Knowing and Growing our Local Business Community

As staff for a City of over 50,000 residents, we get a number of questions regarding the local economy.  Primarily we are asked what we are doing to bring new businesses to town and what we are doing to provide quality jobs for our residents.  Watsonville’s Economic Development team focuses on three primary functions: Business Retention, Business Expansion and Business Attraction.  Today we are focusing on how we work with our existing businesses to keep them here and to help them when they need to grow.  It is also worth pointing out that having a happy and healthy business community and a strong business retention and expansion program is the best way to grow the local economy and to attract new businesses.

Knowing what skills and what types of businesses we have in town helps us shape our attraction efforts.  Understanding how our workforce fits with our key businesses make it easier for us to attract businesses.  In attraction efforts, nothing can sell a city like a successful business community.

The most important thing that we do is establish and maintain ongoing relationships with key businesses.  Each year, our economic development staff visits with over 200 businesses – including our largest employers, largest sales tax generators and companies that are growing.  This allows us to be proactive with businesses that are expanding and businesses that are in trouble – and provide them with the help they need.  To reach out to small business, we developed our Annual Business Walk which takes place each September.  This event is fairly simple –a group of volunteers visit as many small businesses as we can and find out how they are doing (and why).

We have been successful in these efforts over the past few years.  Our current industrial vacancy is around 1% and our office vacancy rate is under 5% and employment has increased substantially.  Having good relationships with our local business community helped us land a few new businesses, including Monterey Bay Spice Company and Johnson Art Studios.

It isn’t enough to just talk to our business community, we also have to provide services that can help them succeed.  For this, we lean on our partners like our local banks, the Small Business Development Center, El Pajaro Community Development Center, the Chamber of Commerce and others.  We also provide direct services like our façade improvement program, our business assistance program and our loan guarantee program

While we are proud of our retention efforts, we do have problems that need solutions.  The largest is that our Economic Development efforts are funded primarily through the Redevelopment Agency.  The State of California has taken billions of local tax dollars from Redevelopment Agencies over the past few years and the future of redevelopment is murky.  Our other big problem is that Watsonville is out of land.  There are very few development sites in Watsonville and those that exist are expensive to develop.  Redevelopment has traditionally been the tool to deal with these problems.  Given the fact that our Economic Development efforts have identified nine businesses that need to expand in the next five years, we need to solve these problems soon.

If you have questions or would like to learn more about the Economic Development efforts underway in Watsonville, please visit our new Economic Development website at www.GrowInWatsonville.com or call our Economic Development Manager, Kurt Overmeyer, at (831) 768-3087.

]]> http://growinwatsonville.com/general-business/growing-watsonville-by-working-with-our-business-community/feed 0 http://growinwatsonville.com/news/utility-box-art-project http://growinwatsonville.com/news/utility-box-art-project#comments Thu, 08 Dec 2011 17:30:10 +0000 Laurie http://growinwatsonville.com/?p=3368 All around most cities, ugly grey and tan boxes filled with phone, cable and electrical equipment dot the landscape.  The necessary but unattractive Utility boxes, when left with the typical institutional grey or tan paint, tend to become magnets for graffiti and detract from an otherwise pleasing environment.  Given the importance of these small structures to our society, cities have discovered various methods for hiding or dressing up these boxes.  Hiding the boxes works well if there is enough space, but painting or wrapping them with art turns these ugly utilitarian monoliths into works of art without increasing their footprint.  And as a bonus, painting or wrapping the boxes substantially reduces the likelihood that the boxes will fall prey to graffiti and vandalism.  Utility Box Art in one of the proposed projects included in the City’s first ever Public Art Plan, which was approved by the Council/Agency on June 28, 2011, to address the problems of graffiti and aesthetics, as well as enhance the areas surrounding these boxes.

