised for growth, since 68% of all Menlo Park retail sales tax revenue currently is generated from this area. • By January 2009 advance a plan for employing Community Development Agency tax increment funding for economic development-related activities and infrastructure improvements in selected sub-areas. Major Sub-Area Strategies Menlo Business Park • • • • • During this fiscal year, continue deployment of “dark fiber network” pilot initiative for an improved infrastructure as a major market differentiator for attracting high tech companies to this sub-area. Develop a plan and timeline for further deployment of “dark fiber” to other industrial/research and development sub-areas, based on the outcome of the pilot initiative. By October 2008 meet with property owners and City staff to identify areas where plan and permit processing can be improved. Discuss the opportunity of a Master Plan amendment for business retention, attraction, and expansion efforts with City staff and Tarlton Properties by February 2009. Encourage innovation and creativity for the 21st century economy by supporting Menlo Labs business incubator in promoting growth in startups or early stage companies, and to ensure that they graduate and locate within the Menlo Business Park for business clustering.
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Willow Park • • • Work with AMB executives to further develop ideas for its 55-acre industrial park by the end of March 2009, which may include mixed-use, transit-oriented development, and research and development. Ensure that consideration in the proposed AMB master plan is given to adding local and regional serving businesses along its frontage on Willow Road in a mixed-use development format. Arrange a meeting within the Menlo Business Park, Willow Park, and O’Brien Drive sub-areas to engage and inform area businesses and property owners about AMB’s development proposal. Strategic relationships will be cultivated to allow staff to learn more about the current business climate by January 2009.
O’Brien Drive • • Evaluate the tenant mix to determine marketing and branding potential. Analyze the need for a dark fiber network for larger bandwidth and faster internet services for more efficient business operations, and initiate a pilot program, if it is determined by the business community that this program adds value. Conduct sub-area meeting with sub-area businesses before January 2009 to discuss the dark fiber network pilot program, business to business partnerships, and resource sharing. Investigate partnering with Job Training (formerly OICW) to ensure local job seekers are matched with local employers.
• •
Bayfront/Willow General Motor’s 22-acre site: • • • Keep stakeholders informed regarding the progress and direction on the sale of this property by maintaining daily contact with General Motors’ agents. Continue the effort to have General Motors select an alternative site in Menlo Park for a “scaled down” dealership presence; focus on the Cadillac brand. Work with prospective property buyers to assist with the due diligence process and provide value-added information to properly evaluate the site for purchase.
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Tyco Electronics’ 61-acre site: • • • Continue to assist City staff and Tyco representatives with existing projects to ensure that site improvements, noise abatement, related facility upgrades, and other issues conform to City standards. Keep abreast of Tyco’s master planning considerations for the remaining 61-acre property by November 2008. Work with leasing agents to ensure that revenue producing tenants are always a consideration in the Tyco tenant mix.
Sun Microsystems Campus (formerly Carnduff site) • • • Pursue utilities reduction strategies with PG&E by December 2008. Continue to work with suppliers, such as Skyline Solar, to help Sun install a solar power option. Step-up ongoing efforts to retain Sun Microsystems headquarters in Menlo Park.
Bohannon East • Help complete the Marriott Renaissance ClubSport hotel and office complex development-related reports, agreements, and other activities by their designated due dates so that the City Council and the Planning Commission have appropriate information for making informed decisions about the overall project. Provide information for and draw on information from the Marriott/office project Fiscal Impact Analysis (FIA) to complete this item. Assist high revenue producing companies like Xtent in retention efforts within the industrial/R&D activity center. Conduct a retail sales tax and cluster analysis of this sub-area to determine the revenue producing conditions as they now exist and their future potential. Support The Foundry business incubator as an innovation catalyst by promoting the growth of start-ups or early stage companies within the medical device sector to ensure that they graduate and locate within the industrial/research and development district.
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Bohannon West • Continue to work with the Fitness 101/Critchfield Mechanical, Inc. property owner (NW corer of Scott Drive and Campbell Avenue) to develop a plan for the site with consideration given to an appropriate revenue producing enterprise that can take full advantage of the property’s unusually good visibility and accessibility from US 101.
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•
Conduct a cluster analysis to determine potential for attracting related businesses into the sub-area by July 2009.
