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HomeMy WebLinkAbout2019 Business Retention-Expansion PlanSTAFF REPORT CITY OF PALM DESERT ECONOMIC DEVELOPMENT DEPARTMENT MEETING DATE: June 27, 2019 PREPARED BY: Deborah S. Glickman, Business Advocate REQUEST: Receive and file the 2019 Business Retention and Expansion Plan. Recommendation By Minute Motion: Receive and file the 2019 Business Retention and Expansion Plan. Strateqic Plan The 2019 Business Retention and Expansion Plan (BRE) aligns with the following Strategic Plan objectives: Envision Palm Desert Strategic Plan, Economic Development Priorities 1: Expand job and business creation opportunities and 4: Expand and raise awareness of business -friendly services in order to retain and attract business. Economic Development Strategic Plan, High Priority Initiative: Establish a proactive business outreach program focused on retention/expansion of existing Palm Desert companies. 2019 City Council Goals, #6: Develop and implement a Business Retention and Expansion Program. Discussion The City of Palm Desert is home to approximately 3,900 retail, restaurants, professional services, and home based businesses. At present, the City does not have a formalized BRE Plan to address how to best support its businesses. The development of a plan was designated as a High Priority Initiative in the 2018 Palm Desert Economic Development Strategic Plan. Therefore, staff has generated the attached plan that details how the City can help its existing businesses be sustainable and expand as well as ways the City can assist new businesses in navigating its permitting, licensing, incentive, and approval processes. The initial step of the BRE process is for the City to gain a better understanding of its existing businesses and their needs. To facilitate this process, staff has developed a survey that will be sent to all businesses in Palm Desert. The survey will be taken online and the staff will inform businesses about it through a direct mail postcard and email outreach. In addition to the postcards, staff will work with the Palm Desert Area Chamber Staff Report Business Retention and Expansion Program Page 2 of 3 June 27, 2019 of Commerce and other local organizations to conduct outreach and encourage their members to participate in the survey. City staff will follow-up the outreach with phone calls and in -person visits to businesses. The businesses on El Paseo will receive a specialized survey with additional questions specific to them. After the survey results are compiled, staff will conduct phone and in person interviews with business representatives to ask supplemental questions and allow for their direct feedback. The goal of the survey is to determine how the City can better assist its businesses with incentives, training, general support, and more. The survey has been reviewed by local economic development professionals including representatives from the Coachella Valley Economic Partnership, the Riverside County Small Business Development Center, among others. The survey results will help to determine the City's next step in the BRE Plan implementation. Potential new programs as determined by the survey could include: • The creation of a Palm Desert online resource center • Educational opportunities and trainings • The creation of a digital newsletter • An update to the City's Economic Development webpage to be interactive and include more in-depth data on demographics, available properties, and more In addition to the survey, staff will continue with its existing services, including: • Staff ombudsman services for current and new businesses • Business outreach including tracking of new businesses and those with expiring leases • Assistance to brokers with marketing their properties • Outreach to property owners and real estate brokers concerning vacant properties and potential tenants • Business incentives currently being developed and other incentives as directed by the City Council Economic Development and Marketing staff are also working on developing an economic development marketing plan that will include elements of the BRE and incentive programs and will be rolled out after the completion of the business survey process. Staff Report Draft Business Retention and Expansion Program Page 3of3 June 27, 2019 Fiscal Analvsis Staff estimates the cost of conducting the survey will be approximately $2,500 for the design, printing, and mailing of the postcard and the online hosting of the survey. Funds are available in Account No. 1104430-4361000. Additional BRE Plan costs will be determined after the completion of the business survey. