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Seaside plans new economic development department, hires consultants to recruit retailers
Summary
Council and staff outlined a split of economic and community development functions, plans to hire national retail-recruitment consultants and increase targeted marketing to attract businesses to downtown and major projects such as Campus Town and Main Gate.
Seaside city officials told the council June 12 that the FY 2025'26 budget includes a reorganization separating economic development from community development and funding for consultants to accelerate retail recruitment.
Why it matters: the newly framed economic development department is intended to focus on business attraction, downtown revitalization and support for major projects including Campus Town and Main Gate; staff said outside retail recruitment expertise can bring national contacts that may produce higher sales-tax revenue than the consultant cost.
What staff presented Economic Development Director Jose Bazuela outlined the department's work: business attraction and retention, downtown revitalization, small-business support and tourism growth. The department is budgeted with two full-time positions, personnel services of about $381,000 and general tax subsidy of roughly $811,000, according to budget documents presented by the finance director.
Bazuela and City Manager said the budget contains funds for a national retail recruitment consultant and reduced marketing spending compared with the prior year. Council members pressed for details on consultant fees and recent consultant spending: Councilmember Pacheco asked why consultant line items were projected to rise and what benefit had been obtained. Bazuela said consultants were used for projects including Maingate and Campus Town efforts and for a retail recruitment effort; staff also explained a $42,000 annual lease for a satellite office on Broadway is being held open while staff attempts to secure a tenant to assume the lease.
Council questions and staff responses - Council members sought proof of results and cost-effectiveness. Bazuela and the city manager said the value of a recruitment consultant is that one successful project can generate enough sales tax to pay for the contract. - Councilmember Miller asked whether earlier council opposition to a recruitment consultant had changed; staff said council policy or focus had shifted with the new city manager and director in place and that the budget reflects that change in strategy. - Marketing funds were trimmed from prior years; staff described an approach that will include digital restaurant guides, targeted Bay Area advertising, and QR-coded materials to reach visitors in addition to Sea Monterey regional work.
What remains unresolved Council sought more detail on consultant contracts, the satellite-office lease and measurable deliverables in the proposed economic development action plan. Staff said an action plan will be developed and returned with measurable, attainable items and a public input process.
Ending Council signaled support for funding targeted consultant work and an economic development action plan but asked staff to provide clearer deliverables and contracting detail before final approval at the next budget presentation.
