14 Staff Report - Economic Vitality Program Annual UpdateMEETING DATE: 06-06-05
°W N ~F ITEM NO.
- 14
COUNCIL AGENDA REPORT
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DATE: JUNE 3, 2005
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT: ECONOMIC VITALITY PROGRAM ANNUAL UPDATE
RECOMMENDATION:
Discuss and accept Economic Vitality Program Annual Update.
BACKGROUND:
In July, 2002, the Town Council approved the Town of Los Gatos Economic Vitality Program. The
program is intended to serve as one of the many tools to implement the Town of Los Gatos General
Plan and enhance the fiscal stability of the Town. In December 2004, Danielle Surdin was hired as
the Town's new Economic Vitality Manager. Over the past six months staff efforts have focused
on relationship building in the business community, creating the Town's summer' marketing
program, actively working on business attraction, retention, and promotion as opportunities have
presented themselves, and developing a work plan that addresses both short-term and long-term
activities to implement the Town's Economic Vitality Program. While no decision about the Town's
Economic Vitality Program is needed tonight, staff seeks Council input on current and future
business attraction, retention, and promotional efforts.
DISCUSSION:
This challenging fiscal time highlights the importance of the Town's Economic Vitality Program.
Retaining and expanding existing businesses, and assisting others to locate in Los Gatos help to
strengthen and diversify the Town's economic base. In particular, a strong business sector helps
contribute to the Town's revenue base which fund a variety of services to the community. Given the
downturn in the Town's economically-sensitive revenues, such as sales tax, hotel/motel tax, interest
income, and others, it is important to maintain outreach and implement programs that will help make
local businesses successful. In addition to contributing to the Town's fiscal health, local businesses
also provide employment opportunities and a local source of goods an services for the community.
PREPARED BY: DANIELLE SURD"i A-
C:\Documents and Settings\dsurdin\My Docurnents\Council Reports - PresentationslEconomic Vitality Update - Final.wpd
Reviewed by: Assistant Town Manager IA /Town Attorney Clerk Administrator
Finance Community Development Revised: 6/2/05 9:29 am
Reformatted: 5/30/02
PAGE 2
MAYOR AND TOWN COUNCIL
1 SUBJECT: ECONOMIC VITALITY PROGRAM ANNUAL UPDATE
June 3, 2005
For the past six months, staff undertook many activities to enhance economic vitality town-wide.
Attached is the 2005-2006 Economic Vitality Program, this document highlights current activities
in the areas of business attraction, retention, and promotion, as well as outlining a future economic
vitality work plan. This document also includes: the Town's mission and guiding principles for the
program; an overview of current Town demographics; and market data providing Council with a
snapshot of the Town's current commercial climate. Lastly this document contains a sample
business recruitment packet and the Town's summer marketing program which are currently
underway.
CONCLUSION:
Economic Vitality remains a priority for the organization. In these fiscally challenging times, it is
increasingly important to help local businesses succeed. The 2005-2006 Economic Vitality Program
provides Council with a variety of activities to help accomplish the Town's Economic Vitality goals
adopted by Town Council in 2002.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACTS:
There is no fiscal. impact associated with this action.
Attachment:
2005-2006 Economic Vitality Program
2005-2006
Economic Vitality Program,
PREPARED BY:
DANIELLE SURDIN, ECONOMIC VITALITY MANAGER
JUNE 3, 2005
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This document provides a plan for the continued implementation of an Economic Vitality Pro-
gram for the Town of Los Gatos. The formal Economic Vitality Program was adopted by
Town Council in July 2002, and has served as a useful tool in implementing the Town's Gen-
eral Plan.
The Economic Vitality Program will continue to preserve and enhance the quality of life for
the citizens of Los Gatos in several direct ways. First, it will work to maintain, expand and
attract successful businesses that serve the needs of our local residents. These businesses in-
clude R&D, office, retail, and service related businesses. By having a diverse business mix,
local residents do not have to travel to neighboring communities, which helps foster a true
sense of community. In addition local sales tax dollars remain within the community helping
to provide funding for programs that serve our residents needs.
Second, the program will help keep the Town of Los Gatos Government fiscally stable,
thereby allowing the Town to provide the high quality services our residents enjoy. The Town
government has limited resources and limited ability to increase revenues to pay for services
such as public safety, land use and development review, parks, and street repairs. The Eco-
nomic Vitality Program will seek to maximize tax revenues received by the Town, including
sales tax, property tax, Transient Occupancy Tax, and business license tax.
Third, the program will also help to generate additional job opportunities for Los Gatos resi-
dents. By having 'a diverse group of businesses, a variety of local jobs are created for which
Los Gatos residents may be eligible. Employment opportunities within the community are
extremely desirable for residents who may otherwise commute.
Finally many of the businesses in Los Gatos are locally owned and operated. The Economic
Vitality Program strives to help local businesses be successful. This benefits not only the
Town and its residents but also the local business owners of these businesses.
The Economic Vitality Program is designed to be flexible and responsive to adapt to new
challenges and opportunities as they arise. The Town's guiding principles, mission, and pur-
pose will continue to be used as a steward for implementing various Economic Vitality pro-
grams.
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4
GUIDING PRINCIPLES
The Los Gatos Economic Vitality Program is based on the following principles:
• Protecting the Town's high quality of life while balancing the need for goods and
services for Town residents and tax revenues to support the Town's municipal op-
erations.
• Providing a wide variety of goods and services to serve the community in order to
minimize the need for residents to travel to other communities.
• Recognizing that the Town is not an island, and that it is subject to the economic
changes of Silicon Valley, California and the nation, thus requiring a proactive ap-
proach in protecting and enhancing its local economy.
• Being "User Friendly" which provides the best Customer Service for all of the
Town's customers.
• Using a team approach to bring all Town departments and resources together to
work cooperatively with businesses.
