The Economic Development Department presented its proposed FY25–26 budget and several ongoing programs aimed at business retention, corridor revitalization and private investment.

Budget and funding

Director Sergio Ramirez described a proposed departmental budget of about $37.5 million, largely representing successor‑agency trust obligations tied to the former redevelopment agency. Ramirez said the department’s operating expenses are projected to decline about 17.8% from the prior year and that the FY25–26 request includes no new capital projects; several previously funded projects will continue using carryover funds.

Storefront Improvement Program and recent wins

Ramirez highlighted the Storefront Improvement Program, a small‑grant facade program launched two years earlier to spur commercial corridor investment. Staff showed examples in multiple districts where modest grants — Ramirez cited a $100,000 city grant leveraged into more than $1.9 million in private investment for a retail center — produced private rehabilitation and new construction activity.

Other program highlights and successor‑agency activity

- The department described ongoing work on the OC Vibe project area and follow‑on reviews for Disneyland Forward entitlements; staff noted Disney has paid its first developer obligations relating to affordable housing and park improvements.
- Ramirez said successor‑agency staff continue to manage recognized obligation payment schedule (ROPS) responsibilities and that a negotiated disposition and development agreement will bring a Porsche dealership to the city.

Council Q&A

Council members asked about business retention, vacancy rates and how the department tracks leads; Ramirez said the city’s vacancy rate is under 6% and that staff is improving intake and tracking to better connect struggling businesses to resources. Council members praised the Storefront program’s leverage effect and asked staff to return with a modest future funding proposal once carryover funds are spent.

Why it matters

The department plays a connecting role between investors, property owners and city departments. Its relatively small operating staff manages important successor‑agency obligations while using targeted grant investments to catalyze private capital in commercial corridors.