Post on 09-Dec-2021
COVID ImpactsSince January 2020
◦ 36.5% fewer small businesses are open, and for those that are revenues are down 34.3%
◦ Consumer Spending is up 1.8% overall, down 15.8% for Restaurants and Hotels and, up 21.3% for Retail
Key ConsiderationsPre Covid• Activating districts through place-making to
increase vibrancy and drive foot traffic• Form a multi department small business
support team• Engage with external main street
associations• In person engagement with businesses
Deal with present
situationRespond
React and emerging stronger
Recover
Prepare for
success in “new
normal”
Thrive
“New Normal”• Enhanced communication and
connection to resources• Technical assistance include digital skills
enhancement• Focus on resiliency• Use crisis as opportunity
Immediate COVID ResponseFinancial Assistance
• Small Business Grants
• Two Rounds through the City, matching funds to Alameda County
• Waiving late fees on Business Taxes
• Promoted Federal Assistance programs including Paycheck Protection Program
Technical Assistance and Communications
• Business Hotline and COVID Business Resource Page
• Gift Fremont
• Pop Up Patio and Park Business Operating Permit (P-BOP)
• Small Business Working Group with Neighborhood Business Associations
Policy
• Small Scale Commercial Eviction Moratorium
• Third-Party Delivery Fee Cap
Analysis and Research
Four Masters students from the University of Southern California researched our small business environment for their Masters Thesis
Interviews, Case Studies, Literature Reviews
Explored where small businesses current get information on resources, and what resources are the most important for the City to provide
Silicon Valley Roundtable Report developed by a local team of experts and outlines recommendations relevant across the region
The Fremont OpportunityDiverse residents and businesses and business districts
Resilient industrial economy and essential workers
Purchasing power from high household income and employment
Action Steps
Communications and Engagement
Technical Assistance Collaboration with partners
Make effective emergency programs
permanent
Communications and Engagement
• Not one size fits all
• Growing our contact list
• Diversifying our communication channels
• Increasing in person engagement safely
Technical Assistance
oSmall Business Point of Contact
oEnhanced website resources
oMarketing services and business management
oBusiness Resiliency
oReviewing City Regulations and Processes
Make Effective Programs Permanent
Use the crisis as an opportunity and evaluate emergency programs for long term applicability.
PRE-COVID
• Intense Competition for talent
• Lack of Employer and Job Seeker Awareness
• Time and Resource Constraints (employer)
• Confusing and lengthy process (misconceptions)
WITH COVID
• Shelter In Place Constraints (digital divide, access to equipment for in-person classes)
• Uncertainty Regarding COVID impact on Business (certain sectors more than others)
• Disproportionate impact of pandemic on women and minority workers
• Median Advanced Manufacturing wagesare $35/hr, and Entry level is $25/hr.
• Advanced Manufacturing sector jobs morebroadly accessible than other industries.
• More than 50% of the sector’s workerspossess less than a bachelor’s degree.
• Fremont companies continued to operateand hire people even during the pandemic.
MakingHigh-Income and Growth Accessible
Welder/Cutter - $53K
Sheet Metal Worker - $74K
First-Line Supervisor- $95K
Industrial Engineer - $115K
“This program is truly worth
it…the skills you learn you can take anywhere.
I’m just thankful for this program giving me an opportunity to
better myself and be a part of
something.”
- Reggie Battle (Previously Unhoused FRC Client)
My name is Maria C. Hernandez. I came to the USA in 1996. I start
working in McDonalds and KFC, 8 years at Club Sport, 15 years
Holiday Inn, 10 years Hilton Double Tree.
Now I have the privilege to work in Evolve company. I have a great
time, excellent teamwork, perfect managers!
I have four kids: Miguel,Diana, Brian and Victoria.
Fremont Economic Development
Our Mission
Foster business activity and investments in Fremont that lead to a higher quality of life for our residents by facilitating the creation of good jobs, a thriving environment for businesses of all sizes, and a financially healthy government to support City services.
ResidentialProperty Tax,
37%
FranchiseFees, 5%
Services,3%Other, 3%
Sales Tax,26%
BusinessTax, 6%
Hotel Tax,3%
CommercialProperty Tax, 17%
GENERAL FUND REVENUE BY SOURCEFY 20/21 ADOPTED OPERATING BUDGET
How Our Dept.’s Work Supports City
Services
Sales Tax,26%
BusinessTax, 6%
Hotel Tax,3%
CommercialProperty Tax, 17%
GENERAL FUND REVENUE BY SOURCEFY 20/21 ADOPTED OPERATING BUDGET
How Our Dept.’s Work Supports City
Services
EDD’s work directly influences activities accounting for over half of the City’s GF revenues in a typical year.
