Appendices

Appendix A: Current Economic Conditions 38

Appendix B: Summary of Public Outreach and Stakeholder Input 53

Appendix C: Document Review and Investment Map 61

37 Appendix A: Current Economic Conditions

The Economic Development Strategy This Appendix provides an overview of key reflects and responds to current economic economic data, including: conditions in Oakland, including industry • Employment and industry growth and real estate trends and the ways that Oakland residents are participating • Emerging industry trends in, or being impacted by, the city’s economic growth. • Anchor institutions, large firms, and the Port of Oakland

• Real estate trends

• Participation in Oakland’s economy and disparities by income, neighborhood, and race

• Disaster preparedness and resilience

Employment and Industry Growth

Oakland’s economy has recovered strongly Oakland’s economy has both dynamism from the recession of the late 2000s. and stability, characterized by large, legacy Between 2010 and mid-2017, the City institutions – many of which have been in added more than 25,000 new jobs, bringing operation in the city for decades – and small the total within the City to over 180,000. businesses that can be either local-serving Oakland employment, or the number of or global in reach. As of 2016, 91 percent of employed Oaklanders, is also approximately firms in Oakland had fewer than 20 people, 24 percent higher than the pre-recession accounting for 69 percent of all jobs. peak in 2008 (Figure 1). The city accounts for approximately a quarter of the employees in Alameda County, a share that has remained stable since 2008.

38 Oakland’s Key Sectors

For nearly two decades, Oakland has industry clusters that have dominated the maintained a steady focus on maintaining city’s employment base for a hundred years. and supporting the growth of the As shown in Figure 2, health care is the city’s same key sectors: health and wellness, largest sector, followed by transportation transportation and logistics, manufacturing, and logistics, leisure and hospitality, food production, green and clean technology, professional services and management, and arts and culture, and retail. In the last education. Health care and transportation two years, the City has added support and logistics, in particular, have been for the tech and tourism sectors due among Oakland’s largest sectors for many to rapid job growth in both fields. The years. In both sectors, Oakland accounts City is also monitoring and developing for approximately 40 percent of all jobs regulations and policies to support the in Alameda County. Oakland also has a emergence of the legal cannabis industry. high share of countywide employment National economic shifs are having an in education (approximately 60 percent), impact in Oakland, including the rise of other services (30 percent), and finance, on-demand work and an increase in service insurance, and real estate (27 percent). jobs and growth in sustainability industries Leisure, hospitality, and retail employment like solar and green technology. Oakland’s has grown significantly in the past five years, primary economy continues to be driven by as reflected in national attention on the food many of the same employment sectors and and arts scene.

Figure 1. Oakland Employment, 2008-2016

185,000 180,000 175,000 170,000 165,000 160,000 155,000 150,000 Oakland Employees 145,000 140,000 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: CA Employment Development Department, Oakland Metropolitan Chamber of Commerce and Beacon Economics, City of Oakland, 2016 39 Figure 2. Oakland Employment, 2008-2016

40,000 21% 35,000

30,000 15% 25,000 20,000 11% 9% 9% 15,000 7% 6% 6% 10,000 5% 5% 4% 4% 5,000 2% 0

Retail Public Education Services & Recreation Real Estate Leisure and Information Healthcare Professional Management Construction/ Other Services Manufacturing Administration Transportation, Admin Support & Wholesale Trade, Hospitality, Arts & Natural Resources Logistics & Utilities Finance, Insurance, Waste Management

Source: California Employment Development Department, Oakland Metropolitan Chamber of Commerce and Beacon Economics, City of Oakland, 2016

Figure 3. Oakland Employment, 2008-2016

5,000 4,000 3,000 2,000 1,000 0 -1,000 -2,000 Retail Public Education Services & Recreation Real Estate Healthcare Leisure and Information Professional Management Construction/ Manufacturing Other Services Administration Transportation, Admin Support & Wholesale Trade, Hospitality, Arts & Natural Resources Logistics & Utilities Finance, Insurance, Waste Management

Source: California Employment Development Department, Oakland Metropolitan Chamber of Commerce and Beacon Economics, City of Oakland, 2016

40 Emerging Industry Trends that are Changing Oakland’s Physical and Economic Environment

While Oakland’s economy continues to be driven aging industrial building stock in need of major by many of the same longstanding sectors and improvements. However, while some large clusters that have provided stability and resiliency manufacturing companies (for example, in over the long-term, these sectors are evolving the food processing and furniture production in significant ways. Some of these changes are industries) have closed, the manufacturing reflected in new job growth. Other changes have sector in Oakland is moving towards had less of an impact on total employment, but smaller scale, more specialized production, are still creating noticeable changes in specific including 3-D printing and other advanced locations within the city. manufacturing. City eforts to stay on top of the manufacturing sector’s evolving labor Some of these emerging trends include: needs include programs like “Design It–Build • Rapid growth in health care, education, leisure It–Ship It,” a consortium of East Bay community and hospitality, and information: Figure 3 colleges and workforce boards that received shows employment change by sector between a $15 million grant to support job training for 2010 and 2016. As shown, the health care manufacturing workers. sector added the most jobs during this period. • Growth of innovative business models, However, education, leisure and hospitality, and financing tools, and economic development information grew at the fastest rate, adding 20 eforts: While Oakland businesses receive a to 30 percent more employees. In particular, the significant share of venture capital investment, strong growth in the information sector reflects many local businesses also use crowdfunding the growth of technology firms in Oakland, to grow. The City of Oakland, for example, while the growth in leisure and hospitality – a encourages this model by serving as a category that includes restaurants – speaks to trustee for the Kiva Oakland program, which Oakland’s growing reputation as a tourist and enables individual lenders to invest directly food destination. Most of these technology, in small businesses. Oakland also has a restaurant, and entertainment businesses are high proportion of social entrepreneurs and locating in Oakland’s downtown. B-Corporations, a form of incorporation which • Evolving manufacturing, transportation, provides a legal framework for businesses to and logistics sectors: As shown in Figure pursue both profit and a social/environmental 3, manufacturing and transportation and purpose. logistics experienced relatively slow growth 41 between 2010 and 2016, constrained by an Map 1: Projected East Bay Job Growth

Map 1 is a projection of job growth in five significant East Bay sectors. Oakland is expected to lead the East Bay in Healthcare and Accommodation and Food Service job growth, and to also add jobs in both the Retail and Professional/Scientific/Technical industry sectors.

42 Anchor Institutions, Large Firms and the Port of Oakland

Large firms have significant workforce, 1. Anchors for Resilient Communities (ARC). contracting, and real estate needs. Anchor ARC is a cross-institutional coalition institutions, which are defined both by size supported by the California Endowment, and the extent to which their operations are San Francisco Foundation, Kresge tied to their location in Oakland, can play a Foundation and Kaiser Permanente, valuable role as partners in the City’s eforts which aims to leverage the assets and the to further inclusive economic development. capacities of East Bay institutional anchors In addition to directly employing tens of to develop healthy and prosperous thousands of workers, these institutions communities, with a focus on meeting the have significant procurement requirements needs of under-served neighborhoods that support additional economic activity. in Richmond and Oakland. This study is Moreover, many of these institutions have working with the Democracy Collaborative made significant real estate investments in and Emerald Cities to identify business Oakland, giving them a shared interest in opportunities to provide products and Oakland’s long-term success. services to local anchors.

