Regional Approaches to Economic Development Strategic Planning (2012) by Frank Hanna

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Strategic Planning

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city & regional planning

by frank hanna city & regional planning june 2012

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regional approaches

Regional Approaches to

economic development downtown monterey

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â&#x20AC;&#x2DC;12 Frank Hanna city & regional planning california polytechnic state university san luis obispo june 2012

Introduction

Regional Context

regional profiling strategic planning

regional organizations the Monterey Bay Area

co nte nt s

regional approaches

Case Studies

Findings & Conclusions

Appendix

Portland, OR San Ramon, CA San Luis Obispo, CA

recommendations works cited

â&#x20AC;&#x153;State of the Regionâ&#x20AC;?2011 interview summaries

monterey county

I ntr o d uction

regional approaches

Chapter One

Profiles & Strategy

i n t r o d u c t i o n E

conomic issues are frequently at the forefront of community

While most economic strategic plans are developed for cities, successful

development and are often the deciding factor in planning efforts.

economic strategies often require regional coordination. Effective economic

If there are no funds, planning may take a backseat to more pressing

development requires a keen understanding of the city’s, county’s, and

economic issues. Strategies targeted at the particular concerns and needs

region’s current and future socioeconomic conditions. Therefore, analyzing

of a community are necessary for effective local decision-making related

existing conditions and profiling the socioeconomic conditions of a

to economic development. With increasing frequency, city planners are

region—preparation of a regional profile—are frequently necessary for

engaged in the creation of economic development strategic plans to

effective local decision-making and planning.

develop a clear statement of local economic goals. Economic development strategic plans are action-oriented in their approach as they build strategies to map an explicit path between present economic conditions and a vision for the future. These plans are becoming increasingly important as planners adapt to today’s complex and fluctuating economic conditions. Economic development strategic plans help planners facilitate economic health by prioritizing urgent economic issues and developing actions to allocate needed, and often limited, resources. From driving economics to developing community involvement, strategic planning is a dynamic tool for implementation of policies and the development of actions.

In most cases, the data collection and analysis required for an economic development strategic plan are beyond the resources of individual cities. Gathering regional data can be very time-consuming, and the thorough analysis of the data necessary for economic development can be even more so (Walker, 2009). In addition, because effective strategies for economic development may require a regional approach, and these approaches may require the collaboration of several cities, cities are not necessarily the appropriate agencies to lead such efforts. Regional associations of government, then, can play an important role in providing the regional context and approach to economic development that many small

In the development of any urban planning objective, policy, or strategy

communities need. The Association of Monterey Bay Area Governments

it is always crucial to understand the context in which you are planning.

(AMBAG) is one such regional association. Currently, AMBAG does not have

Understanding the complexities of any planning region will allow for more

an economic development strategic plan.

succinct and coherent decisions to be made. This idea holds true for economic planning. For example, to attract developers, business owners, and new residents to a city, planners must fully understand both downtown and regional markets and economic dynamics.

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The purpose of this project was to recommend an approach to economic development strategic planning for the Association of Monterey Bay Area Governments (AMBAG). To do this, three steps were completed: 1. A review of the literature on strategic planning, and, more specifically, economic development strategic planning (the remainder of this chapter, Chapter 1). The economic strategic planning process review looks at economic strategic planning in a regional context and emphasizes the need for more collaborative regional economic planning efforts.; 2. A review of the existing conditions in the region—a Regional Profile

regional economic approaches

Regional Profiling for Economic Development Regional profiles provide current and historical demographic, socioeconomic, housing, transportation and education data, gathered from a variety of sources. These profiles have great value to municipalities and the larger region they represent. The information they provide helps identify current trends, which assist local governments with community planning and outreach efforts. Demographic profiles are a valuable in many aspects of local government development:

(Chapter 2 and, for the full version, Appendix A). Through the development

• Community planning and outreach

of a Regional Profile for the Association of Monterey Bay Area Governments

• Visioning initiatives

(Appendix A), key issues economic issues were identified for the Monterey

• Grant applications

Bay Area. To aid in identifying these issues, a brief analysis of the region’s

• Marketing and promoting a community

economic opportunities and challenges were developed.;

• Assessing and guiding economic conditions

3. A case study analysis of three economic development strategic plans

One key aspect of using regional profiles is their potential to aide in

(Chapter 3). The three strategic plans/processes reviewed were: Portland

economic development. Companies looking for new areas to expand or

Economic Development Strategy, 2009; City of San Ramon: Economic

relocate can use regional information to guide decisions to relocate to

Development Strategic Plan, 2011; The City of San Luis Obispo: Economic

take advantage of available markets. More importantly, these profiles

Development Strategic Plan, 2012. While these were not regional economic

identify local economic opportunities and challenges, ultimately leading

plans, they provided several useful approaches to an economic development

to strategies to meet these challenges. Regional profiles set the stage for

strategic planning process that can be used at a regional level. This is

creating focused planning objectives and actions that strengthen local

discussed more in Chapter 3.

economic development.

The document concludes with recommendations for effective approaches to regional economic strategic planning and specific economic recommendations for the AMBAG region.

What is a Strategic Plan?

Following a potential wide-range of application, strategic plans have great

According to the California Department of Finance, “A strategic plan is

number of local government concerns including, but not limited to, the

a practical action-oriented guide, based on an examination of internal

following:

value in proactive city and regional planning. Strategic plans can cover a

and external factors, which directs goal-setting and resource allocation

• A healthy environment

to achieve meaningful results over time” (Department of Finance, 1998).

• Culture, arts & recreation development

Strategic plans develop a clear statement of an agency’s mission and vision,

• Educational success

identify a set of goals and objectives, and formulate key strategies that

• Public safety

address those factors that are essential to the agency’s success. Strategic

• Government efficiency

planning helps an entity ask four basic questions:

• Economic development

• Where are we now? • Where do we want to be? • How do we get there? • How do we measure our progress?

Strategic planning is a continuous process that requires constant feedback about how the current strategies are working (Dusenbury, 2000). An important aspect of strategic planning to take note of is its function as a living document. Too often, public-sector strategic planning is an event—or worse, just a document sitting on a shelf. To be successful, these plans need constant feedback on how current strategies are working, and what can be done to improve them. In a report completed by the Urban Institute in the Fall of 2000, strategic planning’s effectiveness was examined in conjunction with systems of performance measurement. The report looked at a variety of strategic plans ranging from watershed and pollution strategies to transportation and maintenance strategies. The findings of this report illustrate the potential effectiveness of strategic plans when coupled with solid methods of performance measurement.

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Through case study investigation the Urban Institute report deduced that

postponing response to the real impacts of economic has proven to have

“the model of integrated strategic planning and performance measurement

substantial negative impacts in terms of the basic services cities provide and

not only improves management. Once in place, it is also the foundation for

the health of local economies. It is all too often that government officials’

implementing results-based budgeting, contracting, and human resource

become rooted in responding to change after the fact, rather than seeking

management. For [an entity] determined to get results, integrating strategic

to plan ahead. These traditional planning practices of managing change

planning and performance measurement is step one” (Dusenbury, 2000).

reactively have often shown themselves to be ineffective and obsolete

Strategic planning is an effective tool when correctly implemented with a

(Fulton & Shigley, 2005).

plan for measuring its proposed actions’ performance.

Strategic planning, at its best, encourages the local community to think strategically about itself, its assets and liabilities, where it wants to go, and

Strategic Planning for Econom ic Development Economic fluctuations have a profound impact on our cities, communities, and regions. The global economy is currently experience prolonged problems and recovery across the United States has been uneven and constrained by tight financial markets. When banks do not lend to small and medium sized businesses, these businesses cannot make needed capital investments, launch building projects, or expand production. Without access to capital, the economy cannot recover. While the recession officially lasted from December 2007 to June 2009, economic conditions in the U.S. and California have yet to significantly improve (Next 10, 2012). In California, these difficulties compound the economic stress placed upon cities with the passage of Proposition 13 in the 1970s and the subsequent loss of significant property tax recessions. For local governments, resources continue to be stretched thin as funding is increasingly scarce. Public officials’ abilities to adapt to this new environment directly influence the lives of residents. Adapting to these changes is not without cost, but

what steps it must take to get there. Strategic planning has been widely accepted in the business community as a dynamic management tool. Private entities have used strategic planning to streamline incremental business success and cultivate an active approach to companies’ futures. Strategic planning’s application in the more public context of local government is becoming increasingly common (Kaufman & Jacobs, 1987). Resource scarcity and service demands place public organizations under great pressure to apply better planning techniques. The history of public planning is full of stories of over-expectation, underestimation of costs, and disillusionment; simple, inexpensive solutions to highly complex problems have claimed its share of victims. Strategic Planning helps temper the intricacies of decision-making and has proven to be an invaluable tool for urban planning.

Aspects like employment statistics, retail sales data, and economic

1. S can the environment.

growth projections, in effect, are the foundation for guiding strategies to

2. S elect key issues.

address local economic challenges. This initial analysis can come in the form of “needs assessment” or opportunities and challenges analysis. This

3. S et mission statements or broad goals.

initial analysis helps identify key issues and narrows and focus the goals

4. U ndertake external and internal analyses.

and objectives of the plan. Working with the plan sponsors and other stakeholders to help identify the important issues is essential. The type of

5. D evelop goals, objectives, and strategies with respect to each issue.

information developed through initial socioeconomic analysis should be

6. D evelop an implementation plan to carry out strategic actions.

linked directly to the specific issues that will be addressed in the economic plan and supplemented by analysis and identification of key issues. Of

7. M onitor, update, and scan.

course, data gathering and analysis can be a resource-intensive process.

These steps in strategic planning are straightforward and can be effective

Because of this, it is important at the beginning of any planning project to

in many different applications. (Indeed, these steps mirror good planning

determine the information that is critical to the plan.

processes. The first step—scanning the environment—is much like the first step in comprehensive planning—preparation of the community profile. In

The Process of Econom ic Strategic Planning

a time of widespread fiscal constraint, economic strategic planning offers

Strategic planning is not different from well-developed and effective

facilitation, communication, analysis of secondary data, and forecasting.

community planning; it is different in emphasis, but not different in kind

Bearing this in mind, effective economic strategies can involve complex

(Kaufman & Jacobs, 1987). Recognizing that variations are possible in the

economic assessment with which planners have varying experience.

sequencing of, time spent in, and analytic

Involving economic specialists early on can help identify appropriate

depth devoted to each phase of the

strategies for a respective population.

strategic planning process, the following are essentially the basic steps in strategic planning at the community level:

significant opportunities for public planners. Planners are already well exposed to its concepts and techniques, and it makes use of their skills in

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Modern planning requires strategy that is at the same time more flexible

commerce organizations, economic development corporations, and

and responsive to the environment surrounding it (Eadie, 1983). While

regional planning associations could help give the plan collective

comprehensive planning is an important and required activity for California

community support leading to a more successful planning effort.

cities, strategic planning can have a much narrower focus, serving both to provide vision and as implementation plan to achieve specific targets or objectives within a community. It is through this narrower approach that near-term payoffs from strategic planning are possible. In addition, the immediate benefits of strategic planning may be an important way of building strong support for such a planning effort. Narrower project-like applications are also more manageable, helping a public organization take â&#x20AC;&#x153;chewable bites of a highly complex and demanding processâ&#x20AC;? (Eadie, 1983).

Participation A distinction between corporate strategic planning and community strategic planning is that community strategic planning broadens the basis of participation. Shifting away from traditional planning practice, advocate and progressive planners stress the need to bring people into the planning process who, by design or practice, have not participated (Kaufman & Jacobs, 1987). By seeking to include all community stakeholders in the planning process, more insightful and responsive planning will help communities thrive. Greater participation of selected segments of the community can be emphasized by the proponents of community-based economic development strategic planning. Involvement from various local groups such as the private business community, non-profits, labor organizations,

cannery row . monterey

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Chapter Two

Regional Context

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e c o n o m i c s

Regional Roles in Econom ic Development

local governments work within. Economic development concerns (e.g.

The impacts of regional policy on economic development are inherently

efforts. The following regional planning agencies have developed regional

dynamic. Numerous studies, many prompted by the consideration of city

economic policies and can serve as great examples of these types of

and county governments merging to create metropolitan governments,

regional economic planning efforts:

unemployment, workforce skills, industry development) are no exception to this, and can be more effectively resolved by collective regional planning

have concluded that a strong and direct link exists between downtowns and their regional economies (Walker, 2009). In the past half century, regional planning organizations, such as Council of Governments (COGs) and Metropolitan Planning Organizations (MPOs), have directly impacted local decision-making. From air quality to waste management, COGs and MPOs have implemented strategies that strengthen their region’s unique environment, economy, and culture. Regional policies set the stage for effective local planning.

S a n D i e g o A s s o c i a t i o n o f G o ve r n m e n t s An example of a regional agency with noteworthy influence on its jurisdiction is the San Diego Association of Governments (SANDAG). SANDAG is the region’s MPO and serves as a forum for regional decisionmaking and looks to build consensus, make strategic plans, obtains and allocates resources, and provides information on a broad range of topics pertinent to the region’s quality of life. SANDAG also evaluates, monitors,

Planning problems do not begin and end at city lines. In an international

and reports on issues affecting the fiscal stability and economic prosperity

context, crisis in Europe has affected the U.S. economy by acting as a drag

of San Diego region. In 2008, SANDAG developed the “San Diego Regional

on our exports, weighing on business and consumer confidence, and

Economic Prosperity Strategy.” This strategic plan provides a framework

pressuring U.S. financial markets and institutions. Almost all planning

for evaluating the region’s economic health by benchmarking their own

problems extend beyond city or county boundaries. Beyond economics, the

region against 24 others, as well as broader statewide and national trends.

intricacies in planning for issues like air pollution or traffic congestion are

Using information from a regional demographic profile, the process gave

ones that cannot be resolved on a city-by-

the region a way of measuring economic progress and trends to solve

city basis (Fulton & Shigley, 2005). Planning

recognized challenges. This document is a compelling example of the

problems are regional in nature, and regional

purpose and advantages behind regional economic planning.

planning agencies oversee and influence the larger context of planning solutions, which influence the context in which

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S a n Lu i s O b i s p o Co u n c i l o f G o ve r n m e n t s The San Luis Obispo Council of Governments (SLOCOG) also makes use of regional economic data in guiding local economic strategy. SLOCOG is an association of local governments in the San Luis Obispo County Region. The central purpose of SLOCOG is to examine common regional problems and suggest solutions. SLOCOG is also the region’s designated Regional Transportation Planning Agency, Metropolitan Planning Organization, Regional Census Data Affiliate, and Service Authority for Freeways and Expressways. In their “2035 Long Range Socio-Economic Projections,” SLCOG projected the future economic growth of the region. Not only did it give the region a means of quantifying the challenges the region faces, it gave local governments a means of adapting or avoiding future economic adversity.

E c o n o m i c Vi t a l i t y Co r p o r a t i o n The Economic Vitality Corporation (EVC) is a regional non-profit, economic development organization in San Luis Obispo County. Like other economic development corporations, the EVC’s mission is to stimulate the economic vitality of the region, generate jobs, and increase investment in the community. In 2010, the EVC developed a regional economic strategy that was the first-ever public/private partnership to provide an in-depth assessment of, and strategies for, San Luis Obispo county’s economy. The project will develop a strategy to create more long-term prosperity for our local economy. Driven by the business community, companies from key business sectors were gathered for their input. This document serves as a prime example of an inclusive and useful regional economic development strategy.

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Regional Economics & Association of Monterey Bay Area Governments Economic prosperity is one of the major challenges for both public and private sector leaders anywhere. Economic development, such as air quality or traffic congestion, has a regional context. Regional agencies play a big role in evaluating, monitoring, and reporting on the issues affecting the fiscal stability and economic prosperity of a region. Using these analyses to explore the economic impacts of a regional community on a local community sets the stage for a more economically stable region. Economic problems are often regional in nature, but planning solutions have seemingly been tied to the parochial boundaries of local government jurisdictions (Fulton, 2005). Regional agencies, through regional analyses and inclusive policy guidance, can support astute planning approaches in local economies. The Association of Monterey Bay Area Governments, or AMBAG, is a regional planning organization that consists of representation from a large number of public agencies within Monterey County, Santa Cruz County and San Benito County, California. AMBAG serves as both a federally designated Metropolitan Planning Organization and Council of Governments. AMBAG has a broad charter of research and governmental oversight for a variety of functions, including elements of land planning, natural resource conservation, energy, transportation and economic development.