MISSION AND PURPOSE
The purpose and mission of the Town of Los Gatos Economic Vitality Program is to:
0
• Preserve and enhance the Town's charm and high quality of life
• Provide goods and services desired by Los Gatos residents
• Increase the economic vitality and diversity of the Town
• Maintain and increase sales tax revenues
• Maintain and increase Transient Occupancy Tax (i.e., Hotel or TOT)
• Maintain and increase tax increment revenue to the Redevelopment Agency
• Diversify and balance the local economy
• Create jobs for Town residents
• Recognize the contributions that businesses make to the Town
• Anticipate changes in the local economy and deal with them in a proactive manner
2005 2006 Economic Vitality Program
5
BRIEF TOWN OVERVIEW
The Town of Los Gatos is located at the base of the Santa Cruz Mountains, approximately 60-
miles south of San Francisco in the Southwestern portion of Santa Clara County. The Town
is bound by the City of San Jose to the north and east, the City of Campbell to the north, and
the cities of Monte Sereno and Saratoga to the west, and unincorporated County of Santa
Clara and County of Santa Cruz to the south.
Los Gatos is one of Santa Clara County's oldest communities, being incorporated in 1887. It
has a population of approximately 30,000 persons and encompasses about 14 square miles.
LOS GATOS COMMUNITY PROFILE (2000 Census):
Current Households: 12,257
Median Age: 41.9
Median Housing Value: $1,039,780
Average household income: $164,036 with a 29.4% projected increase over the next 5-years
to $212,207
Occupational categories for Age 16 and Over:
• 23.1% Executive, Administrative and Managerial
® 25.8% Professional Specialty
• 32.2% Technical, Sales, Administrative Support
® 12.9% Service
® 11.4% Precision, Production, Craft and Repair
• 2.5% Farming, Forestry, and Fishing
® 14.6% Operators, fabricators, and laborers
Education Age 25 and Over:
• 18.1% of the population had earned a Graduate or Professional Degree
® 29.8% had earned a Bachelor's Degree
Race Classification: 86% Caucasian, 8.1 % Asian, 5.2% Hispanic/Latino, .7% Other
Population 19 and Under: 22.19%
LOS GATOS: LOCAL ECONOMY
• Quaint commercial districts offering a wide variety of goods and services.
• Good variety of hotels/motels providing $829,025 to the Town annually in Transient Oc-
cupancy Tax.
• Auto Dealerships providing sales, service and jobs to our residents and $1.6 million in
sales tax annually.
• Retail sales provide nearly $1.2 million in sales tax annually.
• Office and R&D sites available to house corporate sales headquarters which provides rec-
ognition and potential tax revenues for business-to-business transactions.
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2005 2006 Economic Vitality Program
SHORT-TERM ECONOMIC VITALITY STRATEGY
Since the redefining of the Redevelopment and Economic Vitality staffing position over the
past year, staff has created an outline of short-term projects and activities for the new Eco-
nomic Vitality Manager position. The Economic Vitality Manager will focus on various
forms of outreach with the business community, local commercial and residential real estate
brokers, property owners, and business-related community groups to begin relationship build-
ing. This section details specific projects that will be accomplished to achieve the goals of the
Town's Economic Vitality Program.
PROJECTS:
PERSONALIZED VISITATIONS & RELATIONSHIP BUILDING:
• Downtown Businesses
• Auto Dealerships
• Hotels/Motels
• Los Gatos Boulevard Businesses
• Los Gatos Neighborhood Centers
RE-ESTABLISH COMMUNICATION WITH THE FOLLOWING GROUPS:
• Local commercial/residential real estate brokers (follow-up to realtor survey)
• Chamber of Commerce/ Chamber Mixers
• Los Gatos Community Hospital - Medical Industry
• R&D commercial districts
• Business-related community groups
• Entertainment & Hospitality Groups
"GETTING UP TO SPEED":
• Review past Redevelopment Manager's files
• Examine Town codes policies and procedures
• Meet with Community Development and Public Works
TOWN COUNCIL BUSINESS/COMMUNITY RECOGNITION PROGRAM:
• Coordinate quarterly business recognitions
2005 SUMMER IN Los GATOS:
• Develop and implement a coordinated marketing plan for May - September 05'
• Target market focus Los Gatos Residents & Santa Clara County Residents
LOCAL/REGIONAL:
• SUMMER-LONG Co-op AD OPpoRTUNmEs: Coordinated co-op group pages & Town
event calendar in the following publications: Mercury News, San Jose Magazine, Los
Gatos Daily, Los Gatos Weekly, Saratoga News, and Discover Silicon Valley.
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7
2005 2006 Economic Vitality Program
SHORT-TERM ECONOMIC VITALITY STRATEGY
2005 SUNIMER IN Los GATOS:
LOCAUREGIONAL:
• HOMET®wN ADVANTAGE CARD: A unique promotional strategy designed to encourage
residents to shop locally. This program highlights the positive impacts of shopping lo-
cally through a local rewards program. Every Los Gatos household will receive a
"Hometown Advantage" directory highlighting all Los Gatos business districts and par-
ticipating businesses. Through this program, Residents are eligible to receive discounts or
free gift with purchase during the months of June - September. This program is open to all
Los Gatos businesses at no cost.
DESTINATION DEVELOPMENT:
• SAN JOSE MAGAZINE - Distribution state wide, Oregon, Washington, Hawaii, Arizona,
New Mexico, and Colorado. San Jose Magazine June edition will feature a 5-page spread
that will include a community profile of Los Gatos, a two-page calendar of events section,
and two-page business co-op section.
• CONVENTION OUTREACH - Staff is working to promote Town hotel services, recreation
options, and shopping and dining opportunities to event planners for the EBAY conven-
tion and the San Jose Indie-race car event scheduled for Summer 05'.
2005 DOWNTOWN CONSTRUCTION PROJECT:
• Participate in downtown construction meetings concerning downtown summer repaving
project.