 The Public Art Committee requested conceptual designs from local artists and received 35 designs submitted by nine artists.  Installation of three of the selected designs began Monday, December 5, 2011, starting with the box located on Freedom Blvd. at Martinelli Street where Artist Vanessa Stafford will paint a representation of the City’s Civic Plaza Park.  Artist Arturo Thomae will begin installation of his designs entitled “Birds in Slough” and “Strawberries on Vine” on the other two boxes located at the corners of Freedom Blvd. and Brennan Street and West Lake Ave. and Rodriguez Street within the next two weeks.  Work on all three boxes is expected to continue through the end of the month and be completed by the first part of January 2012.

 The newly revamped utility boxes also beautify the area’s surrounding them and create an environment that is not only more aesthetically pleasing, but helps local business by improving perceptions of the area.  These small efforts to beautify the streets and the surrounding landscape in Watsonville all add up to a better economy and a nicer place to live.  The City of Watsonville Public Art Committee is excited to be able to offer these small improvements to our city and is working to bring more art related events and projects like these to Watsonville.

 For more information about this project and/or the Public Art Program, please go to the City’s website at www.ci.watsonville.ca.us or call the City of Watsonville Redevelopment & Housing Department at 768-3080.

]]> http://growinwatsonville.com/news/utility-box-art-project/feed 0 http://growinwatsonville.com/news/facade-improvement-project-2 http://growinwatsonville.com/news/facade-improvement-project-2#comments Thu, 08 Dec 2011 00:44:45 +0000 Laurie http://growinwatsonville.com/?p=3351 The City of Watsonville offers a Façade Improvement Program to assist property owners of commercial/industrial buildings with exterior improvements.  As properties age, it becomes more difficult to finance substantial improvements.  This Program provides property owners with the financing to make substantial changes without having to see a big increase in rents.

 The latest property to benefit from this Program is the commercial building located at 10 West Fifth Street next to Jalisco’s Public Parking Lot.  The property’s exterior was in poor shape and the mechanical equipment on the roof was an eyesore.  The Façade Improvement Program provided funding for signage and installation of a barrier on the roof of the building to screen the mechanical equipment, which allowed for additional aesthetic improvements like paint and landscaping.  These improvements, made with a modest investment by the City and the property owner took this outdated and unattractive property and turned it into something that adds to the character of our beautiful historic Downtown.  The completion of these exterior improvements was timed to correspond with the opening of an adjacent temporary public parking lot.  Both projects enhanced the appearance and the character of Downtown, which improves the climate for economic development and Downtown Revitalization efforts.

Tools For Business

All the help you need in one convenient place!

Watsonville’s Economic Development Website – GrowInWatsonville.com – has a powerful tool to help businesses of any size succeed.  This set of tools can help just about any business do a better job – and can even help in emergency situations.  The best way for you to use them, is simply to start using them – which you can do by clicking here!

In case you are still not sold – this website can help you develop a business plan, find free business consulting services through our partner organizations, secure SBA financing and can even teach you how to receive venture financing help!  The site also has information on everything from hiring new employees to your legal obligations as a business in the State of California.  You name it – we can help you accomplish your immediate and long-term business goals.  And, if you can’t find what you need on this site – you can call and our dedicated team of economic development professionals can help!

Take a minute to visit this website – because no matter how well your business is doing, it never hurts to have a helping hand!

We will meet for breakfast then walk door-to-door and talk to as many businesses as we can in 2 hours, ask them some questions that will help us understand the overall state of the economy (and help us identify businesses that are struggling), then meet back at the starting point for lunch and to discuss what we learned.   The business community enjoys knowing that their City cares about them and wants them to succeed.

Business Walk events are best when there is a strong group of volunteers to meet with businesses that include elected officials, private business people, chamber volunteers, city staff and department heads.  This is a great opportunity to meet with businesses and to interact with those businesses in a positive way. We hope this will be a great event for everyone involved.

What: Second Annual Business Walk Event

Where: Civic Center Community Room, 275 Main Street, 4^th Floor, Watsonville

When: Wednesday, September 28, 2011 – 8:30 a.m. to 1:00 p.m.

