Fundamentals of Strategic Planning

1. Fundamentals of Strategic Planning Presented by Doug Svensson, AICPApplied Development Economics, Inc.

2. Presentation Outline • Purpose and benefits of a strategic plan • Using a SWOT to focus on key issues • Setting a vision and policy framework • Assessing market opportunities • Allocating resources with an action plan • Measuring progress

3. Purpose and Benefits • Helps to identify economic goals and build community consensus • Creates information baseline and identifies key indicators • Provides road map for action • Creates focus for strategic partnerships • Builds community capacity • Provides targets for funding and investments

4. Strategic Plan Process • SWOT • Public Engagement • Vision and Goal Setting • Action Plan • Evaluation and Adjustment

5. SWOT Analysis • S—Strengths • W—Weaknesses • O—Opportunities-external trends that create possibilities • T—Threats-external trends that bring more challenges

6. How to collect the data • Key informant interviews • Surveys of businesses and households • Available Data • Employment Trends – EDD • Socioeconomic Trends – Census (ACS/PUMS) • Real Estate Trends – Broker reports/Loopnet

7. Benchmark Comparisons

8. Benchmark Comparisons

9. SWOT Findings • Strengths • Central Location • Amenities & Attractions • Historic Interest • High Household Incomes • Redevelopment Agency and Projects • Freeway Interchanges • Carlton Hotel

10. Building on Community Strengths: Monterey Bay Crescent Ocean Research Consortium 18 1 3 17 5 • UCSC • NMFS/NOAA • Wildlife Center CDFG • CSU MLML • ES NERR • Hopkins Marine Station • MB Aquarium • MBARI • NPS • UC Sea Grant Program • SW Fisheries FMFS/NOAA • NRL, Marine Meteorology • Fleet Numerical USN • National Weather Service (NOAA) • MBNMS (NOAA) • NURP (NOAA) • Seymour Center (UCSC) • USGS • CSUMB DSEP • CDFG Marine Region • NOAA MPA Center 2 8 10 16 4 19 21 6 7 15 20 14 11 9 13 12

11. Major Marine Science Facilities in the Monterey Bay

12. Strengths in the Tahoe Basin Economy Cluster Core Industries and Suppliers Support Two-Thirds of Tahoe Basin Private Sector Economy Health & Wellness, $357 million per year Visitor Services, $1.98 billion per year Environmental Innovation, $827 million per year Other (includes local-serving businesses), $1.54 billion per year Source: ADE, Inc., and Center for Economic Development, CSU Chico, using Implan3 I/O Model.

13. Business Recruitment - Targeting

14. SWOT • Weaknesses • Lack of Consensus on Growth & Development • Under-utilized Strip Malls/Downtown • Difficulty Recruiting Young, Creative Workers; High Housing Costs • High Share of Government Jobs & Workers

15. During This Past Decade Tahoe Lost: More than 9,500 residents (-15% for 2000-2008 or more than 1,200 per year) Approximately 2000 Jobs (-6% for 2000-2007), with further job loss in 2008 and 2009 Almost 2,800 primary school students (and future workforce; -22% for 2000-2008) 2 elementary schools and one middle school in South Shore (Sources: TRPA, ADE, CSU Chico, California and Nevada Depts. Of Education)

16. Change in Free & Subsidized School Lunches

17. Housing Affordability Income Needed to Afford Median-Priced Home Compared to Entry-Level Salaries 2010 Incline Village / Washoe County - $114,000 Tahoe City Area Washoe County South Lake Tahoe Tahoe City Area / Placer County - $61,200 City of South Lake Tahoe - $45,000 Note: Assumes 20% down Sources: ADE, Inc., school districts, Lake Tahoe School, City of South Lake Tahoe, Placer County, Deb Howard & Company, RPM Mortgage, Reno Gazette Journal, Chase International Data

18. Identifying Opportunities • Job Growth • Retail • Tourism • Institutional sectors

19. Market Opportunities: California Clusters

20. Cluster Framework:Dovetail with SWOT

21. Rural Economic Development We are here

22. Leakage of Business-to-Business Transactions Source: ADE, Inc., and Center for Economic Development, CSU Chico, using Implan3 I/O Model.

