Skip to main content

tv   [untitled]    March 1, 2015 11:30am-12:01pm PST

11:30 am
professional services the creative industries and the other decides is our tourism and sub sectors within that certainly is not an achieve list but just as important but keenly interrelated are the other industries from construction and real estate to our pdr and the industrial distribution and transportation sectors as well as our social services health care that ensure our people infrastructure are strong to drive our executor industries that's a key explanation of the 2007 report came in together on another key finding i think was the offering rh2 goals about economic development strategy and just to summarize those 3
11:31 am
the first is to create job opportunity that not only build on our strength by drive economic growth that is critical it means we need to focus on the strategies focus on our strengths and insure it drives economic growth it is tied keenly into number two to have equities equity in job opportunity as you recall this is ultimately how you address inequality by addressing the good opportunity and pathways to those job opportunity so resident can continue with their skills 53 and finally the fundamental point we need to insure through the economic strategy we have a fiscal
11:32 am
priority economic strategy conducted with 19 key recommendation across key from educations to the quality of life and the infrastructure and innovation i'm not going to go through all of those i want to share that with you and the members of the public to show the economic strategy was very, very exclusive their interrelated and effect how the economy functions and how we chief our goals but laurel is going to speak through the actions that oewd and the planning department and other departments across the city to advance those objectives next i'm not to invite laurel up here
11:33 am
now. >> thanks todd as todd mentioned i've going to be covering some of the actions the city has taken as a result of the 2007 strategy and i've broke those action my summary by the 5 foundations outlined the first is an action around education and training oewd implemented a workforce promissory note program this sector has been successful with a creation of 4 distinct academies one in construction one in health care one in information technology and hospitalities one good example of the hospitality the new market on market in the twitter building 40 percent of the hiring were through the hospitality program it is a great placement of people into
11:34 am
the job that are being created and in addition the work academy we've partnered with the school board on educational programs and have added with the citizens advisory committee those changes allow the allowed us to align our clear pathway to implement for our city's youth and feinstein to close the digital guide every be it resolved p,z&e, finance governance penetration is a has provided over 2 hundred thousand hours of literacy training and media training established or revamped youth and 54 technology centers we have the penetration of be it resolved with over thirty thousand miles of be it resolved
11:35 am
and new phone call on the parks and the waterfront or matt and throughout the civic center action area too addresses the guns and business climate perhaps some of the transition from the fax to gross redevelopment tax from one to job creation and broadened the tax base alignment we have businesses teams insuring that businesses have a contract within city hall this is allowing us to strengthen our partnership working with the groups like the chamber of commerce and the golden gate sf traffic and other merchant and lgbtq chamber of commerce this allows for better consumption for the policies and regulations
11:36 am
within city hall and faster warning of business needs in 2008 oewd launched china sf focusing on growing the chinese firms in san francisco and in 5 years we saw the recruitment of 44 new biz businesses and we've extended to greater asia working to expand our companies in san francisco awhile providing opportunity for companies to be broadening their basis and perhaps the most important part of government to make it easy to do business in san francisco in 2008 we launched a one-stop business center for folks and in the first 6 years they've helped 16 thousand small businesses to improve last november we launched a new online businesses
11:37 am
about say for comprehensive businesses growing in san francisco looking for anyone the opportunity to access the information from the comfort of their home on their own schedules not ours at city hall finally with the business community we've be able to develop and refine a number of tools for the small businesses access to capital is the number one concern we launched an 8 homicide thousand dollars roving plan that provides loans up to $50,000 hearing needs for additional capital there's the loan fund in the range of $50,000 to million dollars and hearing in a small businesses that needs access to less capital yes we have a low interest loan of $75,000 we have helped to ply with the americans
11:38 am
with disabilities act so we'll wyoming we've created an assessment report a plan for compliance and provides access for additional grants and loans and more than 2 hundred and 50 businesses were served in the first year and created the job fair to have direct outreach and again trying to make it easier and easier to assess the tools of city hall and we've met with over 2 hundred and 50 thousand businesses third action item the quality of life when you think about quality of life in san francisco our thriving neighborhoods are important with the neighborhood across the department to revitalize 3 corridors dedicated staff work with the community partners to develop a commercial need and strength and
11:39 am
opportunities with this road map we'll be able to help with the streetscape improvements and business abstraction and the deployment of loans and grants opportunity with the focus on beautification projects the sf shine has comploild 6 pointed million dollars and with the cooperation of services from the dpw and planning and the mta with the investment neighborhoods streetscapes are better cooperated with the community and many neighborhoods are worked with the city to create cvc to have private dollars to supplement safety services and those communities feel with important another factor in the community ask the quality of life of art through the art program we've received new money for arts up to
11:40 am
