WORKING DRAFT City of Long Beach

Economic Development Commission

10-Year Blueprint for Economic

Development

NOTES

City of Long Beach

Economic Development Commission WORKING DRAFT Blueprint for Economic Development

February 6, 2017

2

Acknowledgements

Economic Development Commission

Randal Hernandez, Chair

Becky Blair, Vice Chair

Blair Cohn, Commissioner

Frank Colonna, Commissioner

Michelle Molina, Commissioner

Lincoln Bauer, Commissioner

Walter Larkins, Commissioner

Ralph Holguin, Commissioner

Bobby Olvera Jr., Commissioner

Cyrus Parker-Jeannette, Commissioner

Kristi Allen, Commissioner

Organizations and City Departments

Council of Business Associations

Downtown Long Beach Alliance

Bixby Knolls Business Improvement Association

Long Beach Chamber of Commerce

The Nonprofit Partnership

Long Beach City College CAED

Port of Long Beach

Pacific Gateway Workforce Investment Network

Los Angeles Economic Development Corporation

California State University, Long Beach

Emissary Media Group

Building Healthy Communities: Long Beach

Long Beach Convention and Visitors Bureau

Port of Long Beach

Pacific Gateway Workforce Investment Network

City Manager’s Office

Mayor’s Office

Department of City Attorney

Department of Financial Management

Department of Development Services

Department of Public Works

Department Economic and Property Development

Department of Technology and Innovation

Subject Matter Expert Panelists

Kimberly Ritter-Martinez, Economist, LAEDC

Tom Bowman, President, Bowman Change, Inc.

Michelle Molina, Managing Partner, Millworks

Rodric David, CEO, Thunder Studios

Lisa Callamaro, Literary Agent

Will Pomerantz, VP Special Projects, Virgin Galactic

Kraig Kojian, President and CEO, DLBA

Lou Anne Bynum, Executive VP, LBCC CAED

Chad Van Alstine, VP, The Grupe Company

Jan Van Dijs, Urbana Development

Kent Peterson, VP, P2S Engineering, Inc.

Noel Hacegaba, Managing Director of Commercial

Operations and Chief Commercial Officer at POLB

Leah Goold-Haws, Director of Global Trade and

Logistics at Long Beach City College

Bryan Sastokas, Chief Information Officer and

Director of Technology & Innovation

Brett Yakus, Business Services Officer

Carrie Tai, Current Planning Officer

Christopher Koontz, Advance Planning Officer

Oscar Orci, Deputy Director of Development Services

Truong Huynh, General Superintendent

Special Thanks

Jack Smith, Resident

Jessica Schumer, Resident

City of Long Beach

Economic Development Commission WORKING DRAFT Blueprint for Economic Development

February 6, 2017

3

Table of Contents

I. Vision

II. Business Assistance

III. Jobs & Education

IV. Development Environment

V. Engines of Growth

VI. Quality of Life

VII. Economic Cooperation

VIII. Emerging Communities

IX. Implementation Process

X. References & Citations

**THE ECONOMIC DEVELOPMENT COMMISISON HAS NOT FORMALLY ADOPTED ANY OF THE

RECOMMENDATIONS OUTLINED IN THIS WORKING DRAFT***

City of Long Beach

Economic Development Commission WORKING DRAFT Blueprint for Economic Development

February 6, 2017

4

I. Vision

The purpose this report is to advance the vision of Long Beach as a “city of opportunity for

workers, investors and entrepreneurs.”

The policy recommendations in the following “Blueprint for Economic Development” lay-out the

broad focus areas of economic development, with clear and measureable objectives the City and

its partners will have to accomplish over the next 10 years to make economic opportunity

accessible for all.

