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Office of Economic Development Work Session Presentation to the Berkeley City Council June 28, 2016

Office of Economic Development - Berkeleyside

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Page 1: Office of Economic Development - Berkeleyside

Office of Economic Development

Work Session Presentation to the Berkeley City Council

June 28, 2016

Page 2: Office of Economic Development - Berkeleyside

Agenda

■ What’s Happening on Telegraph:

OED’s Key Findings

■ Persistent Challenges

■ Opportunities & Recommendations

■ Q & A

City of Berkeley | Office of Economic Development | 510.981.7530

Page 3: Office of Economic Development - Berkeleyside

Research Methodology

City of Berkeley | Office of Economic Development | 510.981.7530

OED’s Approach to developing Findings

■ Analyses of economic, demographic and local

datasets

■ Direct collection of an inventory of ground-floor

commercial spaces

■ Review of historic surveys conducted by UC

and Telegraph Business Improvement District

■ Interviews of key neighborhood stakeholders

Page 4: Office of Economic Development - Berkeleyside

Commercial vacancy rates have declined significantly.

City of Berkeley | Office of Economic Development | 510.981.7530

Source: City of Berkeley, Office of Economic Development

Page 5: Office of Economic Development - Berkeleyside

The outlook for real estate and commercial development has improved.

City of Berkeley | Office of Economic Development | 510.981.7530

■ 7 projects in the

development pipeline,

representing 500+

units of housing

■ Demand high for

housing in walkable,

transit-accessible

commercial districts -

inventory low

■ Increasing pressure on

housing market from

student population

Page 6: Office of Economic Development - Berkeleyside

The student population in the district has increased.

City of Berkeley | Office of Economic Development | 510.981.7530

■ Student-Age

population increased

by approximately 46%

in Telegraph-adjacent

census tracts

■ Expected increase of

an additional 4,000

students at UC

Berkeley in the next 4

years

- 2,000 4,000 6,000 8,000 10,000 12,000 14,000

60 and older

40 to 59

25 to 39

20 to 24

15 to 19

0 to 14

Population by Age Group in the Telegraph Area,

2005-2014

2005-2009 2010-2014Source: US Census Bureau, American Community Survey 5-year Rolling Averages

Page 7: Office of Economic Development - Berkeleyside

Development Pipeline, Telegraph District

Stiles Hall

Entitled, Construction Pending

783 Dorm Beds

12,300 SF Commercial

Sequoia Apartments

Under Construction

42 Units

5,800 SF Commercial

2556 Telegraph

Entitlement Pending

~70 Units

~4,000 SF Commercial

2480-2580 Bancroft

Proposal Pending

~175 Units

2526 Durant

Under Construction

44 Units

5,210 SF Commercial

2501 Haste “El Jardin”

Entitlement Pending

~79 Units

~20,000 SF Commercial

2539 Telegraph “The Nexus”

Entitled, Construction Pending

70 Units

5,219 SF Commercial

Page 8: Office of Economic Development - Berkeleyside

City of Berkeley | Office of Economic Development | 510.981.7530

Longtime Champion

Doris Moskowitz @

Moe’s Books

Telegraph Small Businesses

Page 9: Office of Economic Development - Berkeleyside

City of Berkeley | Office of Economic Development | 510.981.7530

Jai Chung’s SoDoI Coffee in the

Telegraph/Channing Mall

Telegraph Small Businesses

Page 10: Office of Economic Development - Berkeleyside

City of Berkeley | Office of Economic Development | 510.981.7530

Lila Owens at Cupcakin’

on Durant Avenue

Telegraph Small Businesses

Page 11: Office of Economic Development - Berkeleyside

City of Berkeley | Office of Economic Development | 510.981.7530

Tacos Sinaloa: the Bueno

family (Lupe and daughter

Marlem) go from truck to

storefront

Telegraph Small Businesses

Page 12: Office of Economic Development - Berkeleyside

City of Berkeley | Office of Economic Development | 510.981.7530

Coming Soon

~Games of

Berkeley

~Mezzo

~Raleigh’s

Newly Opened

~The Tap Haus

~Huckleberry

Bicycles

~Mad Monk

Telegraph Small Businesses

Page 13: Office of Economic Development - Berkeleyside

Sales are up. Increased restaurant sales have been the primary driver of the recovery.