• Participate in notification projects i.e., One-on-one for specific business groups
• Participate in marketing coordination for summer co-op ads and press releases
• Downtown "Catsruction" Walk-Coordinate artist renderings of cat mascots
BUSINESS RECRUITMENT, RETENTION, EXPANSION:
• Work with businesses going through the Town's development process
• Follow-up on businesses expansion or relocation leads for the Town
• Respond to inquiries for Town demographics and general business information
• Develop recruitment packet for business attraction efforts
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8
LONG TERM ECONOMIC VITALITY STRATEGY
The long-term Economic Vitality Strategy highlights long-range goals and relationship build-
ing efforts on behalf of the Economic Vitality Manager. Some projects such as the Town's
website and revision of the Town's news rack guidelines will be coordinated inter-
departmentally.
BUSINESS RETENTION & OUTREACH:
The Town's Business Retention and Outreach Program is a multi-faceted approach that has
been designed to preserve and enhance the Town's business environment. The Town recog-
nizes the value and importance of a strong and varied business community. The following is
a list of long-term retention and outreach projects:
TARGETED COMMERCIAL OUTREACH:
• Downtown Businesses
• Los Gatos Hotel Industry
• Los Gatos Auto Sales Industry
• Property Owners/Property Management Companies
• Los Gatos Office/R&D
• Medical/Biotech
TOWN COUNCIL BUSINESS/COMMUNITY RECOGNITION PROGRAM:
• Town appreciation to businesses for the contributions they make to the community
• Honorable acknowledgement campaign for businesses receiving press for business
activities or community contributions
COMMERCIAL BEAUTIFICATION PROJECTS:
• Administer Town Banner Program
• Guidelines for Town news racks
PARKING ENHANCEMENTs/WAY-FINDING:
• Create "User-friendly" map of all parking locations in downtown Los Gatos
• Explore parking lot kiosks that highlight parking districts and shopping directories
TOWN WEBSITE (AS PART OF WEB REDESIGN):
The Town's website is an under utilized marketing tool at this time. As part of the web redes-
ign, efforts can be made to develop a sense of place by creating a virtual community.
Shop & Dine Los Gatos/ Destination Travel:
• Highlight hotels, restaurants, shops, recreation activities, etc.
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2005 2006 Economic Vitality Program
BUSINESS PROMOTION:
Successful business promotion usually focuses on leveraging the Town's strength's and col-
laborating with other public and private institutions to promote these strengths with a clear
and consistent message. The Town of Los Gatos along with the Chamber of Commerce and
local businesses community will work together to promote Town strengths.
Many attributes make Los Gatos a truly desirable community for both residents and visitors.
Its small town atmosphere, strong sense of place, varied architecture, reminders of past tradi-
tions, unique physical setting, well-renowned schools, low crime rate, and involved citizenry
are essential elements in the Town's marketing mix. It is these core components that truly
make Los Gatos a distinctive community in Santa Clara County. Future promotional efforts
will reinforce these key components in advertising, media relations, trade shows, and destina-
tion development.
The common rule of success in destination development is for every 15-minutes of travel
there must be 45-minutes of activities for visitors. It is with this methodology that branding
efforts should focus on the promotion of the Town's strengths to two distinct market seg-
ments:
Market Segment I:
Local: Los Gatos Resident/ Greater Santa Clara County resident
Focus: Familiarize Los Gatos residents and Santa Clara County residents with Los Gatos
various goods and services, entertainment options, and recreational opportunities
SHOP & DINE LOCALLY PROGRAMS:
• Create online business directory where residents could search for various goods and ser-
vices throughout the town and get mapping capabilities
• Articles in the Vista and Los Gatos Weekly discussing the strengths of shopping locally
i.e., "The power of going local" or "Hometown Advantage"
• Promote awareness of all Los Gatos commercial centers
HOLIDAYS Ei LOS GATOS:
• "Celebrate Your Holiday Season Los Gatos style" ad could focus on Chamber Carriage
rides and the quality shopping environment versus traditional mall approach
• Tree Lighting Ceremony - work with Chamber of Commerce to encourage local busi-
nesses to extended their store hours the night of the Tree Lighting Ceremony
• "Winter Getaways" promotional efforts during the slower post holiday months February
(Valentines) packaging of hotels, dinning, spas, shopping, and wineries
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2005 2006 Economic Vitality Program
10
BUSINESS PROMOTION:
Market Segment II
Regional: Peninsula, San Francisco, East Bay and North Bay, Central Valley,
and Santa Cruz County
Focus: Draw visitors to Los Gatos for shopping, entertainment, and recreational
opportunities. Encourage repeat business and overnight stays.
DESTINATION DEVELOPMENT:
Marketing for Hotels, Wineries, Day Spas, and Restaurants, and Boutiques: VIA Magazine,
Sunset, Family Circle/Good Housekeeping, Inflight magazine. Articles should focus on travel
packaging:
• Weekend Getaways
• Winter Holiday Packages
• Honeymoon and Wedding Packaging
• South Bay Wine Tours
• Concert Packaging - Montalvo at Oak Meadow Park, Community Events i.e.,
Shakespeare festival, Jazz in the Plazz, Music in the Park
CHAMBER HOSPITALITY COMMITTEE:
Partnering with local hotels, Los Gatos Chamber of Commerce, and local restaurants
and wineries to encourage destination management companies to market and utilize
Town services for convention and leisure travel. Work with the committee to de-
velop outreach marketing materials for possible FAM Tours which will showcase the
Town's destination attractions.
HISTORICAL TOURS:
Audible downtown walking tours incorporating Los Gatos past and Future movie -
Have purchasable audio cassettes for walkriman, cars, or mp3 players that provide a
self-directed historical walking tour through downtown Los Gatos with plaques des-
ignating historically significant sites.
BUSINESS AT'T'RACTION:
The attraction of new businesses into the Town's economic base can quickly augment the tax
base, facilitate additional job creation, and diversify goods and services for our residents. To
be effective in business attraction for the long-term, the Town of Los Gatos must develop a
business attraction effort focused on promoting a favorable business climate while leveraging
many of the Town's strengths. A focused effort on attracting businesses as part of an overall
Economic Vitality strategy will have the greatest chance of success.
