Fundamentals of Fundamentals of Strategic PlanningStrategic PlanningFundamentals of Fundamentals of

Strategic PlanningStrategic Planning

Presented by

Doug Svensson, AICPApplied Development Economics, Inc.

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Presentation OutlinePresentation OutlinePresentation OutlinePresentation Outline

Purpose and benefits of a strategic planUsing a SWOT to focus on key issues Setting a vision and policy frameworkAssessing market opportunitiesAllocating resources with an action planMeasuring progress

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Purpose and BenefitsPurpose and BenefitsPurpose and BenefitsPurpose and Benefits

Helps to identify economic goals and build community consensusCreates information baseline and identifies key indicatorsProvides road map for actionCreates focus for strategic partnershipsBuilds community capacityProvides targets for funding and investments

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Strategic Plan ProcessStrategic Plan ProcessStrategic Plan ProcessStrategic Plan Process

SWOTPublic EngagementVision and Goal SettingAction PlanEvaluation and Adjustment

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SWOT AnalysisSWOT AnalysisSWOT AnalysisSWOT Analysis

S—StrengthsW—WeaknessesO—Opportunities-external trends that create possibilitiesT—Threats-external trends that bring more challenges

IDENTIFYING STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS

STRENGTHS WEAKNESSES

NEUTRAL

Internal Factors

External Factors

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How to collect the dataHow to collect the dataHow to collect the dataHow to collect the data

Key informant interviewsSurveys of businesses and householdsAvailable Data

Employment Trends – EDDSocioeconomic Trends – Census (ACS/PUMS)Real Estate Trends – Broker reports/Loopnet

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Benchmark ComparisonsBenchmark ComparisonsBenchmark ComparisonsBenchmark Comparisons

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Capitola Santa Cruz Scotts Valley Watsonville

Perc

enta

ge

Cities

Under 20 20-39 40-59 60+

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Benchmark ComparisonsBenchmark ComparisonsBenchmark ComparisonsBenchmark Comparisons

0%

10%

20%

30%

40%

50%

60%

Capitola Half Moon Bay

Monterey Morro Bay Pismo Beach Sausalito

Perc

enta

ge

Cities

Under 20 20-39 40-59 60+

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SWOT FindingsSWOT FindingsSWOT FindingsSWOT Findings

StrengthsCentral LocationAmenities & AttractionsHistoric InterestHigh Household IncomesRedevelopment Agency and ProjectsFreeway InterchangesCarlton Hotel

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1. UCSC2. NMFS/NOAA3. Wildlife Center CDFG4. CSU MLML5. ES NERR6. Hopkins Marine Station7. MB Aquarium8. MBARI9. NPS10. UC Sea Grant Program11. SW Fisheries FMFS/NOAA12. NRL, Marine Meteorology13. Fleet Numerical USN14. National Weather Service (NOAA)15. MBNMS (NOAA)16. NURP (NOAA)17. Seymour Center (UCSC)18. USGS19. CSUMB DSEP20. CDFG Marine Region21. NOAA MPA Center

Building on Community Strengths: Building on Community Strengths: Monterey Bay Crescent Ocean Research ConsortiumMonterey Bay Crescent Ocean Research Consortium

1

4

3 5

76

8

9

16

15141312

11

10

17

21 20

19

18 2

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Major Marine Science Facilities in Major Marine Science Facilities in the Monterey Baythe Monterey Bay

Major Marine Science Facilities in the Monterey Bay

1. IMS, Long Marine Lab UCSC $25,000,000 2. NMFS/NOAA $12,300,000 3. Wildlife Center CDFG $1,750,000 4. CSU MLML $28,000,000 5. ES NERR $1,150,000 6. Hopkins Marine Station $8,900,000 7. MB Aquarium $50,000,000 8. MBARI $44,000,000 9. NPS $16,000,000 10. UC Sea Grant Program $600,000 11. SW Fisheries FMFS/NOAA $2,900,000 12. NRL, Marine Meteorology $20,000,000 13. Fleet Numerical USN $20,000,000 14. National Weather Service (NOAA) $3,000,000 15. MBNMS (NOAA) $2,400,000 16. NURP (NOAA) $500,000 17. Seymour Center (UCSC) $950,000 18. USGS $9,000,000 19. CSUMB DSEP $6,800,000 20. CDFG Marine Region $2,400,000 21. NOAA MPA Center $1,400,000

TOTAL:(2120 Faculty, Staff, Graduate Students) $255,000,000

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Strengths in the Tahoe Basin Strengths in the Tahoe Basin EconomyEconomyStrengths in the Tahoe Basin Strengths in the Tahoe Basin EconomyEconomyCluster Core Industries and Suppliers Support Two-Thirds of Tahoe Basin Private Sector Economy

Other (includes local-serving businesses), $1.54 billion per year

Environmental Innovation, $827 million per year

Health & Wellness, $357 million per year

Visitor Services, $1.98 billion per

year

Total Basin Economy = $4.7 Billion per Year

Source: ADE, Inc., and Center for Economic Development, CSU Chico, using Implan3 I/O Model.