Focus areas include:

I. Business Assistance

II. Jobs & Education

III. Development Environment

IV. Engines of Growth

V. Quality of Life

VI. Economic Cooperation

VII. Emerging Communities

Objectives represent key measures of success that will be used by policy makers, members of the

community, and by City staff to track day-to-day progress toward the economic vision we have

for our City. Objectives include:

I. Increasing the number of businesses

II. Increasing new business starts

III. Increasing the number of jobs

IV. Decreasing the unemployment rate

V. Increasing median household income

VI. Increasing access to the internet

VII. Increasing access to capital

VIII. Increasing investment

IX. Increasing trade

Following the adoption of the Blueprint, the City will work with its partners to invest in specific

activities that advance progress in these key objectives, and publically report progress ongoing.

City of Long Beach

Economic Development Commission WORKING DRAFT Blueprint for Economic Development

February 6, 2017

5

II. Business Assistance

Goal: increase the number and size of businesses in the City of Long Beach.

Objectives:

Increase number of active business licenses

Increase number of new business starts

Reduce cost of doing business

Reduce average days to approval for business licensing

Increase small business confidence in City

Increase number and value of small business loans secured

Recommendations:

1. Integrate and reinforce business assistance and support resources.

2. Facilitate and strengthen communications between existing network of business support

organizations.

3. Commit to adopting best practices from other cities around the country.

4. Invest in the development of new business improvement districts.

5. Increase proactive outreach to help retain and expand businesses of all sizes.

6. Augment access to capital by expanding outreach and marketing efforts to capital sources

and attracting capital investors and lenders for all stages of business development.

7. Connect small businesses to information and resources.

8. Proactively engage the local business community.

City of Long Beach

Economic Development Commission WORKING DRAFT Blueprint for Economic Development

February 6, 2017

6

III. Jobs & Education

Goal: Invest in our workforce, attract high-wage jobs, and increase employment opportunities for

residents.

Objectives:

Increase number of quality jobs in the city

Reduce unemployment rate

Increase job participation rate

Increase average wages

Increase high school graduation rate

Increase number of job placements

Increase the number of university graduates that reside in the City after graduation

Recommendations:

1. Retain and expand the existing job base while pro-actively attracting new businesses,

industries, and investment.

2. Invest in the current workforce to train them for higher skilled, higher paying jobs.

3. Leverage business support partners to prepare and retain a qualified workforce to attract

businesses that provide higher-wage jobs.

4. Develop a strategy to retain the talent produced at our local colleges and universities.

5. Improve high school graduation, college matriculation, and postsecondary attainment

rates.

6. Establish vehicle to assess workforce needs of high growth industries and sectors, and to

understand the needs of established local businesses.

7. Work with educational and workforce partners to align education programs and pipelines

to needs of high growth industries and sectors.

8. Increase access to vocational education, partner with the private sector, and create a long

term strategy to increase vocational educational opportunities citywide.

9. Extend the Long Beach Promise to include job placement.

City of Long Beach

Economic Development Commission WORKING DRAFT Blueprint for Economic Development

February 6, 2017

7

IV. Development Environment

Goal: Create more responsive and streamlined City processes to grow investment and

development in the city.

Objectives:

Increase the number of building permits

Reduce the cost of development (building permits and impact fees)

Reduce average days to approval for entitlement

Reduce the number of inspections per permit issued

Increase the total value of construction

Reduce commercial vacancy rate

Recommendations:

1. Make Long Beach the most affordable place to do business (reduce costs and confusion

associated with zoning, permitting, business licensing, school fees, incentives, and per

employee fee).

2. Promote education of the development process, transparency, and the culture of yes.

3. Strengthen dialogue with development community for ongoing improvement to the

process for property development (from decision making to approval process).

4. Provide attractive, high-quality infrastructure (including utilities, connectivity, mobility)

to attract private sector investment and development.

5. Leverage partners (business associations, commercial brokers, utilities, and enterprises)

to attract investment.

6. Increase more public/private partnerships.

7. Establish programs and events that promote interaction between staff and potential

investors.

8. Review parking requirements that prevent business growth. Consider reducing and right-

sizing parking requirements.

