HomeMy WebLinkAboutR8- Economic Development ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: TIMOTHY C. STEINHAUS Subject: ECONOMIC,STRATEGIC PLAN
Agency Administrator
Date: November 13, 1995
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Synopsis of Previous Commission/Council/Committee Action(s):
On September 28, 1994,the Council/Community Development Commission held an all day Economic
Summit conference at Cal State University,San Bernardino. The Commission retained Dr.John Husing
to assist staff in the conference and preparation of the strategic plan document. The strategy was drafted
and circulated community-wide for review and additional input.
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Recommended Motion(s):
(Mayor and Common Council)
(Community Development Commission)
MOTION: That the Mayor and Common Council and the Community Development Commission adopt, as
policy guidelines for the City and Economic Development ency, the recommendations as set forth
in the"Economic Strategic Plan"and direct stiff to imp) me t the guidelines and/or initiate specific
actions necessary to accomplish the reconunended str to s or programs.
TIMO Y C. TEINHAUS
Agency Administrator
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Contact Person(s): Timothy C Steinhaus/Robert E Botts Phone: 5081 _ .
Project Area(s): City-wide Ward(s): All Wards
Supporting Data Attached: Staff Report and Economic Strategy
FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A
Budget Authority: N/A
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Commission/Council Notes:
TCS:RtB:ecostrat.cdc:dle COMMISSION-MEETING-AGENDA
Meeting Date: 11/20/1995
Agenda Item Number:
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
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i
ECONOMIC STRATEGIC PLAN
On September 28, 1994, the Mayor and Common Council and the Community Development Commission held
an all day "Economic Summit" conference at Cal State University - San Bernardino, which was attended by
approximately 200 community and business leaders.
Presentations to the Council/Cornmission were made by focus group leaders. These focus groups had met several
times, in advance of the "Summit," to receive input and discuss specific issues. The groups were made up of
business people, attorneys, CPAs, commercial and residential realtors, bankers and other interested citizens.
Topics presented included economic development, finance, housing, crime, education, San Bernardino
International Airport and other related issues.
Dr.John Husing was retained by the Community Development Commission to assist staff with the conference
and preparation of the Economic Strategic Plan document. The plan was drafted and circulated to focus group
members,attendees of the conference and other interested groups or citizens. A press release was carried in the
Sun Newspaper regarding the availability of the draft document. Several requests were received. Meetings were
held to discuss the document,as well as solicit additional comments. These additions were reviewed and in some
cases the document was modified. The plan was recirculated,including copies to the Mayor and Council and City
staff. The final draft is attached.
The major provisions of the strategy are as follows:
I. Establishes as policy, for the Council/Commission and staff, a prioritization for the expediture of the
limited resources derived from tax increment funds.
• The top priority or basic tier is retention and expansion of activities which bring new dollars from the
outside world,thus raising San Bernardino's over-all economic level.
• The secondary tier or priority are activities which are supported by the local spending of these dollars
such as retail, and other important projects, but which do not produce new dollars into the local
economy.
2. Several elements are included to support the top priority or tier. They are:
• Decisions must concentrate on programs that keep and lure firms that bring new money into the City's
economic base,including those in manufacturing, service and regional retailing.
• It must maximize the return and minimize the risk in.the use of scarce EDA funds.
• It should provide a competitive cost and user-friendly regulatory environment.
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TCS:RED:ecostrat.cdc:dle COMMISSION MEETING AGENDA
Meeting Date: 11/20/1995
Agenda Item Number: �`
COMMISSION/COUNCIL STAFF REPORT
RE: ECONOMIC STRATEGIC PLAN
November 13, 1995
Page 2
3. Establishes City policy to preserve owner-occupancy in exisiting single-family detached homes and to
return as many single-family detached rental homes back to owner occupancy as possible.
4. San Bernardino should seek legislation which allows for the unilateral annexation of islands which have
been surrounding the City for many years. These unincorported properties create inefficiencies in the
delivery of governmental services that adversely effects the budget of the City.
5. Numerous specific projects and programs are included, for staff research, development and
implementation,in order to accomplish the over-all goals of the strategy.
The intended action is for the Council/Commission to adopt the attached Economic Strategic Plan as policy
guidelines for the Council/Commission and the City and Economic Development Agency and to direct staff to
implement the guidelines and/or initiate specific actions necessary to accomplish the recommended strategies or
programs.
Based upon the fact finding element of the Economic Summit, the community participation in the process,the
limited availability of financial resources to the City and the need to rebuild San Bernardino's economy, staff
recommends adoption of the form motion.
ROBERT E.BOTTS,Manager
Office of Business Development
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WSAMecostrat.cdcAle COMMISSION MEETING AGENDA
Meeting Date: 11/20/1995
Agenda Item Number: I
San Bernardino
Economic Development Strategy
Final Report
John E. Husing, Ph.D.
As has often been the case, San Bernardino is at a crossroads. Unless the city's economic direction is
fundamentally altered, it risks missing the prosperity headed for the Inland Empire. Is change possible?
Yes, given the community's extensive competitive economic advantages. Thus, the future is a matter of
strategy, tactics and choices by leaders in and out of city hall.
To provide a context for sound decision making, this document begins with an explanation of the
differences between the basic and secondary tiers of any city's economy. Next, the basic tier's critical
role is highlighted, along with a list of those activities which are, and are not part of it in San Bernardino.
The city's recommended policy priorities flow logically from this discussion. Each policy priority is
illustrated using issues which have recently been before the City Council.
Given the extent to which San Bernardino's basic economic activities underlie the recommended policy
priorities, six key basic activities are next discussed in depth. Of these, three are shown to be crucial to
the community's future: local resident workers, manufacturers and "export" service firms. It is concluded
that they should be given priority in the use of San Bernardino's scarce Economic Development Agency
(EDA) investment resources and staff time. The balance of the report enunciates specific strategies for
doing so.
I. FINAL DRAFT: PROCESS
This report represents the result of year long discussions with San Bernardino city economic,
political, city staff and community leaders. Underlying its recommendations has been a thorough
review of the economic trend data affecting the city.
After Draft #1 of this analysis was completed, it was shared with the Mayor, Common Council,
City & EDA Administrative and Department Heads, and participants in the Economic Summit,
plus individuals and groups who requested copies or meetings about it. Numerous written and
oral comments, both critical and supportive, were received. In addition, a cross section of
professional, business and real estate leaders were invited to join the Mayor, City & EDA
Administrators for a lengthy session designed to critique Draft#1's findings.
In this Final Report, the attempt has been made to incorporate the essence of these comments
and criticisms in the attempt to achieve a consensus document.
Those reviewing this document should be aware of the philosophy underlying it:
1. It adopts the point of view that much of what needs to be accomplished in
San Bernardino is a matter of leadership and decision making. It therefore
emphasizes goals, priorities and policies.
2. It delineates a limited number of strategic thrusts since experience shows
that too broad an economic strategy is a recipe for inaction. These are
placed in priority order in Appendix A.
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V)
3. For each strategic thrust, specific actions are recommended in order to
highlight the implementation program that flows from them.
