4 - General Powers and Duties of Town Manager during Economic Adversity

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