Santa Rosa staff report one‑third progress on three‑year economic development plan; retail "leakage" estimated at about $1 billion

City of Santa Rosa economic development staff told the Economic Development Subcommittee that they are about one‑third of the way through implementing a three‑year economic development strategic plan adopted by the City Council last year.

“The implementation plan…was approved by the city manager’s office and launched in January of this year. That is a 40‑page plan,” Chief Economic Development Officer Scott Adair told the subcommittee, describing a set of action items grouped under business growth and retention, entrepreneurship and small business, economic vibrancy and resiliency, and community investment.

Why it matters: staff said the plan organizes specific projects and investments that drive business retention, downtown activation and use of federal ARPA funds. Several initiatives the subcommittee discussed — an enhanced infrastructure financing district downtown, a one‑stop shop for businesses, a pop‑up/street activation program, and ARPA‑funded façade and childcare grants — could affect small businesses, downtown retailers and public‑space programming.

Key progress and metrics - Overall: staff said the division is about 35% complete on implementation across the four categories and roughly one‑third of the way through the three‑year plan. - Business growth and retention: average completion reported at 36%; notable items include a completed physical one‑stop shop (Room 6 in the economic development lobby) and a virtual one‑stop shop in contracting. Staff said workforce‑development efforts and a retail sector analysis are underway. - Entrepreneurship and small business: staff reported a 50% average completion for that category. Highlights included a new ombudsman/business concierge program and an ongoing Rise and Thrive outreach program for underrepresented businesses. “We will be doing actual face‑to‑face door visits…with a focus on small businesses,” Program Analyst Rachel Beer said. - Economic vibrancy and resiliency: average completion reported at 35%. Staff said they are advancing an enhanced infrastructure financing district (EIFD) downtown and targeting full City Council action on associated financing documents in June. “We’re actually closer to a 75% completion on the EIFD,” Director Osborne said, describing milestone‑driven percentage jumps. - Community investment and ARPA: staff said ARPA‑funded programs to address childhood poverty and childcare were “committed” and that many childcare contracts are encumbered and spent. Staff noted some facade grants are paid on a back‑end basis after construction and that finance and permitting teams are monitoring timelines to meet federal Treasury spending deadlines.

Retail analysis and "leakage" Adair told the subcommittee that a recent retail academy and market analysis identified that “just over $1,000,000,000 in retail activity is actually leaving the market and is occurring outside of Santa Rosa’s economic sphere of influence,” driven largely by food, beverage and dining. He said mobile‑analytics data were used to trace consumer movement and that staff will deliver a fuller report with category detail and recommendations for recruitment. The subcommittee discussed plans to send a delegation to ICSC (the major retail industry conference) to pursue targeted recruitment based on those findings.

Programs, pilots and events - One‑stop shop: the physical one‑stop shop is open in the economic development lobby; staff said they are finalizing a contract for the companion virtual portal and expect to launch it after contracting. - Ombudsman/business concierge: staff described one‑on‑one support connecting businesses to permitting, funding and workforce resources. Rafael Rivero, economic development specialist and small‑business ombudsman, has worked directly with private developers to hold to project timelines, staff said. - Pop‑up program and street activation: staff said a pop‑up program manual is under development (staff noted it to be roughly half complete) and that they are coordinating permit types with planning. A Reimagining Downtown street activation survey received over 1,300 responses and nearly 700 comments; staff said a full report will come to the subcommittee at a future meeting and that they are conducting door‑to‑door outreach to downtown businesses. - Farmers market and Second Sundays: staff announced a weekly farmers market running Sundays May 18 through Sept. 28, 10 a.m.–2 p.m., and a related Second Sundays family‑programming series on June 8, July, August and September second Sundays.

Next steps and directions Staff outlined short‑term next steps including returning a more detailed retail‑leakage report, advancing EIFD materials to full Council in June, finalizing the virtual one‑stop shop contract, continuing ARPA monitoring with finance and permitting teams, and delivering the street‑activation report and recommendations. No formal council votes on the projects were taken at the subcommittee meeting.

Public comment and stakeholder engagement Railroad Square stakeholders asked whether Railroad Square was included among the retail nodes analyzed; staff replied that mobile analytics include Railroad Square and that the consultant stayed in the district and that staff will work with local property and business organizations on recruitment.

Staff and committee members framed several items as subject to future Council approvals, and staff repeatedly cautioned that some funding payouts are tied to permit and construction milestones and federal deadlines. The subcommittee asked staff to return with more complete analytics and timelines for key programs.

Ending The subcommittee adjourned after about 65 minutes of discussion on the economic development update and related program work.