13B - Economic Vitality Program Update~o`NN 0 MEETING DATE: 2/19/2008
ITEM NO:
T 'ye'a u`r ~I f .
i ~ tos Ga os COUNCIL/AGENCY AGENDA REPORT
DATE: FEBRUARY 19, 2008
TO: MAYOR AND TOWN COUNCIL/
CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
FROM: GREG LARSON, TOWN MANAGER/EXECUTIVE DIRECTOR
SUBJECT: ACCEPT ECONOMIC VITALITY PROGRAM UPDATE
RECOMMENDATION:
Accept Economic Vitality Program Update.
BACKGROUND:
In July 2002, Town Council approved an Economic Vitality Program to help implement
General Plan policies while enhancing and maintaining the fiscal stability of the Town.
The Economic Vitality Program encompasses all commercial districts including office
and R&D zones, the downtown Central Business District (CBD), Los Gatos Boulevard,
and four neighborhood centers. The Economic Vitality Manager focuses on supporting
and retaining the existing business base, guiding incoming businesses through the
application process, and building relationships with property owners and commercial real
estate professionals. These efforts are undertaken to strengthen and diversify the Town's
economic base.
The Economic Vitality Manager also conducts two annual marketing programs with a
.'shop local" emphasis and partners with the Los Gatos Chamber of Commerce to
develop tourism awareness through regional marketing opportunities. While no decision
about the Town's Economic Vitality Program is needed at this time, staff would like to
share with Council information on current business activity and economic vitality efforts.
PREPARED BY: DANIELLE SURDIN '
ECONOMIC VITALITY MANAGER
NAMGR\AdminWorkFiles\2008 Council Reports\2-19-08 Economic Vitality Update.doc
Reviewed by: f 5-j Assistant Town Manager/Deputy Director Town
Attorney/General Counsel Clerk Administrator/Secretary Finance
Community Development
PAGE 2
MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE
REDEVELOPMENT AGENCY
SUBJECT: ECONOMIC VITALITY UPDATE
FEBRUARY 19, 2008
DISCUSSION:
The state of the national economy presents a challenging fiscal outlook for the mortgage
and real estate industry. Los Gatos commercial districts have had a small but noticeable
vacancy increase in office uses, but have maintained relatively low vacancy rates in
retail. Attachment A presents current information on vacancies in the Town's
commercial districts including Los Gatos Boulevard, neighborhood centers, and
University/downtown/Winchester.
Over the past year, staff undertook a number business attraction and expansion activities
to enhance economic vitality town-wide including: the ongoing development of the
Town's available commercial properties web feature; creation of a downtown
commercial real estate "comp sheet" on current lease ranges to assist property owners,
incoming businesses, and existing businesses; and partnering with the Silicon Valley
Economic Development Alliance (SVEDA) on the regional and national promotion of
commercial properties through the Silicon Valley Prospector web site and search engine.
The Mayor and Town Manager also initiated a new business outreach program to meet
with some of the Town's largest sales tax producers and employers, vulnerable industries,
and "up and comers" in the office and R&D sectors.
Promotional efforts included year-round web promotion of the Town's Shop Local
program, annual coordination of the summer and holiday Town marketing programs
downtown, and the direct mailer to residents of the new Discovery Map highlighting
restaurants, retailers, and local wineries.
CONCLUSION:
Economic vitality remains a priority for the organization. In these fiscally challenging
times, it is increasingly important to help local businesses succeed within the boundaries
of Town policies and programs, and consistent with the role of local government. The
economic vitality update and commercial snapshot provides Council with an overview of
staff efforts and of the current vacancy status of all commercial districts.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
There is no fiscal impact associated with accepting this report.
Attachments: 2008 Commercial Vacancy Snapshot
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