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Business Recruitment - Business Recruitment - TargetingTargetingBusiness Recruitment - Business Recruitment - TargetingTargeting

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SWOTSWOTSWOTSWOT

WeaknessesLack of Consensus on Growth & DevelopmentUnder-utilized Strip Malls/DowntownDifficulty Recruiting Young, Creative Workers; High Housing CostsHigh Share of Government Jobs & Workers

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During This Past Decade During This Past Decade Tahoe Lost:Tahoe Lost:During This Past Decade During This Past Decade Tahoe Lost:Tahoe Lost:

More than 9,500 residents (-15% for 2000-2008 or more than 1,200 per year)

Approximately 2000 Jobs (-6% for 2000-2007), with further job loss in 2008 and 2009

Almost 2,800 primary school students (and future workforce; -22% for 2000-2008)

2 elementary schools and one middle school in South Shore

(Sources: TRPA, ADE, CSU Chico, California and Nevada Depts. Of Education)

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Change in Free & Subsidized Change in Free & Subsidized School LunchesSchool LunchesChange in Free & Subsidized Change in Free & Subsidized School LunchesSchool Lunches

Change from 2005-2006 school year to 2009-2010 school year

School District

Total Additiona

l StudentsLeaving

# of Free or Sub. School

Lunches

Increase in % of Sub.

Lunches as Proportion of

Total StudentsLake Tahoe Unified -554 -15 51% to 57%Tahoe Truckee Joint Unified -353 105 32% to 38%Subtotal CA. -907 90 42% to 48%Zephyr Cove, Douglas Cty. -13 24 17% to 22%Incline Village, Washoe Cty. -129 61 19% to 28%Subtotal NV. -142 85 19% to 26%Total -1,049 175 38% to 44%Source: Ca. Dept. of Education, School Fiscal Services as of April 1, 2010, Free/Reduced Meals Data Program and Calworks data file. Nevada Dept. of Education, Child Nutrition and Health, 2010

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Housing AffordabilityHousing AffordabilityHousing AffordabilityHousing Affordability

$59,100$45,900

$54,972

$32,000$39,800

$47,200$59,400

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

Nurse Tahoe City

Teacher Tahoe City

Police Officer Tahoe City

Teacher Washoe County

Teacher SLT Fire Fighter SLT Police Officer SLT

Incline Village / Washoe County - $114,000

Tahoe City Area / Placer County - $61,200

City of South Lake Tahoe - $45,000

Note: Assumes 20% downSources: ADE, Inc., school districts, Lake Tahoe School, City of South Lake Tahoe, Placer County, Deb Howard & Company, RPM Mortgage, Reno Gazette Journal, Chase International Data

Tahoe City Area

Washoe County

South Lake Tahoe

Income Needed to Afford Median-Priced Home Compared to Entry-Level Salaries 2010

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Identifying OpportunitiesIdentifying OpportunitiesIdentifying OpportunitiesIdentifying Opportunities

Job GrowthRetailTourismInstitutional sectors

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Market Opportunities: Market Opportunities: California ClustersCalifornia ClustersMarket Opportunities: Market Opportunities: California ClustersCalifornia Clusters

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Cluster Framework:Cluster Framework:Dovetail with SWOTDovetail with SWOTCluster Framework:Cluster Framework:Dovetail with SWOTDovetail with SWOT

Leading Industries

(core of the cluster)

Support Industries

(suppliers of components, raw materials, support services)

Economic Foundations

Technology Human Resources

Capital Regulatory & Tax Climate

Adv. Physical Infrastructure

Quality of Life

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Rural Economic DevelopmentRural Economic DevelopmentRural Economic DevelopmentRural Economic Development

We are here

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Leakage of Business-to-Leakage of Business-to-Business TransactionsBusiness TransactionsLeakage of Business-to-Leakage of Business-to-Business TransactionsBusiness Transactions

Source: ADE, Inc., and Center for Economic Development, CSU Chico, using Implan3 I/O Model.