Stronger relationships between Oakland’s anchors and the local economy have the 2. The Alameda County Health and potential to boost workforce pathways, Social Services Agency has an anchors’ expand local businesses, and increase study underway that includes Kaiser business and city resiliency. Two distinct Permanente, the Port of Oakland, Alameda eforts are underway to expand the role County, and Caltrans, with a focus on that these institutions play in hiring and workforce development and boys and contracting with Oakland residents and men of color. businesses, including low-income workers and people of color – especially since many of the non-profit and public institutions primarily serve low-income clients.

43

Top 20 Employers in Oakland, 2016:

• Kaiser Permanente/ • Securitas Security Services (1,565) Kaiser Foundation (12,150) • East Bay Municipal Utility District • County of Alameda (4,500) (1,550)

• City of Oakland (3,500) • US Postal Service (1,425)

• BART (3,300) • Federal Express (1,350)

• State of California (3,170) • United Parcel Service (1,320)

• UCSF Children’s Hospital • Pandora (1,100) Oakland (2,675) • Allied Barton Security Services (975) • Alameda Health Systems • Manos Home Care (975) (Highland Hospital) (2,300) • East Bay Regional Park District (950) • Southwest Airlines (2,250) • U.S. Department of the Treasury (750) • Oakland Unifed School District (2,150) • Peralta Community Colleges (750)

• Sutter Hospitals, Medical Foundation, • Alameda Superior Court (680) & Support Services (2,250) • Ovations Fanfare (650) • University of California (1,750) • Clorox (640)

Source: City of Oakland, CA Employment Development Department

44 The Port of Oakland

The Port of Oakland is an independent port facilities and a new logistics complex, department of the City of Oakland which expected to grow the Port’s volume by operates through its Board of Port an additional 30,000 containers a year. Commissioners. The Port manages 20 miles Oakland International Airport, the second of property along Oakland’s waterfront from largest airport in the third busiest U.S. air the Oakland International Airport to Jack service market, serves more than 12 million London Square and the Seaport. The Port passengers annually and is the top cargo operates under a separate budget from the airport in the Bay Area. It currently serves City and uses no local tax dollars. All Port more than 60 destinations, the most in its of Oakland assets – whether land, cash, history. or intangible – are property of the State of California and subject to the California Tidelands Trust Doctrine. Trust assets may be used for statewide trust purposes only. The Seaport continues to invest in grade separations, intelligent transportation systems, and trafic circulation railroad improvements, as well as in refrigerated

45 Port of Oakland Top Ten Containerized Commodities

Exports Imports Commodity Metric Tons Share Commodity Metric Tons Share Wood Pulp 1 535 834 20% Beverages & Spirits 629 678 9% Edible Fruits and Nuts 1 076 155 14% Furniture 512 401 7% Meats 449 456 6% Glass & Glassware 355 979 5% Beverages & Spirits 439 476 6% Electrical Machinery 288 160 4% Cereals 414 188 5% Plastics 252 946 4% Oil Seeds and 392 240 5% Wood and Articles 246 684 4% Olaginous Fruits of Wood Preparations of 305 569 4% Articles of Iron 234 485 3% Vegetables & Steel Iron & Steel 288 652 3% Machinery 229 514 3% Plastic and Article of 238 652 3% Rubber 218 729 3% Plastic Aluminum and Article 123 873 2% Paper and 210 567 3% of Aluminum Paperboard Top 10 Total 5 601 369 73% Top 10 Total 3 179 143 46% All Others 2 112 837 27% All Others 3 703 442 54% Total 7 714 206 100% Grand Total 6 882 585 100%

In 2009, the Port of Oakland committed requirements; shipping companies to achieving an 85% reduction in seaport- switching to cleaner burning, low sulfur related diesel health risk by 2020 from a fuel; and a $65 million project to construct 2005 baseline. Since then, the Port has had a power grid that ships can plug into at a $38 million grant program to upgrade berth rather than relying on auxiliary diesel and replace the oldest trucks operating engines. Overall diesel particulate matter at the Port; a ban on trucks that are not emissions have decreased by 76%.1 compliant with statewide emissions

1Port of Oakland, Port Overview Presentation, 2017 46 Real Estate Trends

Oakland has a diverse range of employment spiked since mid-2014 (Figure 4). Inventory space opportunities, from older industrial is particularly limited for businesses looking and warehouse spaces in West Oakland for spaces in the 25,000-square-foot range. and along the I-880 corridor, to a mix of The city’s ofice space is concentrated in class A, B, and C ofice buildings in the Downtown. The greater Downtown area Downtown. Residents from Oakland and has approximately 19 million square feet around the Bay Area may still live with the of ofice space (69 percent of the city’s memory of high ofice and retail vacancies ofice inventory), including approximately in Downtown and other areas, and may 8.5 million square feet of Class A space be unaware of activities within the city’s (99% of the city’s Class A inventory).2 This industrial buildings. Today, however, ofice concentration reflects Downtown vacancy rates across the ofice, industrial, Oakland’s status as the largest and most and retail sectors are very low, and prices densely concentrated employment center for both commercial and residential space in the East Bay region, and one of the have increased significantly. Meanwhile, largest employment centers in the Bay Oakland’s high quality of life, the City’s Area. The broader Downtown Oakland continued investments, and the growing area – including Broadway-Valdez, regional economy are also attracting Chinatown, and areas near the Lake Merritt increased real estate development activity. BART station – is estimated to contain These trends are reshaping the city’s ofice, nearly 84,000 jobs and to form the largest industrial, retail, and residential markets. employment center in the East Bay.3 The majority of jobs in Downtown are in ofice- based sectors including professional and scientific services, finance, and information. Ofice Approximately one-third of Downtown employment is in the public sector. Oakland has approximately 27 million square feet of ofice space, making it the largest ofice market in the East Bay. The overall vacancy rate fell to 4% at the end of 2016, lower than at any time since the dot- com boom of the early 2000s, lower than San Francisco and lower than the East Bay average. Correspondingly, rents have also

2Includes the Downtown Specific Plan Area and Chinatown. Source: Strategic Economics, “Demographic and Market Data and Findings for the PDA Profile,” Downtown Oakland Specific Plan, September 2015. 3SPUR, “A Downtown for Everyone: Shaping the Future of Downtown Oakland,” September 2015. 47 Figure 4. Ofice Rents and Vacancy Rates: Oakland and the East Bay, 1997-2017

$80 Ofice Rents 16% Ofice Vacancies

$70 14%

$60 12%

$50 10%

$40 8%

$30 6% Direct Vacancy Rate Vacancy Direct

$20 4% Annual Average Rents (Full (Full Annual Average Service)Rents $10 2%

$0 0% 1997 1Q 1997 1Q 1998 1Q 1999 1Q 2000 1Q 2001 1Q 2002 1Q 2003 1Q 2004 1Q 2005 1Q 2006 1Q 2007 1Q 2008 1Q 2009 1Q 2010 1Q 2011 1Q 2012 1Q 2013 1Q 2014 1Q 2015 1Q 2016 1Q 2017 1997 1Q 1997 1Q 1998 1Q 1999 1Q 2000 1Q 2001 1Q 2002 1Q 2003 1Q 2004 1Q 2005 1Q 2006 1Q 2007 1Q 2008 1Q 2009 1Q 2010 1Q 2011 1Q 2012 1Q 2013 1Q 2014 1Q 2015 1Q 2016 1Q 2017

Oakland East Bay San Francisco South Bay Oakland East Bay San Francisco South Bay

Source: CoStar, 2017; Strategic Economics, City of Oakland. South Bay Data from Kidder Matthews.

