CCMIN090313 - Laserfiche WebLink

the local commercial real estate market and key commercial areas within the city. This information is supplemented with more qualitative data from various business stakeholders. The purpose of tonight's meeting is to introduce the background report and gather feedback from the Council to be incorporated into the development specific strategies and the draft plan update. Ms. Srivastava presented key highlights of the background report, which include findings related to the city's key strengths and weaknesses based on data from 1995 to 2009. The report concludes that the city has a strong economic base, with job growth that far exceeds the Tri-Valley and entire East Bay region, and is very successful at attracting and retaining businesses of all sizes. Pleasanton has a strong base in innovation industries and has proven to be a leader in venture capital investment. Ms. Ott reported that Pleasanton companies attracted approximately $1.3 billion in venture capital monies from 2006 to 2012. Ms. Srivastava estimated that Pleasanton's desirability largely relates to accessibility, which includes Bart and ACE Train transit that helps to capture workers from throughout the region. Businesses continually cited the high quality of the labor force and diversity in commercial space as attractive qualities. She noted that the cost of class A office space is significantly lower in Pleasanton than other comparable spaces throughout the Bay Area. Councilmember Brown noted the data compares Pleasanton's cost per square foot to San Francisco and Oakland rather than Fremont, Milpitas or the South Bay, which she saw as more likely competitors. Ms. Srivastava explained that Fremont's commercial space is largely geared towards research and development rather than class A office space. She also noted that San Jose is a South Bay location with similar innovation industries and is identified as a comparative. She also noted that the feedback indicated that desirability is largely about the quality of the space relative to the square footage, rather than simply the cost of the space, and that Pleasanton is very competitive in this regard. Mayor Thorne noted that both business surveys and the Human Services Commissions needs assessment routinely indicate that Pleasanton lacks sufficient public transit options, yet the background report identifies it as an asset. He said there needs to be a concerted effort to resolve the gap between the need and the perception. He also noted that while the report indicates a good diversity of commercial space, it also reveals that businesses tend to outgrow and ultimately leave Pleasanton. Ms. Ott acknowledged that some companies do eventually leave but stressed that many stay in Pleasanton. She said the city does an extraordinary job of incubating its own companies and providing them the resources to grow and expand without leaving Pleasanton. Ms. Srivastava explained that large companies are typically the ones that relocate in any community so, while true here, it is true across the board. Mr. Fialho said he believed it to be a square footage issue. One of the items that will be taken up at the next Council meeting is how to create an inventory of square footage in the business parks that allow for redevelopment of underutilized land to accommodate larger companies that might be looking to base in Pleasanton. Ms. Srivastava reported that with regards to retail, Pleasanton performs extremely well, with a nice mix of retail in all sizes and is leading the Tri-Valley in total taxable retail sales, low vacancy rates, and higher rents. The city also has several areas of challenge or weakness, including a jobs housing balance of 2.1 compared to 1.8 in the Tri-Valley and 1.1 in the East Bay. The analysis revealed the approximately 2/3 of Pleasanton's housing stock is single-family detached but half of the households are small with only 1 City Council Minutes Page 8 of 12 September 3,2013