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PAGE 2 <br />MAYOR AND TOWN COUNCIL <br />SUBJECT: INTRODUCTION OF ORDINANCE AMENDMENDING <br />SECTION 2.30.29(1) <br />March 11, 2010 <br />DISCUSSION: <br />Adverse economic conditions continue to challenge local businesses in the Downtown <br />and tluoughout the Town's Neighborhood Commercial centers. Although vacancies in <br />the Downtown core are declining, sales continue to be below pre-recession levels and <br />existing businesses are challenged by the weak economy. In addition, national and <br />regional economic forecasts predict a continued slow recovery. <br />Program Feedback <br />In 2009, Economic Vitality staff in partnership with the Chamber developed a pilot <br />program focused on attracting shoppers to the Downtown and tluoughout the Town's <br />Neighborhood Centers (2"`~ Saturdays). The Town Council adopted a temporary <br />ordinance relaying enforcement on signage, amplification of music and outdoor displays <br />to further support businesses participating in the pilot program. To measure the success <br />of the temporary ordinance, a survey was sent to retailers/restaurants/service businesses <br />that participated in the 2"`~ Satiu~da~~ events. The purpose was to gauge the importance <br />and the effectiveness of both the program and the temporary ordinance. Results showed <br />that 71 % of respondents found that the temporary ordinance was a critical aspect of the <br />program and contributed to its success. The Town's flexible approach to code <br />enforcement enabled the business community to use marketing methods they were unable <br />to deploy in the past. These new marketing efforts were used to attract shoppers, and <br />ultimately resulted. in sales. In addition, to date, staff has not received any complaints or <br />negative feedback in regard to the Town's flexible approach to code enforcement. <br />Proposed Progrcnnming <br />To continue to address economic challenges locally and support the business community, <br />the Town's Economic Vitality office will again partner with the Chamber of Commerce <br />Visitor's Bureau to co-sponsor a series of events designed to encourage residents to shop <br />locally as well as to entice regional shoppers to visit Los Gatos establishments. The <br />proposed work plan consists of three major programs including another 2"`t Saturd~iv <br />program plamled for the summer months of June through August. Because the temporary <br />ordinance expires on April 8 and was a critical aspect of the program, staff is <br />recommending that the Town extend the temporary ordinance for another nine months to <br />minor the duration of the Economic Vitality and the Visitor's Bureau work plan for <br />2010. This is consistent with the Town's commitment to support the Los Gatos' business <br />community. <br />Busit7ess Outreach <br />In 2009 as part of the pilot program, the Chamber distributed information about the <br />temporary ordinance to all of its members on a regular basis. hl addition, Town staff <br />distributed infot-~nation to property managers/owners of the Town's Neighborhood <br />Commercial centers (Attaclnnent 2) and individually contacted business owners <br />