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER N/A t)et MooreRobert W. Martin Alvarez OLauri Aylaian Hargreaves Director of Economic Director of Finance City Manager City Attorney Development ATTACHMENT: Draft 2019 Business Retention and Expansion Plan CITY OF PALM DESERT BUSINESS RETENTION AND EXPANSION PLAN 2019 T 2019 Business Retention and Expansion Plan Table of Contents I. Executive Summary 3 II. City Staff Ombudsman Services 4 III. Palm Desert Business Resource Center 5 IV. Business Outreach 7 V. Palm Desert Business Survey 8 VI. DRAFT Survey 9 VII. Implementation Timeline 11 2 I. EXECUTIVE SUMMARY The City of Palm Desert currently has approximately 3,900 businesses within its city limits. At present, the City does not have a formalized Business Retention and Expansion Plan (BRE) to address how to best support its businesses. The plan details how the City can be a resource to its businesses and assist them to be sustainable and expand. The Plan also addresses how to assist new businesses to locate in Palm Desert and navigate the inspection, permitting, licensing, and approval processes. Key aspects of the BRE Plan: • City staff ombudsman services to existing and new businesses for general issues as well as assistance with permitting. • Online resource center with links and information on local, regional, state, and national incentive programs. • Implementation of a business survey, • Survey follow-up and in person meetings with businesses. • City sponsored or co -sponsored training programs for Palm Desert businesses. ■ Creation of collateral materials to help market Palm Desert as a business friendly community. • Redesign of the City's Economic Development website. Key goals of the BRE Plan: ■ Gain a thorough understanding of how Palm Desert businesses view the local economy. • Determine businesses' future plans (i.e. expansion and/or relocation), and set up a system for action, if necessary. ■ Acquaint business leaders with assistance available through various economic development programs. • Identify training and technical assistance needs. • Improve communication between the City and its business community. • Identify the specific concerns of and problems for local businesses and provide effective solutions. ■ Maintain and expand existing Palm Desert businesses. • Recruit new businesses to Palm Desert. • Increase the community's viable workforce. 3 II. City Staff Ombudsman Services The Business Advocate has been tasked with assisting Palm Desert businesses with locating, remaining, expanding, and succeeding in Palm Desert. This task will be completed through the following steps: • Conduct business outreach to new and potential businesses to determine their needs. • Assist businesses with permitting, licensing, and inspection processes. • Seek out, listen, and respond to existing and new businesses' needs. ■ Conduct research as necessary. • Ensure that new and existing businesses are aware of the City's incentive programs as they pertain to their particular industry and/or needs. • Act as a liaison between businesses and City departments to assist in the inspection and permitting process. • Identify business sectors that are struggling and determine how to assist them. • Conduct ongoing visits to new and existing businesses. • Work with real estate professionals to track and assist with filling vacancies. • Act as staff liaison to the Palm Desert Area Chamber of Commerce. • Attend Coachella Valley Economic Partnership board meetings. • Attend business training opportunities. In III. Palm Desert Business Resource Center Online Resources Staff is compiling a list of resources for Palm Desert businesses to be placed on the Economic Development section of the City's website (www.cityofpalmdesert.org). These resources will primarily consist of links to local, regional, state, and federal organizations that offer incentive and business related education. Sample resources include the following- • Coachella Valley SCORE ■ Coachella Valley Small Business Development Center • Riverside County Department of Economic Development ■ US Economic Development Administration • Coachella Valley Women's Business Center • Key City of Palm Desert staff members • Links to appropriate pages on the City's website (i.e. Business Licenses, Planning, etc.) ■ Utility company incentive programs • Loopnet links to key available properties • Highlights of upcoming Palm Desert projects • Trainings and classes offered locally Educational Opportunities In addition to offering links to online business resources, the Resource Center will provide in person or online business training opportunities. The subject matter of the trainings will be based an the needs identified in the completed BRE surveys. Once the surveys have been received and evaluated, staff will work with internal and outside agencies such as the local institutions of higher learning, Coachella Valley Economic Partnership, Coachella Valley Small Business Development Center, and others to connect businesses with existing training or to develop new training. These trainings would be offered free of charge or at a minimal cost. If the cost of the trainings is prohibitive to businesses, the City could explore developing a tuition assistance program for Palm Desert businesses. A sampling of examples of potential trainings