Atascadero Economic Development Strategic Plan Progress Report February 24, 2009

1. Atascadero Economic Development Strategic PlanProgress ReportFebruary 24, 2009 Presented by Doug Svensson, AICP Applied Development Economics, Inc.

2. Process Timeline

3. 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 3

4. 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 4

5. 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 5

6. Sales Leakage 6

7. 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. 7

8. 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 8

9. Job Development: “An Incubator of Innovative Industries” Food and Beverage Products New Media Arts Energy/Clean technology Electronics Workforce Training 9

10. 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 10

11. 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

12. 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 12

13. 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” 13

14. 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.

15. 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.

16. 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).

17. 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.

18. Quality of Life Goals Atascadero is an inviting community to work, shop, and play. Objectives: • 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.

19. Workforce Goals Atascadero is a center for workforce education and training. Objectives: • Leverage existing assets to promote seminars and specialized education. • Work toward establishment of a center for specialized training.

20. Council Discussion of Goals • Feedback on findings • Discussion

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

22. 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

23. Vital Cycle Economy Community

24. City Revenue by Land Use 24

25. Service Costs by Land Use 25

26. Net Fiscal Benefit by Land Use 26

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

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

29. 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

30. 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

31. 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