11. BASIS FOR SETTING ECONOMIC DEVELOPMENT PRIORITIES
A. BASIC &SECONDARY TIERS OF THE ECONOMY
In order to create an economic strategy for the City of San Bernardino or any other community, it
is necessary to understand three key points about how any local economy functions. These
points provide a context for analyzing the city's strengths & weaknesses, as well as programs &
policies for dealing with them.
1. Basic Tier Of The Economy Supplies The Money
San Bernardino can be thought of like a gold mining town in the Old West. There,
miners dug up gold and sold it to the outside world for money. Once the money
arrived, they spent it at the local saloon, general store and on local taxes. The gold
miners thus both supported themselves as well as local saloon workers,
shopkeepers, and the town sheriff. When the gold ran out and the miners left, the
economic base evaporated and a ghost town resulted.
Point#1.-San Bernardino's economy can be thought of in two tiers: a basic tier of
activities which bring money to the city; a secondary tier which is supported by
the local spending of those same dollars (e.g. retailers, city halo.
2. Basic Dollars Can Leak Away To Other Towns
If a miner chooses to live and spend in another place, the money coming to town
from his gold sales will support him, but it will not support the town's saloon workers,
shopkeepers or city hall.
Point #2.-If a basic employer locates in San Bernardino, but its employees live
elsewhere, the outside money brought to the city by the firm will support its own
employees, but do nothing to help people employed in the city's secondary tier of
retailers, service firms and local government.
3. A Diversified Secondary Tier Can Increase Impact Of Basic Dollars.
If the mining town adds a restaurant, a barber shop and a winery, the money brought
in by the gold miners changes hands more often, before leaking away to buy
supplies or locally unavailable services. If the town's saloon or general store moves
away,the opposite occurs.
Point #3.-If the secondary tier of San Bernardino's economy becomes more
diversified, the same amount of money coming to its basic employers, will change
hands locally more often, supporting more people. If its secondary tier shrinks, the
reverse will happen.
B. CITY ECONOMIC PRIORITIES
Since local economic success is governed by these three principles, the economic priorities of
San Bernardino or any other city become clear.
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1. Expand Activities In The Economic Base
San Bernardino's top economic priority must be the retention and expansion of activities which
bring money to it from the outside world. Without such basic activities, the economy will
languish. Six undertakings make up the city's economic base. However, the city should only
seek the expansion of the first four.
a. Companies which create products and sell them outside of the city. Examples:
Cobra Industries, Crown Printers, Anita's Foods, Games For Fun, Restaurant Row.
b. Companies & activities which perform services for clients outside of the city.
Examples: Health Sciences Data Corporation, GE Capital, Automated Health
Systems Laundry (AHSL), Santa Fe Railroad, Hospitality Lane hotels, Route 66
Rendezvous.
c. Governmental entities whose funding is not primarily local. Examples:
California State University San Bernardino (Cal State University SB), County of San
Bernardino, Defense Finance &Accounting Service, US Postal Service.
d. Local resident workers who work outside the city and bring home a pay check.
Example: a warehousing clerk working in Ontario; a programmer working in
Anaheim.
The other two groups of activities are part of any city's economic base. However, if they
represent a major or growing share of it , that is a likely sign of long term economic decline.
e. Retirees who receive pension checks from funding sources outside the city.
Example: Social Security recipient, retiree from Shell Oil.
f. Aid recipients receiving funds financed by the state or federal government.
Example: Person on aid to dependent children; person receiving unemployment
compensation.
In seeking to expand the economy's basic tier, San Bernardino should be concerned with two
other facts:
The broader the number of basic activities bringing money to San Bemardino, the
more secure its economy will be. Thus, San Bernardino is suffering because in the past
too much of its basic economy was in the defense sector.
The higher paying the city's basic activities are, the more prosperous its economy will
become. Thus, San Bernardino is suffering because too much of its basic income comes
from poorly paid aid recipients, at a time when their stipends are stagnant or shrinking.
2. Convince Basic Sector Workers To Live &Spend In The City
San Bernardino second economic priority must be to convince the employees of its basic firms to
live and spend in the city. Otherwise, the city bears the infrastructure costs of these operations
but misses the full benefit which spending by their workers can have on its secondary tier of
firms and agencies. San Bernardino's economy was weakened when employees of its basic
firms and agencies began living and spending elsewhere. The problem was compounded when
well paid employees in its secondary tier also began to do so. The symptoms have been
obvious:
1. The loss of retailers, food stores and pressures on the city budget.
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2. The conversion of much of the city's housing stock to low income rentals.
3. The lack of a growing stock of upscale new homes.
4. The growing percentage of families on public assistance.
5. The rising crime rate.
In a similar vein, city economic activity would be enhanced if firms & agencies (e.g., the city
itself) bought more from local suppliers. Thus, if Santa Fe Railroad or the Caltrans hires a local
engineering firm whose employees live in the city, there is a double benefit.
3. Retain and Expand Second Tier Firms
San Bernardino's third & lowest economic development priority should be the retention and
expansion of secondary tier organizations such as local retailers, food stores, and cultural
outlets. Success in these arenas has the advantage of permitting the dollars that reach the city's
economy to change hands more often before they bleed away. This should be the city's
lowest priority. If the economic base is shrinking, no amount of propping up will expand
the secondary tier.
In this light, there are two clear conflicts in the way that most cities, including San Bernardino,
act and their long term economic interests:
1. Secondary tier activities are largely owned and/or managed by local residents.
Primary tier activities are not. Thus, there is a built in constituency, with powerful
influence, pushing any city to prop up the sectors which do the least for its long term
economic health. The weaker the city's primary tier, the heavier the pressure to prop
up secondary tier activities, and the greater the compulsion to spend money on the
wrong projects.
2. Most of a city's retail sector is in its secondary tier (regional malls & restaurant hubs
are the exception). However, California cities are driven to give top priority to
subsidizing retailers because the sales tax is their principal local revenue source
The weaker the primary tier, the more trouble facing retailing, and the greater the
argument for inappropriate subsides.
In summary, the key to San Bernardino's prosperity is the execution of economic strategies
designed to encourage the diversity, expansion and retention of its basic employers and their
staffs. With political effort, staff time, and Economic Development Agency (EDA) resources all
limited, any other set of priorities flies in the face of fundamental economic reality.
4. Illustrations: Basic & Non-Basic Activities
These theoretical discussions become more graphic when past decisions are classified as basic
or secondary:
1. Subsidies to firms and activities such as AHSL, Santa Fe Railroad, Route 66
Rendezvous, Restaurant Row, Cobra Industries, or the regional malls expand the
economic base.
2. Subsidies to housing projects which hold the employees of basic or secondary
industries in the city ensure that an expansion of the economic base has its full local
impact.
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3. Subsidies to general city services; strip malls; city culture events; neighborhood
malls, restaurants or mini-markets almost never expand the economic base.
4. Subsidies to housing projects which favor rental units populated by aid recipients or
retirees at the expense of workers have an essentially negative impact on the
economic base.
Decisions to undertake the latter two groups of activities may be justified on other grounds.
However, as they do not expand the economic base, they should not dominate the scarce time of
policy makers, staff members or the EDA's limited financing capability. The opposite often
occurs as proponents of essentially secondary tier activities are nearly always local people.
C. SAN BERNARDINO'S ECONOMIC BASE: Prognosis
As indicated earlier, San Bernardino's economic base is composed of six types of activities. A
review of them shows the problems and potentials for each.
