Strategic Planning Purpose

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Purpose:

Purpose Challenges with Development Challenges with Market Image 1 The Economic Development Strategic Plan addresses: Both important to the City’s ability to compete in the market Sources: Stanley R. Hoffman Associates, Inc. And the Monterey Park Economic Development Department

Factors of Economic Development:

Factors of Economic Development 2 Through a collaborative effort of all City departments, private businesses, developers, and the community as a whole, the City needs to address 5 different factors impacting future development opportunities.

5 Factors Economic Development:

5 Factors Economic Development 3 1) City Policy implemented by the City Council- requires a change in current City policy or direction Example: Pedestrian Linkages Plan and Economic Development Strategic Plan itself.

5 Factors Economic Development:

5 Factors Economic Development 4 2) General Plan/Zoning - requires changes to the City General Plan and Zoning Code Example: Revise the General Plan to enhance ability to initiate and implement economic development activities.

5 Factors Economic Development:

5 Factors Economic Development 5 3) Regional Partnerships with economic development focused organizations Example: Chamber of Commerce, East Los Angeles College and the San Gabriel Valley Economic Partnership, Caltech, CSULA, etc.

5 Factors Economic Development:

5 Factors Economic Development 6 4) Financing Mechanisms - requires substantial financing from the Redevelopment Agency, other government financing or grants, and/or the private sector

5 Factors Economic Development:

5 Factors Economic Development 7 5) Market Factors - requires changes in the general health of the economy or in specific sectors of the economy

PowerPoint Presentation:

Taxable Sales by Economic District -- Retail Total Taxable Retail Sales City of Monterey Park Economic Districts 2008 (in thousands) Source: Stanley R. Hoffman Associates, Inc. HdL Companies. 8 Where is the greatest economic viability? How can it be replicated? How can areas with lower economic vitality be improved?

Image of Monterey Park by those outside :

Image of Monterey Park by those outside Is expressed in its core attributes measured in the consumer survey as an ‘Asian city with good restaurants and a relatively safe and comfortable environment. 9

Community’s Image of Monterey Park:

Community’s Image of Monterey Park A diverse, safe community with a high quality of life Sees the need for more development including, national retail stores and national restaurants to meet the growing demand of the community 10

PowerPoint Presentation:

11 The Community supports Development as its No. 1 Choice It is still concerned though with traffic and, as the creation of the Environmental Commission demonstrates, with the environment. Source: Stanley R. Hoffman Associates, Inc.

PowerPoint Presentation:

12 In many cases development and traffic overlap. Members of the Community do not see these as mutually exclusive. The challenge is finding the balance. According to the Monterey Park Consumer Survey conducted on November 12, 2009 Monterey Park Community members - Which is a different question from “What is your first choice?”. Source: Stanley R. Hoffman Associates, Inc.

Community’s Own Image: Monterey Park:

Community’s Own Image: Monterey Park Would like to see the City modernized Views “Create More Local Jobs”, “Reduce Traffic Congestion,” and “Be Green/More Energy Efficient” as important concerns 13

City’s Desired Image:

City’s Desired Image Progressive City/A City on the Move Great place to shop Diverse/Variety Clean Safe place Forerunner in “green policy” A great place to raise a family 14 The goal is to move the Outside Image closer to this Desired Image.

Vision for Moving the City Forward:

Vision for Moving the City Forward More choices in shopping More choices in dining Clean Safe/low crime rate Stay local for shopping, dining and entertainment 15 Economic Development creates the means of realizing Community Goals

“Influential Perspective”:

“Influential Perspective” Monterey Park has a history of community involvement by active citizens termed “Influentials” The “Influentials” share a pragmatic view of the future See a vision that includes melding the best of both worlds 16

Market Competition:

Market Competition As recognized by the City’s Economic Development Element of the General Plan, Monterey Park has historically lagged behind its regional neighbors in sales tax generation . 17

Taxable Retail Sales. :

Taxable Retail Sales . Loss of $290 million dollars in retail sales per year Estimated 2008 per capita taxable retail sales of $4,803 at 47.2 % of Western San Gabriel Valley per capita average of $10,186 Lowest per capita ratios compared to neighboring cities in the Western San Gabriel Valley 18

Market Competition:

Market Competition Monterey Park is missing regional and super regional shopping centers and “Big Box” national retailers, such as … Target, Kohls, Costco, Home Depot, or Lowe’s. 19

Market Competition:

Market Competition Monterey Park lack of this type of brick & mortar development, also impacts its ability to attract the associated regional and national tenants Past policy focused on specific redevelopment projects to generate municipal revenue 20

Redevelopment Goals:

Redevelopment Goals Bring in Tax Generating Businesses – both retail and non-retail Increase Sales Tax Revenue to fund Municipal Services desired by the Community 21

Market Competition:

Market Competition The City has yet to succeed in creating the economic environment that would best attract the type of retailers that it is seeking. 22

Development Barriers:

Development Barriers High Cost of Development Acquisition Lack of Adequate Sized Sites Inadequate Infrastructure Older Economically Obsolete Buildings Market Misperceptions Financial Limitations 23

Pro Forma Analysis :

Pro Forma Analysis An illustrative analysis on the estimated pro forma rate-of-return to test project feasibility Not meant to represent any particular site 24 The Economic Strategic Development Plan provided:

Market Reality:

Market Reality The Pro Forma example provided by the Economic Development Strategic Plan does not reflect actual market realities for Monterey Park, especially in terms of development acquisition costs. 25

Market Reality:

Market Reality Pro Forma does demonstrate the difficulty of achieving market rate returns on private commercial redevelopment in the City 26

Development Challenge:

Development Challenge Monterey Park has what the Economic Development Strategic Plan termed “Community Wealth”, trapped in higher development acquisition costs, relative to other areas of the region, dampening economic development efforts by reducing the amount of funding required by national retailers. 27

Bringing It All Together:

Bringing It All Together The Community’s Desired Vision for its economic future must be aligned with the ability to undertake the Development Challenges needed to meet Market Reality and improve the Community’s ability in terms of Market Competition . 28

Municipal Revenues & Community Wealth:

Municipal Revenues & Community Wealth Municipal Revenue Generation does not fully encompass all of a community’s economic assets or the “Wealth” of that Community 29

Community Wealth:

Community Wealth Businesses and Jobs Dollars generated - kept within local banks - multiplied within the community through spending 30 Includes all economic resources and institutions adding value to the community’s social fabric resulting in better quality of life

Community Wealth :

Community Wealth A multiplier effect exist for dollars created and spent within the community which is not as relevant for dollars captured by taxes. The challenge is attaining the right mix. More of both are needed. 31

Community Outreach:

Community Outreach Authorize staff to work with the EDAC in developing a strong outreach program with public meetings and workshops to discuss all parts of the economic development strategy and seek new ideas and comments from community members Coordinate closely with other public and private organizations . 32

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