GROVER BEACH CITY COUNCIL MONDAY, OCTOBER 7 ...

AGENDA

GROVER BEACH CITY COUNCIL GROVER BEACH CITY HALL - COUNCIL CHAMBER

154 SOUTH EIGHTH STREET GROVER BEACH, CALIFORNIA

MONDAY, OCTOBER 7, 2019, 6:00 PM

Next Resolution No. 19-55 Next Ordinance No. 19-10

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting, please contact the City Clerk's Office (805-473-4567) at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to the meeting.

CALL TO ORDER MOMENT OF SILENCE FLAG SALUTE ROLL CALL Council Members Karen Bright, Desi Lance, and Barbara Nicolls, Mayor Pro Tem

Mariam Shah, and Mayor Jeff Lee CLOSED SESSION ANNOUNCEMENTS None AGENDA REVIEW At this time the City Council will review the order of business to be conducted and receive requests for, or make announcements regarding, any change(s) in the order of the day. The Council should by motion adopt the agenda as presented or as revised. CEREMONIAL CALENDAR 1. Proclamation for Domestic Violence Awareness Month 2. Proclamation for Breast Cancer Awareness Month 3. Proclamation for Fire Prevention Week (Oct. 6-12) 4. Proclamation for Red Ribbon Week (Oct. 23-31)

PRESENTATION 5. Stone Soup Festival Recap – Jocelyn Brennan, South County Chambers of Commerce

PLEASE SUBMIT ALL CORRESPONDENCE FOR CITY COUNCIL PRIOR TO THE MEETING WITH A COPY TO THE CITY CLERK

City Council meetings are webcast live on the City website at www.groverbeach.org and broadcast live on Charter Cable Television's Government Access Channel 20. Re-broadcasts are daily at 1:00 a.m., 9:00 a.m., and 6:00 p.m. the week of the meeting, and Thursdays and Sundays at 1:00 a.m., 9:00 a.m., and 6:00 p.m. the week following the meeting.

file://Grover-City-Hall.int/department/City%20Management/City%20Clerk%20-%20Reference%20Info/Agenda-Matls_CityCouncil/www.grover.org

Agenda: Grover Beach City Council Meeting Monday, October 7, 2019 PUBLIC COMMUNICATIONS During this time, the Council will allow Public Communication with additional communication, if necessary, allowed after the Regular Business Items. Any member of the public may address the Council for a period not to exceed three minutes total on any item of interest within the jurisdiction of this Council. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda. CONSENT AGENDA

The following routine items listed below are scheduled for consideration as a group. Recommendations for each item are noted in parentheses. Members of the audience may speak on any item(s) listed on the Consent Agenda. Any Council Member, the City Attorney, or the City Manager may request that an item be withdrawn from the Consent Agenda to allow for full discussion. Items withdrawn from the Consent Agenda will be heard after the rest of the Consent Agenda is approved. 6. Treasurer’s Report for the Period September 6 to October 1, 2019. (Recommended Action: Approve the Treasurer’s Report as submitted.)

VOICE VOTE 7. Treasurer’s Report for the 2017 Streets Bond Account - $15,000,000 (Measure K-14:

Grover Beach Street Rehabilitation; Safety Improvement Bond Measure) for the Period September 6 to October 1, 2019. (Recommended Action: Approve the Treasurer’s Report as submitted.) VOICE VOTE

8. Minutes of the City Council Meeting on Monday, September 16, 2019. (Recommended Action: Approve the minutes as submitted or revised.) VOICE VOTE 9. Cancellation of Monday, October 21, 2019 Council Meeting – City Manager Bronson.