1. Retirees
2. Aid Recipients
As an older urban city, one of San Bernardino's growing problems is the increasing importance of
retirees and governmental aid recipients to its economic base. This can be inferred from 1990
Census data which showed that 30% of city households earned below $15,000. It can also be
seen in the number of detached homes that have been converted to low income rentals.
While these two groups are a source of outside funds for San Bernardino, neither will provide a
base for economic expansion. Their growing importance in the city's economic base is a sign of
a weakening economy and long term problems for its secondary tier of firms & agencies.
1. Local retirees, unlike those in places like Hemet or Palm Springs, tend to have lower
incomes that do not grow as fast as inflation.
2. Aid recipients, if anything, will see their incomes fall in the current political climate.
3. Non-Local Government
The closure of Norton Air Force Base was a major blow to San Bernardino as its payroll and
purchases represented a major share of the funds flowing to the city from the outside world. The
migration of some federal functions to Riverside will represent a smaller such problem.
On the positive side, the opening of the Defense Finance &Accounting Center and the new U.S.
Postal Service Remote Encoding Centers will add to the city's economic base. So also will any
increase in net state payrolls from the State Building complex or growth in Cal State University
SB's budget.
Unfortunately, over the next decade, budgetary problems at the state and federal level will
prevent non-local government from becoming a major force in expanding the flow of dollars into
San Bernardino's economic base.
4. Commuters& Other Resident Workers
While it is disruptive to families, a major source of outside dollars to the Inland Empire has been
its commuter work force. According to the 1990 Census, 238,600 of 1,000,000 area workers
drove to Los Angeles, Orange and San Diego Counties and brought home pay checks.
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In San Bernardino, commuters, even those driving to nearby cities, have not provided a major
growth impetus to the city's economic base. The problem has been one of housing. Developers
have built few new city homes in recent years. And, for a variety of reasons, its existing
detached housing stock has increasingly been converted to rentals. Thus, potential buyers have
not located in the city.
This is unfortunate. In an era when families are desperate for affordable homes, San Bernardino
should be attracting a continuous flow of young workers and commuters. After all, it has
Southern California's lowest priced housing. In 1994, for instance, the average existing city
home sold for $99,258 (including all of 92346). This was 22% below the County average of
$128,007, and 58% below Los Angeles County's $233,381.
Since 1990, San Bernardino's low priced housing has given it the Inland Empire's highest
population growth (20,236). However, low income tenants on public assistance dominated this
growth, not owner-occupant workers. As a result, a potential community asset has become a
liability,taxing social services and increasing the crime rate.
Looking forward, the vast potential for the affordable housing stock to lure young workers and
commuters to the San Bernardino remains. What is needed is a comprehensive strategy
designed to encourage landlords to sell and owner occupants to buy in the community.
5. Firms Producing and Exporting Products
6. Firms Exporting Services
San Bernardino's best chance for expanding its economic base lies with high paying firms that
produce goods or service for sale outside the city. This is particularly the case where their
employees are city residents.
The potential is real as, from Jan-94 to Jul-95, 182 such firms migrated to the Inland Empire.
San Bernardino has benefited from growth of this type. Older product suppliers like Crown
Printers, and newer ones like Cobra Manufacturing have expanded. So have older service
suppliers like Santa Fe Railroad and newer ones like Health Sciences Data Corporation. The
first manufacturers are now opening at Norton. Companies like Accent Furniture and Boyd
Flotation have chosen to move to the city.
Looking ahead, San Bernardino has many potential advantages in keeping and pursuing "export"
firms, particularly now that such companies are weighing every city's competitive environment.
1. It has a hard working, reasonably priced labor supply which Cal State University SB
and San Bernardino Valley College stand ready to train as needed.
2. It has plentiful and reasonably priced industrial and office space.
3. It has an incredible supply of water, a unique geothermal resource, and access to an
industrial outfall sewer line.
4. It has investment resources available both through EDA and the Inland Valley
Development Agency (IVDA).
5. It is surrounded by the 1-215, 1-10, Route 30, Route 330 loop, and is undergoing
infrastructure expansion with Santa Fe's intermodal yards, GTE's fiber optic network,
and the privatization of Norton Air Force Base.
6. It is a center of state and county offices, and centrally located to the Inland Empire's
3.0 million people and $49 billion economy.
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7. Hospitality Lane provides the city with a regional restaurant and office complex.
However, San Bernardino also has decided weaknesses in recruiting or retaining "export"firms.
1 It must compete with the Ontario and Corona areas which are nearer to LA & Orange
Counties and have better access to Ontario International Airport with its UPS hub.
2 The crime rate is a central topic in most negotiations involving the community.
3 The aging retail and housing stocks are problems, as is the documented flight of the
city's middle class.
4 San Bernardino has an incredibly poor self perception.
5 The diffusion of power inherent in the city's archaic political system, makes the
execution of long term economic policies very difficult.
Thus, Inland Empire trends give San Bernardino a golden opportunity to broaden its economic
base. However, to benefit, the city must convince relevant firms and their employees that their
best chance for success lies within its boundaries. This means implementing a strategy which
hamesses the city's enormous strengths, and overcomes its formidable weaknesses.
III. THE ECONOMIC STRATEGY
Given this analysis, and recognizing that San Bernardino like other cities has finite resources,
the city's economic strategy must contain several elements:
1. It should seek to overcome the obstacles to community decision making that have
inhibited the city's efficiency and economic growth.
2. It must concentrate on programs that keep and lure firms that bring money into the
city's economic base, including those in manufacturing, service and regional
retailing. It should minimize spending on secondary tier activities.
3. It should maximize the return and minimize the risk in the use of scarce EDA funds.
4. It must include housing programs that encourage workers to live and spend in the
community, as the significance of its economic base is diminished if they do not.
5. As economic expansion requires a competitive cost environment, it should both
lower business regulatory and resource costs, and increase business efficiency via
access to modem transportation and communications infrastructure.
6. It should provide mechanisms for convincing existing basic firms to remain in the
city. They are a primary source of employment growth and the best advocates for
other firms to join them.
7. It should foster economic development institutions that can create an environment
attractive to both existing and new basic sector firms.
A set of strategies addressing these elements is outlined below in priority order. The action items
under each priority are themselves in priority order. In Appendix A, a list of on-going programs
whose continuation is vital to the success of San Bernardino's economy is also enumerated and
discussed.
PRIORITY 1.-CITY HALL COMPETITIVE CLIMATE STRATEGY
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ACTION #1.- The City and EDA Administrators are instructed to jointly develop a long term
C4 strategy aimed at making the city's personnel more likely to make decisions that will
enhance the city's competitive economic position. The City Hall Competitive Climate
Strategy should include a proposed time line, staffing, budget and be completed by June 1996.
Rationale: Like other California communities, San Bernardino has grown up in an environment in
which neither voters, elected officials, public administrators, or educators, saw the necessity of
competing for businesses. Times have changed. Unfortunately, Califomia's legal structure and
governmental cultures have not.
If San Bernardino is to increase the standard of living of its residents, it must develop a
competitive attitude towards luring firms that can expand its economic base. Implementing the
program outlined below will go along way towards accomplishing this objective. However, given
the degree to which businesses must rely upon City Hall decision making, a competitive attitude
must be nurtured within the city's internal culture.