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2005-2006 Economic Vitality Program
Buswms ATTRACTIoN (CONTnwEID):
RECRUITMENT PACKET:
The packet will serve as a marketing piece helping to brand the Town's business image and
will include the following:
• Welcome letter
• Demographics
• Los Gatos "Creative Cats" Corporate Client List
• Relevant Community Development Commercial Zone pamphlets
• Chamber Directory and Application
• Business License Application
• Available Commercial Space Contact Information
• Downtown guides, town maps, etc.
• Business Assistance Resources
CONDUCT A RESIDENTS NEEDS ASSESSMENT SURVEY/Focus GROUPS:
• Survey resident satisfaction with current goods and services mix
• Survey's could be circulated to residents in the Vista newsletter
• Highlight potential gaps in business services and possibly focus attraction efforts to
recruit specific businesses
NORTH 40/ DEVELOPMENT AREA:
• Provide economic vitality support as part of the North 40 Specific Plan Development
ONLINE AVAILABLE PROPERTms:(Ch amber currently developing)
Create a comprehensive online available properties inventory database that highlights:
• General leasing rates
• General zoning information
• Commercial broker contact information
• Mapping capabilities
LG COMMERCIAL SNAPSHOT:
Continually monitoring different business sectors trends, key industry growths or declines,
and Town wide vacancies. This positions the Town to be a proactive recruiter to the targeted
industries that would best "fit" the Town strengths:
• Medical
• R & D/Office
• Retail/Service
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BUSINESS ATTRACTION (CONTINUED):
LOS GATOs BUSINESS WEBPAGE (AS PART OF WEB REDESIGN):
As part of the Town's web redesign, a Los Gatos business section highlight Town demo-
graphics, steps to getting your business started, contact information, necessary development
and business license applications, and available lease space information will be highlighted to
promote a business friendly environment and facilitate business recruitments.
• Silicon Valley Joint Venture-Regional webpage will also be created highlighting each
participating Town and Cities top five business recruitment attributes.
TRADE SHOW PARTICIPATION:
• International Council of Shopping Centers (ICSC) - retail leasing industry
• Biotech industry trade shows
• Destination Travel Trade Shows - Under review with Chamber Hospitality Committee
MEDICAL/BIOTECH INDUSTRY:
• Research potential benefits to the Town with medical "point of sale" designations
• Potential office and biotech recruitment efforts to occupy office vacancies
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APPENDIX licit
TOWN OF LOS GAT®S MARKETING PLAN
/ *N OF
5 ` COUNCIL AGENDA REPORT
lpGh
DATE: AUGUST 31, 2004
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT: TOWN MARKETING PLAN
RECOMMENDATION:
MEETING DATE: 09-07-04
ITEM NO.
Provide comments and accept staff report on Town Marketing Plan.
BACKGROUND:
At the 2004 Town Council Retreat, the Council requested that staff bring back for discussion a Town
1 Marketing Plan based on the goals and objectives stated in the staff model presented at the Council
Retreat. This staff report presents a revised Town Marketing Plan (Attachment 1) based on the staff
model and on further discussions with the Town's marketing partners. The staff report -also
discusses the roles of the Town and its marketing partners in implementing the marketing plan. Staff
is seeking Council comments on the Town Marketing Plan.
DISCUSSION:
The purpose of the Town Marketing Plan is to provide a strategic roadmap for focusing time and
resources each fiscal year to achieve the Town's marketing goals and objectives. This focus is
important, as the Town has limited staff and fiscal resources to devote to marketing the Town.
Setting priorities for allocating resources and leveraging resources by working with our marketing
partners will help the Town optimize our marketing efforts. The Town's key marketing partners
include the Chamber of Commerce, hotels and restaurants, merchants, commercial and residential
realtors, and event sponsors.
PREPARED BY: PAMELA S. JACOBS
ASSISTANT TOWN MANAGER
Reviewed by: Assistant Town Manager Town Attorney Clerk Finance
Community Development Revised: 12/6/04 8:54 am
Reformatted: 5/30/02
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: TOWN MARKETING PLAN
(August 31, 2004)
Role of the Town in Marketing Los Gatos
The Town and each of our marketing partners have specific goals for our respective marketing
efforts, with many overlapping and/or shared goals. Given the Town's limited resources, it is
important to identify the areas in which the Town can make the most valued-added contributions to
marketing the Town. These areas are primarily: acting as a catalyst and convenor. for joint
marketing activities, conducting town-wide general marketing activities, marketing Town-sponsored
events, and promoting economic vitality as set forth in the Town's Economic Vitality Plan. The
Chamber of Commerce is a key partner in most of these efforts, as well.
The Town Marketing Plan
Part I of the Town Marketing Plan covers the goals, objectives, and strengths/weaknesses/
opportunities/threats that may have an impact on the Town's marketing efforts. The goals of the
marketing plan reflect the Town's key interests and role in marketing the Town:
• Goal l: Maximize tax revenues received by the Town, including sales tax, property tax,
Transient Occupancy Tax, and business license tax. These revenues provide more than 55%
of the General Fund that pays for delivery of community services including police, library
and street maintenance. 1
• Goal 2: Enhance the image of Los Gatos as a special place to live, visit and do business.
The objectives of the Town Marketing Plan speak to the specific ways that the Town will attempt
to achieve the marketing goals, through marketing efforts to increase the number of shoppers,
residents, visitors, businesses, and homebuyers in Los Gatos and to increase awareness about the
Town's attributes in general.
