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BACKGROUND Since April 2013, City staff and the Economic Vitality Committee (E VC) have been working with Strategic Economics to prepare an update to the City's Economic Development Strategic Plan. During those months, the focus has been on the collection and analysis of data for a Background Report that would provide a fcundation for the development of strategies for business support and growth. The Background Report is intended to be an assessment of Pleasanton's economic, fiscal, and business strengths and opportunities, and includes review and analysis of citywide demographic and employment patterns, commercial real estate market overview, and sJb-area industry analysis. DISCUSSION The draft Background Report is being shared with the City Council to solicit comments on the findings to inform the next step in the project — development of a strategic plan. It's also an opportune time to ensure the Council remains up-to-date on the current business climate in Pleasanton and to provide appropriate feedback 10 the Economic Vitality Committee. Throughout the preparation of the draft Background Report, Strategic Economics has worked closely with the Economic Vitality Committee as well as City staff from Economic Development, Community Development and Finance departments to gather and review the data, test assumptions about local business trends and activity, and to identify Pleasanton's key advantages and disadvantages relative to maintaining a robust commercial climate. The full draft Background Report is included as Attachment A, while key findings are presented below: Key Advantages Economic Strengths Strong employment growth— Pleasanton is a highly-competitive employment center, with long term growth outpacing the Tri-Valley and East Bay. Pleasanton's total employment grew 63% between 1995 and 2009, outpacing the Tri-Valley (53%) and surpassing the East Bay's growth (20%). Despite a rapid drop in employment during the recent economic downtown for Hacienda — the largest concentration of employment in Pleasanton and a bellwe:her for the city's economy — indicators show a rapid recovery beginning in 2012. Innovation economy — Pleasanton's economy features high-technology industry sectors that draw highly-educated workers and form an innovation-based economy — i.e., an economy with growth driven by industry sectors focused on the creation and production of breakthrough technologies and processes — that is experiencing increasing amounts of entrepreneurial activity and venture capital investment. Page 2 of 6