Among its many duties, AMBAG manages the region’s transportation

The “State of the Region” report covers a variety of topics and looks at an

demand model and prepares regional housing, population and employment

assortment of data that makes up a concise yet thorough regional profile.

forecast that are utilized in a variety of regional plans. AMBAG greatly

The report comprises the following:

influences the planning efforts of local governments.

• Regional Profile (Summary)

Regional Analysis & Planning Services, Inc. (RAPS), a non-profit corporation

• Economics

chartered by the Association of Monterey Bay Area Governments in 1991,

• Education

prepares an annual report titled “State of the Region,” which plays a role

• Broadband Access

in the analysis of the region’s economic strengths and weaknesses. The

• Health & Public Safety

2010-2011 RAPS “State of the Region” report (Appendix A) looks to identify

• Transportation

and analyze the region’s most pressing challenges. As local governments’

• Environment

resources are stretched thin, the impacts of regional reports on local

Because of this report’s economic focus, the “State of the Region” report’s

planning efforts will become increasingly evident as their guidance will help

economic analysis is summarized in the following section. The complete

develop economic policy action. The 2011 “State of the Region” document

report can be found in Appendix A.

was developed in conjunction with this report to serve as a foundational basis for the aforementioned initial step in strategic planning of “scanning

M o n t e r e y B ay A r e a E c o n o m i c s

the environment.” This report uses the “State of the Region” document to

The impact of the extended economic recession is reflected in many

identify key issues, as well as challenges and opportunities, as an illustration

aspects of the AMBAG region’s business climate. Per capita income declined

of the basic steps in strategic planning at the community level. The initial

along with employment in most sectors, while the cost of living and doing

steps in any strategic planning effort include scanning the environment and

business remained high. Nonetheless, the tri-county AMBAG region remains

selecting key issues, respectively.

an economically diverse destination.

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The “State of the Region” report’s economic findings are as follows: Employment Changes by Industry The top four industries in the AMBAG region consist of the following sectors: agriculture, accommodation/food services, retail trade, and health care.

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Of the counties within the AMBAG region, Santa Cruz County had the largest GRP, totaling approximately $26.1 billion. Santa Cruz County also led all Counties in both earnings and exports, distinguishing it as a chief economy within the AMBAG region.

Agricultural employment accounts for nearly double the jobs as the second

Tourism-Related Jobs & Spending

leading industry, accommodation and food services.

Tourism-related spending considers spending on accommodations, food,

From 2001-2011, the most regional employment growth was seen in the

recreation, retail products, and travel arrangements, as well as tax revenue

Professional, Scientific, and Technical Services job sector, which saw an

generated within the tri-county region by visitor spending.

overall increase of 400 jobs. Other leading industries for job sector growth

Visitors traveling to the area for recreation and business generate revenue

included retail trade, manufacturing, and service jobs. Agricultural Employment Agriculture is a major industry in the AMBAG region, accounting for approximately 61,000 jobs in 2010. With nearly 47,000 employees, Monterey County lead the tri-county area in agriculture industry employees, follow by

and jobs for the local economy. Tourism is one of the leading industries in the region, accounting for 15 percent of the county’s employment. Hotels, shops, restaurants, and entertainment venues rely on the tourism market for a significant percentage of their business. Between 2008 and 2009 tourism-related spending dropped in all counties.

Santa Cruz and San Benito Counties with 10,000 and 4,000 agriculture jobs

Monterey County, the largest tourism-related economy in the region, saw a

respectively.

decrease in tourism-related spending of approximately $100 million, going

Gross Regional Product The gross regional product (GRP) measures the market value of all goods and services produced within a specific area. This is a common indicator of the size of an area’s economy.

from a total of $2.1 to $2.0 billion. Santa Cruz County saw a similar drop of nearly seven percent in spending from $649.6 million to $605.8 million. Monterey County has the largest number of tourism-related employees in the tri-county region, employing approximately 21,500 people in 2009. Tourism-related employment in the region has generally decreased since 2006, losing approximately 1,600 employees through 2009.

The drop in tourism-related spending can be seen in the dollars taken in by

The largest change is expected in Monterey County with an estimated

Counties through the Transient Occupancy Tax (TOT). The TOT is charged in

employment increase of approximately16,100 jobs, followed by Santa Cruz

California when occupying rooms or other living spaces in a hotel or other

County with an expected increase of 10,300 jobs.

lodging.

Farm employment, which makes up about 23 percent of Monterey

From 2009 and 2010, Monterey County saw a drop of approximately $1.8

County’s total employment in 2008, is expected to grow by 13.2 percent.

million in TOT receipts, going from a total of $41.4 million to $39.6 million.

Approximately 11 percent of California’s total farm employment is in

The trend of declining TOT dollars can be seen in all counties within the

Monterey County.

AMBAG region.

Per Capita Income

Retail Sales & Employment

Of the three counties in the AMBAG region, Santa Cruz County residents

The AMBAG region had roughly $8.6 billion in retail sales in 2007. Monterey County had the highest percentage of the total, accounting for over $4.5 billion in retail sales in 2007. Santa Cruz County had just over $3.7 billion in sales while San Benito County sold approximately $353 million in 2007. Total retail sales reflect the total retail related employment in the counties where Monterey County had approximately 15,367 jobs in 2010, followed by Santa Cruz and San Benito County with 11,767 and 1,662 employees respectively.

have the highest average monthly income of approximately $3,700, followed by Monterey and San Benito Counties with incomes of $3,500 and $3,400 respectively. A high per capita income for tri-county residents is crucial in the context of the county’s high housing costs. In addition, a higher relative per capita income signals greater discretionary income for the purchase of goods and services. Cost of Living

Forecasted Employment Opportunities Based on employment projections from the California Employment Development Department the tri-county region is expected to gain approximately 30,000 jobs between 2008 and 2018.

The cost of living index is based on a US average of 100. Subsequently, a cost of living index above 100 indicates that the area is generally more expensive to live in than other areas of the country. Of the three counties in the Monterey Bay Area, Santa Cruz County has the most expensive cost of living with an index score of approximately 171, while Monterey County is the least expensive with a score of approximately 148. The Monterey Bay Area is a relatively expensive place to live.

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Housing Affordability Index The California Association of Realtors® Traditional Housing Affordability Index (HAI) measures the percentage of households that can afford to purchase the median priced home within their respective counties. The HAI is considered a primary measure of housing well-being for buyers in the state. In 2011, approximately 34 percent of households in Santa Cruz County and 57 percent of households in Monterey County could afford to purchase a median priced home within their County. Both Monterey and Santa Cruz Counties saw an increase in housing affordability between 2010 and 2011, where affordability rose approximately seven percent in Santa Cruz County and one percent in Monterey County. HAI data on San Benito County is not available for this time period. H+T Affordability Index

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is the most affordable area in the tri-county region with an average of 47.5 percent of household incomes going towards H+T. By the definition of affordable being 45 percent or less of a household’s income going towards H+T costs, the Monterey Bay Area average of approximately 53.4 percent can characterize the region as difficult to afford. Median Monthly Rental Prices Of the counties within the AMBAG region, Santa Cruz has the highest median monthly rental prices at $1,280. Monterey and San Benito Counties do not differ significantly since their median monthly rental costs are $1,126 and $1,183 respectively. The only area within the tri-county region with a median monthly rent price below the California average of $1,163 is San Benito County. Bearing in mind that no more than 30 percent of household income should

The housing and transportation affordability index (H+T®) can be

be spent on housing, hourly wages necessary to afford median monthly

considered a more complete measure of affordability beyond the standard

rental prices within the tri-county area were calculated using a conventional

method of assessing only housing costs.

160-hour work month.

By taking into account both the cost of housing as well as the cost of

San Benito County had an affordable hourly wage below the California

transportation associated with the location of the home, H+T provides a

average. San Benito County residents also have the lowest average monthly

more complete understanding of affordability. Housing alone is traditionally

income within the AMBAG region. Santa Cruz County, on average, has the

deemed affordable when consuming no more than 30 percent of income.

most expensive housing within the region.

The affordable range for H+T is no more than 45 percent of a household’s income. Monterey County has the highest percentage of income per household going towards housing and transportation, at 57.5 percent. Based on housing and transportation expenses per household, San Benito County

evident across the country, affecting most areas. The least affected of areas within the AMBAG region was Santa Cruz County. Santa Cruz County saw an increase to nearly 14 foreclosures per month in 2008 from about 3 per month the year before. This increase is much less than the monthly foreclosures increases seen in Monterey and San Benito Counties. Each saw an increase to over 40 foreclosures per month in 2008, from under 15 foreclosures per month in 2007, with San Benito County reaching an average of 46 foreclosures for the year. The region has seen a steady decrease since 2008, and in 2011 Monterey and San Benito Counties had declined to averages of 17.5 and 19.8 foreclosures per month, respectively.

Figure 1: Opportunities and Challenges Criteria Examples, Adapted from: City of San Luis Obispo, â&#x20AC;&#x153;SWOT Analysis Template,â&#x20AC;? 2011 .

Home Value, Sales and Foreclosures Between 2007 and 2009, counties within the AMBAG region saw a dramatic increase in home foreclosures. This followed a national trend of foreclosure increase, which was

Regional Economic Opportunitie s & Challenges The AMBAG region faces a situation where the opportunities exceed the available resources to invest, so a thoughtful and proactive strategy is even more critical than ever.

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An analysis of economic development opportunities and challenges

In San Benito County, proximity to Silicon Valley creates opportunities for

includes key findings about the aspects of the area which make it attractive

economic development, but it also represents a major challenge. Since

and favorable for various industries and employers, as well as identifiable

1992 Silicon Valley has created 250,000 jobs, but only 50,000 housing units,

problems and shortcomings. For a region such as the Monterey Bay Area,

according to the Silicon Valley Leadership Group, resulting in high real

identifying these strengths and weaknesses can help in crafting a new

estate prices in the Silicon Valley. The relatively inexpensive land in San

economic development strategy.

Benito County has created pressures for the County to serve as a bedroom

An opportunities and challenges analysis should do the following (Alexander, Yeung, Ozawa, & Tennant, 2011):

community for workers on the Silicon Valley. At the same time, attracting high-tech and high-wage jobs to San Benito County is a challenge with the competition from surrounding counties in the Monterey Bay Area and

• Reinforce and leverage existing strengths

beyond. The County can develop policies and incentives to encourage

• Compensate or overcome existing weaknesses

companies with high paying jobs to locate within the County.

• Identify and exploit future opportunities • Foresee and mitigate future challenges

The Monterey Bay Area has many assets and opportunities that could be important sources of future economic competitive advantage. These

To inform the recommendations for economic development in the

advantages will help the region attract businesses to the area, as well as

AMBAG region, an opportunities and challenges analysis was developed.

sustain the health of existing firms and promote the creation of innovative

This analysis was based on the 2011 AMBAG “State of the Region Report”

new start-up firms (Alexander, Yeung, Ozawa, & Tennant, 2011).

(Appendix A), and supplemental opportunities and challenges reports from

Historically, San Benito County has the highest unemployment rates in

local jurisdictions.

the region because of its limited economic diversification. Unemployment

The Monterey Bay Area has a number of strengths, and many opportunities

strains individuals, county government, and the regions which are

enabled by those strengths. Clearly, the physical environment and scenery

responsible for providing unemployment and welfare services and support.

play a role in the region’s historic advantages in agriculture and tourism.

Unemployment can also lead to mortgage defaults, bankruptcy, job skill

There is also a strong intellectual infrastructure around its universities and

loss, and homelessness. The current national economic downtown has

research institutes, which can be better integrated with the local economy

contributed greatly to unemployment in both San Benito County and the

(Alexander, Yeung, Ozawa, & Tennant, 2011). Along with these strengths or

region, and it will take years to completely recover.

opportunities are a set of constraints on economic growth that should be addressed.

Key Opportunities: Co m m e r c i a l S i t e s a n d Co r r i d o r s Developing key commercial sites and corridors provides an important opportunity for economic growth in the region. The region has the benefit of being located along a few major regional thoroughfares: US 101, 1 running north/south and SRs 152, 156 running east/west. Caltrans is currently (2010) planning to construct a new freeway interchange along US 101 in San Benito County, very close to the Monterey County border. The completion of this interchange will facilitate commercial development in San Benito County (AECOM, 2010)on the relatively flat portion of the land between US 101 and the hills to the east. While San Benito County has not traditionally seen growth in regional commercial (i.e., freeway oriented) development, this could be an opportunity to capture a larger share of this market. The County has the opportunity to look at appropriate commercial sites and analyze their potential for economic development to strengthen the overall region.

Wi n e I n d u s t r y

Various wine related events continue to attract visitors to the Monterey Bay Area’s wine regions.

To u r i s m The AMBAG region has a strong tourism-based economy, particularly in Monterey and Santa Cruz Counties. San Benito County does not receive nearly as much tourism-related traffic as these others. Strengthening San Benito County’s tourism can be beneficial to the region as a whole. San Benito County has a number of tourism-related opportunities. Because it is adjacent to Monterey County and near the six million plus Bay Area residents, San Benito County has opportunities to expand its tourism sector. San Benito County could benefit from creating destination type tourist attractions. The county’s tourism assets include a beautiful natural setting, the historic town of San Juan Bautista, a growing wine industry and organic farming industry, scenic drives, and several State parks. The agricultural industry is also one of the county’s distinctive features, providing the opportunity to develop and expand agritourism, such as the wine trail.

Challenges:

The region has a long history in the wine industry, especially in Monterey and San Benito Counties. The continued expansion of the wine tourism industry will generate job growth and sales/hotel tax revenue for the County from wineries selling directly to consumers and new tourist accommodations.

The current national and global economic environment presents difficult challenges in pursuing a new region-wide economic strategy, especially in finding resources to make critical long-term investments. This economic crisis also provides a strong rationale for why the region needs a wellcrafted, data-driven economic strategy— to guide the allocation of scarce resources to opportunities with the greatest potential benefits.

r e g io na l co nte xt

regional economic approaches

In an “Asset and Opportunity Identification” report done for Monterey

While the region’s agricultural and tourism sectors continue to generate

County in 2010, it was noted that one of the most significant problems is

significant revenues, there are danger signs that their health and

the lack of collaboration and cooperation among stakeholder groups. The

advantages may be eroding. If the region waits too long to address some

report states that “there are very few incentives present for people to look

of these long-term concerns, it could end up acting too late to make a

beyond their parochial concerns”—referring to local communities, their

difference. As identified and explored in the RAPS “State of the Region

industry, or their interests—and take a broader, county/region-wide view.

Report” (Appendix A), Monterey County is the Economic foundation of the

The current economic situation, with lingering recession and long-term

AMBAG region.

unemployment, should be seen as a motivation. The region faces a situation where the opportunities exceed the available resources to invest, so a thoughtful and proactive strategy is even more critical than ever. The most promising and significant opportunities are those that involve multiple economic sectors and stakeholders working together to create unique capabilities and offerings. The region has been lacking cooperation across multiple jurisdictions, interest groups, and sectors. A region-wide strategy can bring prosperity and opportunity to the broader population. Figure 1 lists key opportunities and challenges to economic development in each of the AMBAG counties. Using insight developed from the “State of the Region” report and supplemental county analysis, the chart outlines aspects to be considered during the development of a regional economic strategy. Many of these weaknesses will require long-term investments, such as improving road capacity and improving the skill level of the workforce. Progress in certain areas will be slowed by the struggles of the larger economic environment. Cutbacks at the state and federal levels of government emphasize the need for investment from local jurisdictions in improving the region.

r e g io na l co nte xt

M o n t e r e y Co u n t y

Opportunities

Challenges

regional economic approaches

S a n B e n i t o Co u n t y

S a n t a C r u z Co u n t y

• Agricultural & tourism industry base • Post-secondary education cluster (CSUMB, MIIS, NPS) • Marine resources & research • Social interest in nature & environment • Need for more sustainable practices in industry and economy • Attracting research funding from the federal government

• Agricultural industry base • Location near multiple freeways and highways • Wine industry • Commercial sites and corridors • Wine industry • Tourism • New Hotels and or Convention Center

• Highest education levels in the region • Highest average income in the region • University of California Santa Cruz • Green energy & construction • Available workforce • Supporting the many small businesses in the area may help develop new jobs • Attracting research funding from the federal government

• Poor transportation infrastructure • Low education attainment • Relatively unskilled workforce • Shortage of career opportunities for mid-skilled workers • Lack of cheap, finished office space for start-ups • Lack of small business loan programs • Changing demographics relative to County’s focus • Expensive to do business in the County • Competition from other regions in core industries • Skilled managerial level workers living in the County tend to work elsewhere • Difficulty of navigating • County regulations and permitting processes

• Jobs/housing balance • Unemployment • Relatively unskilled workforce • Shortage of career opportunities for mid-skilled workers • Competition from other regions in core industries • High unemployment

• Aging workforce • Poor transportation infrastructure • Slow job growth • shortage of career opportunities for mid-skilled workers • Lack of cheap, finished office space for start-ups • Lack of Countywide economic strategy • High unemployment, especially in the South County • Difficulty of navigating County regulations and permitting processes • Expensive to do business in the County

Figure 3: AMBAG Region Economic Opportunities & Challenges Analysis/Examples

Sources: San Benito County General Plan Update Opportunities & Challenges Report, 2010; Economic Opportunities in Monterey County: Asset Inventory and Opportunity Identification, 2011; Santa Cruz County Comprehensive Economic Development Strategy, 2011.

ca se stud ie s

regional economic approaches

Chapter Three

Case Studies

Introduction Regional efforts can utilize examples from more localized economic strategic planning efforts. To serve as illustrations of economic development strategic planning, case studies were conducted. There were three economic development strategic plans selected for concise case study; two currently being implemented and one in the process of being developed. The cases were chosen based on the date of their adoption (2009-Currently in progress) and the size of their respective cities, ranging from small (45,000 residents) to large (575,000 residents). Informal interviews were conducted to gather insight into the challenges, successes, and selling points involved in developing and implementing an economic development strategic plan.

