HomeMy WebLinkAbout06.13.1994 Item #9rZy)
CITY COUNCIL AGENDA
ITEM NO. '?
CITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
JUNE 13, 1994
TO: MAYOR AND CITY COUNCIL
FROM: ASSISTANT CITY MANAGER
SUBJECT: ECONOMIC DEVELOPMENT
ACTION: Review current and proposed activities.
by Tr L LI :
CITY OF
-_SUN 131994
BACKGROUND: The City Council's top priority identified during the January
workshop was Economic Development including business district revitalization. This
report addresses what is being done and what will need to be done to accomplish
these goals.
The EDC has subcommittees dealing with Procedures and Regulation.
Business Retention, and Business Rttraction, They are also organizing task
forces dealing with Business District Revitalization, Restaurants, Hotels and
Boats/Harbor. Each of these are discussed below.
PROCEDURES AND REGULATIONS
To reduce the cost and time for obtaining permits to open businesses, the Planning
Department working with the EDC generated the recommendations appearing on the
flow chart on the following page. Many of these have been implemented and others
are underway.
Recently the EDC requested emphasis on items 10, 11 and 12 dealing with a variety
of regulations that have evolved over the years. In response, staff has compiled
examples from other cities including development review committees, single contact
processing, how-to manuals, staff exemption procedures and other permit streamlining
techniques. These will be reviewed by a volunteer group of staff which was an
outgrowth of the Service Enhancement Program(customer service training).
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Procedures and Regulations (continued)
This process will change not only the City's written regulations but also attitudes and
perceptions to the point where City staff actively assists and instructs applicants how to
complete their projects while complying with City policies. If Newport Beach wants
vibrant and prosperous businesses then, like others cities, it too will need to advocate
and become partners with business.
BUSINESS RETENTION AND ATTRACTION:
During their initial deliberations last year, the EDC chose to concentrate their retention
and attraction efforts on four major segments of the City's business community:
•Business District Revitalization
•Restaurants
•Hotels
•Boats and Harbor
The selection of these four segments was based on several factors the first of which is
their ability to produce municipal revenue in the form of sales and bed tax within a
relatively short time.
Another factor is the uniqueness of these elements. Economic development
strategists continually stress that cities should emphasize their unique strengths.
Each of the City's neighborhoods have their own unique business districts which adds
charm and character to the City. Over 400 restaurants are located in the City which
has long been known for fine dining in a beautiful setting. The harbor and boats is of
course what defines Newport Beach and makes it distinct certainly from inland cities
and even from other coastal cities.
Lastly, there is a synergy between these four elements which allows each to benefit
from the other. Hotel visitors come to enjoy the beaches and harbor and dine in our
restaurants and stroll in our business districts. Boaters attracted by the harbor may
stay in our hotels, eat in our restaurants and stroll in our business districts. Improving
or promoting any one of these four elements will have positive effects on the other
three.
Despite the synergy, each of these four elements involves separate groups of
individuals and business people. Consequently, the EDC is in the process of forming
task forces to address each of these areas discussed below.
Business District Revitalization
The City Council has indicated a desire to raise the quality of business districts to that
of the City's residential districts. In their deliberations, the Council used phrases such
as "prosperous, quality retail districts", "village -like atmosphere", "town squares", and
"thriving commercial establishments". To achieve this the City will need to become
more proactive.
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Business District Revitalization (continued)
To date, the City's response to the needs of business districts has largely been
Specific Area Plans which, while necessary and helpful, are nonetheless
permissive and not proactive. Another problem with Specific Area Plans is that some
are based more on traffic management and low income housing goals rather than
economic viability. Little emphasis was given to whether or not the zoning code would
allow or promote profitable development. In many cases, the zoning code virtually
mandates maintenance of existing non -conforming buildings because redevelopment
according to zoning simply is not profitable. Accordingly, it may be necessary to
rethink many of our current Specific Area Plans.
Pro -active business district revitalization is occurring throughout the nation and many
techniques and strategies are available. True revitalization requires a public
private partnership not only to improve the physical appearance of business districts
but also to attract desirable businesses and customers. The level of effort displayed by
other cities is overwhelming and daunting. Redevelopment agencies are common;
however, smaller programs such as Business Improvement Districts (BIDs), facade
improvement programs, loan programs, streetscape improvements, customer service
training, tenant recruitment, cooperative marketing and a variety of other tools and
techniques have been used to great advantage in other areas. Abundant consultants,
conferences and resource materials are available to assist Newport Beach; and many
examples and background materials assembled by City staff will be reviewed in the
near future by the EDC Task Force.