Contact: Kurt Overmeyer, Economic Development Manager

kovermeyer@ci.watsonville.ca.us

(831) 768.3087

We hope you will join us and participate in our Second Annual Watsonville Business Walk. To RSVP, please call us at 831.768.3080.

Sincerely,

Kurt Overmeyer,
Economic Development Manager

When: Wednesday, September 28, 2011,  8:30 AM – 1:00 PM

Where: Community Room, Watsonville Civic Plaza, 4th Floor

275 Main St., Downtown Watsonville

Park on Level Six (6) of Parking Structure

The Pajaro Valley Chamber of Commerce and the City of Watsonville are partnering to hold the Second Annual Watsonville Business Walk and have scheduled the event for the morning of Wednesday, September 28, 2011.  The Business Walk concept has been successfully implemented in cities all over California and will enable the Chamber of Commerce and City to learn more about a number of businesses and to show their appreciation to the business community.

At the event, a group of volunteers that includes elected officials, private business people, chamber volunteers, city staff and department heads will walk door-to-door and speak with as many businesses as possible in 2 hours.  The group will ask businesses questions that will help the City and Chamber better understand the overall state of the economy (and identify businesses that are struggling).   This is a great opportunity for community and business representatives to meet and interact with the business community in a positive and meaningful way.

Last year, participants were able to visit with over 120 businesses and over 40 people attended.  “We are hoping that we will have even more participation in 2011,” says Kurt Overmeyer, Economic Development Manager.  “Last year we were just getting our feet wet in terms of this event and we were pleasantly surprised by the response. Everyone who attended last year had a great experience and learned a lot about our business community.”

For more information regarding this event please call the City of Watsonville Redevelopment and Housing Department at 831-768-3080.

Small Projects to Make a Big Difference

Redevelopment is a key tool to local governments that have aging infrastructure, old buildings and blight.  What is blight?  Broadly, blight is a condition that exists one one property or in one area that lowers the economic value of those properties or areas around it.  A great example is a building that has outlived its economic usefulness and has fallen into disrepair.  The properties around that building will suffer economically simply because people will perceive that the area around that building are also on the brink of falling into a state of disrepair – even when there is no reason for those neighboring properties to decline.  So, the question becomes, how do redevelopment agencies such as the one in Watsonville fix those problems?  One way, is through small projects such as the several that have been completed in Downtown over the past two years.

Watsonville’s Historic Downtown is filled with many iconic, beautiful buildings and some fine examples of Victorian Architecture.  Much of Downtown Watsonville was built near the turn of the last century and some of those buildings have a reduced economic value due to the changes in how retail business takes place in the United States.  Many property owners have reinvested in their properties and made the needed upgrades to their buildings to continue their economic usefulness – but not all of them have!  So, as a result, people tend to look at Downtown Watsonville as being in a state of disrepair with many vacant store fronts.  To combat this problem, the Watsonville Redevelopment Agency is actively engaging in several small projects to improve these conditions and that will add up over time.

Pocket Parks as Placeholders

The Loma Prieta earthquake in 1989 severely damaged a number of Watsonville’s downtown structures – some of them were torn down.  These lots created when buildings were removed had become overgrown messes that created a perception that the Downtown was in a state of disrepair.  To fix this problem, the Watsonville RDA worked with property owners to create two pocket parks.   If you have been downtown lately, you will notice that we have two new pocket parks.  The Watsonville RDA, in partnership with the private owners of these properties, developed these parks on parcels that had become eyesores in our community.  The parks, which had been attractive nuisances, are now viable, comfortable public spaces – that can easily be developed when the market demands more downtown spaces.  The first of these to be completed was the park between the former Gottschalk’s building and Ace Hardware on Main Street – below are two pictures showing the dramatic improvement this park made to the downtown.

Hansen Park Before Construction of the New Park

Hansen Park after construction

As you can see, this inexpensive project – which is a public-private partnership – resulted in a clear improvement to the condition of the Downtown.  This formerly weed infested mess is now an inviting pocket park with that also provides a connection between Main Street and  CVS Drugstore.