Industrial

Oakland has approximately 33 million square There is particularly strong demand for feet of industrial space, concentrated in West small storage and manufacturing spaces, Oakland near the port, around the airport especially for food production. Many of the and along the I-880 corridor. As of mid-2014, remaining vacant spaces in Oakland require Oakland’s industrial vacancy was the fifh extensive renovations, or currently have lowest in the country, and the vacancy rate renovations underway. has continued to fall since that time (Figure 5).

Figure 5. Industrial Rents and Vacancy Rates: Oakland and the East Bay, 1997-2017

$14 Industrial Rents 10% Industrial Vacancy Rate 9% $12 8% $10 7% $8 6% 5% $6 4% 3% Annual (NNN) Annual Average Rents $4

Direct Vacancy Rate Vacancy Direct 2% $2 1% $0 0% 1997 1Q 1997 1Q 1998 1Q 1999 1Q 2000 1Q 2001 1Q 2002 1Q 2003 1Q 2004 1Q 2005 1Q 2006 1Q 2007 1Q 2008 1Q 2009 1Q 2010 1Q 2011 1Q 2012 1Q 2013 1Q 2014 1Q 2015 1Q 2016 1Q 2017 1997 1Q 1997 1Q 1998 1Q 1999 1Q 2000 1Q 2001 1Q 2002 1Q 2003 1Q 2004 1Q 2005 1Q 2006 1Q 2007 1Q 2008 1Q 2009 1Q 2010 1Q 2011 1Q 2012 1Q 2013 1Q 2014 1Q 2015 1Q 2016 1Q 2017

Oakland East Bay Oakland East Bay

Source: CoStar, 2017; Strategic Economics, City of Oakland. 48 Oakland’s significant inventory of industrial the city’s retail vacancy rate is very low, space, combined with the city’s excellent falling under 3% in 2015, well below the East transportation access, allows the city Bay average (Figure 6). to function as a major regional hub for However, this average masks significant transportation, distribution, and warehousing. diferences in performance among the city’s Food and beverage production, printing, neighborhood retail corridors. Many of the packaging, fabricated metals, and home vacancies in Downtown have been filled, construction materials are all booming and commercial districts in North Oakland along the I-880 corridor, which is the most and the hills are thriving. Since the passage competitive location for manufacturing and of the Broadway/Valdez Specific Plan, the distribution in the Bay Area. At the same time, district has attracted proposals for hundreds limited space availability and high prices are of thousands of square feet of new retail, putting pressure on existing businesses that including a new shopping center anchored occupy industrial space. This includes many by Sprouts grocery store. The recent artists, makers, and small entrepreneurs who renovation and expansion of the Foothill struggle to find or maintain afordable space Square Shopping Center in East Oakland to stay and grow in Oakland. also provides improved access to food, groceries, and other goods and services for residents. At the same time, districts in other Retail parts of the city still have significant vacancy rates, and many neighborhoods in East and Oakland has 55 distinct shopping West Oakland lack access to full-service districts, featuring a wide range of small, grocery stores as well as other retailers locally-owned specialty and food shops, serving daily needs. In addition, many neighborhood-serving stores, unique ethnic small, family-owned retailers throughout shops, upscale boutiques, and over 50 the city could benefit from assistance in regional and national retailers. Overall, marketing, improving storefronts, planning for secession, and other areas.

Figure 6. Retail Rents and Vacancy Rates: Oakland and the East Bay, 1997-2017

7% Retail Vacancy Rates $40 Retail Rents Oakland Oakland

$35 6% East Bay East Bay $30 5% $25 4% $20 3% $15 $10 2% Direct Vacancy Rate Vacancy Direct $5 1% Annual (NNN) Annual Average Rents $0 0% 006 1Q 006 3Q 007 1Q 007 3Q 008 1Q 008 3Q 009 1Q 009 3Q 010 1Q 010 3Q 011 1Q 011 3Q 012 1Q 012 3Q 013 1Q 013 3Q 014 1Q 014 3Q 015 1Q 015 3Q 016 1Q 016 3Q 006 1Q 006 3Q 007 1Q 007 3Q 008 1Q 008 3Q 009 1Q 009 3Q 010 1Q 010 3Q 011 1Q 011 3Q 012 1Q 012 3Q 013 1Q 013 3Q 014 1Q 014 3Q 015 1Q 015 3Q 016 1Q 016 3Q 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1Q 2017 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1Q 2017

49 Residential

Strong employment growth throughout the One of the most significant changes in Bay Area has led to rapidly increasing housing Oakland’s economy in the last decade is the costs in Oakland. Rents and sales prices have rapid escalation of home values and rents. spiked since 2011 (Figure 7) and Oakland Just over 3,000 housing units were under continues to experience some of the fastest construction in the first half of 2017 in rising housing prices in the country. Job Oakland, and an additional 17,000 units growth in San Francisco has created market – including at least 1,130 afordable or pressure for Oakland to accommodate senior units – were planned or proposed. higher-income households, creating Most of the recent development activity mounting concerns about the displacement is concentrated in Downtown and North of existing residents. Increasing housing costs Oakland, with additional current and are arguably the most significant challenge proposed projects in West Oakland, around currently facing Oakland residents. To this all the BART stations, and in other transit- end, the City has adopted the Housing Equity accessible locations such as the International Roadmap to recommend and implement Boulevard corridor (Map 2). In East Oakland, new policies in support of housing, with the planned developments at Brooklyn Basin the ultimate goals to protect afordability (3,100 units) and Oak Knoll (935 planned in 17,000 households for Oaklanders where units) are the largest residential projects in they currently live, and build 17,000 new the Strategy’s three-year time horizon. homes throughout the city for people of all incomes. The Strategy recognizes this work as essential to maintaining the City’s economic development goals.

