Atascadero Economic Atascadero Economic Development Strategic PlanDevelopment Strategic Plan

Progress ReportProgress ReportFebruary 24, 2009February 24, 2009

Presented by Doug Svensson, AICPApplied Development Economics, Inc.

2

Process TimelineProcess TimelineTimeline June-October 2008 October –

February, 2009January – May,

2009

Work Program

SWOT AssessmentMarket AnalysisRetail Analysis

Fiscal StudySite Assessments

Identify Economic

Development Goals

Define Product

Prepare Strategic Plan

Public Input

InterviewsFocus Groups

Household SurveyCity Council

Meetings

Public Forum City Council

Meetings

City Council Meetings

3

Retail Market OverviewRetail Market OverviewPer capita taxable sales are lowNon-taxable grocery and drug store sales are highHome improvement sales have been high but are threatenedNew auto sales are low and are threatenedAtascadero gets some visitor spending for gasoline, fast food and specialty retail

4

Shopper Satisfaction Shopper Satisfaction SurveySurvey

Store Selection: Very negative with over 75% unsatisfied or extremely unsatisfiedStore Quality: Generally negative with 59% unsatisfied or extremely unsatisfiedStore Prices: Generally neutral with 39% neither satisfied nor unsatisfiedParking: Very positive with 68% satisfied or extremely satisfiedStore Hours: Generally positive with 55% satisfied or extremely satisfied

5

Retail Store Type PotentialRetail Store Type PotentialApparel

Women’s and Men’s clothingFamily clothingShoes

General MerchandiseBig Box rather than Department stores

Specialty RetailBooksOffice SuppliesSporting Goods

FoodFine Dining

Home FurnishingsFurnitureAppliances/Electronics

AutomobileNew Cars

EntertainmentMovie TheatersArt galleriesMusic venues

Sales LeakageSales Leakage

6

7

Retail/Services Retail/Services RecommendationsRecommendations

Concentrate high dollar volume regional center at Del Rio Rd.Focus on higher quality apparel, dining, specialty retail in Downtown Consider consolidating strip commercial over time to focus market strength DowntownEncourage major centers on El Camino south of Downtown to renovate and stay freshContinue to focus office development on Morro Rd.

8

Tourism – Key Issue is to Tourism – Key Issue is to Promote the City’s Promote the City’s AuthenticityAuthenticity

Stronger mix of local attractions would bolster lodging marketGreater focus on tourism in Downtown could strengthen arts colony, historical assets, retail market Need to brand Atascadero as a niche destination within the CountyEagle Ranch could add to mix of attractions

9

Job Development: “An Incubator Job Development: “An Incubator of Innovative Industries”of Innovative Industries”

Food and Beverage ProductsNew Media ArtsEnergy/Clean technologyElectronicsWorkforce Training

10

Site AnalysisSite AnalysisDel Rio Rd. sites can support most major retail with potential in AtascaderoSites north of Del Rio on El Camino could be auto center, or business parkEfforts to redevelop older industrial sites could help small business growthEagle Ranch should have an economic development componentAtascadero should encourage small business development rather than major employers

11

Public ForumPublic ForumNovember 22 at Colony Park Community Center GymAbout 70 participants comprising eight discussion groupsAgenda

Overview of Research FindingsDiscussion About Desirable Business TargetsDiscussion about Economic Development Goals

12

Public Forum –Business Public Forum –Business TargetsTargets

Retail Colony Square and creek-side retailImprove quality of apparel, restaurants, auto salesServe regional market better with general merchandise

Tourism“Gateway to the Central Coast”Focus on arts, history, wine and equestrian specialtiesNew events such as cook-off, farmers market, use of Stadium ParkEncourage bed & breakfasts as well as a conference centerCarry out master plan for the zoo and the walking/ biking network – family focus

JobsHigh-tech, green, small scaleProcessing of agricultural specialties as well as wine supplies“Central Coast Training Institute”Fiber optic infrastructure and Wi-Fi DowntownHealth care/government/home-based call center

13

Public Forum – GoalsPublic Forum – GoalsStrong retail environmentHub for tourismFocus on quality of jobs rather than quantityCenter for educational training“Come for celebration and recreation, stay for opportunity and community”

Downtown GoalsDowntown GoalsAtascadero’s downtown is a lively place for business, entertainment, arts, and public gatherings. Atascadero facilitates the transition of the downtown into a synergistic entertainment, cultural, and specialty shopping area.

OBJECTIVES:Colony Square successfully connects the Sunken Gardens,

Stadium Park and Colony Way to create a vibrant commercial core.The development in Downtown includes features to support the

City’s Tourism Marketing Plan in terms of creating venues for art showings, events such as the Art Walk, fine restaurants, and entertainment venues to attract tourists as well as local residents.New development in Downtown features mixed-use to increase

the intensity of activity.