NOTE: The proposed elements of a City Hall Competitive Climate Strategy are detailed in
Appendix B.
PRIORITY#2 -BASIC NOT SECONDARY ACTIVITIES
ACTION #2.-The Common Council and Community Development Commission (CDC) direct that
it shall be policy that basic as opposed to secondary economic activities will be the priority
in establishing Council agendas, assigning staff time and expending EDA funds.
ACTION #3.-City and EDA staff shall establish numeric guidelines which will allow a judgment
to be made as to whether proposed city investments, projects or programs will affect the primary
or secondary tier of San Bernardino's economic activity.
ACTION #4.-City and EDA staff are instructed to include in the staff reports of all proposed city
investments, projects or programs whether they affect the primary versus secondary tier of the
economy, and assign priority to the former.
ACTION #5.-EDA staff shall undertake a cost versus benefits analysis of each project it
recommends. The analysis shall include the project's probable impact on the budgets of EDA
and the City.
Rationale: The city's scarce investment funds should be spent expanding its economic base.
Any other priority does not encourage growth and wastes scarce development dollars and staff
time. Some money may be expended on `worthy"secondary tier activities. However, the latter
should be forced to meet a higher test of`worthiness"than basic tier projects. As EDA funds are
the city's only means of investing in its future, it is crucial that staff and policy makers be aware of
the impact of any project on the agency's balance sheet and the city's budget.
PRIORITY#3.-EXTENT OF SUBSIDIES & RISKS
ACTION #6.-The CDC Board directs staff to prepare and justify policy recommendations that the
Board can adopt indicating the level of financial exposure and risk which EDA is willing to
accept in all projects,with a priority given to those affecting the economic base.
ACTION #7.-EDA staff shall create a set of project guidelines and procedures that will
implement CDC Board policies on the financial exposure and risk levels acceptable for each type
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of project. A policy and procedure's manual for implementing these guidelines and tracking
compliance shall be produced and the staff trained to use it.
Rationale: EDA's financial resources are scarce. It assists projects that cannot stand alone in
the marketplace. Its funds are often subjected to long term contingent exposure or risk of default.
It is thus imperative that financial exposure, risk and compliance policies, guidelines and
procedures be developed, articulated and consistently executed.
PRIORITY#4.-OWNER OCCUPIED SINGLE FAMILY DETACHED HOMES
ACTION #8.-The City Council and EDA Board declares it to be city policy to preserve owner
occupancy in those single family detached homes where it currently exists, and to return as
many be single family detached rental homes back to owner occupancy as possible.
ACTION #9.-The City and EDA staffs are instructed to retain a leading economic consulting firm,
with expertise in housing issues, to study the single family housing stock's ownership profile and
recommend a specific positive implementable strategy which the City and EDA can
undertake to preserve and restore owner occupancy.
Rationale: The decline of owner occupancy in single family detached neighborhoods prevents
San Bernardino's housing stock from serving as a lure to young working families looking for
affordable homes. It is a major factor in the high percentage of residents on public assistance
and the crime rate. It is a contributing factor to the fight of the city's middle class, the loss of
some professional firms, and the decline of spending in the secondary tier of the economy.
The city's rental inspectionkode enforcement program is a first step in developing data and
starting processes to deal with this problem. However, potential owner-occupant buyers are
afraid to live in parts of the city. Meanwhile, many landlords are trapped into ownership by tax
laws; some are trapped by past investment decisions; a few appear to be taking advantage of a
bad situation. Policies and a master plan of action need to be developed which can differentiate
between these situations and create an environment in which potential owner occupants want to
buy and most landlords want to sell to them.
PRIORITY#5.-COMPETITIVE RESOURCE COSTS
ACTION #10.-City staff is instructed to develop a utility tax discount program to be used to
help lure new basic employers to the city.
Rationale. San Bernardino has one of the highest utility taxes in the Inland Empire. This is a
barrier to recruiting many types of employers. For negotiated periods, competitive jurisdictions
are offering new firms lower utility tax rates and/or phased rate implementation. San Bernardino
needs such policy alternatives.
Action #11-The San Bernardino EDA staff is instructed to work with the Water Department to
design a program under which the city's plentiful water supply can be used as a lure to bring
water dependent manufacturers to the community. This should include pricing incentives to
allow firms to offset other local operating costs.
Rationale: Water availability is an issue with many manufacturers. Operating costs are an issue
with all firms. San Bemardino has a unique, plentiful asset that can be a competitive advantage
in faring both.
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Action #12.-San Bernardino Water Department shall to hire consultants to define the extent of
its unique geothermal resource. If it is as extensive as believed, EDA is instructed to
undertake a major niche marketing campaign aimed at potential users of this resource.
Rationale: The city's geothermal field is a low cost space heating, and a warm, soft water
resource. It provides the city with a potential competitive advantage in competing for firms that
heat large spaces or need large quantities of hot, soft water. The city needs to understand the
size of the resource so that it can be appropriately marketed.
Action #13-San Bernardino designates itself the water capital of Southern California. and
instructs staff to incorporate this slogan into its marketing materials. To highlight the water
supply, EDA staff is instructed to work with city and regional water agencies to plan and
implement a long term program of bringing water above ground in dramatic ways in key spots in
the community.
Rationale: San Bemardino's extraordinary water resource is hidden to all but experts. This effort
would use this water to both beautify the community and dramatize the availability of the resource
(if you've got it flaunt it!). The 1-10-Route 30 waterfall project is a perfect illustration of this
strategy.
PRIORITY#6.-BUSINESS SUPPORT NETWORK
ACTION #14.- EDA is instructed to develop plans for a well organized and aggressive
Business Support Network, including an implementation budget and staffing and bring it to the
Board for implementation. Plans should include methods for maintaining constant contact with
basic tier firms, and facilitating interaction between them and the private & governmental
agencies designed to assist them.
Rationale: Basic tier firms will only migrate to, and remain in San Bernardino, if they believe it is
in their economic interest to do so. In pan`, this depends on how their perception of the
community's attitude towards them. It is also a function of the ease with which they can acquire
help when they need it. An aggressive Business Support Network can accomplish these ends.
NOTE: The Business Support Network should include a plan for identifying basic tier firms and
their leaders; a telemarketing program for maintaining contact with them; a simple
method by which they can ask for help; and a computer linked system tying together
business support agencies in finance; regulatory process; management training; worker
recruitment & training; international trade; technology transfers; and marketing
information.
An ideal network is describe in Appendices C & D. It represents an expansion of the
"EARS" network sponsored by Southern California Edison, the Greater San Bernardino
Chamber of Commerce and the EDA, though it is more extensive and aggressively
proactive.
PRIORITY#7.-ECONOMIC DEVELOPMENT INSTITUTIONS
ACTION #15.- The EDA staff is instructed to make contact with the San Bernardino County
Economic & Community Development Agency to see what can be done to ensure the agency
stays in downtown San Bemardino.
Rationale: San Bernardino County will soon move its Economic & Community Development
Agency. As this organization meets often with potential new basic tier companies, the city should
work to ensure the agency is kept within the downtown area near City Hall.