Part II of the Marketing Plan presents the recommended strategies and tactics for achieving the goals
and objectives. These strategies and tactics are targeted toward a number of different audiences,
including current and prospective residents, day visitors, overnight visitors, current retail and non-
retail businesses, prospective retail and non-retail businesses, realtors/property managers, and
contractors/architects. The tactics for FY 2004/05 include many of the Town's current marketing
activities, such as the Vista Newsletter, news releases, What's New! e-mail service, the web site, and
business recognition program. Some of the tactics currently underway include the distribution of
the new Los Gatos brochure, the placement of a full-page ad in the Explore Silicon Valley book
placed in hotel rooms throughout the Valley, downtown wayfinding, and downtown communication
associated with the streetscape project for next summer. Other tactics, including the holiday
shopping and the summer campaigns, are being planned with our marketing partners. Several of the
tactics will be implemented by the new Economic Vitality Manager when hired, including business
and broker outreach and inventory of businesses and office/R&D space.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: TOWN MARKETING PLAN
(August 31, 2004)
Evaluating the Success of the Town Marketing Plan
It is difficult to measure directly the outcomes of marketing efforts, due to the many factors which
may influence those outcomes. However, it is informative to track certain indicators that may reflect
progress in achieving the marketing goals. The indicator associated with the first goal of the
marketing plan is the tax revenues received by the Town in the areas that are economically sensitive,
including sales tax, property tax, Transient Occupancy Tax and business license tax. While many
factors affect the level of tax revenue the Town receives, marketing efforts to attract shoppers,
diners, businesses, and others to Los Gatos should have a positive effect on tax revenues. Other
economic indicators that the Town's marketing efforts may affect are commercial vacancy rates,
residential vacancy and tune-on-market rates, hotel occupancy rates and j ob opportunities.
Indicators of success in achieving the second goal of the marketing plan include responses to resident
satisfaction surveys, the level of participation in Town events and activities, and the frequency of
positive publicity in print and electronic media. Again, other factors will influence these results, but
our marketing efforts should contribute positively to them, as well.
CONCLUSION:
The recommended Town Marketing Plan is comprehensive, yet focused on the areas in which the
Town can make the most value-added contributions with available staff and fiscal capacity. An
emphasis is placed on working with our marketing partners, the Chamber of Commerce in particular,
to coordinate and leverage marketing efforts.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
The source of the majority of funds to support the Town's marketing activities is the Redevelopment
Agency budget for specific projects and for the Chamber of Commerce contract. Other funds are
available in the.Community Services Department budget (e.g., Vista), Town Manager's Office (e.g.,
web enhancements), and non-departmental budget (e.g., commission recruitment).
Attachments:
1. Town Marketing Plan
MARKETING PLAN FOR THE TOWN OF LOS GATOS - PART I
PURPOSE
The purpose of the marketing plan for the Town of Los Gatos is to provide a
strategic roadmap for focusing time and resources each fiscal year to achieve
the Town's marketing goals and objectives.
GOALS AND OBJECTIVES
Goal I: Maximize tax revenues received by the Town, including sales tax,
property tax, Transient Occupancy Tax, and business license tax.
These revenues provide more than 55% of the Town's General
Fund that pays for delivery of community services including police,
library and street repairs.
Objectives:
A. Increase local residents' awareness about the
importance of supporting local businesses, especially
those that generate sales tax.
B. Increase the number of day visitors from the Bay Area
who come to Los Gatos to shop and dine.
C. Increase the number of overnight visitors from the
Bay Area, throughout the state, U.S. and
internationally.
D. Increase awareness among commercial realtors and
commercial, R&D, and industrial businesses about
assets of Los Gatos for a business location.
E. Increase awareness among homebuyers about the
assets of Los Gatos that warrant higher property
prices.
Goal II: Enhance the image of Los Gatos as a special place to live, visit and
do business.
Objectives:
A. Increase the community's pride in being
residents/businesses of Los Gatos.
B. Increase the awareness of the unique attributes of
Los Gatos among people who travel to Northern
California.
C. Increase the community's knowledge of Town
services and events.
D. Increase participation by Town residents in supporting
the community.
STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS
Following are the strengths and opportunities, and weaknesses and threats
that may have an impact on the Town's marketing efforts. These and others
identified subsequently should be considered in shaping marketing messages
and strategies.
Strengths and Opportunities
■ Natural beauty of mountains that frame Los Gatos
■ Reputation for high caliber schools
■ High property values
■ Demographics of population: household income, education, home
ownership
• Historic downtown and neighborhood
■ Reputation as quaint and charming - strong "brand image"
■ Frequently referenced by other community as.the goal to be achieved
-to "be like Los Gatos"
■ Unsolicited media coverage due to positive image (VIA, Sunset, Bizlnc,
etc.)
■ Convenient freeway access (17 & 85) and 15-20 minutes from airport
■ Many community events that support small town image (holiday
parade, MIP, July 4th, Screen on the Green, Cinecats, Shakespeare,
Jazz on the Plazz, Fiesta de Artes, etc.)
■ Variety of lodging = 5-star to budget
■ Proximity of mountain wineries
■ Retail mix in downtown ,
■ Well known restaurants
■ Chamber Marketing Committee partnership with Town
Weaknesses and Threats
• Economy fluctuations beyond control of Los Gatos
■ High prices of housing and retail rents
■ Limited conference/event space and number of hotel rooms
■ Only business association is Chamber and it is small with limited
resources
■ Misinformation and rumors about process and projects
■ Perception that building/development process is time-consuming,
costly, and overly-strict
■ Negative publicity about elitism/exclusivity tone of LG
■ Competition from other shopping districts (Santana Row, Willow Glen)
and shopping centers (Valley Fair, Stanford)
■ Gaps in businesses providing all goods and services needed by
community - sales tax leakage
■ Except for North 40, no space for growth
■ Community concerns about traffic
■ Perception that downtown parking is difficult
■ Small R&D/light industry square footage
• Insufficient information to analyze and monitor economic health of LG
■ Limited resources and staff to devote to marketing
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APPENDIX "D"
TOWN OF LOS GATOS BUSINESS RECRUITMENT PACKET
March 24, 2005
Ms. Karin Hunsicker
VP & COO
H.T. Harvey & Associates - Ecological Consultants
3150 Almaden Expressway, Suite 145
San Jose, CA 95118
Dear Ms. Hunsicker:
ORP~j
As the Town's Economic Vitality Manager, I am honored to introduce our community to
H.T. Harvey & Associates. Los Gatos is a beautiful and thriving community known for
its well-maintained parks, picturesque hillsides, European downtown that features
boutique shopping and restaurants, renowned schools, and year-round community events.
