Economic Development Update Office of Economic Development Presentation to Berkeley City Council October 21, 2008
Macro-Economic Trends • Deflation in housing market • Credit crunch • Rising food costs • High fuel costs • Increased unemployment
month-year Historical Unemployment Rate, 2000-2008
How are These Trends Impacting Berkeley Businesses?
Discussions with Business/ Industry Leaders Retail sales down Auto dealers report steep decline in September Restaurant sales down Several large manufacturing businesses as yet unaffected Hotels/motels holding up well
year/ quarter Current Statistics for Berkeley
Discussions with Business/ Industry Leaders Retail sales down Auto dealers report steep decline in September Restaurant sales down Several large manufacturing businesses as yet unaffected Hotels/motels holding up well
year/ quarter Current Statistics for Berkeley
Discussions with Business/ Industry Leaders Retail sales down Auto dealers report steep decline in September Restaurant sales down Several large manufacturing businesses as yet unaffected Hotels/motels holding up well
City of Berkeley Labor Force Profile
Occupational Composition of Berkeley Residents Compared to Surrounding Cities, 2006
Unemployment Disproportionately Affects: • Racial/ Ethnic Minorities •Young People •Less than High School Diploma
Unemployment by Race in Berkeley, 2006
Unemployment Disproportionately Affects: •Racial/ Ethnic Minorities • Young People •Less than High School Diploma
Percent of Unemployed Age Cohorts in Berkeley, 2006
Unemployment Disproportionately Affects: •Racial/ Ethnic Minorities •Young People • Less than High School Diploma
Unemployment By Educational Attainment in Berkeley, 2006
OUR GOAL To align our Workforce Development Programs with the needs of the unemployed and underemployed Berkeley residents and growing sectors in the local/regional economy.
Building Our Local Workforce & Developing Regional Linkages
Integrated approach that considers current and future efforts Climate Action Green Corridor Plan Job Creation & Employment Local Hiring & Workforce Development Strengthening Strategies
– Connect Berkeley-funded workforce development programs to the First Source process; – Re-direct the First Source Fund revenues, to promote the hiring of local youth and other vulnerable populations with higher unemployment rates; – Develop a strong pipeline between the permit & planning process, business licensing and the development of First Source agreements; and – Continue to implement key changes to the YouthWorks Program, based on a Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis Strengthening Local Strategies
60 Age Breakdown Summer 08 48 50 44 Total: 232 38 Number of Youth 36 40 30 23 21 20 10 10 4 4 2 2 0 14 15 16 17 18 19 20 21 22 23 24 AGE Strengthening Local Strategies
Targeted Commercial District Improvement Strategies: South Sacramento
• Façade Grants • Biofuel Oasis • New Businesses • Mixed-Use Development Targeted District Strategies Sacramento & South Berkeley
Reid’s Records 3101 Sacramento Street
Reid’s Records 3101 Sacramento Street
• Façade Grants • Biofuel Oasis • New Businesses • Mixed-Use Development Targeted District Strategies Sacramento & South Berkeley
BIOFUEL OASIS (Before) CORNER OF SACRAMENTO/ ASHBY
BIOFUEL OASIS (Sketch Up) CORNER OF SACRAMENTO/ ASHBY
• Façade Grants • Biofuel Oasis • New Businesses • Mixed-Use Development Targeted District Strategies Sacramento & South Berkeley
CAFÉ CASA 3136 Sacramento Street
• Façade Grants • Biofuel Oasis • New Businesses • Mixed-Use Development Targeted District Strategies Sacramento & South Berkeley
Hampton Legacy Apartments 3231 Sacramento Street
Green Business Update
Berkeley Certified Businesses as Portion of Alameda County • 107 Berkeley Berkeley Green Certified bus. Alameda County • Certifications Berkeley Population as quadrupled since Portion of Alameda County 2003 Berkeley • 1/3 of Alameda Alameda County County Certified firms are in Berkeley Berkeley Waitlist for County Certification • Wait time is one year or more 150 Businesses • OED will pay for 50 100 new certifications in 50 FY09 0 Y06 Y07 Y08 Year Green Business Update
Website • www.BuyLocalBerkeley.com • 170 businesses represented (more each week) • 340 newsletter subscribers • Participated in – How Berkeley Can You Be? – UCB Supplier Diversity Fair • Media Partners – Daily Californian – East Bay Express • Door decals & Posters going up now! Buy Local Week: December 1-7 • Buy Local Berkeley Door Decal
Concluding Thoughts • Despite uncertainty numerous projects are still under construction • Many transactions are simply waiting for more stable credit markets • Berkeley large institutional employers add stability to local employment • Berkeley’s workforce development and targeted strategies build on long-term strengths
VIRGINIA Current Projects Trader Joe’s WALNUT FRANCISCO (2010) DELAWARE SHATTUCK Freight & Salvage HEARST Coffee House (2009) HENRY MILVIA BERKELEY BONITA MC GEE WALNUT BERKELEY OXFORD S UNIVERSITY H T A E T T R U M C I N ADDISON K A L BERKELEY CENTER The Arpeggio of Berkeley ROOSEVELT (2009) The Shattuck Hotel H A R O L (2008) FULTON D KITTREDGE ALLSTON BANCROFT G MILVIA R MC KINLEY A MARTIN LUTHER KING JR N T DURANT BANCROFT CHANNING JEFFERSON The David Brower Center (2009) HASTE Project Status Miles � Proposed DWIGHT Use or Building Permit BLAKE Under Construction PARKER Completed Projects 0 0.05 0.1 0.2
Concluding Thoughts • Despite uncertainty numerous projects are still under construction • Many transactions are simply waiting for more stable credit markets • Berkeley large institutional employers add stability to local employment • Berkeley’s workforce development and targeted strategies build on long-term strengths
THANK YOU
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