$338 million per year

$224 million per year

$66 million per year

$0

$50

$100

$150

$200

$250

$300

$350

$400

Visitor Services Environmental Innovation Health & Wellness

In M

illio

ns

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Percentage of Retail Percentage of Retail Spending Staying in Spending Staying in AtascaderoAtascadero

Percentage of Retail Percentage of Retail Spending Staying in Spending Staying in AtascaderoAtascadero

71.1%

26.2%

82.0%

1.8%

31.7%

22.1%

81.1%

30.5%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

Supermarket

Discount Store

Hardware

Apparel Stores

Sporting Goods

Specialty Retail

Drug Stores

Restaurants

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Sales LeakageSales LeakageSales LeakageSales Leakage

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$79.2

$7.9

$22.8

$6.1

$13.3

$7.1

$21.9

$0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0

Total

Apparel Store Group

General Merchandise Group

Specialty Retail Group

Food, Eating, & Drinking Group

Building Materials & Home Furnishings Group

Automotive Group

Sales Leakages ($ millions)

2525

Retail Store Type PotentialRetail Store Type PotentialRetail Store Type PotentialRetail Store Type Potential

ApparelWomen’s and Men’s clothingFamily clothingShoes

General MerchandiseBig Box rather than Department stores

Specialty RetailBooksOffice SuppliesSporting Goods

FoodFine Dining

Home FurnishingsFurnitureAppliances/Electronics

AutomobileNew Cars

EntertainmentMovie TheatersArt galleriesMusic venues

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Economic Assessment: Economic Assessment: TourismTourismEconomic Assessment: Economic Assessment: TourismTourism

TABLE 1VISITOR SPENDING, 2007

Visitor Spending by Commodity Sonoma County Petaluma (Estimate)Total $1,298,500,000 $101,636,116Accommodations $239,600,000 $17,061,988Food Service $312,500,000 $37,041,900Food Stores $43,500,000 $5,156,232Ground Trans and Motor Fuel $201,400,000 $6,112,485Arts, Entertainment, Recreation $245,800,000 $5,942,493Other Retail Sales $255,800,000 $30,321,018Source: ADE, Inc., data from Dean Runyan Associates, California Board of Equalization, and U.S. Economic Census.

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Identifying ThreatsIdentifying ThreatsIdentifying ThreatsIdentifying Threats

Slow economic recoveryGlobal competitionLocal/regional competition

Business developmentInfrastructure

State budget/program cutsRedevelopment sunsetTechnological changes affecting local businessesChanging environmental standards

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Economy Community

Creating a Vision: Vital Creating a Vision: Vital CycleCycleCreating a Vision: Vital Creating a Vision: Vital CycleCycle

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Creating a Vision and Policy Creating a Vision and Policy FrameworkFrameworkCreating a Vision and Policy Creating a Vision and Policy FrameworkFramework

Use General Plan if recentInform public discussion with initial SWOT and market assessmentFocus on outcomes that meet people’s needsRespect community characterRespond to community concerns

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Downtown GoalsDowntown GoalsDowntown GoalsDowntown Goals

Atascadero’s downtown is a lively place for business, entertainment, arts, and public gatherings. Atascadero facilitates the transition of the downtown into a synergistic entertainment, cultural, and specialty shopping area.

OBJECTIVES:Colony Square successfully connects the Sunken Gardens,

Stadium Park and Colony Way to create a vibrant commercial core.The development in Downtown includes features to support the

City’s Tourism Marketing Plan in terms of creating venues for art showings, events such as the Art Walk, fine restaurants, and entertainment venues to attract tourists as well as local residents.New development in Downtown features mixed-use to increase

the intensity of activity.30

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Retail GoalsRetail GoalsRetail GoalsRetail Goals

Atascadero provides a broad range of retail stores so that residents and visitors can meet most of their shopping needs locally.

OBJECTIVES:Encourage a broad range of retailers to locate within the city.Support development of major commercial centers at the Del Rio Road

interchange.Re-capture at least 50 percent of retail leakage within five years, 75

percent of retail leakage within 10 years.Concentrate retail at major nodes along El Camino Real.Re-develop selected strip malls into R & D industrial space, Class A office

space, high density residential or a mix of these uses.Create a transit line for El Camino. For long term, consider a Curitiba-like

fixed route bus system for El Camino, connecting nodes with each other and downtown. Seek to concentrate commercial retail and office capacity in downtown

core.

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Tourism GoalsTourism GoalsTourism GoalsTourism Goals

Atascadero is the gateway and hub for visitors to the Central Coast, providing lodging, recreation, entertainment, and unique shopping and cultural opportunities.