Figure 7. Residential Rent and Sales Price Trends: Oakland

$3 500 Median Rent $800 000 Median Sales Price

$3 000 $3 000 $700 000 $685 000 $600 000 $2 500 $500 000 $2 000 $400 000 $1 500 $1 839 $300 000 $1 000 $200 000 $140 100 $ 500 $100 000

$ 0 $- Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2 2016 Q2 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: CoStar, 2017; Strategic Economics, City of Oakland. South Bay Data from Kidder Matthews 50 While new housing development represents an opportunity to expand housing choices within the city, housing development must also be balanced with the need to maintain Oakland’s diversity of businesses and jobs. The City must ensure through zoning and cross-departmental coordination that suficient land is preserved for industrial and other employment uses.

The City is tracking housing progress annually at http:// oakland-home.squarespace.com

Map 2. Major Projects (Under Construction and Planned) and Recent Non-Residential Building Permits, 2015

51 Participation in Oakland’s Economy and Disparities by Income, Neighborhood, and Race

Oakland’s growing economy benefits 94609, and 94610) and the Oakland hills (zip many of the city’s residents. However, codes 94602, 94611, 94618, and 94619). The ensuring that residents across Oakland, highest unemployment rates are found in including low-income residents and East Oakland (including zip codes 94601, people of color, have equal access to 94603, 94605, and 94621) and West Oakland employment remains a challenge. This (94607). Note that this unemployment rate section discusses how residents benefit only counts residents who are actively from Oakland’s economic growth as looking for work as unemployed and does well as persistent economic disparities not reflect discouraged workers who by neighborhood and race/ethnicity. are no longer looking or those who are underemployed. Another way to show the geographic variation Employment in Oakland’s economic growth is transit ridership. Thanks to an influx of new residents As the local and regional employment base and jobs, BART ridership at the Downtown- has grown, Oakland’s unemployment rate 19th St. Station has increased 42% since 2010. has fallen from a high of 16% in 2009 The Coliseum Station saw ridership increase to under 6% by the end of 2015. The only 4% in the same time period. gap between the City and County While the unemployment rate also reveals unemployment rates has also declined. racial disparities, the unemployment gap Between 2000 and 2012, Oakland’s has shrunk considerably in the last couple of unemployment rate averaged 3 percentage years. Unemployment for Black Oaklanders points higher than Alameda County’s. This shrunk from 25% in 2013 to 9% in 2015, lower diference shrank to just over 1 percentage point than the state’s 11% Black unemployment by the middle of 2015 (Figure 8). rate. Latino/a and Asian unemployment While Oakland’s unemployment rate also dropped from 11% to 7% and 8%, has decreased significantly on average, respectively. unemployment in some neighborhoods remains much higher than in others. Map 3 shows unemployment rates by zip code. The lowest unemployment rates are found in North Oakland (including zip codes 94608,

52 Figure 8. Unemployment Rates: Oakland and Map 3. Unemployment Rate by Zip Code, Alameda County, 2000-2015 April 2017

16% Oakland 2.5% 3.4% 5.2% 14% Alameda Country 2.5% 3.9% 12% 4.1% 6.6% 10% 4.1% 2.3% 6.6% 8% 5.3% 3.6% 5.1% 6% 4.7% 4% 2% 5.5% 0%

Unemployment by Zipcode 2015* 2000 2002 2004 2006 2008 2010 2012 2001 2003 2005 2007 2009 2011 2013 2014 April 2017, CA Employment Development Department Estimated Sources: CA Employment Development Department

Figure 9: Unemployment by Race and Ethnicity, 2013 - 2015 25%

20% 2013

15% 2014 2015 10%

5%

0% Black Latino/a Asian White, Other not Latino/a Sources: US Census Bureau, American Community Survey; City of Oakland, 2015

Figure 10. Oakland BART Station Weekday exits, 2010-2017 70,000

60,000 50,000

40,000

30,000

20,000 10,000 0 2010 2011 2012 2013 2014 2015 2016 2017

Coliseum Fruitvale Lake Merritt Downtown 12th St Downtown 19th St Macarthur

Source: BART 53 Income and Poverty

In addition to providing more employment example, in 2016, approximately 26% of opportunities, the improving economy has Oakland’s Black population, 23% of its also contributed to higher City revenues. Latino/a population, 18% of Asians, and In particular, revenues tied to economic 11% of Whites lived in poverty.5 As shown growth – including property, sales, business below, employment rates also vary by license, real estate transfer tax, and demographic and geography. transient occupancy (hotel) tax revenues Approximately 16% of Oakland families live – have all increased significantly since the in poverty – including 24% of families with recession. Increasing revenues, combined children – compared to 9% of all families with cost saving eforts, have enabled the in Alameda County. Despite large swings in City to invest in additional services for other economic indicators in the last five residents. The 2017-19 City budget included years, the poverty rate has hardly moved. allocations for increased police training White households have significantly less and oversight; expanded library hours; poverty overall and enjoy nearly double the and additional code compliance oficers to median household income of most other enforce against blight, abandoned buildings, demographics. (Figures 11 and 12). While and illegal vending as well as allocations Black, Latino/a and Asian unemployment to expand the rental housing inspection rates have decreased significantly, the program. However, City costs – particularly median income for these groups shows the costs of benefits – continue to increase little change. Overall, Oakland’s residents faster than revenues. are more likely than other Alameda county While the city’s overall economy has residents to work in lower-paid occupations improved significantly, income inequality such as food preparation, maintenance, has risen. This is true at both national personal care and services, construction, and state levels, too. Income inequality and transportation. increased sharply in California over the The City’s minimum wage law, which past two decades, increasing faster than went into efect in 2015, benefits many in the U.S. as a whole. California also has workers in these occupations. The City’s the nation’s highest rate of poverty, even analysis estimated that 57,300 Oakland without considering the high cost of living. workers, or 27% of the City’s employment, There are also sharp racial disparities: 22% were afected by the 2015 minimum wage of the state’s Black population and19% of increase. The new minimum wage is tied to its Latino/a population lived in poverty in the regional consumer price index and will 2016, compared to 13% of Whites and 11% increase with inflation each year. However, 4 of Asians. Oakland has the same significant regional analysis (Figure 13) shows that disparities in income and employment these gains are working against a trend of among racial and ethnic groups, as well declining wages for low wage workers. as among diferent neighborhoods. For

4American Community Survey. 5US Census Bureau, 2014 American Community Survey. 6Hausrath Economics, “Economic Impact Assessment Of Proposed Minimum Wage Increase In Oakland, ” July 2014. 54 Figure 11. Poverty Rate by Race and Ethnicity, 2015

30%

25%

20%

15%

10%

5% White alone Black or African Latino/a Asian alone Some other Two or more American race alone races alone

Figure 12. Median Household Income by Race and Ethnicity of Householder, 2013-2015

$100 000 2013

$80 000 2014 2015 $60 000

$40 000

$20 000

0% White alone Black or Latino/a origin Asian Some Two or more not Latino/a African (of any race) other race races American

Sources: US Census Bureau, American Community Survey; City of Oakland,.