As ecological consultants, the choice of your business location says a lot about culture of
your organization. After reviewing your website, it is clear that H.T. Harvey &
Associates have a clear commitment to providing sound stewardship in the field of
ecology, while providing a high quality of life for your employees.
The Town of Los Gatos has become home to many corporate headquarters and business
entrepreneurs that value recreational opportunities for their employees and entertainment
options for their clientele. Convenient access is also very important, with close proximity
to the San Jose International Airport, Highway 17, 85, and 9 traveling for perspective
clients, or commuting for employees can be managed from a variety of different routes.
Enclosed in this packet you will find our Town demographics, corporate client list,
marketing information, and leasing information for two locations that could be a perfect
fit for your future business needs. Both locations are close to the downtown area and
have great views of Vasona Park. I hope after reading through our Town materials you
might consider joining our team of creative cats! Please feel free to contact me directly
should you have any questions at 408.399.5790 or dsurdin@losgatosca.gov.
Sincerely,
Danielle Surdin
Economic Vitality Manager
Town of Los Gatos
INCORPORATED AUGUST 10, 1887
TOWN OF LOS GATOS
CMC CENTER
110 E. MAIN STREET
P.O. Box 949
Los GATos, CA 95031
1f
S
G~
Community. Prof ile:
The Town of Los Gatos is located at the base of the Santa Cruz Mountains, approximately 60 miles South
of San Francisco in the Southwestern portion of Santa Clara County. The Town is bound by the City of
San Jose to the north and east, the City of Campbell to the north, and the cities of Monte Sereno and
Saratoga to the west, with unincorporated Santa Clara County and County of Santa Cruz to the South.
Los Gatos is one of Santa Clara County's most historic communities, being incorporated in 1887. It has a
population of approximately 30,000 persons and encompasses about 14 square miles.
• Population:
• Current Households:
• Average Household Income:
• Median Age:
• Median Housing Value:
• Occupational Categories 16 and Over:
• 23.1 % Executive, Administrative, and Managerial
• 25.8% Professional Specialty
• 32.2% Technical Sales, Administrative Support
• 12.9% Service
• 11.4% Precision, Production, Craft and Repair
• 2.5% Farming, Forestry, and Fishing
• 14.6% Operators, Fabricators, and Laborers
29,132
12,257
$212,207
41.9
$1,039,780
• Education Age 25 and Over.
• 18.1 % Population earned a Graduate or Professional Degree
• 29.8% Population earned a Bachelor's Degree
Race Classification:
• 86% Caucasian, 8.1 % Asian. 5.2 Latino/Hispanic, .07 Other
Demographic information provided by Census 2000
. b le Space
A~~a
Los Gatos
7 5 0 University Avenue
Located near quaint downtown and Vasona Park, this
Los Gatos office location offers great visibility, access,
recreation and entertainment options. Other tenants in-
clude:
• ~1fT1
® ARM
• Sterling Communication
• DVD Play
Current Vacancy: 17,314 SFT
Contact: McCandless Corporation 408.727.2007
Cooper Court/University
Located Vasona Park and nearby storage facilities (for
businesses with equipment needing to be stored), this
Los Gatos office location offers great visibility, access,
recreation and entertainment options. Other tenants in-
clude:
• Los Gatos Cable Connection
• Marcotech
• Neo Guide
041
G`t4~
o`-
1G~
stir"
Current Vacancy: Full Buidling 8,000-33,020 SFT
Contact Cooper & Company 408.395.2771
s (;0tog/ CA
„3(ank, Of rya, Ca1z,
Corporate Headquarters
Entertainment Industry
• Netflix
Netflix (Nasdaq: NFLX) is the world's largest online DVD movie rental service offering more than two million
members access to more than 30,000 titles. Netflix appeal and success are built on providing the most
expansive selection of DVDs; providing an easy way to choose movies; offering fast and free delivery.
Website: www.netflix.com
DVD Play
DVDPlay is the creator and manufacturer of the first Automated Entertainment Machines or AEMs. These
automated machines are designed to give consumers a better way to rent or buy the latest hit movies wherever
they play, shop, live or work. DVD Play was founded in 1999 by two young men named Bill and Phil, two rather
intense young entrepreneurs from Southern California with a vision to automate the entire video store experience.
Website: www.dvdplay.net
• Cryptic Studios
Established in July of 2000-Cryptic Studios is an independent developer of massively multiplayer online
games for the PC and next generation consoles. Cryptic Studios launched its first widely successful multiplayer
game City of Hero's in April 2004. Currently they are in the planning stages for the new release of the highly
anticipated City of Villains.