Case study plans and i n t e r v i e we e s : 1. C ity of Portland, Economic Development Strategy Portland, OR Adopted 2009 • Randy Evans, Senior Business Development Manager, Portland Development Commission

2. C ity of San Ramon, Economic Development Strategic Plan San Ramon, CA Adopted 2011 • Marc Fontes, Economic Development Director, City of San Ramon

3. C ity of San Luis Obispo, Economic Development Strategic Plan San Luis Obispo, CA In Progress • Claire Clark, Economic Development Manager, City of San Luis Obispo

Interviewees were directly involved in the development and oversight of their respective plans. They were asked questions that would draw out their perspective on the strengths, weaknesses, constraints, and opportunities involved

in developing these economic strategies. (see Appendix B for full list of questions and responses). The following pages include a summary of findings, the table of contents from each of the three plans, and a synopsis of the three communities’ economic conditions. Based on strategic planning’s use in the public sector and its potential application in the Monterey Bay Area, case studies sought to answer the following fundamental questions: • What value do strategic plans have in local government and their regional context? • What is the significance of community participation to these plans? • What roles regional entities have in the development of these plans? • How long do economic strategic plans in local government typically take to develop? • What are typical challenges in developing economic strategic plans?

M aj o r f in d i n g s fr om this c a se st u d y c a n be su m m a r i ze d a s follow s : Pu r p o s e & A p p r o a c h • The economic downturn played a significant role in creating a need or desire for a more focused approach to economic planning. • The termination of redevelopment funds will reshape the approach cities take to economic development. • A fundamental step in the development of a strategic plan is to gather basic background information on the local market and other economic development factors. • These plans provide and analyze demographic, economic, and retail statistics to guide planning effor ts in addressing the retail market. • Understanding the local economic conditions and using that information is one of the greatest values to creating these strategies. • Municipal plans can focus the attention of regional entities so they can refine their approaches to economic development. • One of the greatest values of economic strategic plans is to focus the distribution of available economic resources.

• You cannot force proper ty owners to make changes to their proper ty, just incentivize the changes. Issues arise when municipalities or regional entities do not have the funding to implement these incentives. • An advisory committee who oversees the implementation and funding of strategies should be developed as par t of the strategic planning process.

Ti m e f r a m e & R e p o r t i n g • It is impor tant to develop metrics for repor ting the progress of the strategic plan and the success individual strategies and implementation programs. • It is impor tant to clearly ar ticulate the purpose of a strategic plan and allocate enough time to develop sound community involvement. It takes time to build that involvement. • An adequate timeframe for developing an economic development strategic plan is 1-2 years. • An advisory or oversight committee should be put in place to repor t on the progress of the strategy. • Government official suppor t in local government is crucial to creating an effective economic strategy. • A few of the benefits of repor ting the progress of these plans in public progress repor ts (e.g. Por tland) are: • Keeps it in the public eye, and within the reach of the stakeholders of the plan

• When economic strategies are “lean” and focused, resources go much fur ther.

• Maintains support for the efforts of the plan by showing its successes and the progress of implementation.

• The strategic plan should remain alive and open for amendment after flaws or new oppor tunities arise.

• Generates further political funding and support and draws in new partners.

Le a d e r s h i p • Planning depar tments should par ticipate in economic development strategic planning because planning since many of their policies guide economic development. • Developing suppor t from, and closely involving, the local business community is crucial to any plan’s success. • One of the benefits of an economic strategic plan is its ability to establish priorities for use of staff time and other resources for economic development objectives.

Outreach • Community involvement is greatly impor tant. • A retail market “panel” can be useful in identifying retail vendors that can be targeted with your proposed strategies.

R e g i o n a l Pe r s p e c t i ve • Regional strategies can, and should, guide local economic strategies. • Regional planning entities play an impor tant role in developing suppor t and success.

case studies Th e C i t y o f Po r t l a n d The City of Portland, Oregon has a population of approximately 585,000, making it the 29th most populous city in the United States. It is Oregon’s most populous city, and the third most populous city in the Pacific Northwest region. Portland is part of a regional economy that grew employment by 12% between 1997 and 2007, the structure of Portland’s economy causes it to be more vulnerable to declines in consumer spending, business investment and international trade than the nation as whole. Employment in the regional economy peaked in May 2008, and over the past 12 months, the regional economy has lost 44,000 jobs—a decline of 4.3%. Portland remains a dynamic center of commerce in Oregon and looks to strengthen and guide its economy in the coming years utilizing a their fiveyear (2009-2013) economic development strategic.

K e y Fi n d i n g s : • When economic strategies are “lean” and focused, resources go much further. Clearly articulating goals, objectives, and strategies can help make economic development strategic effective as resources are stretched thin. • The strategic plan should remain alive and open for amendment after flaws or new opportunities arise. • Government official support in local government is crucial to creating an effective economic strategy.

portland, oregon

Economic development strategy

san portl luis obispo, a nd, orecalifornia gon Table of Contents

Employed: La b o r F orce: 327,415 workers

Th e O p p o r t u n i t y Th e C h a l l e n g e

Me d ia n I ncom e: $48,831

Lagging Growth Inadequate Investment

To p Sector:

Th e G o a l

E d/H ealthcare

“ To build the most sustainable economy in the world”

Ti mefram Impleme nted: e:

Th e S t r a t e g y

2 009

Competitiveness- Objectives, Strategies, Actions Urban Innovation- Objectives, Strategies, Actions Neighborhood Business Vitality- Objectives, Strategies, Actions

Implementation Fu n d i n g P l a n

“A c i t y o f Po r t l a n d ’s s i ze a n d a t t r i b u te s m u s t b e s e l e c t i ve i n h o w i t co m p e te s f o r n e w b u s i n e s s g ro w t h ; l i m i te d

Por tland Annu a l Unemp lo y me n t Rate

e co n o m i c d e ve l o p m e n t re s o u rce s m u s t b e d e p l o ye d i n a m a n n e r t h a t b u i l d s o n

1 2 .0 %

t h e c i t y ’s u n d e n i a b l e s t re n g t h s.” - p. 3

1 0 .0 %

portland unemployment rates 1 0 .4 %

8 .0 % 6 .0 %

1 0 .1 % 8 .0 %

6 .6 %

4 .0 %4 .8 % 2 .0 % 0 .0 % 2007

2008

2009

2010

2011

case studies Th e C i t y o f S a n R a m o n San Ramon is a city in Contra Costa County, California, United States. It is a suburban city of the San Francisco Bay Area, and lies in the San Ramon Valley. San Ramon’s population has an estimated population of 74, 378, making it 4th largest city in Contra Costa County. San Ramon is headquarters of Chevron Corporation and 24-Hour Fitness, the West Coast headquarters of AT&T, as well as home to San Ramon Medical Center. The city of San Ramon is planning a new 40-acre downtown that will include a public plaza, hotel, independent cinema and a mix of residential units plus a new city hall, library, transit center and office space. Due to the economic decline, the start of construction of the new city center has been postponed. San Ramon, like many others, has felt the impacts of the slumping economy and looks to take a more pro-active approach with the development of the Economic Plan.

K e y Fi n d i n g s : • The information gathered from the creation of an economic development strategic plan can lead to a greater understanding of local economics to help guide land use planning. • It is very important to involve property owners and the business community from the inception of the project.

san ramon, California

Economic development strategic plan

san ramon, california T a b l e o f Co n t e n t s Introduction

La b o r F orce:

Purpose of the Economic Development Strategic Plan EDSP Overview

36,893 workers Me d ia n I ncom e:

G o a l A : M a i n t a i n a n d E x p a n d E x i s t i n g Fi r m s a n d At t r a c t N e w E m p l o y e r s To S a n R a m o n

$120,32 6

Strategies Implementation Actions

To p Sector:

G o a l B : M a i n t a i n a n d S t r e n g t h e n S a n R a m o n ' s Fi s c a l Vi t a l i t y

Pro/Management Impleme nted:

Strategies Implementation Actions

2011

Goal C: Maintain and Enhance San Ramon's High Quality Of Life Strategies Implementation Actions

“ Th e P l a n i d e n t i f i e s g o a l s, s t ra te g i e s, a n d

Goal D: Implement Key Planning and Development Projects

i m p l e m e n t a t i o n a c t i o n s f o r t h e C i t y to p u r s u e

Strategies Implementation Actions

a s i t e n a c t s b u s i n e s s re te n t i o n , e x p a n s i o n , a n d

Implementation Plan

a t t ra c t i o n e f f o r t s, s u p p o r t s a f i s ca l l y h e a l t h y g o ve r n m e n t, re a l i ze s ke y d e ve l o p m e n t p ro j e c t s a c ro s s t h e C i t y, a n d m a ke s S a n R a m o n a b e t te r p l a ce to l i ve a n d wo r k . I n a d d i t i o n , t h e E D S P i s t h e p r i m a r y to o l f o r t h e i m p l e m e n t a t i o n o f t h e Eco n o m i c D e ve l o p m e n t E l e m e n t o f t h e C i t y ’s G e n e ra l P l a n , a n d i s re f e re n ce d t h e re i n .” - p. 1

San Ramon Annu a l Unemp lo y me n t Rate

san ramon unemployment rates

1 2 .0 % 1 0 .0 % 8 .0 % 6 .0 % 4 .0 % 2 .0 % 1 .9 % 0 .0 % 2007

4 .2 %

4 .6 %

4 .3 %

2009

2010

2011

2 .5 % 2008

case studies Th e C i t y o f S a n Lu i s O b i s p o The City of San Luis Obispo is located on the Central Coast of California, equidistant between Los Angeles and San Francisco. The City serves as the official County seat, as well as home to California Polytechnic State University (Cal Poly), one of the top-ranked universities in the U.S. San Luis Obispo is the jobs center of the county with a diverse economy representing a variety of industries. Government jobs – including those at Cal Poly – make up a significant portion of local employment as do professional services, health care, and information industries. The city has also has several important clusters of employment in key industry sectors including software developers, green energy companies and specialty manufacturers. In the creation of the City’s economic development strategic plan, an emphasis was placed on building community support through collaborative outreach efforts.

K e y Fi n d i n g s : • Community involvement is the most important part of developing an economic development strategic plan. • A year and a half is a good timeframe for developing one of these plans with an appropriate amount of community involvement. • Regional planning entities, such as county economic development corporations, play an important role in developing support and success.

san luis obispo, California Economic development strategic plan

san luis obispo, california Community Worksh ops

La b o r F orce: 2 4,790 workers Me d ia n I ncom e:

Thursday, March 29

$ 74,239

Topic: The Future of Jobs in SLO

To p Sector:

Thursday, April 19

E d/H ealthcare Impleme ntation:

Topic: A Strong SLO Economy: Green, Innovative, and Resilient

2012, In Progress

Thursday, April 26

Topic: The Economics of Place Thursday, June 21

â&#x20AC;&#x153; I n f o r m a t i o n f ro m s t a ke h o l d e r s, re s i d e n t s, a n d t h e g e n e ra l p u b l i c i s e s s e n t i a l i n c re a t i n g a p l a n t h a t re f l e c t s the needs and expectations of the co m m u n i t y. S u b s t a n t i ve i n te ra c t i o n w i t h s t a ke h o l d e r s e n s u re s t h a t t h e p l a n i s t h o ro u g h , a n d t h a t re co m m e n d a t i o n s a re s u p p o r te d b y co m m u n i t y l e a d e r s, s t a ke h o l d e r s, a n d t h e g e n e ra l p u b l i c .â&#x20AC;?

Topic: Review the draft Strategic Plan

San Luis Obisp o Annu al Unempl o ym e n t Rate 1 2 .0 %

san luis obispo unemployment rates

1 0 .0 % 9 .9 %

8 .0 % 6 .0 % 4 .0 % 4 .7 %

1 0 .9 %

1 0 .2 %

6 .3 %

2 .0 % 0 .0 % 2007

2008

2009

2010

2011

i n v o l v e m e n t San Luis Obispo’s process in developing their economic development strategic plan had a strong focus on involving the community. Four public workshops were held covering a variety of topics in economic development, ranging from “broadband access” to “cultural industries” the outreach events sought to inform residents of the economic possibilities for the City. These outreach events gathed input from members of the community, which included, but was not limited to, the following: residents, business owners, city staff, representatives of regional organizations, labor force organization representatives, representatives of the Chamber of Commerce, consultants, professors, and students. This plan’s emphasis on community involvement will help underwrite support for the plan’s proposed actions and objectives. The proposed five-year economic development strategic plan will recommend strategies to address the City goal of creating more “head-ofhousehold” jobs. As noted by the project consultant, Lisa Wise Consultants (LWC), the development of the plan will include an existing conditions analysis—demographics, resources and partnerships in the community— and examining opportunities and challenges. The Plan will prioritize strategies that are implementable within the fiveyear timeframe and include metrics for measuring the success of each

strategy. LWC is working closely with City Staff to reach key members of the community and incorporate data and findings from previous local economic development work.

August 19, 2012

Photo by

Frank Hanna

san luis obisp o co mmunity o utr e a ch

regional economic planning

Top Left “A St ro ng SL O Economy: Gr een, Innovative, and R e s i l i e n t ,” A u g u s t 1 9 , 2 0 1 2 , P h o t o by Fr an k Han n a Top Center “A Stro ng SLO Economy: Gr een, Innovative, an d R e s i l i e n t ,” A u g u s t 1 9 , 2 0 1 2 , P h ot o b y Fr an k H an n a Far Right “The Economics of Place,” August 26, 201 2, Phot o b y Fr an k H an n a Bottom Left “The Economics of Place,” August 26, 201 2, P h o t o by Fr an k Han n a

san benito county

co nclusion

regional approaches

Chapter Four

Recommendations 43

f i n d i n g s For regional Economic Strategic Planning: Based on findings from case studies, Association of Monterey Bay Area

Build support for the plan

Upon initiating the development of a plan, AMBAG should clearly articulate rationale for the plan’s creation to ensure support for the project.

Governments (AMBAG) regional demographic profile, and analysis of

Describe common and unique needs for member cities

the Monterey Bay area’s economic strengths and weaknesses, a regional

AMBAG has many potential areas to address in the development of an economic

approach to economic development with direct AMBAG oversight is recommended. As posited in this discussion, economic development strategic plans are an excellent tool for effective regional economic development. AMBAG should an economic development strategic plan to

strategy. The region’s three counties have similar & dissimilar characteristics. Further analysis of economic areas with regional importance can help guide the development of subjects, areas, and topics.

formulate and implement regional policy that more effectively addresses

Identify opportunities and challenges

economic development in the region.