55 Education and Educational Disparities

Oakland exceeds national levels both for Finally, Oakland also has a large the number of adults with college and and growing population of formerly post-graduate degrees, and for the number incarcerated individuals who of adults who did not complete high school.7 are a distinct demographic with In the past decade, Oakland’s public schools barriers to earning potential and have made important gains in student employment. Incarceration is both a achievement. Unfortunately, the number of predictor and a consequence of poverty. children meeting key educational milestones Alameda County estimates over 5,000 still needs improvement, and on most Oakland residents have a conviction metrics, the achievement gap persists record. People with convictions ofen when comparing Black and Latino/a to carry fee- and fine-related debts White and Asian students (Figure 14). While while their economic opportunities Oakland’s graduation rate has improved are diminished and family members in recent years to 63%, it still lags behind are ofen responsible for the costs the average graduation rate of 80% for of incarceration.10 Criminal justice Alameda County and California.8 A majority reforms, combined with reduced of Oakland’s public schools serve students barriers to jobs and housing, may have a of color and those from socioeconomically significant impact on household earning disadvantaged or language minority potential and the demand for City backgrounds and too many Oakland services. Providing opportunities for all students are not gaining the skills needed Oakland residents to participate in the for successful employment.9 economy will be key to our success.

7http://www.clrsearch.com/Oakland-Demographics/CA/Education-Level-and-Enrollment-Statistics

8http://www.ofcy.org/assets/Uploads/OFCY-Strategic-Plan-2016-2019.pdf

9City of Oakland Resiliency Strategy—Preliminary Assessment.

10 Saneta deVuono-powell, Chris Schweidler, Alicia Walters, and Azedah Zohrabi. “Who Pays? The True Cost of Incarcration on Families.” Oakland, CA: Ella Baker Center, Forward Together, Research Action Design, 2015. 56 Figure 13: Regional Analysis of Changes in High, Figure 14. Educational Attainment by Race Middle, and Low-Wage Employment and Wages or Ethnicity, 2014

Employment 2005-10 Wage 2005-10 Employment 2010-13 Wage 2010-13 30 000 10% 25 000 20 000 5% 15 000 10 000 0% 5 000 0 White Black Hispanic/Latino Asian -5% High School or equivalency (no additional education) Less than high school -10% High Wage Middle Wage Low Wage

Source: Association of Bay Area Governments from CA Employment Development Sources: US Census Bureau, 2014 American Community Survey; Department Occupation and Wage data, adjusted for inflation City of Oakland, 2015.

Disaster Preparedness These collective eforts help to reduce the city’s current and future climate and and Resilience seismic risks, maximize the value of our infrastructure investments, and provide essential urban greening – all important The City of Oakland has several ongoing measures for maintaining the local eforts to prepare the city for natural economy and economic security. disasters and a changing climate. These include:

• Energy and Climate Action Plan Update

• Sof Story Retroft Program

• Oakland Resiliency Handbook

• Local Hazard Mitigation Plan

• Green Infrastructure Plan

• Preliminary Sea Level Rise Road Map

57 Appendix B: Summary of Public Outreach and Stakeholder Input

This strategy incorporates significant input on the values and goals that should outreach to City elected oficials, staf, guide the Strategy, provided feedback on and a variety of stakeholders. The the opportunities and challenges facing Economic Workforce Development Oakland, and suggested ways that EWDD’s Department organized a series of focus work plan could be adjusted in order to be groups and interviews that included staf more responsive to changing conditions. The from multiple departments, business Mayor’s Ofice, City Council, and Community owners, the Chamber of Commerce and & Economic Development Committee also other civic organizations, educational and provided input and feedback throughout the health institutions, and state and regional process. This appendix provides a summary agencies that provide services in Oakland. of feedback from the focus groups and other The focus group participants provided outreach conducted as part of this process.

58 Summary of Recommended City Actions: Economic Development Strategy Focus Groups

Arts • Collaborate across departments to support artists (i.e., police & fire • Develop a broader Arts vision and departments code inspections can adopt a statement that the City values help or hurt artists) and encourages the arts • Retain industrial or other • Improve property ownership and manufacturing companies that access to facilities and maker spaces artists rely upon in the city (flight to for artists Richmond and other cities among metal – De velop vacant properties into manufacturers, industrial printers, etc) afordable spaces artists can use

– Cr eate medium-sized space (smaller than Fox Theater) to accommodate Manufacturing artists • Support the continued growth of Food production/logistics/support services – Improve marketing of spaces dedicated like packaging—all businesses that to art thrived during the recession – along the – Support innovation around funding I-880 Corridor for maker spaces, co-ops, big business • Bring new industrial real estate to investment, venture capital, and market, especially small storage and microloans manufacturing spaces for food production • Champion Oakland artists – particularly • Use flexible Zoning to support design and in public spaces (model :“SF’s Living manufacturing occurring in a single space. Innovation Spaces”) • Invest in high-end dark fiber infrastructure • Improve permitting / grant-making / insurance processes to be more • Encourage food and advanced transparent, consistent, and non- manufacturing industries to cluster discriminatory (discrimination relates to dificulty of insuring rap / hip hop • O fer financing via shared revolving events) loan funds

• Develop career development assistance • Invest in training to supplying the talent for artists (perhaps a business for construction and mechanics jobs assistance center for artists)

59 Clean and Green Small Businesses • Strengthen workforce development Smooth out City’s small business programs that respond to growing processes – as primary goal: demand for primarily white collar • Improve education and outreach on jobs (not blue collar jobs) in the green how to start a business in Oakland economy and move additional resources online • Provide public safety for the sector (interactive flow charts) by building upon the success of • Assign case managers for each business Ambassador’s Program in downtown or give businesses online accounts in Oakland database for City departments to track • Foster equity in the sector for low- information and progress income residents and people of color • Streamline permitting process and – Support urban gardening and forestry put it online projects/organizations • Share more information on Business – Strengthen Green Academies in Service Organization partnerships, Oakland Unified School District to particularly online, and the services encourage local hiring they provide by category (first stops, funding, support & technical assistance, • Educate business owners about assistance finding afordable space, and benefits of participation in clean energy navigating real estate) pilot projects to generate demand for clean & green services (example: • Reframe SBA guide language to take International Boulevard Commercial on more encouraging tone about starting Energy Eficiency pilot) a business

• Market the clean and green sector • Coordinate co-location of success story in Oakland to attract new complementary businesses businesses and brokers (particularly Incentivize growth of small business around solar) sector – as secondary goal: • Set up a City of Oakland booth at the • Provide cash rewards for reaching a annual InterSolar conference each July specific milestone • Draw new green businesses by • Develop a commercial lending system gathering groups to visit clusters of or utilize HUD section 108 loan existing businesses guarantee program

• Show ROI of various economic development incentives for businesses: 60 loans, grants, staf help, hiring/training • Brand start-up sector to encourage International Boulevard to lead the way growth in the space: “StartBiz Oakland” and demonstrate the neighborhood’s and defer start-up obstacles/fees for up high potential to 2 years • Ensure that zoning is for retail only • Develop and tailor incentives to (or retail hybrid) in key areas (corners, equitably support local, existing not mid-block) of underserved areas businesses – particularly those in • Build Building Department capacity challenging neighborhoods and make fees and policies less short- sighted to facilitate earlier sales tax revenue generation & employee payment Retail – Hire additional permit coordinator • Fill retail gap in general merchandise/ for large projects comparison goods sectors that ofen only locate with each other –Ofset “wet weather” moratorium

