Item 16 - 2nd Q. Activity Rpt. for Economic Development Division of RDA
_,AGENDA REPORT SUMMARY _
TO:
- Honorable Chairman
FROM: James L. Bowersox, City Manager/Executive Director
INITIATED BY: John D. Fitch, Assistant City Manager/Assistant Executive Directorq-i't
Warren H. Shafer, Director of Redevelopment Service~
Ross D. Spalding, Economic Development Manager
DATE: August 2, 1994
StnBJE~: Second Quarter Activitv Reoort for the Economic Develooment Division of
the Redevelooment Aqencv
ABSTRA~
As a way of keeping the City Council and the Community advised of the Economic
Development activity occurring in the City, the Redevelopment Services Department will
be preparing a quarterly activity report.
.
ENVIRONMENTAL REVIEW
- This action is not subject to CEQA review.
FISCAL IMPA~
None.
ADDITIONAL PtnBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the City Council/Redevelopment Agency receive and file this
report. ~'
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..
A~ION
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AUG 2 1994 ITEM 16
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~ AGENDA REPOR~
CITY OF POW A Y
This report is included on the Consent Calendar. There will be no separate discussion of the report prior to approval by the
City Council unless members Qf the Council, staff or public request it to be removed from the Consent Calendar and
discussed separately. If you wish to have this report pulled for discussion. please fill out a slip indicating the report number
and give it to the City Clerk prior to the beginning of the City Council meeting.
TO: Honorable Mayor and Members of the City Council
Honorable Chairman and Members of the Redevelopment Agency
FROM: James L. Bowersox, City Manager/Executive Director~
INITIATED BY: John D. Fitch, Assistant City Manager/Assistant Executive Directo
Warren H. Shafer, Director of Redevelopment Services~~
Ross D. Spalding, Economic Development Manager
DATE: August 2, 1994
SUBJECT: Second Ouarter Activitv Reoort for the Economic Develooment
Division of the Redevelooment Services Deoartment
BACKGROUND
The purpose of the quarterly report is to give the City Council/Redevelopment
Agency and the Community an overview of the programs designed to attract and
retain business and industry and to stimulate the local economy.
FINDINGS
The approved economic development program for the City of Poway has as its main
objective the attraction of new bus i ness and industry wh i ch wi 11 result in
employment and business opportunities, good wages, and a stronger tax base. The
program has been developing in stages and the second quarter of 1994 reflects the
impressive results of the program underway. The following is a status report on
these projects and prospect developments.
ADVERTISING AND PUBLIC RELATIONS
The advertising campaign is still going strong and providing leads. Our
advertisement is aimed at the corporate decision makers and is appearing in trade
journals and site location magazines. We had our ad published in recent editions
of Expansion Management Magazine, Business Facilities, Area Development, Plant
Sites and Parks, and San Diego Business Journal (Cities Special Report).
Also, a direct mail campaign to 1,400 high-tech companies in the Los
Angeles/Orange.C~nty area was completed in late June, which has resulted in six
prospect calls SCY far.
Our second 1994 Redevelopment Newsletter is now being developed, and is scheduled
to be distributed in September. Our mailing list is now at 700 people.
ACTION:
UG 2 1994 I
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,Quarterly Activity Report-Economic Development Division-Redevelopment Services
August 2, 1994
Page 2
Media Dimensions has prepared a public relations news release titled "Poway
Targets Public/Private Partnerships to Boost Revenues and City Amenities." The
release went to a large number of newspapers and magazines.
The City of Poway was profiled as part of a special report in the April 25 issue
of the San Di ego Business Journal. The report was on public/private
partnerships. The other cities mentioned were Chula Vista and San Diego. Ross
Spalding was in a photo with the Aldila people profiling the article.
We coordinated the "Shop Poway Auto" flyer that was paid for by the new car
dea 1 ers and ma i 1 ed out in the May water bi 11 s. We wi 11 also prepare and
distribute a "Shop Poway for Groceries" flyer to go out in August.
The annual Poway Economic Conference and Trade Show co-sponsored by the Chamber
of Commerce, the City and the South Poway Business Park was held in a large,
vacant industrial building in the Park on May 26. The conference was kicked off
by a panel discussion of "Understanding the Build-to-Suit Process." Following
the discussion, James Bowersox presented the "State of the City" and
Counc i 1 member Cafagna foll owed with a brief presentation on the
economic/redevelopment highlights of this past year. The featured speaker, Alan
Nevin, managing director of ConAm Economic Research, spoke on hi s favorite
subject, "California: The Dream is Alive," addressing significant economic issueS
facing California business today. Expo and conference attendees were treated to
a wide spectrum of businesses showcasing their products and services in the third
annual business expo. The final feature of this event was the "Taste of Poway"
Sundowner which featured fabulous food provided by local restaurants. The
attendance was better than last year due to the expanded program.