Having a detailed grasp on the region’s opportunities and challenges through

Based on case studies and input from interviews, when creating a regional

further in-depth analysis will provide a basis for clear goals and objectives.

economic development strategic plan MPO’s, such as AMBAG, should

Identify strengths and weaknesses and create goals

consider the following:

Further regional strengths and weaknesses analysis can help inform the best goals for the region to pursue. AMBAG has a number of economic opportunities and challenges that can be utilized in developing the foundational objectives of the plan. Identifying the most effective goals for achieving economic stability in the region is crucial for the overall effectiveness of the plan. Schedule adequate timeframe

Findings from case studies indicate that economic development strategic plans take one to two years to complete and should plan for a period of five years. Identifying AMBAG’s needs in regards to the timing of the project is an important step, as clearly developing a reasonable timeframe can help build political support for the project. A 5-year Economic Development Strategic Plan is a

co nclusio n

regional economic planning

reasonable timeframe for the plan to cover and should be adequate to launch

committee to advise the implementation of the economic strategy should be

a regional approach to establishing and maintaining a healthy and sustained

part of the outreach effort.

regional economy.

Take the leadership role

Seek additional funding (grants, general fund)

As regional planning entity, AMBAG should have the responsibility of overseeing

AMBAG, along with most other MPOs or COGs, has a limited budget for funding

the creation of the strategy. Other local entities, such as county governments or

the creation and implementation of a regional economic strategic plan. Seeking

economic development corp.’s, can have specific oversight over select strategies.

available grants for the plan and implementation projects, as well as building

Identifying these groups early in the process is vital to the project’s success.

support from local business councils should increase the plan’s efficacy.

Describe in more detail implementation strategies that are clear and concise

Partner with other agencies and groups (downtown associations, EDC’s,

Developing a clear and concise implementation strategy for the economic

MPO’s, community groups, etc.)

strategic plan will not only be key in the strategies overall success, but will allow

An expansive list of project partners will be key towards developing a successfully

for strengths and weaknesses identification and oversight.

implement plan. As this is a regional effort, wide-ranging support from as many groups and organizations will prove vital to the success of this plan.

Establish reporting metrics and identify responsible parties

Establishing frequent and systematic metrics for reporting strategy progress Conduct outreach (workshops, panels, advisory groups)

will be decisive to the plan’s successful implementation. Also identifying the

Outreach efforts are vital to building support for the plan. As a regional effort, it

groups, individuals, and organizations responsible for ensuring the smooth

is recommended that advisory groups or local business panels from each of the

implementation of strategies will drive the plan’s fundamental goals.

three Monterey Bay counties be selected, appointed, or elected.

Budget funds for plan and implementation amendments

Build community support

As a budget is developed for the plan’s implementation, it is important to

As AMBAG develops this plan, building community support will be crucial. As

consider the potential for plan amendments or changes. New objectives

findings from case studies suggest, the only means of ensuring the success of

or strategies may be identified as externalities, such as new partnership

the document is by the support from the local business communities, residents,

opportunities, arise. Treating the plan as a living document and budgeting for

and politics. Effective community outreach will help garner community support

changes or amendments could contribute to the plan’s overall success.

for the plan’s goals and strategies. Election of a regional economic oversight

r e c o m m e n d a t i o n s Recommendations:

• C onduct a study of potential infrastructure and approaches to sharing costs & benefits between counties in the region.

Based on the regional analysis provided, some initial economic

• D evelop a business plan for creating a permanent consortium to both fund and conduct applied research on innovative agricultural practices and processes.

development strategies can be recommended. These strategies arise from the opportunities and challenges analysis discussed earlier in the document: • W ork with existing county-based programs for outreach & assistance to small minority-owned businesses, and establish regional targets for recruiting participation in such programs. • C reate a region-wide marketing & promotion for community-based businesses (tourism, markets, restaurants, retail). • W ork with the education sector & small business to identify specific programs that can help business owners. • Set targets for winning new funding from federal programs to promote green jobs training and green construction export opportunities. • Develop PR effort to highlight local green firms in local and state media. • Create a joint task force combining research, education and tourism representatives to develop an integrated business plan with a needs assessment.

• E stablish partnerships with national organizations that promote executive education and international policy studies. • Create an initial agriculture industry task force to look at strategic challenges facing the regional industry/

• W ork with existing innovation engines (UC Santa Cruz, Naval Postgraduate School) and others to create a strategic plan that will guide the establishment and promotion of innovation parks or business incubators.

co nclusio n

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W o r k s Cit e d

Im ages

AECOM. (2010). San Benito County Opportunities and Challeneges Report. Hollister : San

Cover: Photo by jvnunag, http://www.flickr.com/Photos/jvnunag/3548192952/

Benito County.

Pg. 2: Photo by Martin Cathrae, http://www.flickr.com/photos/suckamc/4273215468/ Pg. 8-9: Photo by Richard Masoner, http://www.flickr.com/photos/bike/3458365006/

Alexander, P. J., Yeung, O., Ozawa, J., & Tennant, E. (2011). Economic Opportunities

Pg. 16-17: Photo by Samantha Decker, http://www.flickr.com/Photos/sammers05/5334899360/

Pg. 39: Photo by Frank Hanna, April 19, 2012

in Monterey County: Asset Inventory and Opportunity Identification.

Arlington: SRI International.

Pg 40-41: Photo by Jason Novacek, http://www.flickr.com/photos/jnovacek_

Department of Finance. (1998). Strategic Planning Guidelines. Sacramento: State of

photography/4234233257/in/photostream/

California. Dusenbury, P. (2000). Governing for Results and Accountability, Strategic Planning and

Planning in the Public Sector. Public Administration Review, 447-452.

Fulton, W., & Shigley, P. (2005). Guide to California Planning. Point Arena: Solano Press Books. Kaufman, J. L., & Jacobs, H. M. (1987). A Public Planning Perspective on Strategic

Planning. Journal of the American Planning Association, 23-33.

Kemp, R. L. (1992). Strategic Planning in Local Government: A Casebook . Chicago:

American Planning Association.

Next 10. (2012). Many Shades of Green: Californiaâ&#x20AC;&#x2122;s Shift to a Cleaner Economy. San

Francisco: Next 10.

Walker, P. L. (2009). Downtown Planning for Smaller and Midsized Communities.

Pg. 48-49: Photo by Lance Cheung, http://www.flickr.com/photos/usdagov/5871968444/ Appendix B: Photo by Ed Bierman, http://www.flickr.com/photos/edbierman/2464943242/

Performance Measurement. Washington, D.C.: The Urban Institute.

Eadie, D. C. (1983). Putting a Powerful Tool to Practical Use: The Application of Strategic

Pg. 46-47: Photo by Thomas Hawk, http://www.flickr.com/photos/thomashawk/5513212075/

Chicago: American Planning Association.

santa cruz boardwalk

a p p e nd i x

regional approaches

Chapter Five

Appendix

santa cruz county

a p p e nd ix A

RAPS “State of the Region”

Appendix

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Regional Analysis & Planning Services

RAPS s t a t e

o f

t h e

r e g i o n

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Contributors Anais Schenk, Planner, Regional Analysis & Planning Services, Inc. Frank Hanna, Intern, Regional Analysis & Planning Services, Inc.

Mary Ann Leffel, President, Monterey County Business Council Kim Ha Wadsworth, Director of Technology, Monterey County Business Council Sylecia Johnston, Program Manager, Monterey County Business Council

Special

Thanks

Pacific Gas and Electric Company for making this report possible through their continued support of community education

S t a t e

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S e r v i c e s

II III IV V VI VII

1 18 32 39 42 48 52

Economics

S t a t e

Health & Public Safety

Transportation

Environment

Broadband Access

Education

Regional Profile

Contents

o f t h e R e g i o n

Regional

Profile Of the three counties in the AMBAG region, Monterey County has the

Intro duc tion

most residents accounting for approximately 57 percent of the tri-county The Association of Monterey Bay Area Governments is located on the

population in 2010. Santa Cruz County represented 36 percent, while San

Central Coast of California, with Santa Clara and San Mateo Counties to

Benito County residents accounted for approximately seven percent of the

the north, San Luis Obispo County to the south, and Merced and Fresno

of the tri-county regional population.

counties to the east. The region includes three counties: Monterey, San Benito, and Santa Cruz. There are currently 18 cities within the region and

Comp onent s of Change

several unincorporated areas.

Between 2005 and 2010, the tri-county population increase by 19,500 residents. Santa Cruz County experienced the highest percentage

G row th & Charac teris tic s

population increase in this time period where the population changed by With a population of 732,708 in 2010, the tri-county AMBAG region has

approximately five percent or 11,500 residents.

seen steady population increase in the past decade. Between 2000 and 2010, the regional population has increased by just over three percent. R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

% Change in Population 2005-2010 Population Change

Total Population

2005 - 2010

5.00% 4.59%

415,057

4.00%

Monterey County

407,534 401,762

3.00% 2.73% 2.00%

55,269

1.85%

San Benito County

1.00%

2010

54,797

0.86%

2005

53,234

2000

0.00%

262,382 Santa Cruz County

250,877 255,602

“M o nte re y Coun t y h as th e la rg e st p o p ul ati on of al l co unt ie s a n d h as seen steady g rowth in th e past decade”

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Source: US Census Bureau, American Community Survey

A ge Between 2009 and 2010, natural population increase outpaced net

The tri-county population is bisected. In 2010, the average median age

migration. Natural population increase added approximately 6,500

for the tri-county area is approximately 34.7 years of age, where a large

residents where net migration accounted for a loss of approximately

percentage of the population is represented by children under 18 years

2,800 residents. At the same time, Monterey County added

of age, and a nearly equal percentage between 25 to 44 years, but few

approximately 2,230 residents, representing the largest addition of

in the 18 to 24 year-old range. This 18 to 24 year age group tends to be

residents to the tri-county region for this time period.

“first-jobbers” (service jobs and new professionals) and those looking for first time home ownership. The older age groups 25 to over 65 years, of which most of our population is composed, tend to be already established in job and home.

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Population by Ethnicity Two or More Races

African American Asian/Pacific Islander

Santa Cruz County San Benito County

Hispanic or Latino

Monterey County

White, NonHispanic All Other¹ 0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

“ The second largest ethnic group in all three counties 70.0% is the Hispanic 80.0% or Latino Population”

60.0%

Source: US Census Bureau, American Community Survey

San Benito County Components of Population Change San Benito County

Monterey County Components of Population Change Monterey County 8000 6000 4000 2000 0 -2000

1500

3000

1000

2000

500 Net Migration

1000

-500

Net Migration 0 Natural Increase -1000

-1000

-2000

-1500

-3000

0 Natural Increase

-4000 -6000 -8000 -10000

Santa Cruz County Components of Population Change Santa Cruz County

Source: Demographic Research Unit at California Department of Finance, Tables E-2 and E-6 R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Net Migration Natural Increase

“Large p ercentage of p eople in the 50 and over age cohor t in all three counties”

Monterey County Age Groups Monterey County Age Groups 85 and over 80 to 84 years 75 to 79 years 70 to 74 years 65 to 69 years 60 to 64 years 55 to 59 years 50 to 54 years 45 to 49 years 40 to 44 years 35 to 39 years 30 to 34 years 25 to 29 years 20 to 24 years 15 to 19 years 10 to 14 years 5 to 9 years Under 5 years

E thnicit y Female

The Monterey Bay Area is a racially and ethnically

Male

diverse region. 56 percent of Monterey County residents, 64 percent of San Benito County residents, and 72 percent of Santa Cruz County residents self-

10%

identified as non-Hispanic White. In the tri-county

San Benito County Age Groups San Benito County Age Groups

region, this group was followed by those who self-

85 and over 80 to 84 years 75 to 79 years 70 to 74 years 65 to 69 years 60 to 64 years 55 to 59 years 50 to 54 years 45 to 49 years 40 to 44 years 35 to 39 years 30 to 34 years 25 to 29 years 20 to 24 years 15 to 19 years 10 to 14 years 5 to 9 years Under 5 years

identified as Hispanic or Latino where approximately 56 percent of San Benito County, 55 percent of Monterey County, and 32 percent of Santa Cruz

Female Male

County self-identified as Hispanic or Latino. Monterey County has the largest population of all the counties and has seen steady growth over the

10%

past decade. Of the County’s residents, three percent

Santa Cruz County Groups Santa Cruz County Age Age Groups

of its residents self-identify as African American,

and seven percent of residents self-identify as Asian or Pacific Islander. Approximately 30 percent selfidentify as an ethnicity other than non-Hispanic

Female Male

White, Hispanic, Latino, Asian, Pacific Islander, African American, or Two or More Races in Monterey County.

10%

S t a t e

o f

10%

t h e

R e g i o n

R e g i o n a l

P r o f i l e

Monterey County Monterey County Total Employed Population 162,000

160,828

161,000 160,000 159,000

157,918

158,000

Total Employment

157,000 156,000

Monterey County has historically had the highest

155,000

total civilian labor force in the AMBAG region

153,000

157,538

154,000 152,000

accounting for 157,918 of the 265,421 (60 percent)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

jobs. Another 93,953 (35 percent) jobs were in Santa

San Benito County San Benito County Total Employed Population

Cruz County, whereas only 13,550 (five percent) jobs

17,000

16,379

16,500

were in San Benito County.

16,000 15,500 15,162 15,000

Jobs by In dus tr y

14,500 14,000

The Educational Service sector jobs comprised

13,550

13,500

10.1 percent to 16.2 percent of the regionâ&#x20AC;&#x2122;s local

13,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

economy, but the AMBAG region is chiefly driven

Santa Cruz County Santa Cruz County Total Employed Population

by tourism and agriculture. Monterey County, the

102,000 101,274

largest labor force in the AMBAG region, employed

98,996

100,000

most of its workers in the Agriculture/Forestry/ Fishing/Hunting sector, which accounted for

98,000

approximately 20 percent of the Countyâ&#x20AC;&#x2122;s jobs.

96,000

94,890

94,000

93,953

92,000 90,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Quarterly Workforce Indicators (QWI), 2000-2010 R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Employment by Industry - Monterey County Monterey County

Educational Services 10.1%

Health Care and Social Assistance 10.5%

Administrative and Support and Waste Management and Remediation Services 3.7%

Arts, Entertainment, and Recreation 1.7% Accommodation and Food Services 11.7%

Professional, Scientific, and Technical Services 4.2% Finance and Insurance 1.6%

Other Services (except Public Administration) 5.3%

Retail Trade 9.1%

Public Administration 7.4%

Wholesale Trade 3.2% Manufacturing 3.5%

Other 5.8%

Construction 2.9%

â&#x20AC;&#x153;Ag r i c u l t u re i s a maj o r i nd u s t r y i n th e t r i - co u nt y a re aâ&#x20AC;?

Agriculture, Forestry, Fishing and Hunting 19.3%

Source: US Census Bureau, 2010

San Benito County was followed by Monterey County with 14.9

Unemployment Between 2010 and 2011, the unemployment rates for counties in the AMBAG region fell in all except Monterey County but

percent unemployment and Santa Cruz County at 12.2 percent.

remain above state averages. Unemployment rates have been

Housing

historically quite high for the AMBAG region, remaining above state

Between 2008 and 2010, the statewide percentage of renter

averages for the preceding 5 years. With an unemployment rate

occupied housing units was 44.1 percent, while the statewide

of approximately 16 percent, San Benito County had the highest

percentage of owner occupied housing units was 55.9 percent.

unemployment rate in 2011 of the three AMBAG counties.

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Santa Cruz County

Monterey County had the highest percentage of

Health Care and Social Assistance 13.9%

Educational Services 16.2%

renters at 49.1 percent. Administrative and Support and Waste Management and Remediation Services 4.8%

San Benito County had the highest percentage of owners at 65 percent and the lowest percentage of renters at 35 percent. The percentage of multifamily dwellings in California from 2009 to 2010 was 41 percent, and the percentage of single-family

Arts, Entertainment, and Recreation 2.1%

Accommodation and Food Services 9.2%

Professional, Scientific, and Technical Services 4.7%

Other Services (except Public Administration) 5.9%

Finance and Insurance 2.0%

Public Administration 4.2%

dwellings was 59 percent.

Retail Trade 12.2%

Other 6.7%

Of the three counties, Monterey County had the Wholesale Trade 4.4% Manufacturing 6.0%

highest percentage of multi-family dwellings at 38 percent; however, it does not exceed the statewide average of 41 percent. San Benito County had the

Construction 3.4%

San Benito County

largest divide between the percentage of multi-

Administrative and Support and Waste Management and Remediation Services 3.5%

family dwellings and single-family dwellings—23

San Benito County Educational Services 12.6%

Professional, Scientific, and Technical Services 1.8%

percent and 78 percent, respectively.

