Economic Development Update Office of Economic Development - - PowerPoint PPT Presentation

Economic Development Update

Office of Economic Development Presentation to Berkeley City Council October 21, 2008

• Deflation in housing market
• Credit crunch
• Rising food costs
• High fuel costs
• Increased unemployment

Macro-Economic Trends

Historical Unemployment Rate, 2000-2008

month-year

How are These Trends Impacting Berkeley Businesses?

Discussions with Business/ Industry Leaders

Retail sales down Auto dealers report steep decline in September Restaurant sales down Several large manufacturing businesses as yet unaffected Hotels/motels holding up well

Current Statistics for Berkeley

year/ quarter

Discussions with Business/ Industry Leaders

Retail sales down Auto dealers report steep decline in September Restaurant sales down Several large manufacturing businesses as yet unaffected Hotels/motels holding up well

Current Statistics for Berkeley

year/ quarter

Discussions with Business/ Industry Leaders

Retail sales down Auto dealers report steep decline in September Restaurant sales down Several large manufacturing businesses as yet unaffected Hotels/motels holding up well

City of Berkeley Labor Force Profile

Occupational Composition of Berkeley Residents Compared to Surrounding Cities, 2006

• Racial/ Ethnic Minorities
• Young People
• Less than High School

Diploma

Unemployment Disproportionately Affects:

Unemployment by Race in Berkeley, 2006

• Racial/ Ethnic Minorities
• Young People
• Less than High School

Diploma

Unemployment Disproportionately Affects:

Percent of Unemployed Age Cohorts in Berkeley, 2006

• Racial/ Ethnic Minorities
• Young People
• Less than High School

Diploma

Unemployment Disproportionately Affects:

Unemployment By Educational Attainment in Berkeley, 2006

OUR GOAL

To align our Workforce Development Programs with the needs of the unemployed and underemployed Berkeley residents and growing sectors in the local/regional economy.

Building Our Local Workforce & Developing Regional Linkages

Local Hiring & Workforce Development Strengthening Strategies

Integrated approach that considers current and future efforts Green Corridor Climate Action Plan Job Creation & Employment

– Connect Berkeley-funded workforce development programs to the First Source process; – Re-direct the First Source Fund revenues, to promote the hiring of local youth and other vulnerable populations with higher unemployment rates; – Develop a strong pipeline between the permit & planning process, business licensing and the development of First Source agreements; and – Continue to implement key changes to the YouthWorks Program, based on a Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis

Strengthening Local Strategies

Strengthening Local Strategies

Age Breakdown Summer 08 Total: 232

23 48 44 38 36 21 10 4 4 2 2 10 20 30 40 50 60

14 15 16 17 18 19 20 21 22 23 24

Number of Youth

AGE

South Sacramento Targeted Commercial District Improvement Strategies:

Targeted District Strategies Sacramento & South Berkeley

• Façade Grants
• Biofuel Oasis
• New Businesses
• Mixed-Use

Development

Reid’s Records

3101 Sacramento Street

Reid’s Records

3101 Sacramento Street

Targeted District Strategies Sacramento & South Berkeley

• Façade Grants
• Biofuel Oasis
• New Businesses
• Mixed-Use

Development

BIOFUEL OASIS (Before)

CORNER OF SACRAMENTO/ ASHBY

BIOFUEL OASIS (Sketch Up)

CORNER OF SACRAMENTO/ ASHBY

Targeted District Strategies Sacramento & South Berkeley

• Façade Grants
• Biofuel Oasis
• New Businesses
• Mixed-Use

Development

CAFÉ CASA

3136 Sacramento Street

Targeted District Strategies Sacramento & South Berkeley

• Façade Grants
• Biofuel Oasis
• New Businesses
• Mixed-Use

Development

Hampton Legacy Apartments 3231 Sacramento Street

Green Business Update

Green Business Update

• 107 Berkeley

Green Certified bus.

• Certifications

quadrupled since 2003

• 1/3 of Alameda

County Certified firms are in Berkeley

• Wait time is one year
• r more
• OED will pay for 50

new certifications in FY09

Berkeley Certified Businesses as Portion of Alameda County

Berkeley Alameda County

Berkeley Population as Portion of Alameda County

Berkeley Alameda County

Berkeley Waitlist for County Certification

50 100 150 Y06 Y07 Y08 Year Businesses

Buy Local Berkeley

• www.BuyLocalBerkeley.com
• 170 businesses represented

(more each week)

• 340 newsletter subscribers
• Participated in

– How Berkeley Can You Be? – UCB Supplier Diversity Fair

• Media Partners

– Daily Californian – East Bay Express

• Door decals & Posters

going up now!

• Buy Local Week: December 1-7

Website

Door Decal

• Despite uncertainty numerous projects

are still under construction

• Many transactions are simply waiting for

more stable credit markets

• Berkeley large institutional employers add

stability to local employment

• Berkeley’s workforce development and

targeted strategies build on long-term strengths

Concluding Thoughts

Current Projects

G R A N T MC GEE MILVIA DWIGHT HEARST ADDISON ALLSTON BLAKE CHANNING UNIVERSITY DELAWARE HASTE BERKELEY OXFORD JEFFERSON FRANCISCO CENTER MC KINLEY ROOSEVELT MARTIN LUTHER KING JR VIRGINIA DURANT BONITA BANCROFT KITTREDGE FULTON WALNUT PARKER HENRY H A R O L D S H A T T U C K T E R M I N A L BERKELEY BANCROFT MILVIA BERKELEY WALNUT SHATTUCK 0.1 0.2 0.05 Miles

Project Status Proposed Under Construction Use or Building Permit Completed Projects

The Shattuck Hotel (2008) Trader Joe’s (2010) The David Brower Center (2009) The Arpeggio of Berkeley (2009) Freight & Salvage Coffee House (2009)

• Despite uncertainty numerous projects are

still under construction

• Many transactions are simply waiting for

more stable credit markets

• Berkeley large institutional employers

add stability to local employment

• Berkeley’s workforce development and

targeted strategies build on long-term strengths

Concluding Thoughts

THANK YOU