23. Percentage of Retail Spending Staying in Atascadero

24. Sales Leakage 24

25. 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 • Food • Fine Dining • Home Furnishings • Furniture • Appliances/Electronics • Automobile • New Cars • Entertainment • Movie Theaters • Art galleries • Music venues 25

26. Economic Assessment: Tourism

27. Identifying Threats • Slow economic recovery • Global competition • Local/regional competition • Business development • Infrastructure • State budget/program cuts • Redevelopment sunset • Technological changes affecting local businesses • Changing environmental standards

28. Creating a Vision: Vital Cycle Economy Community

29. Creating a Vision and Policy Framework • Use General Plan if recent • Inform public discussion with initial SWOT and market assessment • Focus on outcomes that meet people’s needs • Respect community character • Respond to community concerns

30. 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. OBJECTIVES: • Colony Square successfully connects the Sunken Gardens, Stadium Park and Colony Way to create a vibrant commercial core. • The development in Downtown includes features to support the City’s Tourism Marketing Plan in terms of creating venues for art showings, events such as the Art Walk, fine restaurants, and entertainment venues to attract tourists as well as local residents. • New development in Downtown features mixed-use to increase the intensity of activity. 30

31. Retail Goals Atascadero provides a broad range of retail stores so that residents and visitors can meet most of their shopping needs locally. Objectives: • Encourage a broad range of retailers to locate within the city. • Support development of major commercial centers at the Del Rio Road interchange. • Re-capture at least 50 percent of retail leakage within five years, 75 percent of retail leakage within 10 years. • Concentrate retail at major nodes along El Camino Real. • Re-develop selected strip malls into R & D industrial space, Class A office space, high density residential or a mix of these uses. • Create a transit line for El Camino. For long term, consider a Curitiba-like fixed route bus system for El Camino, connecting nodes with each other and downtown. • Seek to concentrate commercial retail and office capacity in downtown core. 31

32. Tourism Goals Atascadero is the gateway and hub for visitors to the Central Coast, providing lodging, recreation, entertainment, and unique shopping and cultural opportunities. Objectives: • Leverage its central location and access to San Francisco, Los Angeles, and Fresno to enhance its tourism industry. • Increase the number of venues for performing arts and other cultural events, including Stadium Park if resources are available to improve it. Increase the number of special events that attract visitors. • Explore the feasibility of developing Eagle Ranch into a venue for attracting business and leisure visitors. • Enhance existing attractions to accommodate larger events and more business and leisure travelers. These include the golf course, the zoo, and the parks. • Ensure that new commercial development includes space for restaurants wherever appropriate, especially in the Downtown. • Advocate for improvements to Highways 41 from Fresno and 46 from Bakersfield. • Explore and if feasible develop equestrian event center (see Sycamore Trails Stables, San Juan Capistrano). 32

33. Job Goals Atascadero supports innovative businesses, particularly those in emerging environmental and information technology fields Objectives: • Focus business attraction and development on existing available sites, using redevelopment authority/resources where possible to help remove development barriers. • Support growth of economic opportunity areas, including alternative energy, graphics, new media, food and beverage, electronics etc. • Increase market area for local businesses by advocating for safety improvements along Highways 41 and 46 to Central Valley. • Support installation/enhancement of Wi-Fi, broadband infrastructure. 33

34. Action Plan: Allocating Resources • Set action priorities • Network with local/regional partners • Identify grant funding opportunities • Identify public/private partnership opportunities • Set criteria for any public incentives

35. An Economic Development Program for Desperate Times • Assign/hire staff • Network existing resources • Focus BRE program on commercial vacancy reduction • Employ technology for ED • Leverage outside investment on catalyst sites • Develop visitor serving amenities • Enhance retail shopping mix • Facilitate industry cluster development • Coordinate with workforce development agencies

36. Business Recruitment - Interactivity

37. Capitola • Transition of major retail centers • Introduction of new kinds of retail and other businesses • Increased visitor services in Downtown Village

38. Gonzales Downtown • South Monterey wine trail • Creation of attractive design • Access both local and state funding sources • Focus on niche market opportunities

39. Cerritos • Transition of the job base • Unique fiscal recommendations to transition from redevelopment • Focus on business retention and expansion • Meet local-serving retail needs

40. Milpitas • Role in Silicon Valley and job development • Place branding • Capacity building process • Retail competitive position

41. Potential Criteria for Public Incentives • Job creation/expansion • Job quality • Use of vacant buildings • Fiscal return on investment • Catalyst projects • Target industries • Environmental quality • Community planning goals

42. Typical Net Fiscal Impact Source: Applied Development Economics, with data from the Salinas 2000-01 budget.

43. Measuring Progress • Process indicators vs. outcome indicators • Return on public investment

44. Process Indicators • Organizational development • Number of businesses met/assisted • New infrastructure/public facilities built • Hits on ED website • Affordable housing built

45. Outcome Indicators • Increased jobs • Reduced unemployment • Increased incomes/reduced poverty • Increased retail sales • Increased lodging taxes • Other public revenue increases

46. Sample Fiscal Projection Impact on General Fund Reserves with Implementation of General Plan Source: Mundie & Associates 2008, Petaluma General Plan Update, “Fiscal Impacts of the Draft General Plan 2025” Note: The original chart as presented in the source document above, has been modified for Year 2010-2011 to reflect current balance of General Fund Reserves. 46

47. Conclusion • Always customize the process and the product to local circumstances • Use the process to build local capacity and cement strategic partnerships • Consider the strategic plan a living document: measure progress and plan for adjustment

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