Haven Avenue • • • • Play a leading role in defining the site assemblage issues by January 2009 with the four principal property owners regarding the possibility of developing a large freeway visible, revenue generating project. Initiate meetings, if warranted, with property owners to review and consider alternative concepts that may result in a master development plan. Ensure that properties not considered for redevelopment are occupied with tenants beneficial to the City and that upgrades and improvements are completed according to City standards. Partner with Community Development Agency by January 2009 on behalf of economic development strategies including infrastructure improvements, site assembly assistance, and business retention and attraction.
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DIVISION ADMINISTRATION
DRAFT
The Business Development Division performs, coordinates, or directs many administrative duties and responsibilities that allow the staff to operate effectively and efficiently. In addition, there are several internal initiatives aimed at coordinating or improving permit processing and nurturing the general business environment. In that regard, the Division performs a broad range of administrative duties, including, but not limited to the following: • • • • • • • • • • • • • • • • • • • • Commercial Zoning Ordinance Update (CZOU) process task force member Consultant to Finance Director in matters involving quarterly sales tax summary and other revenue issues Analysis and follow-up on quarterly MBIA retail sales data Upgrade commercial and industrial/R&D property tracking system by contracting with LoopNet Revamp and implement monthly updates for the Division’s webpage Participate in marketing/outreach through the Chamber of Commerce Participate in regional Silicon Valley Economic Development Alliance (SVEDA) organization and its Wireless Silicon Valley and Green Opportunities Taskforces Create and distribute brochures, FAQ’s, etc. Initiate actions to streamline economic development processes Participate in Organizational Plan, Design Review Team, Development Agreement Team, Downtown/El Camino Real Visioning Process, and Organizational Development Initiative meetings as required Review contracts, development agreements, Planning documents, design plan sets, fiscal impact analysis, traffic studies, etc. Help facilitate Code Enforcement on parking and graffiti issues Maintain a business database (now evaluating new EDPro Software) Perform department-head operational duties and responsibilities Participate in relevant economic development, redevelopment, and land use seminars and workshops Coordinate economic development volunteers Provide information and follow-up on City Manager requests Answer community questions through Direct Connect Perform records management and fulfill public information requests Prepare and present Economic Vitality Reports to City Council (New)
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MEASURING ECONOMIC VITALITY
DRAFT
An important component of the City’s economic development Business Plan must include an effective way to evaluate progress to see if the benefits expected are being delivered at a cost the community is willing to pay. Staff’s desired evaluation outcomes are to: • • • Provide tools to employ demonstrable evidence of progress. Describe what is to be measured and methods used. Make certain performance measures are linked to goals.
It is also very important to produce trend data for the local economy so that policy makers can identify advancing or declining indicators early on and adjust direction or create initiatives based on that input. The Business Development Division suggests the Council adopt a set of reports and measures serving this purpose. The measures recommended provide a complete picture of the health of the local economy. The list was carefully compiled based on MBIA business sectors in other internal reports, local economic activity center definitions, and other readily recognized indicators of economic activity. The reports will show data over a time horizon, including measurements against specific goals or in relation to other jurisdictions or benchmarks. There are a variety of ways to measure economic activity. The measures recommended reflect outcomes associated with Division goals, objectives, and strategies. The measures reflect feasibility; cost of acquiring data on a regular and cost-effective basis, as well as staff time involved which include: CITY MEASURES Retail Sales Tax Per Capita – illustrates progress against Menlo Park’s “prebubble” per capita retail sales benchmark amount of $254 per capita. Revenues (Sales Tax and TOT) by Business Sector – shows the performance of Menlo Park’s five business categories generating retail sales tax; business-tobusiness, transportation, food products, general retail, and construction, plus TOT revenue from the hotel-motel business sector. Revenues (Sales Tax and TOT) by Economic Activity Center – provides a geographic version of the retail sales data above by showing the current and past revenue generating performance of Menlo Park’s eight economic activity centers. Retail Sales Tax Revenue Performance for Neighboring Cities – shows whether or not the City is getting its “share of the regional economic pie” by
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calculating Menlo Park’s percentage of total San Mateo County retail sales tax revenue and comparing that to selected cities in San Mateo County. Growth/Decline in Revenue Generating Space in the City – measures the net gain or loss in the total building space designated for uses generating retail sales and TOT; shows us if we are growing our base. Net New Business and Revenue Growth from Business Licenses – indicates a growing or declining local business climate, in addition to being an important revenue stream for the City. Commercial Building Permits – measures commercial building permits issued and permit valuation. Business Environment Survey – measures the overall perception of the City’s environment by business owners licensed in Menlo Park by a mail survey conducted at the time of the annual business license renewal. MARKET MEASURES Commercial Vacancy Rate Trends – illustrates the commercial vacancy rates for the by the City’s major geographic areas; a business attraction issue, for downtown, Sand Hill Road, and the US 101 Corridor. Commercial Rent Trends – presents average commercial rental rates for the City’s major geographic areas; a business retention and attraction issue for downtown, Sand Hill Road, and the US 101 Corridor. Commercial Properties for Sale or Lease – shows available commercial properties in Menlo Park; a significant business attraction issue. INNOVATION MEASURES Venture Capital Invested in Menlo Park Companies – illustrates venture capital invested in Menlo Park-based companies by funding amount and number of companies. Venture Capital Invested by Industry Classification – measures local venture capital activity in specific emerging industry sectors and specialized growth niches, such as biotechnology, and medical devices. Start-ups and Early Stage Companies – illustrates business incubator activity and number of companies that have “graduated” from two local business incubators.