♦ Pixel Instruments
Pixel Instruments designs and engineers innovative audio and video signal processing circuitry utilized in
the broadcast television industry. The Company's research and development capabilities are used primarily for
onsite manufacturing of high-performance video and audio processing products. These products are used in
broadcast, video production and related applications. Website: www.pixelinstruments.ty
♦ ICTV
ICTV is the industry's leading solution for the development and deployment of interactive television content for a
range of digital devices. ICTV acts as a dedicated interactive television service advisor, addressing the complex
issues that arise in interactive television. Website: www.ictv.com
0 1lWrapsidy
Wrapsidy, LLC (formerly Audience Analysis, Inc) is the leading provider of rating analysis software to the
broadcast industry. Its WRAP (Windows Rating Analysis Programs) product line, features tools for analysis of
Nielsen's primary local rating sources: Overnights, Cable, Diary and People Meter. The company was w s
founded in 1992 by ratings software pioneer, Andrew Eshkar. Website: www.wrap.com
suns°S
s (;0 0s/ CA
Corporate Headquarters
Software Development Industries
o Ananya Systems
Ananya Systems, Inc. develops and markets curve tool programs for licensing to computer graphics and CAD
companies. Ananya's software gives the user seven different methods of drawing Bezier curves or conics. The
company is privately owned and specializes in computer development of unique curve drawing tools with new
algorithms based upon original mathematical equations. Website: www.ananya.com
v Alpha Smart
AlphaSmart, Inc. (NASDAQ: ALSM) delivers affordable technology solutions designed to reduce the cost and
complexity of computing for customers worldwide. Within the education market, their solutions help students
improve fundamental academic skills, teachers can increase classroom productivity, and administrators provide
greater access to technology at a low total cost of ownership. Alphasmart has sold more than 1.2 million
computer companions to customers around the world. These portable devices can be found in approximately
one-half of the fifteen thousand US School Districts. Website: wwwl.alphasmart.com
BayTSP
Specializes in copyright tracking and brand protection, BayTSP has been providing Fortune 1000 and Dow Jones
component companies with sophisticated automated technology to ensure their copyright digital media is not be
stolen or misused on the internet. Website: www.baytsp.com
Brooktrout Technologies-Northern California Office
Brooktrout Technologies (NASDAQ: BRKT) is a leading supplier of media processing, network interfacing and
signal processing products that enable development of applications. The company's strategy is to partner with its
customers closely to help accelerate their delivery of new applications and services, increase their existing
business and expand their markets. Website: www.brooktrout.com
• Sciforma
Sciforma Corporation provides advanced project and process management software solutions and services to a
worldwide customer base. Known for developing industry-first features and applications that have spurred
innovation with the process and project management communities. Their name is derived from the English word
"science" and the Latin word "forma" which means planning. Their name reflects this advance science project
management software. Website: www.sciforma.com
Streaming 21, Inc.
Streaming 21, Inc. provides a new platform for providing video and music over IP networks. Streaming 21's
broadcast and media-on-demand software solutions enable the deployment of rich-media services with
carrier-class scalability, 2417 operations and quality broadcast delivery. Website: www.streaming2l.com
gp1
s GQtos, CA
J{u„~,of tge &et_. e Cate"
Corporate Headquarters
Entertainment Industry
• Netflix
Netflix (Nasdaq: NFLX) is the world's largest online DVD movie rental service offering more than two million
members access to more than 30,000 titles. Netflix appeal and success are built on providing the most
expansive selection of DVDs; providing an easy way to choose movies; offering fast and free delivery.
Website: www.netflix.com
• DVD Play
DVDPIay is the creator and manufacturer of the first Automated Entertainment Machines or AEMs. These
automated machines are designed to give consumers a better way to rent or buy the latest hit movies wherever
they play, shop, live or work. DVD Play was founded in 1999 by two young men named Bill and Phil, two rather
intense young entrepreneurs from Southern California with a vision to automate the entire video store experience.
Website: www.dvdplay.net
e Cryptic Studios
Established in July of 2000-Cryptic Studios is an independent developer of massively multiplayer online
games for the PC and next generation consoles. Cryptic Studios launched its first widely successful multiplayer
game City of Hero's in April 2004. Currently they are in the planning stages for the new release of the highly
anticipated City of Villains.
e Pixel Instruments
Pixel Instruments designs and engineers innovative audio and video signal processing circuitry utilized in
the broadcast television industry. The Company's research and development capabilities are used primarily for
onsite manufacturing of high-performance video and audio processing products. These products are used in
broadcast, video production and related applications. Website: www.pixellnstruments.ty
• ICTV
ICTV is the industry's leading solution for the development and deployment of interactive television content for a
range of digital devices. ICTV acts as a dedicated interactive television service advisor, addressing the complex
issues that arise in interactive television. Website: www.ictv.com
o Wrapsidy
Wrapsidy, LLC (formerly Audience Analysis, Inc) is the leading provider of rating analysis software to the
broadcast industry. It's WRAP (Windows Rating Analysis Programs) product line, features tools for analysis of
Nielsen's primary local rating sources: Overnights, Cable, Diary and People Meter. The company was
founded in 1992 by ratings software pioneer, Andrew Eshkar. Website: www.wrap.com
BAt
s Qc)itos/ CA
Corporate Headquarters
Software Development Industries
Ananya Systems
Ananya Systems, Inc. develops and markets curve tool programs for licensing to computer graphics and CAD
companies. Ananya's software gives the user seven different methods of drawing Bezier curves or conics. The
company is privately owned and specializes in computer development of unique curve drawing tools with new
algorithms based upon original mathematical equations. Website: www.ananya.com
s Alpha Smart
AlphaSmart, Inc. (NASDAQ: ALSM) delivers affordable technology solutions designed to reduce the cost and
complexity of computing for customers worldwide. Within the education market, their solutions help students
improve fundamental academic skills, teachers can increase classroom productivity, and administrators provide
greater access to technology at a low total cost of ownership. Alphasmart has sold more than 1.2 million
computer companions to customers around the world. These portable devices can be found in approximately
one-half of the fifteen thousand US School Districts. Website: wwwl.alphasmart.com
BayTSP
Specializes in copyright tracking and brand protection, BayTSP has been providing Fortune 1000 and Dow Jones
component companies with sophisticated automated technology to ensure their copyright digital media is not be
stolen or misused on the internet. Website: www.baytsp.com
o Brooktrout Technologies-Northern California Office
Brooktrout Technologies (NASDAQ: BRKT) is a leading supplier of media processing, network interfacing and
signal processing products that enable development of applications. The company's strategy is to partner with its
customers closely to help accelerate their delivery of new applications and services, increase their existing
business and expand their markets. Website: www.brooktrout.com
Sciforma
Sciforma Corporation provides advanced project and process management software solutions and services to a
worldwide customer base. Known for developing industry-first features and applications that have spurred
innovation with the process and project management communities. Their name is derived from the English word
"science" and the Latin word 'forma" which means planning. Their name reflects this advance science project
management software. Website: www.sciforma.com
Streaming 21, Inc.