10
err
ACTION #16.-The EDA staff is instructed to work with surrounding cities to develp funding for a
full time Small Business Development Center(SBDC) office in San Bernardino.
Rationale: The SBDC currently offers entrepreneurial counseling, business planning and loan
packaging training to San Bernardino area small business on a weeldy basis. It will soon
administer the IVDA business incubator. Given the importance of these dual roles, funding is
needed to expand SBDC's counseling& training function to full time.
ACTION #17.-San Bernardino EDA staff is instructed to open channels of communications with
University of California at Riverside's administrators.
Rationale:, UCR has recently begun creating programs and conducting applied research with
direct employment creation possibilities. Eventually, they should spawn manufacturing activities
that could best be located in San Bernardino owing to lack of appropriate space near the
campus. They will not, if university leaders do not know of the possibilities. Though San
Bernardino lies within UCR's zone of influence, there has been little in the way of dialogue
between city officials and campus leaders. It would be beneficial to both sides to close this gap.
ACTION #18.-EDA staff is instructed to investigate the Manufacturer's Councils developed in
surrounding jurisdictions and bring proposals to the Board for implementation of such a Council
in San Bernardino.
Rationale: Given the importance of manufacturing to the city's economic base, the specialized
needs of firms in that sector, and their general lack of participation in city economic institutions, a
Manufacturer's Council would give entrepreneurs & executives in this sector the chance to
network and advise the city on issues affecting them. The San Bernardino Chamber of
Commerce should be helpful in launching one.
ACTION #19.-In conjunction with the County, surrounding cities and local financial institutions,
EDA staff is instructed to should explore the creation of a financial intermediary to help
successful entrepreneurs and high technology start-up businesses obtain funding.
Rationale: Entrepreneurs claim that their greatest need is access to capital (under $10,000).
Lenders indicate that money exists. The gulf occurs as entrepreneurs do not understand the
banking community, do not know how to create business plans or loan packages; and/or fail to
qualify as they exhaust their finances before seeking loans.
SBDC helps firm's develop business plans & loan packages. However, a financial intermediary is
needed to forward them to local banks or an SBA processor for funding. If there is no interest,
and a firm has good job potential, the intermediary might loan its own funds or take an equity
position, particularly if these can be leveraged for bank financing and a clear exit strategy exists.
NOTE: Overtime, an SBDC-financial intermediary link could form an early intervention program
to reach entrepreneurs before they get into too much trouble.
PRIORITY#8.-ANNEXATION
ACTION #20.- The City of San Bernardino declares its intention to seek legislation, in
conjuction with San Bernardino County, to allow the unilateral annexation of islands which
have been surrounding by city boundaries for in excess of 20-years.
Rationale: The islands of unincorporated property located in the middle of San Bernardino create
inefficiencies in the delivery of governmental services that adversely affect the budgets of both
the city and the county. As residents of these areas have long since become accustomed to
11
X
enjoying many of the benefits of the city without paying for them, it is unlikely that they will ever
voluntarily annex to the city. This is clearly an area in which changes in state law are needed.
IV. SUMMARY
There is no natural defect or economic flaw preventing San Bernardino from once again
achieving prosperity. The city occupies a key location in the midst of what continues to be
Southern California's fastest growing area. It has the essential resources, critical infrastructure,
low cost labor, inexpensive space and affordable housing required to achieve success.
What San Bernardino needs is the adoption and execution of an economic strategy that will
increase the flow of dollars coming to it from the outside world. Such a strategy must be based
upon the numerous location advantages which the city possesses. It must correct those defects
which are inhibiting its ability to compete. It must be directed at growing basic tier firms who can
benefit from the city's unique assets. And, most importantly, it must result in the workers who
are employed by those companies choosing to live and spend in the community.
Given this situation, if the city succeeds, it will be because of policy choices made by its political
leaders and senior staff. If it fails, it will be for the same reason.
I
12
0
APPENDIX A
ON-GOING PROGRAMS WHICH SHOULD CONTINUE
INFRASTRUCTURE
1.- San Bernardino should continue assisting Santa Fe Railroad's efforts to expand its inter-
modal rail capability.
Rationale: In an era of just-in-time-inventory procedures, an area with intermodal rail capability
has a serious competitive advantage. Combined with the cargo facilities at San Bernardino
International Airport, the Santa Fe Intermodal yards will help lure manufacturing and distributing
firms to the city.
2.- San Bernardino should continuing encouraging telecommunications firms to expand their
investments in the city. EDA should continue efforts to link itself to the Internet. The city
should join the EEE network. The city should continue working with other East Valley cities
in the GEO based mapping system being developed by ESRI.
Rationale: In an era of Internet, teleconferencing, and high speed data transmission, San
Bemardino must provide firms with access to the latest in communications technology.
BASIC NON-MANUFACTURING ACTIVITIES
3.- EDA should continue providing incentives to basic tier retail firms in the same manner as
manufacturers. To qualify, business owners should be prepared to demonstrate that a
significant percentage of their business comes from outside of the city's boundaries.
Rationale: Retail firms and restaurants in the Hospitality Lane, Inland Center and Carousel Mall
zones of San Bemardino bring outside dollars to the city in the same manner as manufacturers
and"export"service firms. They should be equally encouraged and protected.
4.- Hospitality Lane development should continue to be of the highest quality consistent with an
upscale regional retail, restaurant and basic tier office environment. The attempt by any
business to tarnish this area should be prohibited.
Rationale: The one San Bernardino area that has avoided the regional perception that the city
has a serious crime problem has been Hospitality Lane. Its restaurants, retail stores, hotels and
offices draw a regional clientele and have become a major source of outside dollars to the city.
The attempt by any firm to offer products or services within this area that are inconsistent with
this positive environment should be vigorously opposed. This is particularty true of topless or
pornographic operations which would serve to associate the area with the worst regional
perceptions of the city.
14
S.- Route 66 Rendezvous should continue to be supported with whatever EDA funds are
necessary to maintain the level of quality it has now achieved.
Rationale: This event has been premier tourist event in recent San Bemardino history. It is part
of the city's economic base as it attracts outside tourist dollars. It has helped counter the city's
unsafe image.
Note: Properly marketed, the same logic would apply to the new Spirit baseball team and
stadium.
MARKETING
6.- San Bemardino should continue its participation in the Inland Empire Marketing Project
(IEMP) formulated by the Inland Empire Economic Partnership in conjunction with 27 local
governmental entities.
Rationale: San Bernardino's economic future depends on that of the Inland Empire. However,
despite a $49 billion economy, stronger location characteristics than surrounding counties, and a
Southern California location, the region is poorly known. Solving this requires a regional
marketing effort aimed at the national finance industry, growing mid-sized corporations and firms,
toufrism planners and film studios The TEMP is designed to do this. Its success will increase the
universe of activities for which San Bernardino has the opportunity to compete.
7.- EDA should continue to compile the data and explanatory materials needed to respond to
information request from firms interested in locating in the Inland Empire.
Rationale:EDA needs to have precise data and readily available informational materials on hand
to rapidly respond to inquiries by prospective companies.
8.- EDA should continue targeting marketing materials to niche market firms needing access to
location advantages which it uniquely possesses.
Rationale: The city has particular location advantages that certain industries may find uniquely
valuable. Those advantages include its geothermal field, its water supply, the former Norton
Air Force Base runway, and the Santa Fe intermodal yards.