are: • Bookkeeping • Hiring effective employees • Employment tax codes • Customer service • Public relations • Traditional and social media marketing ■ How to purchase or sell a business S Additionally, the survey will help to identify what educational programs would be beneficial to the community and could potentially be programed at local institutions of higher learning and trade schools. Newsletter/Digital Create a digital newsletter, use social media (Facebook, Linkedln, etc.), or the Bright5ide to disseminate the following types of information: • Business development events including job fairs • Trainings and education opportunities • Networking opportunities • Business development based articles ■ Incentives • Resources • Business section or "Tip of the Month" in the BrightSide Newsletter M IV. Business Outreach Staff regularly conducts business outreach and will continue to do so in an expanded manner including the following: • Track expiring leases and conduct related outreach • Track tenant improvements ■ Attend ribbon cuttings for Palm Desert businesses ■ Conduct in person visits to new businesses and those that are facing challenges • Develop a regular meeting with real estate brokers and representatives from key City departments • Work with the real estate and property management communities to keep abreast of the City's business climate ■ Work with the Palm Desert Area Chamber of Commerce on its business forum • Outreach to property owners concerning vacant properties • Contact businesses whose leases are ending within the next year/six months • Contact owners and/or contractors who are working on Tenant Improvements offering ombudsman services V. Palm Desert Business Survey The purpose of the Business Survey is to gain a more comprehensive understanding of Palm Desert businesses to better serve their needs and offer the appropriate support, resources, and incentives. The survey will be sent via regular mail, and where possible via email, to all businesses within the city limits. Businesses will be given the opportunity to take the survey on paper or online. Part of the survey will include an opportunity for businesses to meet, either in a group or one-on-one, with Economic Development staff to provide the City with more detailed information about their business. Surveys will be tailored geographically to include additional questions specific to the needs of El Paseo businesses. Once the surveys are distributed, staff will select a cross-section of businesses for outreach to encourage completion of the survey. Staff will also work with the Palm Desert Area Chamber of Commerce (PDACC) and other regional entities for assistance with survey distribution and participations. In addition to distributing the survey, staff will directly contact business representatives on the board of the PDACC, El Paseo BID Board, and others to conduct one-on-one and group interviews about their business needs. Once all of the surveys and interviews are completed, staff will create a report that includes the survey results and use the data to determine what new programs need to be created and how existing programs should to be adjusted or augmented. M. VI. Draft Survey Palm Desert Business Survey Business Name Contact Email Phone Address 1. In what industry is your business? a. Hospitality and leisure b. Real Estate c. Retail d. Banking/Finance e. Professional Services f. Restaurant/Food Service g. Other: 2. When and why did you locate your business in Palm Desert? 3. How much longer do you have on your lease (if you have one)? 4. When your lease expires, will you: — Renew lease —Relocate in Palm Desert —Relocate elsewhere Close/Other 5. How many people are employed at your company? —Full-time —Part-time 6. Are you thinking of expanding within the next 12 months? Yes No 7. What skill sets are you looking for in employees? How can the City of Palm Desert assist with these needs? 8. What potential City financial incentives would be helpful to you (circle all that apply)? a. Tax rebates b. Infrastructure c. Retention basins d. Grease traps e. Fagade enhancement f. Interior enhancements g. Signage h. Parking i. Other: 9. How do you promote your business? 10, Is there anything else you would like the City of Palm Desert to know? Contact Deborah S. Glickman at 760-776-6441 or dglickman@cityofpalmdesert.org with questions. ir7 Questions for El Paseo Businesses Only A. What are your hours of operation? B. Do you close during the summer? Yes No C. If you close, when and for how long? Contact Deborah S. Glickman, Business Advocate at dglickman@cityofpalmdesert.org or 760-776-6441 with questions. 10 Vill. BRE Implementation Timeline June 2019 July 2019 July — September 2019 September — October 2019 October — November 2019 November 2019 City Council review of BRE Plan Finalize and distribute Business Survey Receive completed Business Surveys Conduct Survey follow-up interviews Develop strategies for next steps Implementation of BRE program 11