Streaming 21, Inc. provides a new platform for providing video and music over IP networks. Streaming 21's
broadcast and media-on-demand software solutions enable the deployment of rich-media services with
carrier-class scalability, 2417 operations and quality broadcast delivery. Website: www.streaming2l.com
k
~s C-70tos/ CA
" 5-Ln~ 4 d~ &,ea &1Z
Corporate Headquarters
Alternative Energy Industry
• iWatt
iWatt, Inc. is a power management IC company that designs, develops and markets semiconductors for
computer, communications and industrial markets. The company's patented pulseTrainTA9 technology is
revolutionizing power supply design by introducing the industry's first truly digital approach to power system
regulation, control and management. Website: www.iwatt.com
• Solaicx
Solaicx is developing and implementing breakthrough solar energy technology. Solaicx focus on the
development of silicon wafers vs. the standard crystalline silicon cells. Silicon wafers make solar energy become
more efficient and productive and result in a lower overall price to the consumer. Recently featured in Forbes
Magazine, San Francisco Chronicle, and Yahoo! Finance demonstrates that this company is on the move.
Website: www.solaicx.com
Fiber Optics Industry
• SPI Optics
SPI is expanding the applications for fiber lasers, while lowering cost of ownership for its owners and customers
in the Industrial, Aerospace, Analytical, Sensing, and Communications Market. SPI develops and manufactures
advanced optical components. These components are based on its wavelength management.
Nanotech Research & Development
• Innovation-On-Demand, Inc.
Develops cutting-edge technology in the computer and microelectronics industry while providing "scheduled
intervention" services. Its substantial experience in machine control and wireless technology is being directed
into the new field of nanotechnology to develop tools and infrastructure needed to construct novel machines at
the large molecule scale. Website: www.innovation-on-demand.com
NanoConduction, Inc.
Currently working on the registering of US Patents in conjunction with NASA Ames Research Center. More
Information to follow.
• Intermolecular, Inc.
More Information to follow. -
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s (;Otos/ C7Z\
«JCnm e o~ uu, P, ~ Cap;
Corporate Headquarters
Semiconductor Industry
Amicronix
Amicronix is a privately held US Company incorporated in Los Gatos, CA in 2000. Amicronix specializes in high
speed semiconductor test systems. Website: www.amicronix.com
® Hifn
Hifn offers high-performance, multi-protocol packet processors - semiconductor devices and software that enable
secure, high-bandwidth network connectivity and efficient storage of business information. Hifn's packet
processor products perform the computation intensive tasks of compression, encryption and authentication,
providing customers with high-performance, interoperable implementations of a wide variety of industry-standard
networking and storage protocols. Website:www.hifn.com
o Monolithic Power Systems
Monolithic Power Systems (MPS) was incorporated in the State of California in October 1997. The company's
corporate headquarters are located in Los Gatos, California with a branch in Taipei, Taiwan. MPS is a fabless,
high quality, cost effective, reliable, analog power IC product solutions semiconductor manufacturer. MPS
designs, develops, manufactures, sells, and markets it's own products. MPS has differentiated itself by
specializing in analog circuits with integrated high performance power capability.
Website www.monolithicpower.com
Wireless Technology Industry
e Semotus Solutions, Inc.
Founded in 1993, Semotus Solutions (AMEX:DLK), is a premier provider of software for the mobile enterprise
connecting employees to critical business systems, information and processes. Semotus has a Fortune 1000
installed customer base and more than 600 corporate clients including Lockheed Martin, Blue Cross Blue Shield,
Coca-Cola, Hewlett Packard, Nextel Communications, JP Morgan-Chase, and The United Nations. Semotus
Solutions' software provides mobility, convenience, efficiency and profitability in the areas of workforce
automation, finance and healthcare. Recently named #168 on the Fast 500 Technology List from Deloitte &
Touche. Website: www.wirelessinformation.com
Wheels of Zeus
Piloted by Apple Computer co-founder and award-winning tech visionary Steve Wozniak. wOz has since ushered
in the next generation of wireless location devices. By marrying the best aspects of radio frequency networks with
the power of GPS, wOz has created a secure, high-performance, low-cost, and efficient technology platform one
that responds to today's complex location challenges. Website: www.woz.com
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Corporate Headquarters
Medical Research & Development/Biotech
NexRay
The NexRay system is based on a fundamentally new x-ray imaging technology that improves image quality,
reduces radiation does, and provides depth of information. The advantages of NexRay's Computed Fluroscopy
technology includes minimal detected x-ray scatter which reduces radiation exposure, geometrically accurate
depth of field, x-ray can be run continuously, open access to the patient. NexRay currently holds patents on
this proprietary platform and has received 51 OK in marketing from the FDA.
Website: www.nexraymedical.com
Allgene, Inc.
Allgene provides services: cloning and recombinant protein manufacturing using its patented RIFT platform.
Allgene, Inc. specializes in expression of small quantities of protein from genes (DNA) provided by the
customer. Key areas of services: Biotechnology, Genomics, Proteomics, Process Chemistry, Intermediates,
and Manufacturing. Website: www.aligene.com
Licensing & Start-ups
Epilogics/Kuhl Wheels
Epilogics develops compelling applications of proprietary technologies, patents the technologies, then licenses
the know-how (primarily to the automotive industry). Kuhl Wheels LLC was formed on June 25, 1997 to
commercialize an automotive wheel invented by George Braunschweiler, a Company cofounder. The Kuhl
Wheels technology is basic and compelling. This patent-pending technology enables a caretaker to realize a 20%
weight saving (up to 40 lbs, per car) over conventional steel wheels at a substantial cost reduction.
Website: www.epilogics.com
Sizary,lnc.
Sizary was established in late 1993 as part of Israel's national program for promoting technology-based start-up
companies. In early 1999 Sizary, Inc. with office in Los Gatos was established to provide marketing, sales, and
product support in the United States. Sizary products protect wafers from metal contamination during diffusion
and oxidation process. Website: www.sizary.com
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