9. Work with Planning Commission to establish more specific plans (i.e., Downtown Plan)

that standardize and empower staff to streamline the development process.

10. Encourage City leadership to conduct economic impact assessments of new ordinances.

City of Long Beach

Economic Development Commission WORKING DRAFT Blueprint for Economic Development

February 6, 2017

8

V. Engines of Growth

Goal: Strengthen established industries and grow emerging sectors.

Objectives:

Increase total number of jobs by key industry cluster

Increase number of employers by key industry cluster

Increase total investment by key industry cluster

Increase number of traded industry employers

Increase number of jobs in clean energy and tech sectors

Recommendations:

1. Develop an approach to monitor, understand, and implement strategies that increase the

number of firms in key industries and emerging sectors (e.g. healthcare, hospitality, trade

and logistics).

2. Create a data-driven plan to identify and define high growth industries and sectors, to

inform decision making and drive investments.

3. Promote awareness of existing and new businesses in key industries and emerging

sectors.

4. Nurture creative/innovation economy by leveraging creative partners including the

university with a focus on clean energy and technology development.

5. Empower partners (e.g. Chamber, BIDS, SBDC) to attract and grow small businesses that

support key industries.

6. Partner effectively to increase global connectedness, international business, and traded

industries.

7. Prioritize investments in industries and sectors that provide higher paying jobs.

City of Long Beach

Economic Development Commission WORKING DRAFT Blueprint for Economic Development

February 6, 2017

9

VI. Quality of Life

Goal: Enhance our quality of life.

Objectives:

Reduce crime rate citywide

Increase walk score (walkscore.com)

Increase bike score (walkscore.com)

Increase investment in public art

Increase public parkland per 1,000 people

Reduce number of residents commuting outside city for work

Increase percentage of children and adults with health insurance

Reduce daily homeless population

Recommendations:

1. Make our communities more desirable places to live.

2. Ensure public safety across all of our unique neighborhoods.

3. Improve active transportation (walkability, bikeability) infrastructure across all of our

unique neighborhoods.

4. Promote healthy living by expanding recreational activities and encouraging active

lifestyles.

5. Encourage and expand cultural and artistic amenities that celebrate our diversity.

6. Invest in homeless services that result in permanent housing for veterans and homeless

individuals.

7. Promote access to healthcare, particularly mental health care services.

8. Implement development strategies that promote local jobs-housing balance.

City of Long Beach

Economic Development Commission WORKING DRAFT Blueprint for Economic Development

February 6, 2017

10

VII. Economic Cooperation

Goal: Advance citywide and regional economic cooperation.

Objectives:

Increase investment in local businesses

Increase foreign direct investment

Increase perception of Long Beach as business friendly

Increase internet access for businesses and residents

Recommendations:

1. Building upon the city’s economic foundations and existing resources, improve and

enhance current business development and job creation efforts to expand opportunities

for all residents.

2. Establish a formal partnership for innovation and entrepreneurship between the City,

university, and industry to promote economic opportunity.

3. Establish a public-private Long Beach Economic Development Corporation (EDC) to

engage cross-sector partners to increase business retention, attraction and expansion.

4. Improve awareness of existing city services, incentives and business development

programs through a citywide coordinated marketing campaign. Develop a business

attraction marketing campaign in the future.

5. Increase access to highly developed technology across the city to facilitate job growth

whether with home-based businesses, corridor small businesses or mid-size

manufacturing.

6. Complete SWOT analysis and strategic plans for the city’s economic engines by

establishing industry cluster working groups to increase coordination and

communications.

7. Take a leadership role in advancing policies and programs that increase business and job

opportunities throughout the region.

8. Partner with regional agencies to promote foreign direct investment and trade.

City of Long Beach

Economic Development Commission WORKING DRAFT Blueprint for Economic Development

February 6, 2017

11

VIII. Emerging Communities

Goal: Expand opportunities for economic growth in emerging (low-income) communities to

narrow income inequality.