We have also built some parking lots on properties that can be developed in the future, but currently are not being used.  This parking helps local merchants attract customers and at the same time cleans up a formerly blighted area. Again, these parking lots are set up as a public-private partnership with the Watsonville RDA providing a part of what was needed to make these formerly problematic areas usable on a temporary basis.

Facade Improvement Grants

Watsonville’s Downtown also has a number of buildings that have not had an external facelift for decades.  Some of these buildings have faded paint and awnings, damaged storefronts and conditions that are not what most people would consider ideal.  In order to fix this, the Watsonville RDA – with help from the Community Development Block Grant Program – created a program designed to improve the condition of facades downtown (the part of the building that faces the street).  Over the past 2 years, several of these projects have been completed – and these changes are very notable.  More of these projects are underway.  Below are some before and after photos of these buildings.

Ace Hardware Before Facade Improvement

Ace Hardware after Facade Improvement

As you can see – this small project made a huge difference in the way our Historic Downtown looks!

Herrera Building Before Facade Improvement

Herrara Building After Facade Improvement

Wrapping it Up

Watsonville’s Downtown still has a way to go.  Staff recognizes all the challenges that this area faces – from functionally obsolete ground floor retail to a lack of an anchor store Downtown – and we are actively pursuing the changes needed to make this area economically viable.  These small projects – parks, parking lots and improvements to the facade of buildings downtown – add up and in two short years have made a significant improvement in the way our beautiful Historic Downtown looks.  If you have questions about any of Watsonville’s efforts to revitalize downtown, our economic development efforts, the Watsonville RDA or growing your own business in Watsonville, please contact me at (831) 768-3080 or contact us through the contact us page.  We look forward to hearing from you!

Kurt Overmeyer
Economic Development Manager

Redevelopment Helps Local Businesses Grow

As most people know, the Redevelopment Agencies in California are under attack by the State of California legislature and governor.  In discussing this situation with a number of individuals and in reading news stories about Redevelopment, it occurs to me that most people don’t know what Redevelopment is or what RDAs do – or that it is funded entirely through local property taxes.  Admittedly, we don’t spend much time tooting our own horns, so if you will indulge me, I would like to talk about some of the things that Redevelopment has done to make Watsonville a better place.  This is going to be a multi-part blog, so first let’s talk about some successes in directly helping businesses grow and locate in Watsonville.  The first two success stories I would like to share involve one way RDAs help businesses – by helping them with their financing needs.

Fox Racing Shox is one of Watsonville’s largest employers, but it hasn’t always been so.  In 2000, Fox had a small fraction of the employment base that they have now, but were growing quickly and out of space at their San Jose headquarters.  The Watsonville RDA contacted them as their CEO lived nearby and asked them if they would be interested in their current location.  They agreed.  The uncertain nature of their venture, combined with the aggressiveness of their expansion made it nearly impossible for Fox to finance the purchase of their headquarters building on Hangar Way and to outfit the factory inside to meet their expected demand.  The Watsonville RDA stepped in to help, providing Fox with a loan to finance that move.  It worked and now Fox is one of the largest manufacturers of mountain bike, ATV, motorcycle and truck shocks in the United States – and the only one that manufactures and assembles most of their product in the US.  “The City of Watsonville Redevelopment Agency was of great assistance at a critical time in the company’s history.  We were expanding and there was a fair amount of uncertainty about the future.  The loan from the Watsonville RDA has allowed us to expand our annual sales by a factor of more than eight from 2000 to today.  We are just one example of how important the tools afforded to Redevelopment Agencies are in creating a strong local economy with growing businesses.” –Larry Enterline, CEO Fox Racing Shox.

