Atascadero Economic Development Strategic Plan

Progress Report February 24, 2009

Presented by

Doug Svensson, AICP Applied Development Economics, Inc.

Process Timeline

Timeline Work Program Public Input June-October 2008 SWOT Assessment Market Analysis Retail Analysis Fiscal Study Site Assessments Interviews Focus Groups Household Survey City Council Meetings October – February, 2009 January – May, 2009 Identify Economic Development Goals Define Product Prepare Strategic Plan Public Forum City Council Meetings City Council Meetings 2

Retail Market Overview

Per capita taxable sales are low Non-taxable grocery and drug store sales are high Home improvement sales have been high but are threatened New auto sales are low and are threatened Atascadero gets some visitor spending for gasoline, fast food and specialty retail

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Shopper Satisfaction Survey

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

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Retail Store Type Potential

Apparel Women’s and Men’s clothing Family clothing Shoes General Merchandise Big Box rather than Department stores Specialty Retail Books Office Supplies Sporting Goods

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Food Fine Dining Home Furnishings Furniture Appliances/Electronics Automobile New Cars Entertainment Movie Theaters Art galleries Music venues

Sales Leakage

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Retail/Services Recommendations

Concentrate high dollar volume regional center at Del Rio Rd.

Focus on higher quality apparel, dining, specialty retail in Downtown Consider consolidating strip commercial over time to focus market strength Downtown Encourage major centers on El Camino south of Downtown to renovate and stay fresh Continue to focus office development on Morro Rd.

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

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

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Job Development: “An Incubator of Innovative Industries”

Food and Beverage Products New Media Arts Energy/Clean technology Electronics Workforce Training

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Site Analysis

Del Rio Rd. sites can support most major retail with potential in Atascadero Sites north of Del Rio on El Camino could be auto center, or business park Efforts to redevelop older industrial sites could help small business growth Eagle Ranch should have an economic development component Atascadero should encourage small business development rather than major employers

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Public Forum

November 22 at Colony Park Community Center Gym About 70 participants comprising eight discussion groups Agenda Overview of Research Findings Discussion About Desirable Business Targets Discussion about Economic Development Goals

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Public Forum –Business Targets

Retail Colony Square and creek-side retail Improve quality of apparel, restaurants, auto sales Serve regional market better with general merchandise Tourism “Gateway to the Central Coast” Focus on arts, history, wine and equestrian specialties New events such as cook-off, farmers market, use of Stadium Park Encourage bed & breakfasts as well as a conference center Carry out master plan for the zoo and the walking/ biking network – family focus Jobs High-tech, green, small scale Processing of agricultural specialties as well as wine supplies “Central Coast Training Institute” Fiber optic infrastructure and Wi-Fi Downtown Health care/government/home-based call center

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Public Forum – Goals

Strong retail environment Hub for tourism Focus on quality of jobs rather than quantity Center for educational training “Come for celebration and recreation, stay for opportunity and community”

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Downtown Goals

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

O BJECTIVES :

Colony Square successfully connects the Sunken Gardens, Stadium Park and Colony Way to create a vibrant commercial core.

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

New development in Downtown features mixed-use to increase the intensity of activity.

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Retail Goals

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

O BJECTIVES :

Encourage a broad range of retailers to locate within the city.

Support development of major commercial centers at the Del Rio Road interchange.

Re-capture at least 50 percent of retail leakage within five years, 75 percent of retail leakage within 10 years.

Concentrate retail at major nodes along El Camino Real.

Re-develop selected strip malls into R & D industrial space, Class A office space, high density residential or a mix of these uses.

Create a transit line for El Camino. For long term, consider a Curitiba-like fixed route bus system for El Camino, connecting nodes with each other and downtown. Seek to concentrate commercial retail and office capacity in downtown core.

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Tourism Goals

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

O BJECTIVES :

Leverage its central location and access to San Francisco, Los Angeles, and Fresno to enhance its tourism industry. Increase the number of venues for performing arts and other cultural events, including Stadium Park if resources are available to improve it. Increase the number of special events that attract visitors. Explore the feasibility of developing Eagle Ranch into a venue for attracting business and leisure visitors. Enhance existing attractions to accommodate larger events and more business and leisure travelers. These include the golf course, the zoo, and the parks. Ensure that new commercial development includes space for restaurants wherever appropriate, especially in the Downtown. Advocate for improvements to Highways 41 from Fresno and 46 from Bakersfield.

Explore and if feasible develop equestrian event center (see Sycamore Trails Stables, San Juan Capistrano).

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Job Goals

Atascadero supports innovative businesses, particularly those in emerging environmental and information technology fields

O BJECTIVES :

Focus business attraction and development on existing available sites, using redevelopment authority/resources where possible to help remove development barriers.

Support growth of economic opportunity areas, including alternative energy, graphics, new media, food and beverage, electronics etc.

Increase market area for local businesses by advocating for safety improvements along Highways 41 and 46 to Central Valley.

Support installation/enhancement of Wi-Fi, broadband infrastructure.

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Quality of Life Goals

Atascadero is an inviting community to work, shop, and play.

O BJECTIVES :

Maintain the City’s rural feel through good planning.

Explore the feasibility of equestrian-focused residential development.

Genuine civil discourse is displayed throughout the community.

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Workforce Goals

Atascadero is a center for workforce education and training.

O BJECTIVES :

Leverage existing assets to promote seminars and specialized education.

Work toward establishment of a center for specialized training.

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Council Discussion of Goals

Feedback on findings Discussion

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

ADE Scope of Work

Public Involvement Process SWOT Analysis Industry and Tourism Market Analysis Comprehensive Retail Analysis Fiscal Analysis Site Suitability Analysis Market Positioning Report Recruitment Strategy Business Retention and Expansion Program Workforce Development Strategy Communications Strategy Economic Development Action Plan

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Vital Cycle

Economy Community 23

City Revenue by Land Use

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Service Costs by Land Use

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Net Fiscal Benefit by Land Use

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SWOT Analysis

Purpose S—Strengths W—Weaknesses O—Opportunities-external trends that create possibilities T—Threats-external trends that bring more challenges

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SWOT Findings

Strengths Location Amenities & Attractions Freeway Interchanges Historic Interest High Household Incomes Redevelopment Agency and Projects Retail Sites Water Supply Engaged Citizenry

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SWOT

Weaknesses Lack of Consensus on Growth & Development High Share of Government Jobs & Workers Under-utilized Strip Malls/Downtown Declining School Enrollments Difficulty Recruiting Young, Creative Workers; High Housing Costs High Maintenance Costs for Road System Small sites for Office/Industrial Development Limited Air Services

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SWOT

Opportunities Location-independent Businesses Wine Processing & Tourism Arts Colony Increasing Retirees Growing Population in San Joaquin Valley Increased Investment in “Green Business” Redevelopment of Under-utilized Parcels Eagle Ranch

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SWOT

Threats Successful Downtowns in Neighboring Communities Active Recruitment of Atascadero Businesses Tax-Free Internet Sales Graying of the Population Increasing Fuel Costs Cutbacks in Airline Services

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