Objectives:

Increase number of under-represented businesses

Decrease unemployment rate disparity

Increase access to capital for under-represented businesses

Increase investment in low-income corridors

Recommendations:

1. Develop specific geographic-based plans and strategies to attract new investment,

business formation, and job creation with a focus on higher wages.

2. Develop “corridor development strategies” to assess economic strengths, weaknesses

and opportunities of emerging low-income communities.

3. Assess specific incentives, tax rebates, planning waivers, public investments, etc. that

could be targeted to specific geographic corridors.

4. Determine the value and benefit of establishing BIDs in these corridors to promote

cooperation and pooling of resources.

5. Assess the value of establishing Community Revitalization & Improvement Areas

(CRIAs)** or Enhance Infrastructure Financing Districts (EIFDs) in these corridor

neighborhoods.

6. Focus small business technical assistance resources in these corridors with particular

focus on engaging ethnic entrepreneurs.

7. Establish multi-purpose small business assistance centers within the corridor regions.

8. Enhance skills for residents in these communities by delivering job training resources

directly in these neighborhoods.

9. Determine if sub-marketing strategies would be effective in differentiating the unique

culture of these corridors reflected in the diversity of businesses, employees and

products.

City of Long Beach

Economic Development Commission WORKING DRAFT Blueprint for Economic Development

February 6, 2017

12

IX. Implementation Process

The development of the Blueprint for Economic Development was a collaborative effort involving

23 public meetings, 25 individual listening sessions, and discussions with 19 subject matter

panelists. The focus areas, goals, and key objective represent aspirational policy goals to move

the city towards its vision as the “city of opportunity for workers, investors, and entrepreneurs”.

To move the key objectives toward this vision, the following implementation process is

recommended:

1. Distribute Blueprint to City Council, City staff and partners, and encourage alignment with

economic development goals and objectives.

2. Work with City staff and partners to develop a Blueprint work plan, including specific

activities and investments, and timeline that will advance key objectives.

3. Develop an online platform for tracking and reporting performance for each of the key

objectives for economic development.

4. Provide regular updates to the Economic Development Commission, Economic

Development and Finance Committee, and City Council.

5. Create a communications plan to create awareness and distribute the Blueprint to

community, research, investor, and industry partners; including multiple formats and

languages to reach diverse stakeholder groups.

City of Long Beach

Economic Development Commission WORKING DRAFT Blueprint for Economic Development

February 6, 2017

13

X. References & Citations

The Commission would like to thank authors of the following reports and presentations that were

reviewed as part of the Blueprint development process:

Beacon Economics, Economic Development Support Analysis, Part I: Economic Overview,

October 18, 2016.

Kleinhenz, Dr. Robert, Economic Development Support Analysis, Part II: Industry Clusters

Presentation, December 13, 2016.

Los Angeles County Economic Development Corporation, Considering the Minimum

Wage Policy in the City of Long Beach: Theory, Practice and Potential Implications,

February 2016.

Los Angeles County Economic Development Corporation, OTIS College of Art and Design,

2015 Otis Report on the Creative Economy, November 2015.

Los Angeles County Economic Development Corporation, 2016-2020 Los Angeles County

Strategic Plan for Economic Development.

National League of Cities, 2014 Big Ideas for Small Business Report.

Public Consulting Group, Pacific Gateway Workforce Investment Network Economic and

Demographic Analysis, December 2, 2016.

Schultz, Nick. Economic & Demographic Analysis Presentation, Pacific Gateway Workforce

Investment Network Economic and Demographic Analysis, October 25, 2016.

Other economic development strategic plans reviewed by the Commission:

2014 Seattle Economic Development Commission 10-Year Vision

2015 Santa Clarita Valley Economic Development Corporation Action Plan

2014 National League of Cities Big Ideas for Small Business Report

2016 Santa Ana Economic Development Strategic Plan

2012 Pasadena Economic Development Task Force Report