15
APPENDIX B
r-�
CITY HALL COMPETITIVE CLIMATE STRATEGY
The proposed elements of a City Hall Competitive Climate Strategy:
1. If San Bernardino business is experiencing difficulty with City Hall regulatory processes,
a designated staff person should be charged with resolving the situation. If the matter is
routine, the person should be empowered to cut across departmental lines to handle it.
If the matter is severe, the person should be in a position to form a Red Team to
provide high level intervention. At all times, this staff person would be charged with
remembering that time, more than cost, often destroys firms.
2. The EDA's Office of Business Development (OBD) should continue to manage city
business retention efforts, including business outreach programs like the Mayor's site
visitations or city Red Team efforts. It should also continue as the city's point of contact
with private economic development efforts (e.g., EARS, IEEP) and develop strong ties
to every employer with over 500 workers.
3. The Strategy should create an in-service training effort aimed at making city staff
members acutely aware of the importance of the entrepreneurial community to the
success of San Bernardino's economy and city government.
4. The Strategy should create a mechanism for including an appraisal of each employee's
speed and accuracy in responding to business and public inquires in their employee
evaluations.
5. The Strategy should include a city strategy for ensuring that city zoning, permitting,
regulatory and fee structures give weight to the importance of a competitive, job
inducing business environment.
6. The Strategy should ensure that someone in city government is responsible for
identifying which city functions could most efficiently be contracted to local
entrepreneurs. As contracting out requires negotiations with city unions, terms need to
be established under which this can occur.
7. The Strategy should provide that a city staff member be given responsibility for
understanding the regulatory processes of San Bernardino County and regional
agencies. This would allow the city to assist city firms having problems at those levels
of government.
8. The Strategy should provide for a city staff member to be responsibility for
recommending changes in California law which are unnecessarily hampering San
Bernardino's employment growth.
If a strategy such as this were implemented, over time San Bernardino's City Hall culture would
become known for creating a business friendly,job inducing environment.
17
APPENDIX C
BUSINESS SUPPORT NETWORK
If San Bernardino is to diversify its economic base, existing basic tier firms must remain in the
city and expand, and new ones must be convinced to migrate to it. With today's companies
willing to locate anywhere, it is up to the city to create an environment which entrepreneurs &
executives perceive as favorable to their operations.
Beyond questions of cost, such a climate depends on businesses believing the city wants to
support them and provide help when they need it. The Business Support Network's purpose
would be to make this a reality. Ideally, it would involve linking together the following elements
in and out of City Hall:
1. Information Outreach System
APPENDIX D describes in detail a prototype Business Support Network Information Outreach
System in great detail. It is based upon linking basic tier firms and public & private support
agencies via a telemarketing operation and an Internet computer connection (e.g., San
Bernardino County's new EEE network). Through this system, basic tier firms would be
frequently contacted to ascertain if they are experiencing problems. Referrals would be made to
the appropriate support organizations.
2. Small Business Development Center(SBDC)
Many referrals would go to the SBDC. This is the key local player in supporting Inland Empire
small businesses. It operates under matching grants with the U.S. Small Business
Administration and uses experienced professional staff member to offer:
a. Generic entrepreneurial training classes designed to teach new business owners how to
anticipate and avoid the fundamental pitfalls of operating a firm.
b. Specialized business plan and loan packaging tutorials to assist firms in maximizing the
probability of obtaining and properly using lines of credit.
c. Assistance in bidding on federal and state contracts.
The SBDC uses graduate student interns working under full time staff guidance to carry out
some of its functions. Where volunteer assistance is sufficient to solve a problem, SBDC can
refer a client to the Senior Core of Retired Executives (SCORE).
3. UC Manufacturing Extension
If a mature manufacturing firm is found to need a review of its processes, the Business Support
Network would refer them to the University of California's Manufacturing Extension Program.
This new effort is modeled after the agricultural extension program. It provides free
consultations to manufacturers on how to increase efficiency, lower costs, and take advantage of
the latest in manufacturing technology.
Note: It is well known that entrepreneurs often fail because their personal funds are gone
before they seek bank assistance. By then, financial groups are often unable to help
them. The link between the Information Outreach System, the SBDC, the UC
Manufacturing Extension would serve as a good first step aimed at institutionalized early
intervention to prevent firms from making this mistake.
19
0
4. Job Training Partnership Act
If it is found that a company needs workers, the Business Support Network should have
procedures for putting it in contact with the local JTPA office. JTPA maintains a clientele of
trained workers seeking jobs. It can offer financial assistance to firms hiring several categories
of workers. And, it can produce a daily listing of job openings.
5. SBVC Customized Training
If an employer's training needs are sufficiently large, the Business Support Network should have
procedures for putting it in contact with the San Bemardino Valley College (SBVC) Customized
Training Office. This is SBVC's administrative mechanism for quickly responding to requests for
specialized training programs.
SBVC staff would meet with the employer and determine the technology to be learned, find an
industry based instructor, organize and undertake the training. Depending on the circumstances,
funding might come from SBVC sources, federal and state manpower programs, the students or
the firm itself.
6. IVDA Incubator
If a firm was in need of low cost space in an environment with readily available entrepreneurial
counseling, the Business Support Network would have procedures for referring them to the IVDA
business incubator. This operation is being created at the San Bemardino Intemational Airport.
It is being managed under contract with the SBDC.
7. International Trade Assistance Agencies
If it was found that a business should be learning about international trade issues, the Business
Support Network should have procedures for putting them in contact with the U.S. Department of
Commerce International Trade Administration (ITA), the World Trade Center Association or L.A.
Trade Net.
ITA is housed with the IEEP and has direct ties to U.S. commercial attaches around the world.
LA. Trade Net is a computer network providing potential exporters with marketing and
procedural information. It is another subsidiary of the SBDC.
7. Other Business Retention Efforts
If a firm is considering leaving the Inland Empire, the Business Support Network would have
procedures for putting them in contact with one of a host of business retention operations. These
include Southern California Edison (including "EARS'), Southern Califomia Gas, the California
Trade and Commerce Agency and the IEEP The choice would depend upon the principal
problem affecting the firm. A Red Team could then be formed to deal with the cost or regulatory
pressures affecting the company.
20
f
Summary
If San Bernardino were to form a Business Support Network along the lines discussed above, it
would be attacking the major complaint which businesses have with California: No one cares! In
this sense, it would be an excellent business recruiting device.
Footnote: California State University SB Business Outreach
The Cal State SB Graduate School of Business is looking to expand its business support efforts.
The CONNECT program at the University of California at San Diego's (UCSD) would be an
excellent model for them to emulate. This cooperative venture is sponsored by successful local
firms and UCSD, and is the center of San Diego's business networking. Every firm in the region
is constantly encouraged to join CONNECT.
Through such a program, San Bernardino manufacturers would regularly meet and exchange
ideas with their fellow entrepreneurs, interact with venture capitalists, and offer new product
ideas for criticism by skeptical colleagues. On occasion, forums could be held in which
researchers could detail the status of cutting edge technologies. Annually, Cal State could
sponsor a contest in which entrepreneurs would compete for innovative product awards.
Through such a program, peer networks could be created for CFOs, Blacks, Hispanics, Asians or
Women.