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Patents Issued in Menlo Park – indicates local technological innovation and related economic growth for the community and the region. These recommended measures will be developed by staff and adopted by Council establishing realistic benchmarks as targets for sustainable growth. It is staff’s intent to begin providing reports semi-annually to the Council regarding local economic development.
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APPENDIX
Exhibit A – General Plan Policy Document (Applicable Excerpts)
DRAFT
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Exhibit B – Las Pulgas Community Development Project Area Plan (Applicable Excerpts) Exhibit C – Individual Maps of the Economic Activity Centers
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Exhibit A CITY OF MENLO PARK GENERAL PLAN POLICY DOCUMENT
Adopted November 30 and December 1, 1994 (Applicable sections to Business Development) PART I SECTION I: LAND USE COMMERCIAL Goal I–B: To strengthen Downtown as a vital and competitive shopping area while encouraging the preservation and enhancement of Downtown’s historic atmosphere and character. Policies I-B-1 The Downtown should include a complementary mix of stores and services in a quality design, adding natural amenities in the development pattern. I-B-2 Parking which is sufficient to serve the retail needs of the Downtown area and which is attractively designed to encourage retail patronage shall be provided. I-B-3 New development shall not reduce the number of existing parking spaces in the Assessment District, on P-zoned parcels, or not private property where parking is provided in lieu of Assessment District participation. I-B-4 Uses and activities shall be encouraged which will strengthen and compliment the relationship between the Transportation Center and the Downtown area and nearby El Camino Real corridor. Goal I–C: Corridor. Policies I-C-1 New and upgraded retail development shall be encouraged along El Camino Real near Downtown, especially stores that will complement the retailing mix of Downtown. Adequate parking must be provided and the density, location, To encourage creativity in development of the El Camino Real
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and site design must not aggravate traffic at congested intersections. The livability of the adjacent residential areas east and west of El Camino Real and north and south of Downtown must be protected. I-C-2 Small-scale offices shall be allowed along most of El Camino Real in a balanced pattern with residential or retail development. Goal I–D: To encourage the rehabilitation and continued use of viable and appropriate neighborhood commercial uses or collections of stores servicing surrounding residential neighborhoods. Policies I-D-1 Special attention should be given to strengthen the neighborhood shopping centers throughout the city. This can be done by continuing the existing policy of removing marginal uses or vacant commercially-zoned properties from the present commercial zoning and placing them in a residential land use category or rezoning to the P District. I-D-2 Expansion of operations in neighborhood shopping centers shall be prohibited if they disrupt residential areas. Subject to obtaining a use permit or rezoning to a P District, development of additional parking spaces may be permitted to alleviate parking problems on residential streets caused by existing businesses which lack the required number of parking spaces. Goal I–E: To promote the development and retention of commercial uses which provide significant revenue to the City and/or goods or services needed by the community and which have low environmental and traffic impacts. Policies I-E-1 All proposed commercial development shall be evaluated for its fiscal impact on the City as well as its potential to provide goods and services needed by the community. I-E-2 Hotel uses may be considered at suitable locations within the commercial and industrial districts of the city. I-E-3 Retention and expansion of auto dealerships in the city shall be encouraged. Development of new auto dealerships or combined dealerships in an auto center shall be encouraged at suitable locations in the city. I-E-4 Any new or expanded office use must include provisions for adequate offstreet parking, mitigating traffic impacts, and developing effective alternatives to
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auto commuting, must adhere to acceptable architectural standards, and must protect adjacent residential uses from adverse impacts. INDUSTRIAL Goal I–F: To promote the retention, development, and expansion of industrial uses which provide significant revenue to the City, are well designed, and have low environmental and traffic impacts. Policies I-F-1 Industrial development shall be allowed only in already established industrial areas and shall not encroach upon Bay wetlands. I-F-2 Establishment and expansion of industrial uses that generate sales and use tax revenues to the City shall be encouraged. I-F-3 Modifications in industrial operations required to keep firms competitive should be accommodated, so long as any negative impacts on the environment and adjacent areas are satisfactorily mitigated. I-F-4 The City shall consider attaching performance standards to projects requiring conditional use permits. I-F-5 Convenience stores and personal service uses may be permitted in industrial areas to minimize traffic impacts. I-F-6 All new industrial development shall be evaluated for its fiscal impact on the City. IMPLEMENTATION PROGRAMS I-4 The City shall analyze the fiscal impacts of proposed development to determine the financial feasibility of providing needed services. I-5 The City shall prepare and adopt an economic vitality element to the General Plan that sets forth policies and programs to assure continued economic vitality for the city and adequate municipal revenues for City services. The development of the economic vitality policies and programs shall be a cooperative effort between the City and a task force reflecting a balance of business people and residents throughout the city.
