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Council hears midpoint update on East Palo Alto economic development plan; consultants highlight $55M retail ‘leakage’ and need for small‑business supports
Summary
Consultants and city staff presented a midpoint existing‑conditions report for the Economic Development Strategic Plan, which flags racial income gaps, limited retail corridors and roughly $55 million in retail spending that East Palo Alto residents currently spend outside the city. Staff announced an open house for Sept. 4 and said they will explore place‑based investments and streamlined permitting to support small businesses.
Denise Garcia, assistant to the city manager, opened a midpoint briefing on the city’s Economic Development Strategic Plan and introduced consultants from HR&A Advisors and Kearns & West to present the existing‑conditions findings and next steps.
Judith Taylor, partner at HR&A Advisors, summarized key demographic and market observations: “how can East Palo Alto maintain its strong sense of community while actively participating in and benefiting from the economic momentum around the city?” She and the team said the city has regained many jobs lost since 2018 but still trails the region in high‑wage employment and that income disparities persist: the report found that roughly 70% of a subset of Latinx and Black households earn about $25,000 less than the citywide median.
Consultants emphasized the city’s small‑business base and a need to bolster workforce training and place‑making. Presenters reported results from community engagement, including an on‑the‑ground exercise at the June 21 Juneteenth event; Vidya of Kearns & West summarized community priorities: “the top answers that we heard were, of course, housing and mixed use development.” The team also flagged a retail‑spending gap — commonly called “leakage” — and identified food and general‑merchandise spending as categories residents often fulfill outside city limits.
Council members pressed for more outreach and for the consultants to tighten some data points: members asked for rent‑burden metrics, clearer sourcing for the industrial‑space inventory, and more targeted engagement across language and demographic groups. Council members suggested practical next steps — more neighborhood meetings and outreach tied to cultural events — and offered policy ideas including simplified small‑business licensing structures and design incentives for ground‑floor retail in future mixed‑use projects.
Staff said the presentation is a midpoint update and that the team will return with formal recommendations; the consultants and staff invited residents to a public open house on Thursday, Sept. 4 at the YMCA city room where draft options will be shown and feedback solicited. The council did not take formal action this evening and asked staff to incorporate broader outreach results into the fall recommendations.
What’s next: staff will use the existing‑conditions work to inform the EDSP final recommendations this fall and will publish outreach materials and the draft plan for further comment prior to the final adoption process.