14

Retail GoalsRetail GoalsAtascadero provides a broad range of retail stores so that residents and visitors can meet most of their shopping needs locally.

OBJECTIVES:Encourage a broad range of retailers to locate within the city.Support development of major commercial centers at the Del Rio Road

interchange.Re-capture at least 50 percent of retail leakage within five years, 75

percent of retail leakage within 10 years.Concentrate retail at major nodes along El Camino Real.Re-develop selected strip malls into R & D industrial space, Class A office

space, high density residential or a mix of these uses.Create a transit line for El Camino. For long term, consider a Curitiba-like

fixed route bus system for El Camino, connecting nodes with each other and downtown. Seek to concentrate commercial retail and office capacity in downtown

core. 15

Tourism GoalsTourism GoalsAtascadero is the gateway and hub for visitors to the Central Coast, providing lodging, recreation, entertainment, and unique shopping and cultural opportunities.

OBJECTIVES:Leverage its central location and access to San Francisco, Los Angeles, and Fresno

to enhance its tourism industry. Increase the number of venues for performing arts and other cultural events,

including Stadium Park if resources are available to improve it. Increase the number of special events that attract visitors. Explore the feasibility of developing Eagle Ranch into a venue for attracting

business and leisure visitors. Enhance existing attractions to accommodate larger events and more business

and leisure travelers. These include the golf course, the zoo, and the parks. Ensure that new commercial development includes space for restaurants wherever

appropriate, especially in the Downtown. Advocate for improvements to Highways 41 from Fresno and 46 from Bakersfield.Explore and if feasible develop equestrian event center (see Sycamore Trails

Stables, San Juan Capistrano).16

Job GoalsJob GoalsAtascadero supports innovative businesses, particularly those in emerging environmental and information technology fields

OBJECTIVES:Focus business attraction and development on existing available

sites, using redevelopment authority/resources where possible to help remove development barriers.Support growth of economic opportunity areas, including alternative

energy, graphics, new media, food and beverage, electronics etc.Increase market area for local businesses by advocating for safety

improvements along Highways 41 and 46 to Central Valley.Support installation/enhancement of Wi-Fi, broadband infrastructure.

17

Quality of Life GoalsQuality of Life GoalsAtascadero is an inviting community to work, shop, and

play.

OBJECTIVES:Maintain the City’s rural feel through good planning.Explore the feasibility of equestrian-focused residential development.Genuine civil discourse is displayed throughout the community.

18

Workforce GoalsWorkforce GoalsAtascadero is a center for workforce education and

training.

OBJECTIVES:Leverage existing assets to promote seminars and specialized education.Work toward establishment of a center for specialized training.

19

20

Council Discussion of Council Discussion of GoalsGoals

Feedback on findingsDiscussion

BUILDING THE KNOWLEDGE AND RESOURCES CLIENTS NEED TO REALIZE THEIR ECONOMIC AND

BUSINESS POTENTIAL

22

ADE Scope of WorkADE Scope of WorkPublic Involvement ProcessSWOT AnalysisIndustry and Tourism Market AnalysisComprehensive Retail AnalysisFiscal AnalysisSite Suitability Analysis

Market Positioning ReportRecruitment StrategyBusiness Retention and Expansion ProgramWorkforce Development StrategyCommunications StrategyEconomic Development Action Plan

23

Economy Community

Vital CycleVital Cycle

City Revenue by Land UseCity Revenue by Land Use

24

Service Costs by Land UseService Costs by Land Use

25

Net Fiscal Benefit by Land Net Fiscal Benefit by Land UseUse

26

27

SWOT AnalysisSWOT AnalysisPurposeS—StrengthsW—WeaknessesO—Opportunities-external trends that create possibilitiesT—Threats-external trends that bring more challenges

28

SWOT FindingsSWOT FindingsStrengths

LocationAmenities & Attractions Freeway InterchangesHistoric InterestHigh Household IncomesRedevelopment Agency and ProjectsRetail SitesWater SupplyEngaged Citizenry

29

SWOTSWOTWeaknesses

Lack of Consensus on Growth & DevelopmentHigh Share of Government Jobs & WorkersUnder-utilized Strip Malls/DowntownDeclining School EnrollmentsDifficulty Recruiting Young, Creative Workers; High Housing CostsHigh Maintenance Costs for Road SystemSmall sites for Office/Industrial DevelopmentLimited Air Services

30

SWOTSWOTOpportunities

Location-independent BusinessesWine Processing & TourismArts ColonyIncreasing RetireesGrowing Population in San Joaquin ValleyIncreased Investment in “Green Business”Redevelopment of Under-utilized ParcelsEagle Ranch

31

SWOTSWOTThreats

Successful Downtowns in Neighboring CommunitiesActive Recruitment of Atascadero BusinessesTax-Free Internet SalesGraying of the PopulationIncreasing Fuel CostsCutbacks in Airline Services