Arts, Entertainment, and Recreation 1.6% Accommodation and Food Services 7.0%

Retail Trade 11.7%

In 2010, the California average household size of

Other Services (except Public Administration) 6.1%

Wholesale Trade 2.8%

owner occupied homes was 2.95, and “ Edu ca ti o n a l ser vi ces, Acco m m o da ti o n & Fo o d S er vi ces, a n d Agri cu l tu re a re bi g i n du stri es i n a l l th ree co u n ti es”

Public Administration 6.4%

Other 4.6%

Manufacturing 18.3% Construction 5.5%

R e g i o n a l

A n a l y s i s

Health Care and Social Assistance 9.7%

Finance and Insurance 1.5%

Average Hous ehold Size

2.83 for renter occupied homes.

Agriculture, Forestry, Fishing and Hunting 4.3%

P l a n n i n g

S e r v i c e s

Agriculture, Forestry, Fishing and Hunting 7.1%

Employed Population 159,931 155,291

Monterey County

157,918 97,779 2008

94,045

Santa Cruz County

2009

93,953

2010

15,627 14,187

San Benito County

13,550 0

20,000

40,000

60,000

80,000

100,000

120,000

“From 2009-2010, Monterey Count y saw the most job growth” 160,000 180,000

140,000

Source: Quarterly Workforce Indicators (QWI), 2008-2010

Unemployement Rates 20.0%

Unemployment San Benito County |16.0%

18.0% 16.0%

Monterey County |14.9%

14.0% 12.0%

Santa Cruz County |12.2%

10.0%

California |10.9%

8.0% 6.0% 4.0% 2.0% 0.0%

“U n e mp loy2007 m e nt ra te s a re d ow n f ro m 2 0 1 0 in a ll co u n ties, e xce p t M o n te re y ”

2008

2009

2010

2011

Source: California Employment Development Department

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Jobs Per Urbanized Square Mile

Jobs per Urbanized Square Mile

1878

Santa Cruz County

1081

San Benito County

“S a n t a C ru z Co u n t y has the highest job density” 1780

Monterey County

200

400

600

800

1000

1200

1400

1600

1800

2000

Source: US Census Bureau, Table GCT-PH1, 2010, QWI Quarterly Reports

Housing Units Per Urbanized Mile Housing Units Per Urbanzied SquareSquare Mile

Persons Per Urbanized Persons Per Urbanized Square Mile

2089

Santa Cruz County

500

1000

1500

4407

San Benito County

4678

Monterey County

1567

Monterey County

5246

Santa Cruz County

1425

San Benito County

2000

Square Mile

3800

2500

Source: US Census Bureau, Table- GCT-PH1, 2010

4000

4200

4400

4600

4800

5000

5200

5400

Source: US Census Bureau, Table- GCT-PH1, 2010

Of owner occupied and renter occupied households, San

New P ermit s

Benito County has the highest average household size at 3.16 and 3.47, respectively. Santa Cruz County has the lowest owner household sizes for occupied and renter occupied

In 2011, Monterey County received the most construction permits—27 for new multi-family residential units, 128 for new single-family residential units, and 89 with single-family

households with 2.65 and 2.95, respectively.

units within unincorporated areas. R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Owner vs. Renter Occupied 42.5%

Santa Cruz

57.5% 35.0%

San Benito

65.0%

Owner Occupied Housing Units

49.1%

Monterey

50.9% 44.1%

California

â&#x20AC;&#x153;Mon terey Count y ha s t h e h ig h es t p ercenta ge o f ren tersâ&#x20AC;?

Renter Occupied Housing Units

55.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Source: 2008-2010 American Community Survey 3-Year Estimates

Average Household SIze

Single-Family vs. Multi-Family Dwellings

3.5

36%

Santa Cruz County

64%

23%

San Benito County

Multi-Family Dwelling

78%

2.5 2

38%

Monterey County

Average Household Size

Single-Family Dwelling

62%

1.5

3.04

3.26

3.16

Owner Occupied

3.47 2.65

2.69

2.95

2.83

Renter Occupied

41%

California

0.5

59% 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Source: 2008-2010 American Community Survey 3-Year Estimates Source: US Census Bureau, 2010 Census

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P r o f i l e

Housing Growth - New Construction Permits 2011 111

New Residential Units Multi Family

0 27 78

New Residential Units Single Family

Santa Cruz County

128

San Benito County Monterey County

Single-Family Units Unincorporated Areas

5 89

â&#x20AC;&#x153;S anta Cruz Count y issued 325 new construc tion p ermits, 201 of those p ermits b eing for multi-family unitsâ&#x20AC;?

Multi-Family Units Unincorporated Areas

0 0 0

100

120

140

Source: Construction Industry Resource Board (CIRB), 2011

San Benito County had the lowest number of new construction

The farmland acres and urbanized land acres of Santa Cruz County

permits with 32 for new single-family residential units and only five

fell relatively within a close range of 32,000 agricultural acres to

for single-family units within unincorporated areas.

22,000 urbanized acres.

L an d Us e by C ategor y

L oss of Farmlan d

In 2010, Monterey County had, by far, the highest amount of

Between 2006 and 2008, Santa Cruz County lost 930 acres of

farmland acres and urbanized land acres. In fact, Monterey County

farmland. San Benito County lost nearly 3,500 acres of farmland

had approximately 235,000 acres of farmland and over 55,000 acres

between 2008 and 2010, which is the most significant loss of the

of urbanized farm land. San Benito County had the least amount of

three counties. Monterey County did not show any loss of farmland.

urbanized land acres.

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Farmland vs. Urban Land

Farmland Acres Santa Cruz County | 2006-2008 San Benito County | 2008-2010 Monterey County | 2008-2010 Urbanized Land Acres

“Monterey Count y has over 225,000 acres of farmland”

50,000

100,000

150,000

200,000

250,000

Source: California Department of Conservation, 2008-2010 Land Conversion, 2006-2008 (Santa Cruz)

Net Farmland Acres Changed Loss of Farmland

-930

Santa Cruz County | 2006-2008

San Benito County | 2008-2010

-3,461

“S a n B e n ito Co u n t y lo s t n e a r ly 3 , 5 0 0 a cre s o f fa r mla n d b e t we e n 2008 and 2010”

476

Monterey County | 2008-2010

-4,000

-3,500

-3,000

-2,500

-2,000

-1,500

-1,000

-500

500

1,000

Source: California Department of Conservation, 2008-2010 FMMP, 2006-2008 (Santa Cruz)

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Economics

Intro duc tion

second leading industry, accommodation and food services.

The impact of the extended economic recession is reflected in many

From 2001-2011, the most regional employment growth was seen in the

aspects of the AMBAG regionâ&#x20AC;&#x2122;s business climate. Per capita income

Professional, Scientific, and Technical Services job sector, which saw an

declined along with employment in most sectors, while the cost of living

overall increase of 400 jobs. Other leading industries for job sector growth

and doing business remained high. Nonetheless, the tri-county AMBAG

included retail trade, manufacturing, and service jobs.

region remains an economically diverse destination.

A gricultural Employment Employment Changes by In dustr y

Agriculture is a major industry in the AMBAG region, accounting for

The top 4 industries in the AMBAG region consist of the following sectors:

approximately 61,000 jobs in 2010. With nearly 47,000 employees,

agriculture, accommodation/food services, retail trade, and health care.

Monterey County lead the tri-county area in agriculture industry

Agricultural employment accounts for nearly double the jobs as the

employees, follow by Santa Cruz and San Benito Counties with 10,000 and 4,000 agriculture jobs respectively.

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Leading Regional Industry's Average Quarterly Employment 2010

Top Regional Industry Average Quarterly Employment 2010 Construction Administrative, Support, Waste Management, Remediation Services Wholesale Trade Professional, Scientific, Technical Services Manufacturing

Monterey County San Benito County

Other Services (except Public Administration)

Santa Cruz County Health Care , Social Assistance Retail Trade Accommodation , Food Services Agriculture, Forestry, Fishing , Hunting 0

10,000

20,000

30,000

40,000

50,000

Regional Industry Growth 2001-2011 Regional Industry Employment Growth 2001-2011 Construction

“A pproximately 11 p ercent of Califor nia’s total far m employment is in Monterey Count y ”

Administrative, Support, Waste Management, Remediation Services

103

Wholesale Trade

60,000 Jobs

119

Professional, Scientific, Technical Services

402

Manufacturing

170

Other Services (except Public Administration)

Health Care , Social Assistance

-59

Retail Trade

208

Accommodation , Food Services

-78

Agriculture, Forestry, Fishing , Hunting

60 -200

-100

100

200

300

400

500 Jobs

Source: Economic Modeling Specialists, Inc. (EMSI) S t a t e

o f

t h e

R e g i o n

E c o n o m i c s

Tourism Related Spending Tourism Related Spending 2008-2009

G ross Regional Pro duc t

$649,600,000

Santa Cruz County

$605,800,000

The gross regional product (GRP) measures the market value of all goods and services produced

$80,900,000

San Benito County

within a specific area. This is a common indicator of the size of an areaâ&#x20AC;&#x2122;s economy.

2008

$75,600,000

2009 $2,100,000,000

Monterey County

$2,000,000,000

Of the counties within the AMBAG region, Santa $0

Cruz County had the largest product, totaling

$500,000,000

$1,000,000,000 $1,500,000,000 $2,000,000,000 $2,500,000,000

Tourism Related Employment

approximately $26.1 billion. Santa Cruz County also led all Counties in both earnings and exports,

2005

22,700

8,400

distinguishing it as a chief economy within the

2006

22,900

8,200

2007

22,700

2008

22,600

AMBAG region.

Tourism Relate d Jobs &

2009

Sp ending Tourism related spending considers spending on accommodations, food, recreation, retail products, and travel arrangements, as well as tax revenue

10,000

Santa Cruz County

8,000

15,000

20,000

TOT Receipts

25,000

30,000

35,000

Transient Occupancy Tax ( TOT ) Receipts $9,300,000

Santa Cruz County

$9,200,000

generated within the tri-county region by visitor

$260,000

San Benito County

spending.

5,000

San Benito County

8,200

21,500

Monterey County

TOT Receipts, 2009

$222,000

$41,400,000

Monterey County

$39,600,000 $0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

Source: Dean Runyan Associates, Economic Modeling Specialists, Inc. (EMSI) R e g i o n a l

A n a l y s i s

TOT Receipts, 2010

P l a n n i n g

S e r v i c e s

Total GRP

Regional Product Components 2010 GRP

Gross Regional Product $30,000,000,000 Taxes on Production

$25,000,000,000 $20,000,000,000

San Benito County

$15,000,000,000

Property Income

Santa Cruz County

$10,000,000,000

Monterey County

$5,000,000,000 $0

Earnings

San Benito Santa Cruz Monterey County County County

$5,000,000,000

$10,000,000,000

$15,000,000,000

$20,000,000,000

Exports

Exports By County

Manufacturing

Santa Cruz County $38,100,109,851

Government Agriculture, Forestry, Fishing

San Benito County $2,168,005,844

Total Exports

Monterey County

“S anta Cruz Count y has the most net exp or ts in the AMB AG region”

$26,024,976,725

Source: Economic Modeling Specialists, Inc. (EMSI) S t a t e

o f

t h e

R e g i o n

E c o n o m i c s

Monterey County Projected Occupation Growth 2008-2018

Monterey County Projected Occupational Growth 2008-2018 21.5%

Licensed Nurses

24.7%

Medical Secretaries Dental Assistants

25.5%

Health Services Managers

25.5% 26.1%

Nursing Aides

29.0%

Pharmacy Technicians

30.0%

Registered Nurses

31.3%

Medical Assistants

39.5%

Personal and Home Care Aides

50.0%

Home Health Aides 0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Cruz County Occupation Growth 2008-2018 Santa Cruz County Santa Projected Occupational Growth 2008-2018 Registered Nurses

25.9%

Elementary School Teachers

26.0%

Coaches and Scouts

26.1%

Pharmacy Technicians

28.6%

Vocational Teachers, Postsecondary

28.6% 32.5%

Fitness Trainers and Instructors

33.3%

Special Education Teachers

37.5%

Instructional Coordinators

38.5%

Home Health Aides

53.8%

Network & Data Communications Analysts 0.0%

â&#x20AC;&#x153; Th e m o s t j o b grow t h in t h e60.0% re gio n ca n b e s e e n in H o m e H e a lt h A id e sâ&#x20AC;?

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Source: California Employment Development Department, Projections of Employment

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Agricultural Employment Agricultural Employment

Visitors traveling to the area for recreation and business Santa Cruz County 2010-2011

generate revenue and jobs for the local economy.

9,375

Tourism is one of the leading industries in the region, accounting for 15 percent of the county’s employment.

San Benito County 2007

Hotels, shops, restaurants, and entertainment venues

4,000

rely on the tourism market for a significant percentage of their business.

Monterey County 2010-2011

Between 2008 and 2009 tourism related spending

41,700

dropped in all counties. 0

10,000

20,000

30,000

50,000 Jobs

40,000

Source: Economic Modeling Specialists, Inc. (EMSI)

San Benito County * Projected Occupation Growth 2008-2018

San Benito County Projected Occupational Growth 1 2008-2018 21.7%

Mixing and Blending Machine Operators

22.5%

Computer Software Engineers

“Most growth sec tors are technolo gy related”

22.9%

Biochemists and Biophysicists

25.0%

Behavioral Disorder Counselors

26.5%

Medical Equipment Repairers

27.1%

Medical Scientists

36.5%

Advertising Sales Agents

43.5%

Home Health Aides

48.2%

Personal and Home Care Aides

49.1%

Network & Data Communications Analysts 0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

San Benito County’s projections are compiled projections for both San Benito & Santa Clara counties. Source: California Employment Development Department, Projections of Employment S t a t e

o f

t h e

R e g i o n

E c o n o m i c s

Top Regional Businesses Top Regional Businesses 2011 Earthbound Farm

1,200

Naval Postgraduate School

1,327

CB North, LLC (a.k.a. Dole Berry Service)

1,500

HSBC Card Services Inc

1,500

Dominican Hospital

San Benito County

1,600

Pebble Beach Co

1,650

D'Arrigo Brothers Co

2,000

Community Hospital of Monterey Peninsula

2,000

Bud of California

2,000

Salinas Valley Memorial Healthcare

Santa Cruz County Monterey County

2,100

Santa Cruz County

3,000

University of California, Santa Cruz

4,537 0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Source: California Employment Development Department, 2011; Economic Modeling Specialists, Inc. (EMSI), 2011

Retail Sales 2007

Average Total Retail Employment

Average Retail Employment

Retail Sales 2007

$4,541,144,000

Monterey County

1,662

San Benito County

$352,941,000

San Benito County

11,767

Santa Cruz County

$3,725,362,000

Santa Cruz County

$2,000,000,000

$4,000,000,000

15,367

Monterey County

$6,000,000,000

R e g i o n a l

5,000

10,000

15,000

20,000 Jobs

Source: Economic Modeling Specialists, Inc. (EMSI), 2007, Quarterly Workforce Indicators (QWI), 2000-2010

Retail Sales

A n a l y s i s

P l a n n i n g

S e r v i c e s

Cost of Living

Cost of Living Index By County

Monterey County, the largest tourism related Santa Cruz County

economy in the region, saw a decrease in tourism

170.7

related spending of approximately $100 million, going from a total of $2.1 billion in tourism related

US Average San Benito County

spending to $2.0 billion. Santa Cruz County saw a

158.2

similar drop of nearly seven percent in spending from $649.6 million to $605.8 million.

Monterey County

147.6

Monterey County has the largest number of tourism related employees in the tri-county

100

120

140

160

180

region, employing approximately 21,500 people

Source: Best Places to Live & Retire ÂŠ, 2012

in 2009. Tourism related employment in the Housing AffordabilityHousing IndexAfforability Index

region has generally decreased since 2006, losing approximately 1,600 employees through 2009.

26.8%

The drop in tourism related spending can be seen

Santa Cruz County 34.3%

in the dollars taken in by Counties through the 2010 2011

Transient Occupancy Tax (TOT). The TOT is charged in California when occupying rooms or other living spaces in a hotel or other lodging.

55.9% Monterey County 57.1%

From 2009 and 2010, Monterey County saw a drop of approximately $1.8 million in TOT receipts, going

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

from a total of $41.4 million to $39.6 million.

