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Retail committee hears economic development update; staff to recruit replacement coordinator
Summary
City staff briefed the Retail Committee on Q2 economic development metrics, upcoming business openings and temporary staffing changes. Staff said they will recruit to fill an economic development coordinator role and continue efforts to facilitate business openings on California and University avenues.
The Palo Alto Retail Committee received an economic development activity report on Aug. 20 that highlighted retail openings and closures, ongoing streetscape work on California Avenue ("Cal Ave") and University Avenue, and a staffing transition in the economic development team.
Ruth, an economic development specialist, told the committee staff are tracking quarterly retail metrics (average asking retail rent, retail vacancy rate, square feet available and net absorption) using the CoStar real estate database and are supplementing that with broker and on‑the‑ground reporting. Examples of businesses staff said are in permitting or planning to open in the coming months include Color Me Mine (pottery studio), Marafoku Ramen (Japanese restaurant) and Node (retail gallery) on University Avenue. Staff also reported recent departures: Good Vibrations has closed and Chico's is scheduled to close Aug. 28.
Kylie Nozze, assistant city manager, said the city will recruit for the economic development coordinator position that formerly partnered with Ruth to help shepherd openings and manage council priorities. "The city is actually gonna go out and recruit for that position," she said. Staff said the gap will force a temporary reprioritization, with an increased focus on facilitating business openings and permitting triage so new tenants can reach opening more quickly.
Committee members discussed Cal Ave operational items (bollard and planter replacements, signage), a longer‑term streetscape and brand direction, and Ramona Avenue interim versus comprehensive design choices. Staff said two replacement monument signs are funded (El Camino Real and Oregon Expressway entry signs) and are moving toward fabrication and public‑works implementation; wider wayfinding or directory signage would require additional design, funding and a maintenance plan, and staff suggested those be coordinated with business associations or a merchant group.
Committee members also raised interest in an "entertainment zone" (allowing limited open containers during events) and asked staff to accelerate exploration; staff said open‑container rules for Third Thursday events have already been authorized by council and further research on entertainment zones remains on the work plan but will be prioritized against other tasks.
Staff listed upcoming events and activations intended to drive foot traffic: Third Thursday on California Avenue, a community tournament on Friday, the Palo Alto Festival of the Arts (downtown University Avenue) in August and the CodeArt Festival in October 2025. Staff emphasized proactive business outreach, including a process that flags use‑and‑occupancy or tenant improvement applications early so staff can coordinate inspections and plan‑review resources and help avoid late surprises for business owners.
Ending: Staff will continue recruitment for the economic development coordinator, work with public works on implementing funded signage and continue focused support to help new businesses open; no committee action was required on the report.