The City Council will consider the cancellation of the Monday, October 21 Council Meeting. (Recommended Action: Cancel the regularly scheduled Council meeting on Monday, October 21, 2019 and schedule the regular Council meeting for Monday, November 4, 2019.) ROLL CALL VOTE

10. Proposition 68 - Statewide Park Development Grant Per Capita Application – Public Works Director/City Engineer Ray & Capital Improvement Project Manager Wiggin The City Council will consider adopting a Resolution to apply for the Statewide Park Development Grant. (Recommended Action: Adopt the Resolution authorizing the City to apply for the Statewide Park Development Grant per capita Funds and agreeing to the grant program conditions.) ROLL CALL VOTE

PUBLIC HEARING

11. Second Reading and Adoption of an Ordinance to Repeal Section 3.6 of Chapter 3 of Article IX Development Code and Adding a New Section 3.6 of Chapter 3 of Article IX and Adding Section 9.10.050, Signage Definitions to Chapter 9 of Article IX of the Grover Beach Municipal Code and Approve a Local Coastal Program Amendment related to Sign Regulations. (Development Application 18-39) – Community Development Director Buckingham and City Attorney Hale The City Council will consider

Agenda: Grover Beach City Council Meeting Monday, October 7, 2019

the adoption of a new Section 3.60 of Chapter 3 of Article IX and an Addition to Section 9.10.050 of Chapter 9 of Article IX. (Recommended Action: Conduct Second Reading, by Title Only, and Adopt the Ordinance Amending Article IX Section 3.60 of the Grover Beach Municipal Code (Sign Regulations and Related Sections) and Adopt a Resolution Approving a Local Coastal Program Amendment.) ROLL CALL VOTE

REGULAR BUSINESS 12. Economic Development Activities – City Manager Bronson The City Council will

receive information on the City’s economic development activities to date and provide input and direction to staff. (Recommended Action: Receive information on the City’s economic development activities as identified in the 2019-21 Major City Goals work program and 2017 Economic Development Strategy and provide input and direction to staff.)

PUBLIC COMMUNICATIONS Any member of the public may address the Council for a period not to exceed three minutes total on any item of interest within the jurisdiction of this Council. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda. COUNCIL COMMITTEE REPORTS

This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating.

Integrated Waste Management Authority (IWMA) Jeff Lee (Alt: Karen Bright) Regional Groundwater Sustainability Project (RGSP) Jeff Lee (Alt: Mariam Shah) SLO Council of Governments / SLO Regional Transit Authority Jeff Lee (Alt: Mariam Shah) (SLOCOG / SLORTA) South SLO County Sanitation District (SSLOCSD) Jeff Lee (Alt: Barbara Nicolls) Air Pollution Control District (APCD) Mariam Shah (Alt: Barbara Nicolls) Homeless Services Oversight Council (HSOC) Mariam Shah (Alt: Desi Lance) Visit San Luis Obispo County Mariam Shah (Alt: Karen Bright) Economic Vitality Corporation (EVC) Karen Bright (Alt: Barbara Nicolls) SLO Coastal Regional Sediment Management Plan (CRSMP) Karen Bright (Alt: Jeff Lee) Steering Committee Zone Three Advisory Committee Karen Bright (Alt: Desi Lance) SLO County Water Resources Advisory Committee (WRAC) Desi Lance (Alt: Karen Bright) Five Cities Fire Joint Powers Authority Barbara Nicolls (Alt: Karen Bright) South County Chambers of Commerce Barbara Nicolls (Alt: Desi Lance) South County Transit (SCT) Barbara Nicolls (Alt: Desi Lance)

League of California Cities - Policy Committee Reports and Other League Matters

Channel Counties Division Mariam Shah Transportation, Communication & Public Works Policy Committee Jeff Lee Governance, Transparency & Labor Relations Policy Committee Matthew Bronson

Agenda: Grover Beach City Council Meeting Monday, October 7, 2019 COUNCIL COMMUNICATIONS

This item gives individual Council Members the opportunity to seek consensus for scheduling a specific item on a future agenda, authorizing staff time to provide background information and prepare a staff report for a future agenda, or to comment on Council business, City operations, projects or other items of community interest. CITY MANAGER’S REPORTS AND COMMENTS CITY ATTORNEY’S REPORTS AND COMMENTS CLOSED SESSION It is the intention of the City Council to meet in Closed Session concerning the following items:

1. Conference with Legal Counsel – Anticipated Litigation Consideration to initiate litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9: (Two potential cases) 2. Conference with Real Property Negotiators

Pursuant to Government Code Section 54956.8 Property: APN 060-206-027 Agency negotiator: City Manager Matthew Bronson and City Attorney David Hale Negotiating party: Erik Hargrave, VeloTera Services, Inc. Under negotiation: Lease payment and terms of payment conditions