City of Berkeley | Office of Economic Development | 510.981.7530

Source: MuniServices

Page 14: Office of Economic Development - Berkeleyside

Telegraph Business Improvement District (TBID) has increased its capacity and undertaken new activities and projects.

City of Berkeley | Office of Economic Development | 510.981.7530

Page 15: Office of Economic Development - Berkeleyside

University of California, Berkeley has expanded its investments and participation in the adjacent Telegraph District.

City of Berkeley | Office of Economic Development | 510.981.7530

■ New Sproul Plaza Student Center

■ Aquatic Center Construction

■ Future Projects: Stiles Hall, Adaptive Reuse of

Berkeley Art Museum Site

Page 16: Office of Economic Development - Berkeleyside

The Telegraph Avenue Public Art Plan and Telegraph Public Realm Plan identify opportunities for investment in the district.

City of Berkeley | Office of Economic Development | 510.981.7530

■ Collaborative planning

process with multiple

stakeholders

■ Effective implementation

partnerships established

■ Proposed improvements

address functional

needs and perception-

changing enhancements

Page 17: Office of Economic Development - Berkeleyside

Persistent Challenges

City of Berkeley | Office of Economic Development | 510.981.7530

■ Public realm conditions

■ Safety & sidewalk behavior

■ Competition with online outlets and other retail districts

■ Evolving student tastes and preferences

■ Inadequate tenant mix

Page 18: Office of Economic Development - Berkeleyside

Opportunities & Recommendations

City of Berkeley | Office of Economic Development | 510.981.7530

Page 19: Office of Economic Development - Berkeleyside

Implement the Telegraph Public Art and & Public Realm Plans.

City of Berkeley | Office of Economic Development | 510.981.7530

■ Pursue grant funding for comprehensive overhaul

■ Partner w/ private sector, UC, others to implement smaller scale projects in near term

■ Leverage regular general fund expenditures

Mural celebrating Chiura Obata to be installed in June 2016

Page 20: Office of Economic Development - Berkeleyside

Enhance the district’s relevance to students.

City of Berkeley | Office of Economic Development | 510.981.7530

■ Targeted Branding

■ Relevant Events/Activities

■ Attract diverse, high-impact retail

tenants

Page 21: Office of Economic Development - Berkeleyside

Support TBID campaign for renewal and expansion.

City of Berkeley | Office of Economic Development | 510.981.7530

Telegraph Business

Improvement

District, Proposed

Expansion

■ Renewal

campaign

commenced in

spring 2016;

ballot phase

expected in fall

Page 22: Office of Economic Development - Berkeleyside

Leverage annual events to enhance the neighborhood’s reputation and support existing merchants and vendors.

City of Berkeley | Office of Economic Development | 510.981.7530

Page 23: Office of Economic Development - Berkeleyside

Continue to activate underutilized sites in the district.

City of Berkeley | Office of Economic Development | 510.981.7530

■ Build on existing

momentum by

supporting

businesses and

property owners

■ UC positioned to

lead a community

dialogue regarding

People’s Park

Page 24: Office of Economic Development - Berkeleyside

Develop a comprehensive retail strategy that focuses on soft goods and experiential retail.

City of Berkeley | Office of Economic Development | 510.981.7530

Page 25: Office of Economic Development - Berkeleyside

Modify land use regulations to encourage the development of additional housing.

City of Berkeley | Office of Economic Development | 510.981.7530

■ Increased population

density around the district

and adjacent to campus

can produce positive

outcomes

■ Modifications to land use

controls in the Southside

neighborhood could build

on those recently

implemented for the C-T

district

Page 26: Office of Economic Development - Berkeleyside

Q & A

City of Berkeley | Office of Economic Development | 510.981.7530

Michael Caplan

[email protected]

(510) 981-7530

Jordan Klein

[email protected]

(510) 981-7534