Few would argue that Downtown Watsonville is a model for what a downtown should be.  Sure, we have beautiful buildings and some of the finest historic architecture in the world.  And we have great pocket parks, free parking and beautiful murals.  But Downtown still isn't the thriving commercial district it once was, nor does it offer a shopping and dining experience for a broad range of residents and visitors.  In this difficult economic time, when cities everywhere are struggling to find just the right way to succeed economically, it would be easy to just let Downtown Watsonville be what it is and not expect more.  Well, starting about a year ago – the City of Watsonville decided to go another direction and lay the foundations for a better Downtown.

Higway 152

One source of Downtown Watsonville's struggles has been that State Highway 152 is routed through the center of our Downtown.  While this highway brings a number of cars to Downtown each and every day, most of those cars are just passing through.  Additionally, because CalTRANS focuses on traffic throughput, the roadway is designed to be very friendly cars that are passing through town and not friendly to cars trying to park or to pedestrians walking from store to store.  The State Highway also means that the City does not have control of the street or of the sidewalks in Downtown.  This means that we must apply for permits with the State each time we need to work on the sidewalk, street or any

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of the underground infrastructure.  None of this makes for a easy to improve Downtown district.

So what can we do about it?  For starters, the City recently started the process to ask CalTRANS to relinquish Highway 152.  Instead of going through Downtown as is the case now, the State Highway would start at the edge of the City.  This would allow the City to start making those physical changes to the street that will start changing the way the Downtown economy functions.  For starters, this change would allow the City to increase the number of available parking spaced Downtown by over 400 spaces.  It also means that the City can set up areas where the sidewalks are wide enough to encourage outdoor dinning areas – and a more diverse community of restaurants.  Having control of this asset will make it much easier for the Watsonville to determine our own destiny in terms of how Downtown operates.

What else?

We probably won't be able to make massive immediate changes to the Downtown due to fiscal constraints, but we can get this project started with early steps.  First, the City of Watsonville will be starting an effort to get public participation in this project.  We want the community to help determine the direction of Downtown.  Secondly, we need help from the business community to make this happen.  We need developers to invest, property owners to improve their properties, businesses to make an inviting environment and most of all we need a group of people willing to be cheerleaders and advocates for this fantastic Downtown.  Are you with us?  Please contact Kurt Overmeyer at (831) 768-3087 or by visiting our contact form here and let us know you want to help!

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:

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