Occasionally Cal State could sponsor forums that would allow San Bernardino's professional
community to learn about the issues impacting their ability to serve local entrepreneurs.
Governmental officials and business leaders would have the chance to discuss the impact which
city policies and procedures are having on San Bernardino's job creating environment.
21
7
Y
APPENDIX D
Information Outreach System
San Bernardino's business retention & expansion strategy must organize business support
entities in a manner that makes them readily available and well known to potential users. The
Information Outreach System (IOS) outlined below could accomplish this objective.
Elements of the IOS
The IOS would include the following elements:
1. A network of private & public groups whose purpose is to promote business success. The
group would be tied together using San Bernardino County's EEE network.
2. A centralized telemarketing operation contacting every San Bernardino basic tier firm a
minimum of 4-times a year and putting them in touch with appropriate assistance, as
needed. The operation might be called Person-to-Person. As the system becomes more
functional and better known, less telemarketing would be required.
Note: It is unfortunate that long time San Bernardino entrepreneur Bob Parker is no longer
with us. His Person to Person Communicators was the model for the heart of this
proposed operation.
3. A hot line to Person-to-Person for occasions when firms need rapid action and do not know
where to get it. As the system matures, the hot line would become more important than the
telemarketing effort.
4. A direct mail & media campaign to ensure that the city's businesses are aware of the system.
The IOS Organization
The Information Outreach System (/OS)would be organized as follows:
1. San Bernardino's EEE computer network would be used to allow the support entities to
communicate by on-line commuter. Each would therefore have to be a member of it.
2. Marketing and daily management of the IOS would be in the hands of an entity, supported by
state or federal funds. Its assignment would be to create and manage the SB Business
Directory and the Person-to-Person calling activities described below.
3. SB Business Directory
A SB Business Directory would be created including the names and pertinent information on
every identifiable San Bernardino basic tier employer. This data would be stored on the
computer at the entity managing Person-to-Person activities.
A program would be created to allow data on new firms to be regularly fed to the SB Business
Directory by modem from the San Bernardino County "fictitious name desk" and the San
Bernardino City Clerk's Office business license desk. The latter two entities would therefore
have to be linked to the EEE. Their staffs would have be trained to know which firms should be
inputted and how to use the system.
h 4. Person-to-Person
23
11/20/95 09:21 SBCCU/A]' N 4 3845135 N0.306 P001
�J
November 16, 1995
Union
Mr, Robert Botts
post officc Box 735 Economic Development Agency
San Rz-mardino,CA 92402
(909)881.3355 201 North "E" Street
San Bernardino, CA 92401
Dear Bob:
Larry R_Sharp
Presidenr Allow me to go on record enthusiastically endorsing the recommendations
in Dr. John Husing's Economic proposals to the Major and Common
Counsil.
It is very clear that San Bernardino's long-term economic health requires
that a significant degree of public policy attention be devoted to both firming
up our economic base and encouraging owner occupancy home-
ownership.
commend EDA for bringing forth these proposals and hope that the
Common Council translates them into city policies and actions.
Respectfully,
Larry R. Sharp
President/CEO
LRS:jb Entered into Record of
CoundI1Cmy0evCms Mtn:
by "�-- l' -►+` .,
City ClerkICDC Secy
City of San Bernardino
San Bernardino Valley College
A College of the San Bernardino Community College District
November 16, 1995
Mayor and Common Council
City Hall
340 N. "D" Street
San Bernardino, California
Dear Mayor Minor:
The Economic Strategic Plan that is udder current consideration by you and the
Council is an insightful document,I have had the opportunity to review and discuss the plan
with meffibeis of our economic community and have concluded that the playa "makes sense".
The process was sound;starting with the rconomic Summit at CSUSB there has been
ample opportunity for review and comment. The product, and the economic priorities
identified, will help drive the city and surrounding areas to greater economic heights.
Housing ownership, quality jobs, and close Hason with educational agencies will build a
better, healthier, San Bernardino.
You have my support and encouragement to adopt and implement the plan. The
Council has valuable resources embodied within the Economic Development Agency that can
be guided by the plan and your leadership. Good Luck.
Sincerely,
�q-s
Tom Clark
Administrative Dean
Occupational Education/Economic Development
81
70 1 South Mount Vernon Avenue • San Bernardino, California 92410 • (909) 888-6511
11/20/95 11:56 FAX 909 896 1639 CROWN PRINTERS � Q002
W
CROWNV N
PRINTERS
November 20, 1995
Mayor and Common Council
City Hall
300 North "D" Street
San Bernardino, CA
Dear Mayor Minor:
I want to indicate my support for the Economic Strategic Plan
that is being considered by you and the Council. I have
participated in the process, beginning with the Summit Conference
at Cal State, and carrying through to the final document.
As a life long resident and native of San Bernardino, watching
its deterioration has been painful. I believe it is now time for
the Council to focus on tough and many times sensitive issues
that will show just how serious they are about revitalizing our
city.
I believe the plan represents a good start in prioritizing the
expenditure of the Economic Development Agency's limited
resources, in relation to rebuilding San Bernardino's economic
engine. We must focus on industries and jobs that replace those
lost due to Norton's closure, and which bring new dollars into
our community and raise our over-all economic level.
We must also do everything possible to encourage people to live
and purchase homes in San Bernardino. The return to home
ownership of many of our single family residential rental units
will assist the city in eliminating blight and crime. We need
tough code enforcement while at the same time providing
incentives and assistance to promote home ownership.
cont.
a DIvlalon of Shorett Pdrdnp,Incorporated
250 WEST RIALM AVFAII IF r Q4 Ai UL.L)NI A Or'L n I n nn .rr.n.u. ......... ....._
11/20/95 11:57 FAX 909 8R0 1639 CROWN PRINTERS 009
[Page 2] - Mayor and Common Council
I encourage you and the Council to adopt these basic policy
issues as well as directing City and EDA staff to move forward to
develop and implement the numerous plans as spelled out in the
document.
I continue to support the City's efforts as we all work towards
rebuilding our City.
S" erel ,
Denny Shorett
Pres'dent
!�,
294 S. Leland Norton Way,
Suite 2
6011
San Bernardino, CA 92408
(909) 382-0024;Ym -0025 I . Fax (909) 382 rp Ai
October 5, 1995
OCT 1 a 1995
The Honorable Tom Minor
300 North"D" Street, Sixth Floor CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENC4
San Bernardino, CA 92418
RE: "San Bernardino Economic Development Strategy, Final Report" by John E. Husing, Ph.D.
Dear Mayor Minor,
Recently, Inland Action Inc. had the opportunity to review Dr. John Husing's "San Bernardino
Economic Development Strategy, Final Report." We applaud the efforts of Dr. Husing, the EDA,
the Common Council and you. Last fall's Economic Summit, coupled with Dr. Husing's report,
provides the community with an excellent point of departure from which to chart its economic
future.
Inland Action's Executive Committee endorses the following priority action items from Dr.
Husing's report:
- The City and EDA Administrators should be instructed to jointly develop a long term
strategy aimed at making the city's personnel more likely to make decisions that will
enhance the city's competitive economic position. The City Hall Competitive Climate
Strategy should include a proposed time line, staffing, budget and be completed by June
1996.