Source: California Association of RealtorsÂŽ, 2012

S t a t e

o f

t h e

R e g i o n

E c o n o m i c s

Households Spending over 45% of income on Housing & Transportaiton Household Housing & Transportation Expenses

120,000

Income on Housing & Transportation 104,342

55.3%

Santa Cruz County

100,000 78.1% Average Percentage of Income Per Household

47.5%

San Benito County

80,000

70,900

60,000

64.5% Percentage of Households Spending Over 45% of Income

57.5%

Monterey County

0.0%

Households Spending over 45% of income Households Spending over 45% of on Housing & Transportaiton

40,000

20,000

9,350

88.8%

20.0%

40.0%

60.0%

80.0%

100.0%

Source: Center for Neighborhood Technology, 2011

Monterey County

San Benito County

Santa Cruz County

Source: Center for Neighborhood Technology, 2011

The trend of declining TOT dollars can be seen in all counties within

Total retail sales reflect the total retail related employment in the

the AMBAG region.

counties where Monterey County had approximately 15,367 jobs in 2010, followed by Santa Cruz and San Benito County with 11,767 and 1,662 employees respectively.

Retail S ales & Employment The AMBAG region had roughly $8.6 billion in retail sales in 2007. Monterey County had the highest percentage of the total, accounting for over $4.5 billion in retail sales in 2007. Santa Cruz County had just

Fore cas te d Employment Opp or tunities

over $3.7 billion in sales while San Benito County sold approximately

Based on employment projections from the California Employment

$353 million in 2007.

Development Department the tri-county region is expected to gain approximately 30,000 jobs between 2008 and 2018. R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

The largest change is expected in Monterey

Per Capita Earnings & Median Monthly Rent

Average Monthly Earnings Per Capita By County

County with an estimated employment increase of approximately16,100 jobs, followed by Santa Cruz

$1,280

Santa Cruz County

County with an expected increase of 10,300 jobs.

$3,699

$1,183

San Benito County

Farm employment, which makes up about 23

Median Monthly Rent

$3,373

percent of Monterey County’s total employment in 2008, is expected to grow by 13.2 percent.

Average Monthly Earnings

Approximately 11 percent of California’s total farm employment is in Monterey County.

$1,126

Monterey County

$3,537

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

P er C apita Income $4,000

Of the three counties in the AMBAG region,

Source: Quarterly Workforce Indicators (QWI), 2010, American Community Survey, 3-Year Estimates, 2008-2010

Santa Cruz County residents have the highest

Hourly Wage Needed to Afford Median Rent

Hourly Wage Needed to Afford Median Rent Santa Cruz County

average monthly income of approximately $3,700, followed by Monterey and San Benito Counties

$26.67

with incomes of $3,500 and $3,400 respectively. San Benito County

A high per capita income for tri-county residents is

$24.65

crucial in the context of the county’s high housing costs. In addition, a higher relative per capita California Average | $24.23

Monterey County

income signals greater discretionary income for

$23.46

the purchase of goods and services.

$21.00

$22.00

Source: Zillow ©, 2011

$23.00

$24.00

$25.00

$26.00

$27.00

Hourly Wage

S t a t e

o f

t h e

R e g i o n

E c o n o m i c s

Forclosure Percentage

Cos t of Living

Percentage of Forclosures March 2012

The cost of living index is based on a US average

3.7%

Santa Cruz County

of 100. Subsequently, a cost of living index above 100 indicates that the area is generally 5.1%

San Benito County

more expensive to live in than other areas of the country. Of the three counties in the Monterey Bay Area, Santa Cruz County has the most

4.6%

Monterey County

expensive cost of living while San Benito County is the least expensive.

Source: Realtytrac ©, 2012

Number of Homes Forclosed Per Month 2007-2011 50.0

Homes Forclosed Per Month by County 2007-2011

“ The least a ffec ted of areas w ithin the AMB AG region was S anta Cruz Count y ”

45.0 Number of Forclosures

40.0 35.0 30.0 25.0 20.0

San Benito County

15.0

Monterey County

10.0

Santa Cruz County

5.0 0.0

Jan 2007

Jan 2008

Jan 2009

Jan 2010

Source: Zillow , 2011 ©

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Jan 2011

Housing Af fordabilit y In dex

H+T Af fordabilit y In dex

The California Association of Realtors® Traditional Housing

The housing and transportation affordability index (H+T®) can be

Affordability Index (HAI) measures the percentage of households

considered a more complete measure of affordability beyond the

that can afford to purchase the median priced home within their

standard method of assessing only housing costs.

respective counties. The HAI is considered a primary measure of housing well-being for buyers in the state. In 2011, approximately 34 percent of households in Santa Cruz County and 57 percent of households in Monterey County could afford to purchase a median priced home within their County. Both Monterey and Santa Cruz Counties saw an increase in housing affordability between 2010 and 2011, where affordability rose approximately seven percent in Santa Cruz County and one percent in Monterey County. HAI data on San

By taking into account both the cost of housing as well as the cost of transportation associated with the location of the home, H+T provides a more complete understanding of affordability. While housing alone is traditionally deemed affordable when consuming no more than 30 percent of income, the affordable range for H+T is the combined costs of housing and transportation consuming no more than 45 percent of a household’s income.

Benito County is not available for this time period.

“Af f o rd a b ilit y ro s e ap p rox ima te ly se ve n p e rce nt in S a n ta Cr u z Co u nt y a nd o ne p e rce n t in M o n te re y Co u nt y ”

capi t o l a B e ac h , sa n ta cr u z Co u n t y

S t a t e

o f

t h e

R e g i o n

E c o n o m i c s

Monterey County has the highest percentage of income per

San Benito County, had an affordable hourly wage below the

household going towards housing and transportation, at 57.5

California average. San Benito County residents also have the

percent. Based on housing and transportation expenses per

lowest average monthly income within the AMBAG region. Santa

household, San Benito County is the most affordable area in the

Cruz County, on average, has the most expensive housing within

tri-county region with an average of 47.5 percent of household

the region.

incomes going towards H+T. By the definition of affordable being 45 percent or less of a householdâ&#x20AC;&#x2122;s income going towards H+T

Home Value , S ales an d Fore closures

costs, the Monterey Bay Area average of approximately 53.4 percent can characterize the region as difficult to afford.

Between 2007 and 2009, counties within the AMBAG region saw a

Me dian Monthly Rental Prices

dramatic increase in home foreclosures. This followed a national

Of the counties within the AMBAG region, Santa Cruz has the

country, affecting most areas. The least affected of areas within

highest median monthly rental prices at $1,280. Monterey and

the AMBAG region was Santa Cruz County. Santa Cruz County

San Benito Counties do not differ significantly since their median

saw an increase to nearly 14 foreclosures per month in 2008 from

monthly rental costs are $1,126 and $1,183 respectively. The only

about 3 per month the year before. This increase is much less than

area within the tri-county region with a median monthly rent price

the monthly foreclosures increases seen in Monterey and San

below the California average of $1,163 is San Benito County.

Benito Counties. Each saw an increase to over 40 foreclosures per

trend of foreclosure increase, which was evident across the

month in 2008, with San Benito County reaching an average of 46

Housing is traditionally deemed affordable when consuming no

foreclosures for the year. The region has seen a steady decrease

more than 30 percent of household income or earnings. Bearing

since 2008, and in 2011 Monterey and San Benito Counties had

this in mind, hourly wages necessary to afford median monthly

declined to averages of 17.5 and 19.8 foreclosures per month,

rental prices within the tri-county area were calculated using a

respectively.

conventional 160-hour work month.

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

New Construction Permits 2011 111

New Residential Units - Multi Family

0 27 78

New Residential Units - Single Family

Santa Cruz County

128

San Benito County Monterey County

Single-Family Units Unincorporated Areas

5 89 90

Multi-Family Units Unincorporated Areas

0 0 0

100

120

140

Source: Construction Industry Resource Board (CIRB), 2011

Median value per sq. ft. ($)

Residential Construction Valuations Valuations Per Year Monterey Bay Area Totals Residential Construction $800,000,000

Per Year Monterey Bay Area Totals

Median Home Value Per Square Foot 2011

$700,000,000

Santa Cruz County

$600,000,000

$309

$500,000,000 San Benito County

$400,000,000

$165 California Average | $189

$300,000,000 $200,000,000

Monterey County

$100,000,000 $0 2004

2005

2006

2007

2008

2009

$188

Source: Construction Industry Resource Board (CIRB), 2011

S t a t e

o f

t h e

$50

$100

$150

$200

$250

$300

$350

Source: Zillow ÂŠ, 2011

R e g i o n

E c o n o m i c s

III

E d u c a t i o n

Intro duc tion

D egre e At tainment

The education level of residents is evidence of the quality and diversity of

Between 2008 and 2010, the statewide percentage of high school degrees

our labor pool – an important factor for businesses looking to locate or

earned is 28.1 percent, while the percentage of Bachelor’s degrees earned

expand in the region. An educated and skilled workforce is important for a

is eight percent. San Benito County has the highest percentage of high

strong economy. With two state-system universities within its boundaries,

school graduates with 33.7 percent and lowest percentage of Bachelor’s

CSU Monterey Bay and UC Santa Cruz, the Monterey Bay Area has unique

degrees earned with four percent. Santa Cruz County has the highest

potential to excel.

percentage of Bachelor’s degrees earned with eight percent.

K-12 Enrollment

Drop out Rate by E thnicit y

Monterey County has the highest number of K-12 enrollment with over

In California, African Americans have the highest dropout rate

71,000 students. San Benito County has the lowest number with a little

(approximately six percent), and Asians have the lowest dropout rate

over 11,000 K-12 students.

(approximately one percent). R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Percent Earning High School vs Bachelors Degree or Higher

Total Enrollment

80,000

Enrollment 2009-2010

Educational Attainment

40.0%

70,000

35.0%

60,000 50,000 40,000 30,000

30.0% 71,232

25.0%

20,000 10,000 -

38,974

High School Graduate or Equivalency

20.0%

11,199

15.0%

30.8%

28.1%

Bachelor's Degree or Higher

33.7%

10.0% 5.0%

Source: California Department of Education

19.6%

8.2%

8.1%

4.4%

3.9%

0.0%

“S anta Cruz Count y has the highest p ercentage of bachelors degree earners” Source: 2008-2010 American Community Survey 3-Year Estimates

Santa Cruz County has the highest dropout rate among Pacific Islanders at nearly ten percent. San Benito County has the lowest dropout

English L earner s as a P ercent of Enrollment

rate of less than one percent among those who are White. Monterey County has a notably higher dropout rate of almost 16 percent among

Of the students enrolled in 2010 to 2011, 37.3 percent of Monterey

respondents who did not report an ethnicity.

County’s students are English learners. Santa Cruz County has the second highest percent at 28.5 percent, and San Benito has the lowest percentage of English learners with 23.2 percent.

S t a t e

o f

t h e

R e g i o n

E d u c a t i o n

Dropout Rate By Ethnicity

Dropouts By Ethnicity

White African American Filipino Pacific Islander Santa Cruz County Asian

San Benito County Monterey County

American Indian or Alaska Native

California

Hispanic or Latino of Any Race Two or More Races Not Reported 0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Source: California Department of Education Educational Demographics Unit

English L earner s by Primar y L ang uage

National C are er Rea diness Cer tif icates

Across all three counties, most English learners also speak Spanish.

The National Career Readiness Certificate (NCRCâ&#x201E;˘) is an industry-

Of the English learners who are not Spanish speakers, the highest

recognized credential that certifies essential skills needed for

percentages of each county are as follows: one percent are Mixteco in

workplace success.

Santa Cruz County, 0.5 percent are Filipino in San Benito County, and 0.8 percent are also Filipino in Monterey County. R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

English learners as a percent of enrollment

Percent of Students Who Are English Learners 28.5%

Santa Cruz County

23.2%

San Benito County

37.3%

Monterey County

â&#x20AC;&#x153;Most English learners sp eak Spanish in all countiesâ&#x20AC;?

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Source: California Department of Education Educational Demographics Office, 2010-2011

English Learners who are not Spanish Speakers English Learners who are Spanish Speakers

English Learners Who Are Not Spanish Speakers

Spanish Speaking

100.0% 95.0% 90.0%

95.7%

96.8%

96.7%

Punjabi Mandarin

85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0%

Korean Santa Cruz County

Vietnamese

San Benito County Monterey County

Arabic Mixteco Filipino

50.0% 0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

Source: California Department of Education Educational Demographics Office, 2010-2011

S t a t e

o f

t h e

R e g i o n

E d u c a t i o n

National Career Readiness Certificates (NCRC) in the Tri-County region, as of January 2012.

Average Performance Index Score Performance Index Scores 2011

National Career Readiness Certificates 2012

Monterey County

767

Platinum

San Benito County

763

Gold

Santa Cruz County

600

700

527

259

Bronze

778

500

111

Silver

821

California

800

900

1000

100

200

300

400

500

600

Number of Certificates

Source: California Department of Education, 2011 Growth API Report

Source: ACT, Inc, 2012

This credential is used across all sectors of the economy and verifies

There are four levels of this credential that can be awarded to an

cognitive workplace skills such as problem solving, critical thinking,

individual:

and using information to solve workplace problems. The credential’s

Bronze – Foundational Skills for 35 percent of Jobs

assessments measure “real world” skills that are believed to be critical

Silver – Foundational Skills for 65 percent of Jobs

to job success, and test questions are based on situations in the

Gold – Foundational Skills for 90 percent of Jobs

everyday work world. Over 17,000 jobs have been profiled through the

Platinum – Foundational Skills for 97 percent of Jobs

program; this pinpoints or estimates skill benchmarks for specific job Nearly one thousand Monterey Bay Area residents have been awarded

positions that individuals must meet through testing.

this credential, and over half (527) of these certificates have been NCRC Silver.

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Average SAT Scores

Average SAT Scores Santa Cruz County

San Benito County

Writing Average Math Average

Monterey County

Critical Reading Average

California

“S a n ta C r u z Co unt y i s th e o n ly co u nt y t ha t ha d h ig h e r a ve ra g e s co re s th a n th e S t a te”

100

200

300

400

500

600

Source: California Department of Education, SAT Reports 2009-2010

“S anta Cr uz Count y tested the highest p ercentage of its 12th grade students”

Number of StudentsTested Tested Number of Students 6000

P er formance In dex S cores

5000

The 2011 performance index score of California is 778. Santa Cruz County exceeded the State score with a score of 821. Monterey County and San Benito Students

County had scores close to that of California with 767 and 763, respectively.

4000

3000

Grade 12 Enrollment Students Tested

S AT S cores

2000

The California average SAT scores for the writing, math, and critical reading

1000

1,292 989

214

sections were around 500. Santa Cruz County was the only county that had

higher average scores than the State whereas Monterey County fell slightly below the State averages. S t a t e

o f

t h e

R e g i o n

E d u c a t i o n

Broadband

Access

Intro duc tion

Residential Broa dban d P enetration Wire d & Wireless

The internet has become an essential communications platform for work, education, social interaction, and government- related communication.

From 2007 to 2009, California experienced a slow increase in broadband

Access to the internet allows residents to tap into a wealth of information,

penetration with 66 percent residential broadband penetration by the

resources, products, and services. Increased access not only benefits

end of 2009. San Benito County consistently had the lowest percentage

residents, it also significantly expands the marketplace for the sale

of residential broadband penetration with 51 percent in 2009. Santa

of goods and services by local businesses. This section measures the

Cruz County and Monterey County had penetration of 59 percent and 55

percentage of adults who have access to the Internet either at home or

percent, respectively.

work in the tri-county area.

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Residential broadband penetration - wireline and fixed wireless Residential Broadband Penetration | Wired & Wireless 70%

California |66%

65%

Santa Cruz County |59%

60%

Monterey County |55%

55% 50%

San Benito County |51%

45% 40%

â&#x20AC;&#x153;S a n t a C ru z Co u n t y h a s t h e mo s t i n te rn e t u s e rsâ&#x20AC;?

35% 30%

2007

2008

2009

Source: California Public Utilities Commission, DIVCA Stats, 2007-2009; Steve Blum - Tellus Venture Associates

Access to Wireline Provider s

Access to Wireless Provider s

Approximately 50 percent of the California population has access

In California, 36 percent of the population has access to six

to three wireline broadband providers. In Santa Cruz County,

wireless broadband providers. Nearly 95 percent of Santa Cruz

over 60 percent of the population has access to three wireline

County has access to five providers compared to the 90 percent

broadband providers. Approximately 80 percent of the San

and 84 percent of San Benito County and Monterey County to

Benito County population has access to two providers. A larger

four providers.

portion of Monterey County also has access to two providers.