OBJECTIVES:Leverage its central location and access to San Francisco, Los Angeles, and

Fresno to enhance its tourism industry. Increase the number of venues for performing arts and other cultural events,

including Stadium Park if resources are available to improve it. Increase the number of special events that attract visitors. Explore the feasibility of developing Eagle Ranch into a venue for attracting

business and leisure visitors. Enhance existing attractions to accommodate larger events and more business

and leisure travelers. These include the golf course, the zoo, and the parks. Ensure that new commercial development includes space for restaurants

wherever appropriate, especially in the Downtown. Advocate for improvements to Highways 41 from Fresno and 46 from

Bakersfield.Explore and if feasible develop equestrian event center (see Sycamore Trails

Stables, San Juan Capistrano). 32

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Job GoalsJob GoalsJob GoalsJob Goals

Atascadero supports innovative businesses, particularly those in emerging environmental and information technology fields

OBJECTIVES:Focus business attraction and development on existing available

sites, using redevelopment authority/resources where possible to help remove development barriers.Support growth of economic opportunity areas, including

alternative energy, graphics, new media, food and beverage, electronics etc.Increase market area for local businesses by advocating for

safety improvements along Highways 41 and 46 to Central Valley.Support installation/enhancement of Wi-Fi, broadband

infrastructure.

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Action Plan: Allocating Action Plan: Allocating ResourcesResourcesAction Plan: Allocating Action Plan: Allocating ResourcesResources

Set action prioritiesNetwork with local/regional partnersIdentify grant funding opportunitiesIdentify public/private partnership opportunitiesSet criteria for any public incentives

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An Economic Development An Economic Development Program for Desperate TimesProgram for Desperate TimesAn Economic Development An Economic Development Program for Desperate TimesProgram for Desperate Times

Assign/hire staffNetwork existing resourcesFocus BRE program on commercial vacancy reductionEmploy technology for EDLeverage outside investment on catalyst sitesDevelop visitor serving amenitiesEnhance retail shopping mixFacilitate industry cluster developmentCoordinate with workforce development agencies

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Business Recruitment - Business Recruitment - InteractivityInteractivityBusiness Recruitment - Business Recruitment - InteractivityInteractivity

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CapitolaCapitolaCapitolaCapitola

Transition of major retail centersIntroduction of new kinds of retail and other businessesIncreased visitor services in Downtown Village

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Gonzales DowntownGonzales DowntownGonzales DowntownGonzales Downtown

South Monterey wine trailCreation of attractive designAccess both local and state funding sourcesFocus on niche market opportunities

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CerritosCerritosCerritosCerritos

Transition of the job baseUnique fiscal recommendations to transition from redevelopmentFocus on business retention and expansion Meet local-serving retail needs

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MilpitasMilpitasMilpitasMilpitas

Role in Silicon Valley and job developmentPlace branding Capacity building processRetail competitive position

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Potential Criteria for Public Potential Criteria for Public IncentivesIncentivesPotential Criteria for Public Potential Criteria for Public IncentivesIncentives

Job creation/expansionJob qualityUse of vacant buildingsFiscal return on investmentCatalyst projectsTarget industriesEnvironmental qualityCommunity planning goals

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Typical Net Fiscal ImpactTypical Net Fiscal ImpactTypical Net Fiscal ImpactTypical Net Fiscal Impact

Source: Applied Development Economics, with data from the Salinas 2000-01 budget.

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Lodging Industrial Service Commercial

Residential Retail Office Business ParkN

et R

eve

nue/C

ost

per

Acr

e ($1,0

00)

Net Fiscal Impact of Existing Land Uses

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Measuring ProgressMeasuring ProgressMeasuring ProgressMeasuring Progress

Process indicators vs. outcome indicatorsReturn on public investment

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Process IndicatorsProcess IndicatorsProcess IndicatorsProcess Indicators

Organizational developmentNumber of businesses met/assistedNew infrastructure/public facilities builtHits on ED websiteAffordable housing built

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Outcome IndicatorsOutcome IndicatorsOutcome IndicatorsOutcome Indicators

Increased jobsReduced unemploymentIncreased incomes/reduced povertyIncreased retail salesIncreased lodging taxesOther public revenue increases

46 46

Sample Fiscal ProjectionSample Fiscal ProjectionSample Fiscal ProjectionSample Fiscal ProjectionImpact on General Fund Reserves with Implementation of General Plan

Source: Mundie & Associates 2008, Petaluma General Plan Update, “Fiscal Impacts of the Draft General Plan 2025”Note: The original chart as presented in the source document above, has been modified for Year 2010-2011 to reflect current balance of General Fund Reserves.

Existing+Pipeline+Plan

Existing Only

-$50,000

-$40,000

-$30,000

-$20,000

-$10,000

$0

$10,000

$20,000

$30,000

$40,000

$50,000

2007-08 2010-11 2013-14 2016-17 2019-20 2022-23 2025-26

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ConclusionConclusionConclusionConclusion

Always customize the process and the product to local circumstancesUse the process to build local capacity and cement strategic partnershipsConsider the strategic plan a living document: measure progress and plan for adjustment

BUILDING THE KNOWLEDGE AND RESOURCES CLIENTS NEED TO REALIZE THEIR ECONOMIC AND

BUSINESS POTENTIAL