• Communicate Oakland’s appeal to – Standardize permitting process out-of-town directors of real estate to reduce bureaucracy (local directors already understand) – Help retailers better estimate fees they ▶more afordable land/leasing rates, will incur local flavor, credible and fair City planning staf, etc. • Share retail success stories with other tenants in a given neighborhood • Incentivize Oakland residents to “shop-local” in their own neighborhoods • Connect Workforce Development staf with retailer HR staf to enhance hiring • Address perception that retail projects won’t necessarily come to fruition due to policy inconsistency Transportation • Decide if/how Oakland wants to develop retail chains – diferent Prioritize implementation of Complete approaches for diferent neighborhoods Streets & take advantage of paving schedule to redesign and implement them (Broadway, • Foster vocal community groups to input currently missing bike lanes in areas) into retail planning in strategic areas at a tipping point

• Encourage impact fee phased • Invest in 3-4 major streetscape areas, implementation i.e., 14th (West Oakland to Lake Merritt, 73rd to Macarthur & Hwy 13 on ramp, & • Repurpose more existing buildings, Broadway from W. Grand to Jack London) like CVS on Broadway

• Bring in a pioneer retail business along 61 • Continue International Boulevard and Tech Telegraph Avenue re-designs in progress Generate publicity around competitive • Focus on on/of ramps such as advantages that Oakland ofers tech Broadway-Jackson for 5th Street sector exit connection to Alameda & Jack London Square • Highlight lower costs than SF/SV for large tech firms & startups & their employees Re-design key streets to support localized economic development • Engage tech companies aligned with socio-political interest in tackling • Demonstrate economic impacts in diversity issues transportation grant applications • Promote and feature DevLabs model as a • Demonstrate economic impact of global tech incubator for people of color bike infrastructure • Attend hackathons and Tech Crunch • Support creation of a Transportation events outside of Oakland to be visible Vision linked to economic development and tell Oakland’s story

• Support freight/port logistics and • Highlight and nurture growing cluster prioritize well-executed loading zones bright spots in EdTech and Solar

• Improve streets and public space Generate local supply of tech workers and local demand for tech company services – Short term: Create more plazas out of extra street space leveraging • Coordinate closely with OUSD academy maintenance from community to discover new ways of learning groups & BIDs and training, especially for minority communities – Midterm: Reduce street space to enable private development to sell it • Nurture pipeline of coding academies to landowners to enlarge development based in Oakland footprint • Connect tech entrepreneurs to trainings – Long term: I-980 Freeway becomes in valuation and equity available for land development • Use RFPs for City work to engage tech Develop Demand Responsive Parking services – need for more transparency in (working well in Berkeley), pilot program contracting to ensure supplier diversity in Montclair. Bill as a customer and business-focused initiative, about access to • Use Google One and Google for commercial areas Entrepreneurs; City should provide open data and ask for help with specific problems it faces or that NGOs are facing

62 • Encourage large tech firms supplier/ • Utilize impact fees – developers willing vendor relationships with local, minority- to pay, but more clarity needed on how owned biz’s process works in Oakland

Improve enabling environment • Strengthen global strategy around for tech sector airport, port, and foreign trade zone development • Explore broadband infrastructure access and appoint leader to ensure its • Support building and modernization of development manufacturing/industrial facilities to reduce flight of companies to other cities, • Ofer more Class A space that doesn’t and to support large manufacturing (blue need major upgrades collar) talent base currently in Oakland in • Address prevalence of crime and blight need of middle-wage jobs

• Address weaknesses of Oakland public • Develop workforce pipeline for white school system that prevent families from collar professional and administrative moving here staf; training is currently focused on other sectors • Start Oakland-based VC fund • Prioritize investment in East Oakland, • Explore non-VC funding for mission- especially in business community/ based companies (i.e: Community Banks) commercial corridors there (will have regional impact) & consider incentives for businesses to locate outside of Oakland’s Regional Role downtown

• Leverage Oakland’s competitive • Support formation of complementary advantages in the region (availability clusters of businesses of space, strong artistic and urban culture, afordability relative to other • Engage in regional goods movement regional cities, diversity & integration, planning (especially re: clean tech, good transportation, “hipness,” Port of which plays big role in Oakland) Oakland & industrial space, robust small business and start-up sector, growing energy/green growth sector, presence of UC as an investor with an endowment)

63 Equity • Target federal, state, and local resources • Promote economic benefits for B-Corps to geographic areas that are most by exploring models of community vulnerable (double digit employment zip benefits that increase social impact of codes, high truancy rates, high blight rates) companies. (Emeryville requires tenants to provide in-kind services to schools for – Ex: Cap & Trade revenue + other a break on rent) future revenue sources such as a transportation tax • Foster community engagement (procedural justice) in projects • Take a systems approach to equitable Oakland has begun and needs to growth: must define a vision in terms of finish (International Blvd, East Oakland, what type of economic growth Oakland San Pablo). Oakland Sustainable wants. Then take a holistic approach using Neighborhoods Initiative as positive multi-pronged, coordinated interventions model w/ community land trusts. around workforce development, afordable housing, economic development etc. • Create a learning environment to test Oakland Army Base as positive model best practices in equitable growth in (transport + job creation). which we can more deliberately try out models in single neighborhoods to figure • Similarly, create explicit links between out what works equity planning strategies that are interrelated (i.e,: Housing Equity • Explore innovative models for Roadmap should be referenced in sustaining/growing businesses with Economic Development Strategy). local ownership (employee stock ownership, resident ownership models, • Ensure that job quality & job access direct resident investment in local standards are included in every businesses) foundation grant • Ensure low-income residents & people • Ensure that neighborhood stabilization of color have access to workforce is prioritized (residential & business) as development training linked to actual a prerequisite to equitable growth jobs in fastest growing sectors (tech, (ie: tenant protection) green space); take proactive approach to predicting needs in these sectors

64 Resiliency The international 100 Resilient Cities • Support asset building for low-income program goals include “Foster Economic parents and children through Oakland Prosperity” and “Support Livelihoods & Promise College Savings Initiatives Employment.” Locally, public stakeholders • Create pathways to career success for in Oakland’s Resiliency planning process, young men and women of color supported by the Resiliency Task Force, an interdepartmental team of City staf, selected • Design a suite of inclusive economic economic development and security as one development services to help of the top issues the City should address. entrepreneurs of color gain equal footing in Oakland’s economy The Resiliency Playbook states as its goal: “Oakland will enable all residents to be • Align economic resilience goals with the economically secure, build wealth, and Oakland Thrives wealth impact table achieve their full potential, regardless of In addition, the Resiliency Task Force race or means. Oakland seeks to build a highlighted the need for afordable housing model of responsible economic growth and floated the idea of business support for and business attraction, in concert with a landlords and property managers in order to commitment to building economic security, achieve the City’s housing goals. especially for those who have historically had limited access to opportunity.” The Playbook recommends the following actions:

65 Additional Public forums on Economic Development

SpeakUp Oakland Forum1 • Return to Community Development • Use wage and employment incentives Block Grant Boards which kept the City to make it possible for the least connected and aware of issues afecting advantaged residents be to increase every Oakland community contribution to local economy.