PROSPECT INOUIRIES AND LOCATIONS
We are pleased to report that the number of inquiries regarding the South Poway
Business Park and commercial area has again continued to be high this quarter.
We had 82 inquiries; many of these leads were generated by our ad and direct mail
programs.
SOURCE OF PROSPECT INQUIRIES
1994 1994 1993 1993*
2nd Quarter YTD 2nd Ouarter YTD
-'
Direct Mail & Ad~ertising 66 104 4 4
Direct (Telephone/Walk-ins/Referrals) 9 26 10 10
Rea ltors 5 20 4 4
State of CA & San Diego EDC 1 4 1 1
In-House J. ---1 ~ ~
TOTAL 82 158 27 27
*Partial Quarter as Economic Development Program started May 1, 1993.
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Quarterly Activity Report-Economic Development Division-Redevelopment Services
August 2, 1994
Page 3
Parkway Business Centre is now actively back on the market. The ownership issues
have satisfactorily been resolved to place Parkway Business Centre's pricing as
a standard for industrial property in the area, which range from $2.50 to $3.00
per square foot, plus bonds, with lots ranging from one acre on up.
In other economic development news, we have 18 expansions/relocations announced
this quarter to the Business Park. Included are:
· Hughes Corporation - Missile Systems Division, Warehouse
· Montgomery Elevators - Service
· Poway Gymnastics - Classes
· Ultrak Inc. - Shipping and Receiving
· Orkin Pest Control - Pest Services
· Artifex Entertainment - Entertainment Items
· Focus Company - Shipping and Receiving
· Laser Arts & Engraving
· Production Tooling Systems - Plastic Injection Molding
· I-Ping - Wholesale Computer Parts
· Zooks Warehouse - Quilting Materials, Wholesale
· Coupons, He.
· Ferrin Door & Hardware - Door and Window Systems
· Contour Tool - Specialty Cutting
We had four companies that were already in the Business Park expand to larger
facil ities. They are:
· Olhausen - They purchased a two acre site adjacent to their existing
building to construct a 30,000 sq. ft. addition.
· Sonic Dry Clean
· C~C Machine - Refurbishes Machines
· CASEL - Distribution Arm for COSCO
While we are able to attract inquiries, our ability to offer a variety of sizes
of available space to tenants remains a problem. We are working on this problem
by talking to developers on building speculative buildings.
Warren Shafer and Ross Spalding attended the California Association of Local
Economic Development and Team California Regional Meeting in San Diego on May 11.
The group was'-given updates on new programs available to assist in
expansion/retention efforts.
In other news, we had 53 new business certificates filed with the City this
quarter.
The Kozmont Report was compl eted in June and i ndi cated the City's market i ng
efforts were heading in the right direction. We have implemented a number of
their suggestions and are developing programs to implemeflt other recommendations.
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Quarterly Activity Report-Economic Development Division-Redevelopment Services
August 2, 1994
Page 4
COMMERCIAL ACTIVITY
Boney's Market was officially opened on June 21 with a VIP reception. They did
a great job in getting the gutted, former Longs Drug building renovated. We hope
they are successful in this, their 11th store.
Megafoods was both on and off this quarter. Remodeling construction stopped in
April-May due to some financial and other problems by Megafoods. Remodeling has
begun again and they are indicating a grand opening in late July. The owner of
the center is also doing some parking lot landscaping to make the center more
attractive.
The Vons store at the west end of town closed on May 7. They would not give a
reason other than it did not live up to expectations. The building is 30,000 sq.
ft. Vons real estate people told us only another grocery can go in due to lease
restrictions.
We continue to meet with the agents for Poway Plaza and the people handling the
vacant Bu i 1 ders Emporium. They have several good prospects that they are
presently negotiating with.
We also have Blockbuster Entertainment and Boston Chicken buying the two pads in
Creekside Plaza fronting on Poway Road. ADI has also disclosed that they plan
on building a small offi ce buil di ng on the vacant pad next to the Edwards
Theater.
Ross Spalding attended the International Counc il of Shoppi ng Centers annual
three-day conference and trade show in Las Vegas in May. There were over 30,000
people in attendance, representing every major U. S. owner/developer/tenant.
Ross Spalding met with a number of potential commercial prospects. He learned
that six firms are interested in Poway for new locations. We are working with
these prospects.
ENVIRONMENTAL REVIEW
This action is not subject to CEQA review.
FISCAL IMPACT
None. - ~
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the City Council/Redevelopment Agency receive and file
this report.
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