S t a t e

o f

t h e

R e g i o n

B r o a d b a n d

A c c e s s

Access to Wired Broadband Providers

Access to Wireline Broadband Providers 0%

Number of Wireline Providers

California Averages 10%

Santa Cruz County San Benito County

53%

Monterey County

26%

2 6%

1 2%

0 0%

10%

20%

30%

40%

50%

60%

70%

80%

â&#x20AC;&#x153;Most residents of the AMB AG region have access to t wo wireline broadband providersâ&#x20AC;? 90%

Percentage of Population With Access Source: National Broadband Map, 2011; Steve Blum - Tellus Venture Associates

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Access to Wireless Broadband Providers

Access to Wireless Broadband Providers 0%

10%

Number of Wireless Providers

â&#x20AC;&#x153;Most residents of S anta Cruz Count y have access to 5 wireless broadband providersâ&#x20AC;?

36%

6 32%

California Averages

19%

Santa Cruz County San Benito County

Monterey County

0 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Percentage of Population With Access Source: National Broadband Map, 2011; Steve Blum - Tellus Venture Associates

S t a t e

o f

t h e

R e g i o n

B r o a d b a n d

A c c e s s

Health & Public Safety

Intro duc tion

Crimes

This section looks at crime statistics, public health, and social well-being.

In 2009, the highest crimes among all three counties were larceny-theft

These characteristics of the community impact both real and perceived

and property crimes. Santa Cruz experienced approximately 6,500 larceny-

safety and wellbeing in a community. Aspects can also negatively affect

theft crimes, and Monterey County witnessed nearly 7,000 property

investment in a community if a neighborhood is considered unsafe.

crimes. San Benito County encountered the least amount of larceny-theft, property crimes, and violent crimes, all of which were reported to have

This section could help with the development and prioritization of public

less than 1,000 incidents.

health and safety initiatives, while identifying characteristics of the Monterey Bay Area that contribute to its health, safety, and welfare.

Childho o d A bus e & Welfare From 2009 to 2010, the highest number of abuse allegations across all the counties was related to general neglect. Of the three, Santa Cruz County was reported to have over 300 accounts of general neglect allegations.

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Crimes

Santa Cruz County

Larceny-theft

San Benito County

Property crimes Violent crimes

Monterey County

1000

2000

3000

4000

5000

Number of Crimes

6000

7000

8000

Source: State of California Department of Justice, Crime Statistics, 2009

Welfare to Work Program

P ercent re ceiving C alFresh

From 2009 to 2010, Monterey County had the highest number of

The CalFresh Program, formerly known as Food Stamps and federally

people using the Welfare to Work programâ&#x20AC;&#x201D;520 from two-parent

known as the Supplemental Nutrition Assistance Program (SNAP), helps

families and 1,120 from all other families. Santa Cruz County had the

to improve the health and well-being of qualified households and

lowest number of people among two-parent families (150), and San

individuals by providing them a means to meet their nutritional needs.

Benito County had the lowest number of people among all other families (302).

In January 2011, ten percent of people in California received CalFresh. San Benito exceeded the State percentage at 11.0 percent while Santa Cruz had the lowest percentage at seven percent.

S t a t e

o f

t h e

R e g i o n

H e a l t h

P u b l i c

S a f e t y

Children with one or more Allegations Abuse Allegations 2009-2010

Santa Cruz County

At Risk, Sibling Abused Caretaker Absence/Incapacity Emotional Abuse

San Benito County

General Neglect Severe Neglect Physical Abuse

Monterey County

Sexual Abuse

100

150

200

250

300

350

Source: Center for Social Services Research, University of California at Berkeley, 2010-2011

Ob esit y in Children & Adult s adults were 16 percent and 28 percent, respectively. San

L ow Income P e ople Living More T han 1 Mile From G ro cer y Store

Benito County had the highest percentage of people

The 2006 State percentage of low-income people living

suffering from obesity: 24 percent obese children and 25

more than one mile from a grocery store was 14.6 percent.

percent obese adults.

Of the three counties, San Benito County had the highest

The 2009 State percentages of obese children and obese

with approximately nine percent, while Santa Cruz County and Monterey County both had seven percent.

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Welfare to Work Program Involvement 2010-2011

2009-2010 Welfare to Work Program

150

Santa Cruz County

538

Welfare to Work Two Parent Families 171

San Benito County

302

520

Monterey County

“Monterey Count y has the highest p ercentage of t wo -parent families in the welfare to work pro gram”

Welfare to Work All (other) Families

200

1,120

400

600

800

1000

1200

1400

1600

1800

Source: Center for Social Services Research, University of California at Berkeley, 2010-2011

Percent of Population Receiving CalFresh

Percent Receiving CalFresh by County January 2011 7.3%

Santa Cruz County

11.0%

San Benito County

California Monterey County San Benito County

8.9%

Monterey County

Santa Cruz County

9.7%

California 0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Source: Department of Social Services, CalFresh - Data Trends

S t a t e

o f

t h e

R e g i o n

H e a l t h

P u b l i c

“S a n t a C ru z Co u n t y has the highest a ve ra g e h o u s e h o l d i n co me ”

S a f e t y

Obesity

Obesity in Children and Adults 2009

Santa Cruz County

San Benito County Percent of Obese Children Percent of Obese Adults

Monterey County

California

10%

15%

20%

25%

30%

Source: USDA, Food Atlas, 2009

Hous eholds With No C ar an d T hat A re More T han 1 Mile from G ro cer y Store

â&#x20AC;&#x153;S an B enito Cou nt y has the highest p ercentage of p eople suffering from ob esit y â&#x20AC;?

In 2006, the percentage of households with no car and are more than one mile from a grocery store in California was approximately two percent. All counties in the AMBAG region had nearly half the percentage than that of the State, with approximately one percent respectively. The highest percentage was in Monterey County, of 1.3.

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

PercentagePercentage of low income living more than 1 mile from grocery store ofpeople low income people living more than 1 mile from grocery store 7.0%

Santa Cruz County

8.5%

San Benito County

California Monterey County San Benito County

7.0%

Monterey County

Santa Cruz County

“S an B enito Count y has the highest p ercentage of low income p eople who live more than 1 mile from a gro cer y store ”

14.6%

California 0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Source: USDA, Food Atlas, 2006

% Households no car > 1 mi to store, 2006 Percentage of households with no car &and that are more than 1 mile to grocery store 1.1%

Santa Cruz County

California

0.9%

San Benito County

Monterey County San Benito County

1.3%

Monterey County

Santa Cruz County 2.3%

California 0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Source: USDA, Food Atlas, 2006

S t a t e

o f

t h e

R e g i o n

H e a l t h

P u b l i c

S a f e t y

“All counties had a much lower p ercentage than the state.”

Transportation The MTP balances transportation needs with available funding in order to

Intro duc tion

increase overall mobility, safety and security of people and goods within How residents and visitors of the AMBAG region travel to and from their

the region. Additionally, as required by the California Air Resources Board,

destinations has environmental, financial, and social implications. Gasoline-

the next MTP will include strategies to reduce the regionâ&#x20AC;&#x2122;s greenhouse

powered motor vehicles are a significant source of air pollution and one of

gas emissions from the transportation sector by five percent per capita by

the largest contributors of greenhouse gas emissions. This section looks at

2035. The next MTP is planned for adoption in June 2014.

the travel patterns and traits of the Monterey Bay Area.

V M T Total & V M T P er C apita

The Association of Monterey Bay Area Governments prepares a Metropolitan Transportation Plan (MTP) every four to five years that directs

The Monterey Bay area, as a whole, has seen an increase of approximately

transportation investment in the tri-county region over the course of 20 or

3.7 million miles traveled by vehicle between 1990 and 2010, and is

more years.

projected to increase to over 25 million vehicle miles traveled per year by 2035. R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Regional VMT per capita

Regional Vehicle Miles Traveled ( VMT )

Regional VMT Per Capita

30.0

25,000,000

25.0

20,000,000

20.0

15,000,000

Regional Vehicle Miles Traveled

“In 2005 the region drove 16, 075,936 miles a day. B y 2035, this numb er is exp ec ted to reach 1990 24,394,889 miles a day ”

10,000,000

2005

2010

2020

VMT per capita

30,000,000

22.5

24.1

19.5 15.0 10.0

5,000,000

5.0

0.0

2035

Source: Monterey Bay Area Mobility 2035, AMBAG, 2010

Source: American Community Survey (ACS), US Census Bureau

This steady increase in vehicle miles traveled (VMT) can be seen when

Although Santa Cruz County has the highest number of alternative

looking at vehicle miles traveled per capita from 1990 to 2010, where

fuel vehicle (AFV) registrations in the AMBAG region, it also has the

there was an increase from 19.8 to 24.1, respectively.

second highest percentage of commuters who drove alone and the lowest percentage of commuters who carpooled. Of counties within the AMBAG region, Santa Cruz County has the highest percentage of people

Mo de Choice to Work

who took public transportation to work, but the County’s three percent Most residents in all three counties within the AMBAG region drove to

is under the California average of five percent.

work alone. The highest percentage of commuters who drove alone for counties within the Monterey Bay Area is 75 percent in San Benito County. S t a t e

o f

t h e

R e g i o n

T r a n s p o r t a t i o n

Mode Choice to Work Worked at home

Taxicab, motorcycle, or other means

Bicycle Santa Cruz County San Benito County

Walked

Monterey County California

Public transportation

Carpooled

Drove alone 0%

10%

20%

30%

40%

50%

60%

70%

80%

Source: Commuting Characteristics, 2008-2010 American Community Survey 3-Year Estimates

Conges tion & Average Commute T imes

Hour s of D elay

Average travel times to work vary to some degree between

highest average for hours of travel congestion, averaging an

counties within the region. San Benito County has longest

approximate total of 27,000 hours per day. Most hours of delay

average travel time for commuters, at 29.2 minutes. San Benito

come from freeway and two-lane road travel. Monterey County,

County was the only area that had a higher average commute

the area with the largest employed population, is generally

time than the California average. Monterey County had the

less congested than Santa Cruz County, which could indicate

shortest average travel time to work at 21.9 minutes.

infrastructure capacity issues in Santa Cruz County.

R e g i o n a l

A n a l y s i s

Within the Monterey Bay Area, Santa Cruz County has the

P l a n n i n g

S e r v i c e s

Mea n tra vel time to work

Daily Vehicle Hours of Delay Congestion | Daily Vehicle Hours of Delay

Average Travel Time to Work 35

9,520

Santa Cruz County

29.2

M i n u t e s

3,040 14,174

26.8

25.7 21.9

1,342 San Benito County

Two-Lane

290

Multilane

1,697

Freeway

9,657 Monterey County

9,153 857

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Source: Commuting Characteristics, 2008-2010 American Community Survey 3-Year Estimates

â&#x20AC;&#x153;S an B e n ito Co u n t y h a s a h ig h p erce n t a g e o f wo r ke r s co mmu t in g outs id e t h e ir co u n t y o f re s id e n ce, wh i ch re f le c t s t h e h ig h a ve ra g e tra ve l t ime to wo r k o f 2 9 . 2 minu te sâ&#x20AC;?

Worker Commutes California

Santa Cruz County Worked outside county of residence San Benito County

Worked in county of residence

Monterey County 0.0%

10.0%

20.0%

30.0%

40.0%

S t a t e

50.0%

o f

t h e

60.0%

70.0%

R e g i o n

80.0%

90.0%

100.0%

T r a n s p o r t a t i o n

VII

Environment Although San Benito has the fewest total solar installations, it leads the

S olar Ins tallations

AMBAG region in percentage of installations that produced over 10 Generating energy from renewable sources reduces a communityâ&#x20AC;&#x2122;s

kilowatts while Santa Cruz County had the smallest percentage of larger

impact on the environment. Home and business energy use contributes

solar installations. This likely indicates that nearly 99 percent of Santa Cruz

significantly to greenhouse gas emissions, as well as resource supply

County solar energy generation comes from small residential installations.

challenges when the sources are nonrenewable. An increased proportion of energy generated from resources will help the region meet statewide

A lternative Fuel Vehicle Regis trations

greenhouse gas reduction goals while contributing to improved air quality.

The Monterey Bay Area saw a steep rise in alternative fuel vehicles (AFVs)

Santa Cruz County is leading the way in completed solar installations

from 2004-2008. Leading the tri-county area in AFV registration, Santa

(commercial and non-commercial), with approximately 1,031 installations

Cruz County saw an exponential increase in registrations, growing from

as of March, 2012. Monterey County has less than half the Santa Cruz total

just 4 AFVs in 2004 to 980 AFVs in 2010.

with approximately 500 solar installations. San Benito County, considering its population size and density, has fewer than 100 solar installations. R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Number of Completed Solar Installations Number of Completed Solar Installations 1031

Santa Cruz County

San Benito County

491

Monterey County

200

400

600

800

1000

Percentage that are Large Commercial Installations

1200

Percentage of Solar Installations Greater Than or Equal to 10kW 1.2%

Santa Cruz County

6.5%

San Benito County

1.6%

Monterey County 0.0%

“As of 2010, Pacific Gas & Electric Company supplied energy using 17.7 percent from renewable sources”

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Source: California Energy Commission & California Public Utilities Commission, CSI Data, March 1, 2012

Monterey County, even with a much larger population, had close to

the increase in total U.S. GHG emissions for the period. Although

half the AFV registrations with 562 in 2010.

the AMBAG region’s impact on global GHG emissions is minimal, the collective impacts of GHG reducing transportation choices in the region can have noticeable impacts on air quality and public

Mo de Choice

health. For discussion of mode choice as it relates to the region’s Transportation GHG emissions have been growing steadily in recent

transportation characteristics, see the transportation chapter.

decades. From 1990 to 2006 alone, national transportation GHG emissions increased 27 percent, accounting for almost one-half of S t a t e

o f

t h e

R e g i o n

E n v i r o n m e n t

Travel to Work Mode Choice by County Worked at home

Taxicab, motorcycle, or other means

Bicycle Santa Cruz County San Benito County

Walked

Monterey County California

Public transportation

Carpooled

Drove alone

10%

20%

30%

40%

50%

60%

70%

80%

Source: 2008-2010 American Community Survey, 3-Year Estimates

V M T total an d V M T p er C apita

L EED Cer tif ie d Building s

The Monterey Bay Area, as a whole, has seen an increase of

LEED, or Leadership in Energy and Environmental Design, provides

approximately 3.7 million miles traveled by vehicle between 1990

building owners and operators with a framework for identifying

and 2010, and is projected to increase to over 25 million Vehicle miles

and implementing practical and measurable green building design,

traveled per year by 2035.

construction, operations and maintenance solutions.

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Alternative Fuel Vehicles Alternative Fuel Vehicles

1200 1000 Santa Cruz County |980

800 600

Monterey County | 562

400 200

“S an t a Cruz Co unt y g rew from ju st 4 2001 AF Vs in 2004, to 980 AF Vs in 2010”

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: California Department of Motor Vehicles, 2010

Regional VMT per capita Regional VMT Per Capita

Vehicle Miles Traveled ( VMT ) 30.0

25,000,000

25.0

20,000,000

20.0

Regional Vehicle Miles Traveled

10,000,000

2005

2010

2020

VMT per capita

30,000,000

15,000,000

1990

San Benito County |106

o f

t h e

R e g i o n

24.1

19.5 15.0 10.0

5,000,000

5.0

0.0

2035

Source: Monterey Bay Area Mobility 2035, AMBAG, 2010

S t a t e

22.5

Source: American Community Survey (ACS), US Census Bureau

E n v i r o n m e n t

LEED Certification

Number of LEED速 certified buildings by County

Santa Cruz County

LEED Certified Buildings

Monterey County

6 LEED for Homes Certified Projects

San Benito County

Source: USGBC, Public LEED project Directory, 2012

LEED certification provides independent, third-party verification that a

G re en Jobs

building, home or community was designed and built using strategies Jobs related to using alternative energy, conserving natural resources,

aimed at achieving high performance in key areas of human and

and reducing pollution have increasing economic and environmental

environmental health: sustainable site development, water savings,

value. Growth in green industries supports economic resiliency,

energy efficiency, materials selection and indoor environmental

environmental health, and national security.

quality. With 17 LEED Certified buildings, Santa Cruz County has the most LEED

Monterey and San Benito County fall within the Central Coast region,

certifications for counties in the Monterey Bay Area. Monterey County

the charts for this data set include areas outside the AMBAG region.

is close behind, with 14 certifications. Nearly half of Monterey County LEED certified buildings are homes, compared to most LEED buildings

Looking at both regions, the largest green segment employment was

being non-residential in Santa Cruz County. R e g i o n a l

A n a l y s i s

Since the data for Santa Cruz County falls within the Bay Area and

within the energy generation sector. &

P l a n n i n g

S e r v i c e s

B AY AR EA E M P L OY M E N T BY G R E E N S E G M E N T / C E N T R A L C O A S T

Central Coast Green Jobs

5, 0 00

The dramatic drop in employment from 09-10

E N E R GY I N F R A ST R U CTU R E +100% BUSINESS SERVICES FINANCE & INVESTMENT C L E A N M A N U FA C T U R I N G & INDUSTRIAL

4, 0 00

C L E A N T R A N S P O R TAT I O N AGRICULTURE SUPPORT E N E R GY E F F ICI E N CY RESEARCH & ADVOCACY GREEN BUILDING

3, 0 00

+11%

2003 to 2004 in the Central Coast was due to the bankruptcy of a company in the Air & Environment.