• Implement a program that provides tools • Support organizations that provide and opportunities for local companies technical assistance to worker-owned that make products in Oakland businesses and sucession planning for retiring business owners. • Renovate the Henry J. Kaiser Convention Center/Calvin Simmons Theater • Increase residential densities and reduce parking to increase demand for • Regulate and tax illegal activities local services • Create a clear development vision for Oakland that connects its neighborhoods. Recognize the East Oakland Listening Session2 vibrant arts community, give better • Invest in East Oakland entrepreneurs, opportunities and cheaper space to brick & mortar businesses, and the growing small/micro business infrastructure at a comparable scale to community the public investment in Downtown and • Bring entrepreneurship training Lake Merritt programs and support services to – Desir ed business types include Oakland pharmacies, health & wellness, • Create a protected bike path connecting academic services, banks & credit Lake Merritt, Jack London Square, and unions, spaces for students and people West Oakland in recovery

• Use a marketing campaign to change • Illuminate City of Oakland Planning the perception of Oakland and Economic Development processes and programs afecting commercial • Use community development corridors to explain why some incentives to help sustain existing commercial corridors are unorganized or locally owned business and to invest in failing. expansion as well as create compliments to existing locally owned business. For • Increase education and training resources instance, if there is a cofee shop, fund an ice cream store next door 66 • Improve diversity in hiring, including West Oakland at public schools Commerce Association3 • Remove barriers to hiring and address • Assign more dedicated business discrimiantion for re-entry population development staf to be on the street

• Support development of co-ops and • Emphasize retention of light industrial resource sharing, including public businesses, especially those ofering education on investment and credit repair good career pathways to non-college graduates • Enable community-led purchasing and redevelopment of vacant parcels • Understand Regional obligations and relationships • Establish land trusts • Separate Custom Manufacturing from • Stop high rent increases, absentee Food Production as a distinct sector landlords, and homelessness, which afect student truancy • Improve processes for opening a business and interdepartment • Increase homeownership, including coordination through downpayment assistance, job security, improving credit, and increased • Resolve infrastructure and blight issues awareness of existing services in order to allow business communities to thrive and to attract new businesses • Reduce Real Estate speculation and vacant properties • Consider a commission or other ongoing body that can elevate business • Eliminate illegal dumping and improve issues and the conversation around City communications around blight economic development • Fund community ambassadors to keep • Value the industrial businesses for their streets clean. contributions to the local economy • Use youth program funding to train • Provide code enforcement around the next generation of Oakland workers vacant properties and residents • Be flexible and ofer lien forgiveness for • Be vigilant about program property owners willing to work with the implementation City and community to develop buildings consistent with the established vision

1 speakupoakland.org/projects/economic-development-strategy 2 www.eastoaklandcollective.com/

67 Workforce Development Board3 • Explore and develop incentives, systems and tools that encourage Oakland-based businesses to hire local residents.

• Coordinate outreach, marketing and communications strategies among business service providers to minimize duplication of eforts and enhance community impact.

• Develop and/or strengthen programs, services, and initiatives that meet the workforce development needs of historically underserved populations who need more assistance with accessing quality jobs.

• Strengthen and expand work-based learning opportunities for youth and young adults in the City Of Oakland, with particular emphasis on summer employment.

• Link, align, and leverage public, private, and philanthropic resources and investments to strengthen the ecosystem of public, private, and community-based organizations supporting workforce development in the City Of Oakland.

• Consider examples from other Cities, such as subsidized or free space to businesses in areas where the City wants to generate economic activity.

• Maintain afordable commercial rents for nonprofits who supplement or provide essential social services.

• Study poverty in Oakland to better understand what policies will efect reduction.

•

•

•

•

68 Appendix C: Document Review and Investment map

Oakland has laid extensive groundwork Map 4 shows public infrastructure for interdepartmental coordination and investments in streets, parks, buildings, and identifying catalytic investments through six sewer and storm drains planned for the next recent Specific Plans and the International five years, which is the intended time frame Boulevard Transit-Oriented Development for the Strategy. Many of these investments Plan. The plans create a regulatory represent opportunities for business framework for new development, and engagement around street redesigns. The identify investments needed to improve most significant, the construction of Bus local infrastructure and public space, Rapid Transit on International Boulevard, physical appearance, and safety. Many of includes extensive community involvement the plans also have an explicit focus on and has business engagement and arts equitable access to transportation and jobs, programming and placemaking underway. and on providing improved infrastructure The successful completion of this project and other community benefits for low- is an economic development priority and a income residents and people of color. The potential model for other corridors. Strategy provides direction to achieve some of those goals. Capital investments planned for the next five years will help implement the Specific Plans and bring additional transportation, parks and open space, and utility improvements to Oakland’s neighborhoods.

69 Map 4. Five-Year Investments: Capital Investments Planned by the City of Oakland, 2014-2019 – Transportation and Non-Transportation (Parks, Buildings, Sewers & Watersheds)

70 Documents Reviewed

As part of the development of the Oakland civic organizations have sponsored since the Economic Development Strategy, Strategic late 1990s; the City’s six area plans; and other Economics reviewed previous citywide economic citywide plans and documents, including the development strategies, land use plans, and General Plan Land Use and Transportation other relevant documents. These included Element, the Oakland Redevelopment Agency the six economic and workforce development Successor Agency’s Long-Range Property strategies that the City of Oakland and/or local Management Plan, and the Climate Action Plan.

Figure 15. Strategies and Plans Reviewed Date Completed/ Plan Sponsor / Author Adopted Citywide ED Strategies

Forging An Economic Development Strategy 1997 Claggett Wolfe Associates for the City of Oakland For The City Of Oakland Community Task Force Report on Economic Development Oakland Moving Forward 2006 for the Dellums Task Force McKinsey & Company for the Oakland Metropolitan Taking Stock of Oakland’s Economy 2007 Chamberv of Commerce A Collaborative Economic Development Strategy for Oakland Partnership (collaboration of City & Chamber 2008 Oakland of Commerce)

Retail Enhancement Strategy 2008 Conley Consulting Group

Staf Cluster Analysis and Strategy Outline (Draf) 2013 Economic Development staf

Workforce Strategies Workforce Investment Board Strategic 2013 Oakland Workforce Investment Board Plan 2013-2017 Area Plans

International Boulevard TOD Plan 2011 City of Oakland

Central Estuary Area Specific Plan 2013 City of Oakland

West Oakland Specific Plan 2014 City of Oakland

Broadway Valdez District Specific Plan 2014 City of Oakland

Lake Merritt Station Area Specific Plan 2015 City of Oakland

Coliseum Area (“Coliseum City”) Specific Plan 2015 City of Oakland

Other Plans

General Plan Land Use and Transportation Element 1998 City of Oakland

Climate Action Plan 2012 City of Oakland

Long-Range Property Management Plan 2014 Oakland Redevelopment Successor Agency 71 Key Findings