In reviewing the experiences of other cities, there is one constant underlying principle -
focused attention. For example, most successful downtowns have paid managers
who know everything about their area and provide a single point of contact with the
City. Such managers understand the financial issues, know the people, know the
buildings and have a sense of pride and ownership in their district. Focused attention
also includes Councilmembers and residents who care deeply about their downtown.
Achieving that same level of attention in Newport Beach is complicated by the large
number of "downtowns" in the City. While Fashion Island receives such attention from
its management company, other districts have been left largely to their own devices.
One concept for consideration is assigning one staff member as contact and advocate
for each business district.
In forming a business district revitalization task force, the Economic Development
Committee no doubt will ask for representation from each of the City's districts and will
look to City staff for the support and expertise to implement various measures. Given
the shrinking level of personnel and resources available to the City, it is evident that
priorities will need to be shifted and personnel reassigned to achieve the City
Council's goal.
3
Restaurants
Sales tax from the City's 400 restaurants far exceeds that from any other retail industry.
The $2.5 million generated by restaurants represents a $250 million dollar
industry which exceeds the combined volume of department stores, auto dealers and
apparel stores which rank second, third and fourth. That number of restaurants cannot
be supported by the City's population and must rely on patronage from other cities.
Any strategy to promote and assist restaurants necessarily must involve marketing to
bring more visitors to this City.
Cooperative marketing was one of three major items selected for emphasis by the
Restaurant Task Force. Funding will be required for promotional activities such as
publication of a dining guide, newspaper and magazine advertising, cable TV. spots or
event promotions. The restaurant task force has requested research and analysis on
various funding mechanisms. Because of the City's long standing concern about
visitors and tourists, the City Council will be kept aware of all such activities.
A major concern of the Restaurant Task Force is planning and zoning regulations
(including grease traps). By far the most common item on the Planning Commission
agenda is restaurants which are subject to a myriad of controls. Many of the permit
streamlining techniques discussed above may be applied first to restaurants. This
may include appointing a single staff contact which will involve a reordering of
priorities.
Hotels
Promotion of the hotels is amply provided by the Conference and Visitors Bureau
(CVB) which is advertising on radio and pursuing the conference and small meeting
trade. Soon the CVB will make a presentation to the EDC regarding the full range of
their activities. The CVB does not currently market locally for "get -away weekend"
business but instead concentrates on inland markets, and the EDC may ask the CVB
to reconsider this strategy. The CVB may investigate the feasibility of a medium sized
conference center which has been identified as an unsatisfied niche market. Another
task of the EDC will be to coordinate the CVB marketing efforts with those of the
restaurants and possibly the boats and harbor. Again, because of the City's concern
about visitors, the Council will be kept abreast of all activities as they emerge.
Boats and Harbor
The defining attribute of Newport Beach is its boats and harbor. It is a distinct and
unique resource around which all economic development strategies should revolve.
The proximity of our business districts to the ocean and bay makes them uniquely
attractive. The City's hotels and restaurants rely on the coast as their primary selling
feature. Bay water quality continually surfaces as the number one concern among City
residents. A large but yet to be determined amount of City revenue is derived from
marine activities and boat ownership. To date, only informal discussions and some
data collection have occurred.
0
Boats and Harbor (continued)
A cursory examination quickly reveals that the harbor involves large and complex
issues. Many interest groups are involved including bay front homeowners, boat
owners, marina operators, charter boat operators, boat dealers, marine service
businesses and a variety of organizations and individuals permeating the entire City.
Any promotional activity such as water taxis, guest docking, small boat launching,
sailing races or maritime industry conferences will require careful consideration. The
EDC will be collecting economic data and identifying the separate interest groups
before attempting to organize a task force, and again the City Council will be kept
abreast of emerging activities.
SUMMARY AND RECOMMENDATIONS: If the City Council concurs with the
general thrust and the specific activities outlined above, then the EDC and staff will
continue its present course and will recommend reallocation of priorities among
departments and staff to accomplish the City Council's Ec nomic Development goals.
"DcE
Kennethno
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