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PART I SECTION II: CIRCULATION & TRANSPORTATION TRANSPORTATION DEMAND MANAGEMENT Goal II-C To promote the use of alternatives to the single occupant automobile. II-C-7 Commuter shuttle service between the industrial work centers and the Downtown Transportation Center should be maintained and improved, within fiscal constraints. The City shall encourage SamTrans and other agencies to provide funding to support shuttle services. PARKING Goal II-F To provide adequate parking in the Downtown area, especially for retail customers and Caltrain patrons. II-F-2 Short-term retail customer parking shall be first priority for the allocation of parking spaces in Downtown parking plazas. Long-term employee parking shall be located in such a manner that it does not create a shortage of customer parking adjacent to retail shops.
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Exhibit B CITY OF MENLO PARK AMENDED AND RESTATED LAS PULGAS COMMUNITY DEVELOPMENT PROJECT AREA PLAN
Adopted by Ordinance No. 826 Amended and Restated by Ordinance No. 826 September 10, 1991 (Applicable sections to Business Development)
III. Project Area Boundaries Project Area Name – Las Pulgas Community Development Project The original Spanish land grant for part of the Project Area was entitled Las Pulgas. To provide a specific name for the Community Development Project, which will differentiate, in name, Community Development activities from City activities. IV. Community Development Project Goals The State Community Redevelopment Law enables a local government to form a Community Development Agency when a determination is made that economic, physical or social blight or blighting influences encompass a broad spectrum, ranging from inadequate public improvements to physical characteristics that inhibit sound development of a particular site, as well as typical visual blight, such as deteriorated and dilapidated structures and facilities. Further, the State Legislature has declared that one of the fundamental purposes of redevelopment is to “expand employment opportunities for the unemployed…” which is particularly important for this project given the high unemployment rate within the Project Area. The Menlo Park Community Development Agency proposes to use the process of Community Development to eliminate blight and blighting influences presently existing within the City of Menlo Park and more specifically within the boundaries of the Project Area, as set forth in the Community Development plan.
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This action is necessary because within parts of the Project Area there presently exists an undesirable mixture of residential, commercial, and industrial uses. In some parts of the Project Area physical decline in the integrity of building improvements is apparent and it some areas there exist advanced stages of physical deterioration. In other parts of the Project Area, an inadequate circulation system thwarts the development of vacant or underutilized land. The Project Area is characterized by fragmented parcelization and multiple ownerships to the point that land assemblage for proper economic utilization of parts of the Project Area has been hampered. This misuse of land and the adverse effect the mixture of residential, commercial and industrial uses have in the Project Area taken as a whole, constitute a physical, social and economic blighting influence on the Project Area. General Goals (Only sections applicable to Business Development are shown) 3. To encourage sector investment together with the provision of additional public amenities. 4. To increase local employment opportunities and the expansion of existing commercial enterprises within the Project Area. 5. To promote commercial and industrial rehabilitation and infill construction in conformance with the Comprehensive Plan and Goals of this Plan. Lines of Action Goal 1 – Enhancement of the Project Area Living Environment D. The Agency should work with the City to continue and expand the successful efforts being undertaken by the City towards the undergrounding of utilities throughout the Project Area. Goal 3 – Encouragement of Private Sector Investment and the Provision of Additional Public Amenities A. Overall improvement of the curbs, gutters, sidewalks and streets in the Area should be undertaken. This line of action will markedly enhance the appearance of the area. The City will assure that the maintenance costs of the City will not be unduly increased due to Agency undertakings. B. The Agency should work closely with local business interests and financial institutions to determine what type of public improvements will most effectively lead to further private sector investment.