COVID-19 Impact on Fremont’s Economy
Historically low 2.7% unemployment
15,000 jobs added since 2015 to over 115,000
$3 billion in Fremont employee wage growth
Jan.2020
April 2020
Today
Unemployment balloons to 11.2%
Over 12,000 Fremont residents out of work
Consumer spending down 35%
Unemployment at 5.4%; 6,200 jobless residents
Consumer spending down 1.3%
$12M FY 20/21 GF revenue loss
ELECTRONICS
Semiconductor wafers & equipment, printed circuit boards, data storage, robotics, & industrial IoT
Includes companies such as Lam Research, Seagate, Western Digital, Synnex & Quanta Computer
LIFE SCIENCES
Fremont’s fastest growing sector and highest sector count at over 115 companies
Includes Boehringer Ingelheim, Evolve Manufacturing, ThermoFisher, Bionova Scientific & Think Surgical
CLEANTECH & AUTOTECH
Battery and solar equipment industry concentration in Fremont including Enovix, Enphase, & Nextracker
Auto-tech & autonomous vehicle growth including Tesla, Waymo, Hyundai, Pony.ai & ZOOX
Fremont’s Growth Sectors are Essential
Fremont’s Diversified Economy Buffered City from Greater Pandemic Losses
-22%
-31%
-31%
-33%
-38%
-40%
-42%
-59%
-60% -50% -40% -30% -20% -10% 0%
Fremont
Union City
Hayward
Newark
Oakland
Milpitas
Pleasanton
San Francisco
Change in Y/Y Per Capita Sales Tax, Q2 2019 to Q2 2020
Fremont’s Industrial Lands are the Modern Silicon Valley Garage
Apple Garage Historic Landmark, 1977
Hyundai’s Urban Air Mobility facility in Fremont, Today
Strategic Value of Fremont’s Industries
• Fremont home to largest inventory of industrial real estate in Silicon Valley, providing flexible space for innovative companies to grow
• Fremont’s hardware ecosystem plays vital role within Silicon Valley’s innovation economy by supporting development of physical products
• The manufacture of these physical products (and equipment used to make them) generates sales & use tax and unsecured business property tax.
Fremont’s Industrial Lands Generate More Sales Tax than all Major Shopping Centers Combined
$- $5,000,000 $10,000,000 $15,000,000 $20,000,000
Gateway Plaza
Warm Springs Area Retail
Irvington Area Retail
Centerville Area Retail
Fremont Hub
Ardenwood Tech Park
City Center
Pacific Commons
Fremont Auto Mall
Fremont Industrial Area
Sales Tax Revenue by Geography, FY 19-20
2011: Boehringer Ingelheim (BI) leases 1st
Building in Ardenwood, creates 150 middle wage
and skilled jobs
Company purchases millions in new
equipment, generating use tax and unsecured
property tax
2015: Grows its workforce and invests in second building, more use and property tax
generated
2018: Company expands into 4th building, grows
workforce to 500 employees
2020: Invests $230 million for 3rd bioreactor, increasing output 150% and growing Fremont
workforce to 700
2020: BI Fremont becomes one of the
largest biotech manufacturing
operations in CA
Understanding the Role of Non-Residential Real Estate on Fremont's General Fund
Non-residential real estate accounts for approx. 1/5 of City’s General Fund revenue
More stable than sales tax (less cyclical)
Strong growth in property tax assessments tied to EDD’s facilitation
Industrial is Fremont’s fastest growing CRE asset at 65% increase over past 5 years
Industry generates unsecured business personal property tax assessments
Case Study: Pacific Commons South
• 2.5 million square feet of of state-of-the-art flex space
• One of the largest industrial Projects ever in the Bay Area
• New tenants in computer electronics, medical device manufacturing, clean technology and ecommerce
• Millions in property tax revenue for City, County, and FUSD
Case Study: Artist Walk Apartments
• Revitalized key stretch of Centerville business district on long vacant site
• Development created new gathering location for Centerville Community
• 185 Apartment Units, many leased to Facebook employees
• 30,259 SF of Ground Floor Retail with 800 linear feet of highly visible street frontage
• Retail nearly entirely leased
• Building sold for $110.25M in 2019
Recommended Strategies to Support Investment & General Fund Revenue Growth
Continue to advise on fiscal impact of major development permits and land use change decisions
Work with Staff & Council to establish fees and regulatory processes so they that encourage investment, when up for review
Generate awareness and promote Fremont as a place to invest and do business in
Cultivate and expand external partnerships to further strengthen Fremont’s economy
Promote key industry sectors through strategic policies, marketing, & streamlined processes
Support growth of existing Fremont businesses while assisting new ones who choose to locate in Fremont
Communications/Engagement
Technical Assistance
Collaboration with Partners
Make Effective Programs Permanent
Focus on Employer Needs
Raise Awareness of Mfg Jobs
Advise on Inclusive Strategies
SMALL BUSINESS JOBS / WORKFORCE / TALENT BUSINESS TAX / REVENUE
Expand Partnerships
Identify Funding Sources
Support Key Industry Sectors
Advise/Facilitate on Development
Enhance Business Environment
Promote Fremont as Place to Invest
Provide Business Support
Build on External Network