Another example of the Watsonville RDA directly assisting a business was last year when Whole Foods produce buying operation outgrew its space on Westridge Dr.  The only large, modern office space available in Watsonville was built at the peak of the market and had lost enough value that banks were unwilling to lend the owner enough money to do the needed tenant improvements.  Recognizing that Whole Foods would probably relocate out of Watsonville if no space was available, the Watsonville RDA made a loan to the property owner to configure an office space downtown.  This resulted in Whole Foods expanding their presence in Watsonville and moving to a space where their employees support a number of businesses downtown such as cafés, restaurants and coffee shops.  The space Whole Foods vacated was immediately leased by another Watsonville company, Driscoll’s.  The net increase in total full time jobs is expected to exceed 30, and the Watsonville RDA will be paid back for this investment in full.

In the next couple of days, we will post another issue of this multi-part story – this one will be about our ongoing Downtown Revitalization efforts.  Thanks for reading and please visit our contact page if you have questions about this blog.  If you would like to support Redevelopment – please visit the Protect our Local Economy page here.

Enterprise Zones Need Your Help

The Governor has issued his May Budget Revise which no longer includes eliminating the Enterprise Zone Program. However, the Governor’s reform position effectively eliminates the most successful parts of the program. Assembly Member Luis Alejo has introduced a compromise bill (AB 231) which preserves the most effective parts of the program. Watsonville’s Enterprise zone is an important tool in attracting and retaining businesses, and many Watsonville companies benefit from this program. Given that for the past two years Watsonville’s official unemployment rate has exceeded 28%, this program is a vital part of our economic development tool chest.

We urge you to support the Enterprise Zone program that has been so useful to our city over the past 14 years. The links below can help you learn more about the Governor’s proposal, the EZ Program and what you can do to support the City of Watsonville’s efforts to preserve our Enterprise Zone. Please read on:

• The proposals included in the Governor’s May Revise can be found HERE.
• The California Association of Enterprise Zones has released talking points that can help you talk to your elected representatives about the EZ Program. They can be accessed HERE.
• The California Association of Enterprise Zones has developed a webpage that makes it easy for you to contact your elected officials, including Governor Brown, regarding your support for the California Enterprise Zone Program. You can visit that site and contact your representatives HERE.
• On June 7, 2011 the California Association of Enterprise Zones will be hosting a Lobbying Day in Sacramento. If you are able to attend, please let me know at HERE so that I can provide you with the schedule and brief you on key advantages for Watsonville that are provided through this program.
• Tomorrow – May 26th, the Governor has scheduled a last minute budget hearing regarding the Enterprise Zone Program. Any Watsonville Business that can attend is encouraged to do so. Please let me know a HERE if you can attend and meet with key representatives regarding the importance of this program.

Thank you all for your support and as always, if you have any questions – please contact me as soon as possible.

Kurt T. Overmeyer
Economic Development Manager

Local Star Takes Fast Food to a New Level in Watsonville

The fast food giant is alive and well in Watsonville, thanks to the efforts of Tila Guerrero, franchisee owner of two McDonald’s locations in town.  “We’re very pleased with our growth and sustained sales increases”, said Guerrero during a recent interview, “Watsonville is a wonderful community to work in and I am grateful to be able to give back.”

Tila Guerrero began her career with McDonald’s in 1990 after a lengthy tenure with Bank of America.  Since switching over she hasn’t looked back and is now an active member of the Pajaro Valley Chamber of Commerce who has also been involved in the Pajaro Valley Unified School District’s “Adopt a School Program.”  Through her efforts, Ms. Guerrero – as well as her son Martin, a McDonald’s owner/operator – has become glowing example of business success in the community, using ownership of two local McDonald’s franchises as a launch pad to help community members improve their own careers.

In Santa Cruz County, positions range from entry-level crew paying from $8 to $12 per hour, to part-time, temporary, full-time and management.  McDonald’s has been rated one of the best companies for hourly workers by “Working Moms.” Reporting a “phenomenal” turnout of many qualified applicants, Ms. Guerrero recently participated in the McDonald’s campaign to add 50,000 jobs.  As a direct result 32 more full and part-time jobs went to community members.

McDonald’s is the leading global foodservice retailer with more than 32,000 local restaurants serving more than 64 million people in 117 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local men and women who are dedicated to their communities…just like Tila Guerrero.

Watsonville McDonalds Locations: