Economic development director previews plan to close structural gap, urges targeted objectives

Katie, the city's economic development director, previewed a strategic plan before the fiscal commission and urged the commission to focus on measurable objectives that can help close what she described as "a $3,000,000 structural deficit." She said the plan will go to the City Council on March 3 and asked the commission for feedback on priorities and performance metrics.

Katie framed economic development as a policy ladder from vision to objectives: "vision turns into goals, goals turns into policies, policies into objectives and activities," she told the commission. She said a good objective is measurable, timebound (one to five years), tied to an implementing agent and responsive to market forces.

To raise revenue and bolster fiscal resiliency, Katie outlined three intervention areas: revenue-capture measures (for example, adjusting fees or enforcing parking citations), fiscal-stabilization actions such as improving grant capacity, and economic-development strategies that attract private investment. She urged the city to be selective about target industries and incentives, noting a September market analysis flagged university-linked sectors as strategic opportunities.

On investment and returns, Katie said the city has used small loans and incubator support in recent years. "For every dollar that the city invested in the incubator program, we got $2.3 back in direct investment," she said, citing results from prior city-backed investments. She described other tools under study, including targeted public'private partnerships and a consultant-led analysis of a tax-increment-style financing district to fund downtown public-realm improvements.

During a sustained Q&A, commissioners and business representatives pressed staff on several practical barriers: complex zoning and permitting documents (the presentation referenced more than 250 planning documents), financing constraints that stall approved projects, and vacant downtown storefronts in older buildings that need retrofit. Katie and planning staff offered examples of how timing a city capital project differently, leasing private resources, or targeted customer-service interventions have recently unlocked projects.

Multiple participants urged stronger ties with UC Davis and regional partners. Katie said staff already coordinates with regional entities such as Valley Vision and Greater Sacramento and participates with university-linked incubators and delegations to trade events.

On metrics, Katie presented percentage-over-inflation targets as a planning device rather than absolute dollar goals; she said roughly 6% growth above inflation could help close the stated structural gap and that 3% over inflation represents a more moderate, sustainable target. She asked the commission whether the city should commit to such targets when the plan reaches council.

Public comment included brief remarks from Brett, who identified himself as executive director of the Davis Downtown Business Association and said he welcomed the city having a dedicated economic development director and a coherent plan.

Katie summarized next steps: staff will finalize objective-level metrics, continue outreach with regional and university partners, complete the consultant analysis of financing tools this summer, and present the full plan to City Council on March 3. The commission recommended future materials include clearer data on downtown vacancies, a short executive summary of proposed objectives, and a resource/staffing scenario tied to any council targets.

The commission did not take formal action on the strategic plan at the meeting; the matter will be considered by City Council next month.