$340000 they create new art infrastructure for the quality of our neighborhood but employment opportunity for art professionals over half from san francisco the neighborhood arts collaborative has arts deeply roots in their neighborhood with half a million dollars over the year as they've done $5 million in the opera house and for other city cultural centers we we think about quality of life we think of the parks and open space represented receptionist has other planning agencies in addition the voters have passed a number of bond measures while the rec and park department has worked with nonprofits to provide recommendation to our
11:41 am
sports facilities and our supports fields and community centers and thanks to you guys we've provided more open space through the paechlt program that will facility 4r07b8g9d maintenance solutions for the city on progress that fall outside of the park jurisdiction action all of your hard work this covers everything from the rofblg area plans from the housing plans and efforts that are supportive of one hundred and 20 thousand additional jobs for industrial space to insure the retention of good middle-income jobs those improve the scombriement progress and providing more certainty to job
11:42 am
applicant and insuring we will complooment san francisco's process those are two of the key processes of san francisco infrastructure we must participation to transit it is for a wide approach to maximizing the sufficiency of faster more reliable and greater seas to jobs for san franciscans some of the jobs are dictated traveling and transit signal priorities there is on top of other projects including the electrician indication and that van ness and brt we can keep going the last action item in the technology innovation how san
11:43 am
francisco has 2r0ishd so some novice companies first san francisco has been fortunate to attract impersonator and coworkers spaces for technology and measuring and bio techs those spaces allow a person with an idea to give it a try in a long lease and restraining order provides them with a collaborative environmentalist for the business to fail are the entrepreneurs or whatever for their next set up a large number of collaborative spaces has helped to engage and enable our growth as a business environment that is an educate active workforce and calls us to attract and research the academic institutions we don't have to look further think outside the box mission bay is a
11:44 am
great place to enable startups to create businesses as we continue to grow san francisco's economy we remember the importance of our health department wiener at it again and with the research an anchor for commercial development so this is highlighted to some of the actions by itself city departments for the romentsz of the strategies now todd will talk about how this has impacted our city. >> good afternoon, commissioners my name is ted with the mayor's office of economic analysis we were asked to assist with the update to the strategy by providing essentially a fresh update of how the city's economy performed it changes from one day to the next and we're in a
11:45 am
period of very rapid economic growth and pass through the 4 years you'll see the signs appointing this is a strategy that is a long-term strategy and long term plan so it's important to look at the san francisco economy with the prospective that takes the business cycle out in other words from one point to the next business cycle i'll begin by sharing this finding is a t a key finding referring to the performance of the 4 pieces of the san francisco economy that was awe looutd latitude to basically, the creative industries that has a lot media and technology and architecture and accumulating and innovative manufacturers 34 is a set of san francisco that thrives here because of the pool
11:46 am
of talented labors and things like architecture culturally cultural and startup companies and the critical mass of the tests that are here secondly a set of activities there were called the experience industries those are visitor attracts and strength of san francisco larger because the city and regional has been very attractive to visitor and has a lot of visitor infrastructure and thirdly we have a cluster of financial and practices that represent an older downtown san francisco economic the corporate haurdz and financial institutions and larger in san francisco because they've been in san francisco for a look at here and thirdly the 3 elements of what todd
11:47 am
custodial the export of the economy those are - theirs performance based how improve they can do well relative to other police radios or parolee the fourth piece in the local economy is the local survey those o are the companies that serve in san francisco many, many ways the fate of the industry is tide to the success of the other but local factors that dooz do or don't support the businesses we're taking a long term view this is the long industries in the 2004 to the. (off the record.) essentially from the lowest point of the burst to the lowest point of the recession we're looking at two points many the same cycle to see over the course of business
11:48 am
cycle how has things changed they've not changed much the continuation over the decades the horizon ac excess thousands the growth from the bottom of one recession to the bottom of another recession it grow over 4 percent which is rallied in the overall city and financial and professional services were flat and all the local certifying destroying destroy lost jobs at a rate of 1 and a half percent this shows the big industry in san francisco cleared to a typical u.s. gravel we have a lot of strength about 4.7 percent what the typical place
11:49 am
we've strengthened the cities and strengthened the financial and professional services we've got 60 percent of jobs in the local industries in the city that are a size typically in the united states the sector of our economy is the weakest performing we're losing jobs in a typical city of our size would have the relative performances that is a key finding i think in the study goes a long way for the demographics of san francisco the way it does that the type of jobs it supports in job i apologize for the jair in the corner what we wanted to look at was for each industries how do the jobs line up in terms of the education that you need to work in the industry or the employees in that industry typically have
11:50 am
and how much do necessary pay one the key finding the industries that are doing well in san francisco the creativity cluster and the other clusters either provides high paying scombrobz for people or provide low paying jobs generally important people that don't have formal education i don't remember the exact number somewhere in the area of 70 to 75 this is quite a low wage creative industries wells the financial and professional service industries tend to offer more medium and particularly high wage but most of the workers will have a four degree and only half of the san franciscans fall into that there's a mismatch between the