- The Common Council and RDA Board should pass policy directives indicating that
basic as opposed to secondary economic activities will be the priority in establishing
Council agendas, assigning staff time and expending RDA funds.
- City and RDA staff should be required to establish numeric guidelines which will allow
judgment to be made as to whether proposed city investments, projects or programs will
affect the primary or secondary tier of San Bernardino's economic activity.
- City and RDA staff should be instructed to include in the staff'reports of all proposed
city investments, projects or programs whether they affect the primary versus secondary
tier of the economy, and assign priority to the former.
- An economic analysis of all proposed projects and loans and loan guarantees should
accompany any presentation brought to the EDA for approval.
A NON-PROFIT,NON-PARTISAN CORPORATION OF PUBLIC SPIRITED CITIZENS WHO
ARE BANDED TOGETHER TO AID IN THE ECONOMIC DEVELOPMENT OF THE INLAND EMPIRE
i
The common theme in all these priority action items is the careful and thoughtful allocation of the
EDA's scarce resources. We offer these recommendations to you for your support and adoption.
We believe these action items can be immediately implemented, have the community's support,
and will improve the methods by which we allocate our community's scarce financial resources.
Further, they will instill greater confidence by the community in the decision making process.
Members of Inland Action Inc. who attended the fall Summit thought this was a valuable first
step. We believe that there is great worth in having our city's elected officials periodically come
together with the business community. The purpose of these meetings would be to affirm or give
feedback on policies that hav-- a d;--,--t bearing on community's evvi�:nlc ua ure. tv
nu4i
gatherings of this sort could be used to create and later amend the city's strategic economic plan.
To this end, we also recommend that you support this kind of endeavor.
Mayor Minor, we hope that you will favorably consider our recommendations. The Board of
Directors of Inland Action Inc. stand ready to assist as appropriate.
Sincerely,
i-�Jt
Judith W. Battey
President
JWB:gr„
cc: T. Steinhaus, Economic Development Agency
c:/092295.tm
NOU-13-1995 12=31 FROM TO 98889413 P.02
CALIFORNIA STATE UNIVERSiTV Vic Caujamia
SAN SERNARVINO States L14L4'P--dfy
March 8, 1995
Hr. Robert K. Botts, Manager
Office of Business Development
City of San Bernardino Economic
Development Agency
201 North E Street, Third Floor
San Bernardino, California 92401-1507
Dear Bob:
OFFICE
UY'I'Iiii Many thanks. for sharing with me the first draft of the San
Bernardino Economic Development Strategy. As requested, I am
PRESIDENT providing a. few quick comments.
Generally speaking, I find the strategy to be excellent. It is
904/880.5002 most insightful and addresses several absolutely critical issues.
FAX 909/880.6901 Tt i R writtitn in a vocabulary that all of us can comprehend.
Although it vas months in development, it has a sense of urgency
that is appropriate. I commend Dr. Husing and all others who
contributpcl" re the report. It is an exemplary start.
Since you Uidic.ate that you will be revising the report before
disseminating it more widely, T offer the following suggestions as
possible improvements.
1. For tiLu report to be read and adhared to by many different
individuals and groups, it ought to have a crisp
"executive summary" as a prelude to the full report. For
me, this i a somentlal.
2. A topic that is not addressed well in the report is the
issue of effective laadarship for economic $avP1npnent at
different levels, which in my view+ is the single most
important element in building and implementing a success-
ful economic strategy. I urgo that you add such a
recommendation and cite those individuals, organizations,
and groups who can make the critical difference in San
Sernardirco'S economic rcvitaliaat3.on.
B500 University Parkway,San Bernardino.CA 92407-2397
FIOU-13-1995 12:31 FP.O11 TO 98889413 P.03
Mr_ Robert':i. Botts
March 8, 1995
Page Two
3_ I sugpnt: thnt you condense the report so that it has far
fewer -recommended actions. I think that 10 or 12 truly
critical actions would provide much needed focus. You
need ridr drop orher actions; instead. just subordinate them
to the more pivotal actions to which most future attention
can be directed. Fewer actions will help prioritize the
actions, which is vpt-y important.
4. I suggest also that you reconsider whether you could not
consolidate several actions into one. Far example, you
recommend separate actions for UCR, CSUSB, RCC, and
SBVC. Why not craft one over-arching action, such as
highdr education's unique role in economic dev0 npmnnr,
rather than having several weak actions involving these
colleges and universities.
5. Regarding action #24, I strongly urge that you add casino
gambling to the list of activities and businesses that
would detract from the positive cnviror=ant in the
Hospitality Lane area. I contend that casino gambling
would'likely result in more crime in that area and Lower
still furthcr the city's weak image.
6. Action #35 Is far too crucial to be addressed last. Y
urge that it be bccfcd up and brought forward to the #2
position only behind effective leadership for economic
deval6pment as #1.
In sum, I believe that the report contains some great ideas but
needs focus•, more focus, and still more focus_ What are the most
crucial priorities and which must take precedence over others?
I look fomiird to chatting with you personally about some of these
su$ges t�lvt'sb`:
Sincerely,
h-o U.. ltans
P si ent
TOTAL P.03
nom.
1f,
San Bernardino City Unified School District
E.Neal Roberts,Ed.D.,Superintendent
Harold L.Boring,Ed.D., Assistant Superintendent,Administrative Services Your Public Schools.. .
There's No Better Place To Learn
September 14 , 1995
Mr. Robert E. Botts, Manager
Office of Business Development
City of San Bernardino
Economic Development Agency
201 North E. Street, Third Floor
San Bernardino, CA 92401-1507
Dear Mr. Botts:
Thank you for giving our school district the opportunity
to review the San Bernardino Economic Development
Strategy' s Final Report. We believe that there is a
significant amount of information and strategies with
which we are in total agreement. We wish you success in
moving your plan forward.
If you have any questions please feel free to contact me.
Again, thank you for the opportunity to review these
documents.
Since ely,
E. Neal Roberts, Ed.D.
Superintendent
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ADMINISTRATIVE SERVICES DIVISION
777 North F Street • San Bernardino,CA 92410-3090 • (909)381-1164
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SAIN RERNARDIFNO ARFA CII UMBER OF CO?,VPI<FRCE
~' 546 W.6TH ST. • P-.O,BOX 6%•SAN BERNARDINO,CA 92402• (909)8t1r7515 •FAX(%19),184-9979
November 20, 1995 c_n
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Council Members .
City of San Bernardino 4
300 North "D" Street ^
San Bernardino, CA 92418 co
Dear Council Members:
The Board of Directors of the San Bernardino Area Chamber of
Commerce recently met and voted to send a letter to the City
Council regarding the San Bernardino Economic Development
Strategy. It is proposed that the strategy be tabled until the
new Council is seated so that this and other related issues may
be examined more closely after which time the City can develop a
comprehensive plan for future growth and success for San
Bernardino.
It is not the wish of the Board that the budget be affected by
this action, but the current strategy of the plan is of grave
concern.
Thank you for your consideration of this important matter.
Respectfully,
Entered into Record at 9• /A
Hank Plotkin CounciilCmyDevCms Mt
President
San Bernardino Area Chamber of Commerce by S�
re Agenda Item
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City ClerkICDC Secy
City of San Bernardino