Several conclusions emerged from the • Previous strategies have involved limited document review: outreach to stakeholders. Instead, most of the strategies have focused on analyzing • The City of Oakland has not adopted a employment trends in order to identify formal economic development strategy which sectors drive Oakland’s economy. since 1997. Although subsequent eforts While understanding the sectoral mix of have involved participation from City Oakland’s economy is important, outreach staf, they have been driven by outside to stakeholders is critical to evaluating organizations including Mayor-elect Ron the strengths and weaknesses of existing Dellum’s transition team (2006) and the economic development programs, Chamber of Commerce (2007 and 2008). identifying specific challenges to economic Economic development staf began drafing development, and determining how the City a strategy outline in 2013, but this efort was should prioritize its economic development not completed. eforts moving forward. • Previous economic and workforce • The implementation sections of the development strategies have identified a previous economic development strategies similar set of sectors for business retention have generally emphasized improving and attraction eforts. Figure 16 shows the processes and coordination, rather than sectors targeted in each of the economic and creating a concrete framework for specific workforce development strategies. Sectors economic development initiatives. Most mentioned in most or all of the strategies of the strategies have focused on increasing are in bold. Common sectors include health coordination across City departments and care; international trade, transportation, with other organizations in order to create and logistics; food manufacturing; green a better business climate. In contrast, the technology; the creative arts; and digital Economic Development Strategy now under arts and media. In general, most previous development will create a more specific economic development strategies have framework to help economic development selected target sectors based on the potential staf organize their work plans over the next to drive job growth, without considering how five years. those potential jobs fit the education and skill levels of Oakland’s existing workforce. However, the 2013 Workforce Investment Board Strategic Plan began to link target sectors with specific workforce training needs. The current efort to create an Economic Development Strategy represents an opportunity to build on the 2013 plan and improve the link between economic and workforce development activities. 72 • In recent years, the City’s focus has • Successful implementation of the specific shifed to implementing specifc plans plans will require significant involvement in West Oakland, the Broadway/Valdez from economic development staf; District, Lake Merritt, the Central Estuary, however, prioritizing implementation and the Coliseum Area. International actions will require ongoing coordination Boulevard has also emerged as a priority for with other City departments. Figure 18 implementing transit-oriented development summarizes some of the key implementation around the proposed bus rapid transit (BRT) actions mentioned in each of the five specific stations. The City is currently creating a plans and the International Boulevard TOD Downtown Specific Plan and an Equitable Plan. The implementation sections vary Development Strategy. significantly in level of detail and the extent to which they assign responsibilities to individual • If implemented as planned, the Specific departments or specify time frames for Plans will accommodate more than three- implementing specific actions. quarters of the City’s future projected job growth. Figure 17 shows the non-residential development and associated employment gains projected for each of the five specific plan areas. In total, the West Oakland, the Broadway Valdez, Lake Merritt, and Coliseum specific plan areas 4 are projected to accommodate more than 50,000 new jobs over the time horizon of the plans, or more than 75 percent of the approximately 65,000 net new jobs that ABAG projects the City of Oakland will attract between 2015 and 2014.5

4 The Central Estuary specific plan does not include employment projections. 5 Association of Bay Area Governments, 2013. 73 Figure 16. Sectors Targeted in Previous Economic and Workforce Development Strategies

Plan Date Target Sectors Existing: Business Services, Health Services, Printing and Publishing, Transportation, Recreation, Arts, Entertainment, Food Processing (Manufacturing) Forging An Economic Development Strategy 1997 For The Target Industries/Clusters City Of Oakland Emerging: Sofware and Multimedia, Environmental Technology, Bioscience/Biotechnology, Telecommunications

Oakland Moving Forward 2006 Arts, Green Economy, Small Business

Existing: Health care/Bio Tech; International Trade and Logistics; Downtown Taking Stock of Oakland’s Economy 2007 Emerging: Green Industry; Arts, Design, and Digital media; Food Manufacturing A Collaborative Economic Development Strategy for International Trade and Logistics; Health Care and Life 2008 Oakland Sciences; Green Technology; Creative Arts Health Care; Construction; Transportation, Oakland Workforce Investment Board Strategic Plan Distribution and Logistics; Digital Arts and Media; 2013 2013-2017 Retail; Manufacturing, including Food Production and Distribution; Green Industries Food and Beverage; Health Care, Health Technology and Wellness; Green/Clean Technology; Creative Staf Draf ED Strategy 2013 Industries; International Trade, Logistics, and Warehousing

Figure 17. Specific Plan Development Projections: Non-Residential Space and Employment

West Broadway Lake Merritt Central Coliseum Plan Oakland Valdez District Station Area Estuary Area AreaV

Plan Area (Acres) 400 95 280 420 800

Non-Residential Space (Millions of Sq. Ft.)

Existing 7.8 2.1 5.4 5.2 7.8

Net New (Build Out) 4-5 1.8 1.6 10 12

Percent Change 51%-64% 86% 30% 192% 154%

Employment

Existing 15,890* 7,620 17,800 N/A N/A

Net New (Build Out) 22,000 4,100 4,100 N/A 20,000

Percent Change 138% 54% 23% N/A N/A

* Includes specific locations identified as “Opportunity Areas” only. Sources: City of Oakland, Specific Plans and Environmental Review documents; Strategic Economics, 2014.

74 Figure 18. Strategies and Plans Reviewed

Plan Major Implementation Actions • Regulatory changes • Address blight, crime, safety concerns, basic infrastructure needs West Oakland • Economic development • Longer-term transportation, open space, and other infrastructure improve

• Regulatory changes

• Continue marketing, coordination, and developer outreach to attract retail

• Pursue strategic land acquisition and disposition

• Provide public funding for structured retail parking, prioritized list of public realm improvements Broadway Valdez District • Establish CBD

• Develop citywide strategy for auto-related retail; relocate active dealerships from Valdez Triangle as needed

• Regulatory changes

• Infrastructure and public space improvements (including BART station access)

• Job training, local hire

Lake Merritt Station Area • Cultural preservation and vitality – e.g., public art, historical markers

• Community facilities rehab – Lincoln Recreation Center, Henry J. Kaiser Convention Center, Fire Alarm Building

• Regulatory changes

Central Estuary Area • Transportation investments

• Regulatory changes

Coliseum Area • Negotiations among developers, sports teams, public land owners (City, County, BART, Port)

(“Coliseum City”) • Infrastructure and Pre-Development Improvements ($236 million)

• Continue planning for and facilitating TOD

• Increase public resources to address crime

• Invest in improvements to improve physical appearance, pedestrian environment, transit access, bicycle network International Boulevard • Prepare an EIR for the plan

• Create a comprehensive approach to managing parking and trafic

• Build partnerships

75