ENERGY STORAGE WAT E R & WA S T E WAT E R

Air Q ualit y In dex

RECYCLING & WASTE

2, 0 00

AIR & ENVIRONMENT

Air Quality Index (AQI) is an index for reporting daily air quality. It indicates

ENERGY GENERATION

1 , 000

how clean or polluted your air is, and what associated health effects might be a

concern. The AQI runs from 0 to 500, the

95 996 997 998 999 000 001 002 003 004 005 006 007 008 009 010 1 2 2 1 1 1 2 2 2 2 2 2 2 2 2

E M P L OY M E N T BY G R E EN S E G M E N T / B AY A R E A

Note: The dramatic drop in employment from 2003 to 2004 was due to the bankruptcy of a company in Air & Environment Data Source: Green Establishment Database. Analysis: Collaborative Economics

NE X T 10 M A NY SH A DES OF GREE N.

50,000 36

REGIONAL

D I STR I B UTI O N

Bay Area Green Jobs

AND :

TR EC N EDNST R A L

C OAST

40,000

09-10

A G R I C U LT U R E S U P P O R T +8% A D VA N C E D M AT E R I A L S BUSINESS SERVICES C L E A N M A N U FA C T U R I N G & INDUSTRIAL E N E R G Y I N F R A S T R U C T U R E +23% R E S E A R C H & A DVO CACY WAT E R & WA S T E WAT E R +1% C L E A N T R A N S P O R TAT I O N

+1%

E N E R GY STO R AG E

air pollution and the greater the health concern. For example, an AQI value of 50 represents good air quality with little potential to affect public

GREEN BUILDING FINANCE & INVESTMENT

30,000

higher the value, the greater the level of

health, while an AQI value over 300

R E C Y C L I N G & WA S T E

represents hazardous air quality.

E N E R GY E F F ICI E N CY

20,000 AIR & ENVIRONMENT

10,00 0

E N E R G Y G E N E R AT I O N

An AQI value of 100 generally +1%

corresponds to the national air quality standard for the pollutant,

0 19

95 996 997 998 999 000 001 002 003 004 005 006 007 008 009 010 1 2 2 1 1 1 2 2 2 2 2 2 2 2 2

“ E n erg y g en era ti o n i s th e l a rg es t g reen j o b s ec to r i n th e A M B AG reg i o n”

which is the level EPA has set to protect public health.

Source:NENext 10, Many ofSource: Green Report, 2012 X T 10 M A NY SH A DES OF Shades GREE N. Data Green Establishment Database. Analysis: Collaborative Economics 22

R E G I O N A L D I SDTI RS TI BR UI BTU I OT N I OANN D T R E N D S :ABNAY D : A Ry E A

S t a t e

T R E BNAD S A R E A

o f

t h e

R e g i o n

E n v i r o n m e n t

Daily Air Quality AQI values below 100 are generally thought of as satisfactory. Of the areas

358

Santa Cruz County

within the tri-county region, San Benito Good Air Quality

County has the highest averaged maximum index value of 93 and

351

Monterey County

correspondingly the highest median air

Moderate or Low Air Quality

quality index value of 36. The County with the lowest median AQI is Santa Cruz

331

San Benito County

County with an index of 31, followed closely by Monterey County with and AQI

of 33.

100

200 300 Days Source: US Environmental Protection Agency, Air Quality Index Report, 2011

Air Quality Index

Water Us age While it has only 112,270 more consumers

Santa Cruz County

it serves with a public supply, Monterey County had used approximately 90 percent of the total water withdrawals

AQI Median

Monterey County

AQI Maximum

taken by the AMBAG region in 2005. This could be indicative of the Countyâ&#x20AC;&#x2122;s large

San Benito County

agriculture industry. 0

AQI Score

Source: US Environmental Protection Agency, Air Quality Index Report, 2011 R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

100

Public Supply, total population served Total Population Served With Public Water Supply Monterey County

348,446

San Benito County

43,838

Santa Cruz County “Monterey Count y uses the most water, by far, of counties within the AMB AG region”

236,176

50,000

100,000 150,000 200,000 250,000 300,000 350,000 400,000

Total withdrawals, total (fresh+saline), in gal/d population seved with public supply

Total Water Withdrawals Monterey County

1,129,190,000

San Benito County

69,440,000

Santa Cruz County

73,690,000

200,000,000

400,000,000

600,000,000

“S anta Cruz Count y uses less than 10 p ercent of Monterey Count y ’s withdrawals”

800,000,000 1,000,000,000 1,200,000,000

gallons of water used per day Source: USGS, Estimated Use of Water in the United States County-Level Data, 2005 S t a t e

o f

t h e

R e g i o n

E n v i r o n m e n t

R e g i o n a l

A n a l y s i s

P l a n n i n g

S e r v i c e s

Image C re dit s Cheung, Lance (Photographer). (2011). Salinas River State Beach. Retrieved January 29, 2012, from http://www.flikr.com. Cover Masoner, Richard (Photographer). (2009). Monterey County Agriculture. Retrieved January 29, 2012, from http://www.flikr.com. Pg. 6 K, Clatie (Photographer). (2007). Fields Near Watsonville, CA. Retrieved January 29, 2012, from http://www.flikr.com. Pg. 11 Cheung, Lance (Photographer). (2011). Leafy Greens, Sprinklers, Salinas Valley. Retrieved January 29, 2012, from http://www.flikr.com. Pg. 18 McIntyre, Brian (Photographer). (2008). Capitola. Retrieved January 29, 2012, from http://www.flikr.com. Pg. 29 Fries, Brian (Photographer). (2007). UCSC Engineering Bulding. Retrieved January 29, 2012, from http://www.flikr.com. Pg. 32 Coughlan, Michael (Photographer). (2010). Facebook Connections. Retrieved January 29, 2012, from http://www.flikr.com. Pg. 38 a7pointstar (Photographer). (2011). The Procession 4. Retrieved January 29, 2012, from http://www.flikr.com. Pg. 42 Bryan, Eric C (Photographer). (2010). Dockside Overpass. Retrieved January 29, 2012, from http://www.flikr.com. Pg. 48 Cheung, Lance (Photographer). (2011). CA Highway 1, Bennett Slough. Retrieved January 29, 2012, from http://www.flikr.com. Pg. 52

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P l a n n i n g

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monterey bay aquarium

a p p e nd ix b

case study interviews

Appendix

C a s e

S t u d y

Portland

• The region does have a comprehensive economic development strategy.

R a n d y Ev a n s, S e n i o r B u s i n e s s D e ve l o p m e n t M a n a g e r

3. W hat regional groups were involved in the process? And what role did they play?

K e y Po i n t : I m p o r t a n c e o f D e ve l o p i n g a Regional Approach

• Greater Portland Inc. is the regional EDC that incorporates a lot of what the City did, and founding members of this EDC were involved with the development the original economic plan. (the economic plan came before the EDC).

1. W hat is PDC’s role within the Portland metro-area, and how did the creation of the plan play into this role? • The PDC is the City’s urban renewal agency, similar to a redevelopment agency in California. They serve as the City’s main economic development agency. • The PDC is looks at both localized economic efforts in the City as well as regional efforts. • The PDC functions region-wide through focusing on “business clusters” and partnerships with other Portland-area and state agencies. • The strategy itself focuses on the City of Portland.

• The creation of this regional EDC stemmed, in part, from the development of the EDSP. • One recommendation was to support a more robust regional entity to support regional economic efforts. • Portland didn’t have a modern economic strategy (the previous plan was over 15 years old), and the downturn in the economy directed new efforts to this plan’s creation. • The greatest value for the plan is to be able to focus where resources go. • Before the plan was created, the old strategy was much too comprehensive in its approach and caused resources to be stretched too thin. This new approach is lean and focused and resources are allowed to go much farther.

• A majority of the project’s advisory and partners were Portland based.

2. W hat specific factors led to the desire to create the plan? What do you think the greatest value of economic strategic planning is for metropolitan regions? • Not a regional plan, but does have components that touch regionally. • Regional approaches are necessary for these types of plans especially in a larger City.

4. W ho (or what group) advocated or encouraged the idea to create the plan and what were the first couple steps to get the project going? • The desire of the mayor and its administration pushed the development of this plan. • Government support in cities is crucial to creating an effective Economic Strategy.

a p p e nd ix b

5. H ow was the plan funded? Did the PDC seek any grants to supplement this? • The City plan was funded through the general fund and it was done in-house. 6. T he Development commission released a two-year status report. What value do you see in formally reporting the progress of these types of economic plans? • Value of reporting the progress of these plans in public progress reports like Portland did: 1.

Keeps it in the public eye, and within the reach of the stakeholders for the plan

Maintains support for the efforts of the plan by showing its successes and the progress of implementation.

Generates further political funding and support, and draws in new partners.

4. W hat aspects of the plan are you happy with? And what do you wish would or could have been changed? • In the neighborhood vitality section, all 3 proposed initiatives have come to fruition and have been implemented. • Greater outreach and identification of potential partners could have contributed further to the project’s successes. New partners came forward late in the development of the strategy that PDC could have done a better job of engaging with initially.

case study interviews

• Finding the funding and staff to implement the plan’s proposed strategies was the most challenging aspect during the planning implementations stages. • Additional strategies came to light during the implementation of adjustedstrategies, and finding the time and resources to add and implement these strategies also posed a set of problems or issues. • Alternative funding like TIF has been used by the City to implement and develop the plan. The plan itself has been overly reliant on General Fund monies. • Started a group who is looking at resource development and coming up with a strategy for that.

San Ramon M a r c Fo n t e s, E c o n o m i c D e ve l o p m e n t D i r e c t o r K e y Po i n t : Le a r n i n g f r o m e c o n o m i c d e m o g r a p h i c s a n d m a r k e t a n a l ys i s t o g u i d e l a n d u s e p l a n n i n g. 1. W hat value do you see in these types of plans for municipalities? How long did it take to develop the plan? • Primary value is to establish priorities for the use of staff and other resources for economic development objectives. • Put together some basic background information on the local market and other economic development factors. • The plan took about 6-9 months to develop. It was an update to a 2005 plan. 2. H ow was the development of the plan funded? Grant’s?

5. W hat challenges have you seen with implementing certain actions or strategies?

• Funded by the City.

3. W hat conditions in the City of San Ramon led to the desire to create an economic development strategic plan?

• Understanding the local economic demographics and using that information where it fits is one of the greatest values to these types of projects.

• Primary objective with the first plan was to develop a deeper understanding of the retail components or landscape, and the local market.

6. W hat challenges have you seen with implementing certain actions or strategies, such as the implementation action of assembling and promoting a city business incentive package?

• Worked with Bay Area Economics (BAE) who looked at HH incomes, and derived what spending potential existed within the City.

• Greatest Challenges:

• Identified numerous gaps in retail development

• Used these retail statistics to guide planning efforts in addressing the retail market.

Redevelopment funds have gone away and that creates big problems because the City lost a very significant economic development tool.

Getting property owners and shopping center developers to redevelop or fix-up their properties. You can’t make them do this.

4. D oes the City plan to update the plan regularly or create new economic strategic plans in the future, and how does the City or the Economic Development Department plan on reporting the progress of the plan?

• The initial strategic plan in 2005 had employed many outreach efforts to not only the community, but retail brokers as well. To try to get input from those well-informed on the potential retail suitors for the City.

• The City has an economic development advisory committee, and the progress of the economic plan will be reported back to them.

• Put together a retail panel and did a market test of the ideas that the economic plan was proposing.

• Currently working on the top implementation strategies and the plan is expected to be updated every five years.

• Very important to check-in with property owners and the business community.

5. W hat aspects of the plan are you happy with? What do you wish would or could have been changed?

3. W hat kinds of community involvement were involved?

• The analysis of the local retail market was very valuable to the City. I was especially happy about that. • The analysis was used in the development of a couple specific projects: The San Ramon City Center Project, and the North Camino Ramon Specific Plan. • The information was used specifically on planning efforts. • Information from the Strategic Plan is used almost on a daily basis with brokers and retailers to get an appropriate mix of retail in the City.

• Community involvement: 1.

Did four workshops in 2005 with the community.

The update in 2010-11 was undertaken by the City’s Economic Advisory Committee in meetings with the involvement of the Planning Commission. (very little community involvement in the update)

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3. H ow is the plan being funded? Did the city seek any grants to supplement this?

C l a i r e C l a r k , E c o n o m i c D e ve l o p m e n t M a n a g e r :

• The plan was funded through 50,000 dollars of general fund monies and the time and effort of staff.

K e y Po i n t : I m p o r t a n c e o f Co m m u n i t y I nvo l ve m e n t

• Applied for a grant through the Davenport Institute for Civic Engagement but was not successful. • Hired a local consultant, Lisa Wise Consultants, to develop the plan.

1. W hat specific demographic or cultural factors played into San Luis Obispo’s desire to create the plan? What do you think the greatest value of economic strategic planning is for municipalities? • Not based on demographics, but the economic downturn played a big role. • The City Council, identified economic development as a primary city goal, with job creation as a main function of that goal. • The City Council allocated resources to that effort and the political backing makes that a priority for all departments within the city government. • The City wanted to create head of household jobs.

4. W hat departments within the city are closely involved in this process and for what reasons? • Economic Development is within the Administration Department. Community Development is closely involved because the policies and activities of community development drive economics. 5. D oes the City plan on updating the Plan regularly or creating new economic strategic plans in the future? How does the City or the Economic Development Department plan on reporting the progress of the plan?

• The City wanted to create a program that would accomplish economic development goals within a two-year timeframe.

• In formulating the plan the City looked at metrics of reporting its progress. An annual report to the Council is anticipated, rather than reporting everything at the end of the 5-year plan period.

2. W ho (or what group) advocated or encouraged the idea to create the plan and what were the first couple steps to get the project going?

6. I s there anything you wish would or could have been changed in the approach to the project?

• Worked with the Chamber of Commerce and the regional Economic Vitality Corporation (EVC) to identify strategies that would be most effective in achieving the goal of creation of head of household jobs. • The Chamber of Commerce was very active as an advocate for a strategic plan, and helped allocate more monies for the preparation of the plan.

• Would have been helpful to schedule more time to develop the plan. One-year was scheduled. • It is very important to look at what the strategic plan is trying to accomplish and allocate enough time to develop sound community involvement. Takes time to build that involvement. • A year and a half would be nice in terms of a timeframe. • Community involvement is the most important part of developing an effective strategic plan.

• If you don’t develop buy-in with a broad cross-section of the community, you wind up with a plan that can’t be instituted by the City Council. • Community involvement is the most important piece in developing economic development strategic plans. 7. W hat regional groups are involved in the process? What role do they play? • The Economic Vitality Corporation (EVC) was a regional agency closely involved in the development of the project. President/CEO is on the strategy’s steering committee. Continued outreach for regional input will occur throughout the development of the plan. • The EVC put out a “Clusters of Opportunity” economic report in which the City of SLO is building upon. • The EVC figured out the clusters of businesses for the area. Effective in implementing groups of businesses that go after very specific things that are needed for business to grow in the area. The City can build upon this regional approach and draw people from those clusters who have businesses within the City limits. 8. W hat is the importance of community involvement to these types of plans and this plan in particular? • Community involvement is a hallmark of the community. • The economics of economic development has changed drastically with the end of State funding for redevelopment programs. • SLO has never had a redevelopment agency, but many Cities did. The termination of redevelopment funds will reshape how cities will approach economic development. • Economic development, in many cities, has used incentives to get businesses to locate within their jurisdictions. SLO has not done that because the money to provide these incentives has not been available. • The City has looked at a set of preliminary strategies:

• M aster planning a business area where the permitting process is streamlined. • E xpansion of broadband access to attract larger employers.

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