11:51 am
industries that are growing in the city and the types of people they tend to adhere and the demographics in san francisco it is really that mismatch that drove the kind of prospective and objective to the stirs economic stream in 2007 and what the city needs to do going forward that has implications that this is a chart of the income cohorts are the usual one we've talked about with affordable housing around 50 percent of below are very low and 50 percent and low and one hundred is moderate and one hundred 20 is up and it shows clearly we've had growth at the top of the structure and one
11:52 am
hundred 20 and above and growth zero to 50 powers and a little bit of growth in the low we've seen a decline in the population so the growth in the city's pops is at the top and bottom the industries to hire people at the top i don't think that is very sprooirz >> the ballot measure that created the plan requirement required you to do something called a barriers to john growth survey a survey of businesses to identify the factors in the city busy climate to discourage them from hiring we supplemented this to look at how the cost of doing business in san francisco for
11:53 am
different types of busy is different within the bay area this is one slide to highlight this and again, i apologize on the video the different colors don't show up but the survey and the kind of cost analyze we did pointed out to 3 factors that are particularly contributing to a high cost in the first and important is labor costs the biggest expense 3 businesses pay month biz spend their revenue on labor and in san francisco's the labor costs are higher than the bay area that show up in blew black and blue the second cost is their space and it tends to be higher in san francisco for most businesses quite less of a factor and the third is taxes
11:54 am
taxes are higher in san francisco but this is a distance third relatively if you buzzing businesses that have higher costs in san francisco because the baby boomer laboring costs are higher or the spaces are higher this is an example of a typical hard war store pays in labor costs and office and taxes in san francisco and some other plays around the burr for the east bay san francisco is hire you may say people don't decide to go to oakland to a hardware store you you know businesses have higher costs but have a local cap market that's true but probably less and less true first of all, there's a lot of leakage out of san francisco like the area that costs are
11:55 am
lower, and, secondly businesses are not only competing with the jurisdictions but online resources particularly formula retail when you look at the industries that don't say a natural comprehensive edges the fact it is more expensive in san francisco is probably connected to the fact they're not growing and thriving in san francisco this is addressing some of the barriers over the long term we won't have an economic in which two or three of the sector are doing well on that note i'll i'm going to my colleague. >> commissioners to close on the formal report i'm eager to get to our questions as well public comment i want to talk
11:56 am
about the next steps and the concludes of this updated are sort of directing us as ted mentioned there are remaining challenges to achieving the 3 goals i've late out in the inventing we've laid outside the 7 here first is the focus on the development of more housing particularly affordable housing this one goes to the heart of the last bar chart of the hardware businesses in san francisco the costs they face because of the high costs housing and how that translates into was this compared to other cities we can talk about that more this commission knows of the work in the area and enjoy that we'll talk about that we continue to promote the job
11:57 am
enhancement that is one of the slides how the wages are driven by education level and then overlayed by the industries that create those types of jobs a simple way to talk about that the companies with barriers to employment they're maybe the folks have a record or not graduating from high school to make sure that those folks increasing the levels of wages so they're not just stag nate and exacerbating the low chart of low and high and middle income earners and this is straightforward that oewd in working with the department of the technology and the office of small business commission
11:58 am
teaspoons with the small business portal and the starting businesses we need to address rising real estate costs and the lack of space in the city this is an issue the commission knows there will be a robust discussion and we need to be focused on the local serving industries and particularly not only pdr but your local small businesses in the commercial coordinator e corridor as ted was shoving we're under performing the commission has deny done a great job of supporting our local busy this is about our infrastructure capacity 3 goes without saying the importance of motorcycling people not only in the supply but in and out of the city and considerations for moving the employees and consumers late at night as well and finally the four conclusions of economic
11:59 am
strategy that continue to be true to continue to strengthen our infrastructure and the direction and the transportation and the pdr industries we need to continually up to date the tourism is a key desire of the city's economy and retain our larger sector companies because they're not just providing strong employment growth but stronger multiplier that plusses and minuses through the community and continue to be a great place to start a business whether a new hardware store or nonprofit san francisco's most compelling to brings things to market we need to be competitive for that with that we'll bring this portion to a close happen to look forward to discussion and public comment thank you thank you very much
12:00 pm
communication there's one card tom are you still here okay any public comment on this item? okay public comment is closed. let me start off with a couple of thoughts it is interesting that what i think is most interesting information items there's usually no public comment but (laughter) this one is possibly out of the reports and packet we get the most important and the most comprehensive it looks at trams and housing thank you for putting this together the entire team to me with the 2007 and this year's report has a pretty good baseline and getting a better baseline what we want to see in the next report a few years from now it was mentioned some miss matches and