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Goal 4 – Increased Local Employment and the Expansion of the Existing Economic Base. A. The Agency should formalize a local hiring plan for new businesses building within the Project Area who avail themselves of any benefits provided by the Agency. The relatively unique and advantageous position of the Agency, in that there will be a substantial opportunity for additional employment due to the industrial development offers an opportunity to make this type of plan work. Further, the Agency should also pursue the possibility of encouraging various types of job training programs for the residents of the Project Area. B. The Agency should encourage local businesses to either form a Local Development Corporation or to work with the existing LDC in East Palo Alto. C. The Agency should make use of Industrial Development Bond tax-exempt financing for commercial and industrial rehabilitation and new construction. Use of the Agency general powers may make it possible for the Agency to provide financing at up to 35.0% below market for the specific business endeavors. Goal 5 – Commercial Rehabilitation and In-fill Construction Willow Road serves as one of the primary gateways to Menlo Park. As a major gateway, it should be fronted by successful and attractive commercial and residential development. Specific lines of action should include: A. A unified design for all rehabilitation and development along Willow Road, so that the entrance to the City of Menlo Park will work as a cohesive area which complements the balance of the community. B. The improvement of Willow Road, in a manner that complements the proposed development to be undertaken by Caltrans including the construction of curbs, gutters, sidewalks, complementary landscaping and, when appropriate, walls and fences. C. The rehabilitation of existing commercial uses as well as the selective redevelopment of certain properties that are not readily improved. D. The development of mixed-use housing-commercial along Willow Road to further stabilize the area.
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Goal 6 - Promotion of Affordable Rental and Ownership Housing D. The City should consider the rezoning and redevelopment of underutilized industrial parcels along Hamilton Avenue to housing. E. Mixed use elderly housing with convenient shops may be encouraged in the Project Area, especially along Willow Road, Pierce Road, and Hamilton Avenue. V. Development Techniques to Achieve Plan Objectives The development of the Las Pulgas Community Development Project will be undertaken in accordance with the provisions of the California Community Redevelopment Law. At this time, it is anticipated that the use of financial and tax incentives will provide sufficient incentive to the private sector for realization of the improvement of the Project Area and the eradication of blighting influences. The Agency proposes to strive for economic, social, and physical revitalization and beautification within the Project Area by: • • • • • • • Installation, construction, or reconstruction of streets, utilities, landscaping, and other on-site and off-site improvements. Encouragement of development of land by private enterprise for use in accordance with this Plan. Limited acquisition of real property. Relocation assistance to displaced residential and non-residential occupants. Limited demolition or removal of buildings and improvements. Provision of financing to those projects in conformance to the Community Development Plan as well as all appropriate City Codes and Plans. Utilization of tax-exempt financing vehicles available to the Agency, and the City, including but not limited to those authorized by the Redevelopment Construction Loan Act, those available through the General Powers of the Agency, and those available via the Parking and Assessment District Statutes of the State of California. The possible creation of an SBA 503 Development Corporation to be utilized in conjunction with private or public financing or grants from the State or Federal government to facilitate various developments.
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A. Participation by Owners and Business Tenants The following part of the Plan is concerned with assuring that existing business owners and tenants will receive maximum opportunity to work with the Agency in improving their property and participating in the Community Development efforts. 1. Opportunities for Owners and Business Tenants 34
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The Agency shall extend reasonable preferences to persons who own property or are engaged in business in the Project Area, to continue in or re-enter into business within the Project Area if they meet the requirements prescribed in this Plan and the Agency’s “Rules for Business Tenant Preference and Owner Participation” (“Owner Participation Rules”). It is the policy of the Agency to encourage the participation of property owners and businesses within the Project Area, where consistent with achieving the goals and objectives of the Plan, as such is necessary if the development process is to be used in revitalizing the Project Area.
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Exhibit C MAPS OF EIGHT ECONOMIC ACTIVITY CENTERS (To be included in final approved document)
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doc_194068793.pdf