3. Conference with Legal Counsel – Anticipated Litigation

Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9: (One potential case)

Closed Session announcement(s): Please note, announcement(s) of any reportable action(s) taken in Closed Session will be made in open session, and repeated at the beginning of the next Regular City Council meeting as this portion of the meeting is not recorded or videotaped. ADJOURNMENT

Per Resolution No. 17-21, the public portion of City Council meetings will be scheduled to start at 6:00 p.m. and conclude no later than 11:00 p.m. Any open session items remaining on the agenda at 11:00 p.m. that have not been discussed or considered by the City Council will be continued to an adjourned meeting of the City Council (scheduled before the next regular meeting). However, the City Council may choose to continue the meeting past 11:00 p.m. upon a proper motion and a 4/5ths vote in favor of such an action.

* * * * * Staff reports or other written materials relating to each item of business referred to on this agenda are available from the City website www.groverbeach.org and on file in the City Clerk’s Office. A public counter copy is available for public inspection and reproduction during normal business hours at City Hall, 154 South 8th Street, Grover Beach, CA. Related materials submitted after distribution of the agenda packet are available in the City Clerk's Office during normal business hours. If you have questions regarding any agenda item, please contact the appropriate City Department. Any writings or documents regarding any item on this agenda, not exempt from public disclosure, provided to a majority of the City Council and distributed subsequent to distribution of the agenda packet will be made available for public inspection in the City Clerk’s Office during normal business hours.

* * * * * Note: This agenda was prepared and posted pursuant to Government Code Section 54954.2. This agenda is subject to amendment up to 72 hours prior to the date and time set for the meeting. Please refer to the agenda posted at City Hall for any revisions or call the City Clerk’s Office at (805) 473-4567 for more information.

* * * * * The agenda and staff reports are also available on the City’s website: www.groverbeach.org.

file://Grover-City-Hall.int/department/City%20Management/City%20Clerk%20-%20Reference%20Info/Agenda-Matls_CityCouncil/www.grover.org

http://www.groverbeach.org/

CITY OF GROVER BEACH POLICIES AND PROCEDURES FOR CONDUCT AND DECORUM AT COUNCIL MEETINGS (Pursuant to Resolution No. 07-44, adopted 04-16-07)

1.0 DECORUM AND ORDER – COUNCIL MEMBERS

Council Members shall accord the utmost courtesy to each other, to administrative staff and to the public appearing before the City Council and shall refrain at all times from rude, abusive, and/or derogatory remarks or those that reflect upon a person’s integrity, motives or personality.

2.0 DECORUM AND ORDER – STAFF 2.1 City Manager Responsibilities

The City Manager is responsible for ensuring that members of the administrative staff observe the rules of decorum and order set forth in this Policy.

2.2 Addressing the City Council

Any administrative staff member desiring to address the City Council or members of the public shall first be recognized by the Mayor/Presiding Officer. All remarks shall be addressed to the Mayor/Presiding Officer and not to any individual Council Member or member of the public. Administrative staff members shall accord the utmost courtesy to the City Council, other administrative staff members and the public.

3.0 DECORUM AND ORDER – MEMBERS OF THE PUBLIC 3.1 Addressing the City Council

Any member of the public desiring to address the City Council or members of the public shall first be recognized by the Mayor/Presiding Officer at the appropriate place on the agenda. All remarks shall be addressed to the Mayor/Presiding Officer and not to any individual Council Member, member of the administrative staff or member of the public.

3.2 Time limitation for addressing the City Council

Public comment when addressing the City Council shall be generally limited to three (3) minutes per speaker. Depending on the extent of the agenda and the number of persons desiring to speak on an issue, the Mayor/Presiding Officer may, at the beginning of the hearing, set a different time limit for each speaker. Any person may speak for a longer period of time upon approval from the Mayor/Presiding Officer, when deemed necessary, for instance when a person is speaking on behalf of a group, or has a graphic or slide presentation requiring more time.

3.3 Removal

Any member of the public making personal, impertinent, and slanderous or profane remarks or who becomes boisterous while addressing the City Council, staff or general public or while attending the City Council meeting and refuses to come to order at the direction of the Mayor/Presiding Officer, shall be removed from the Council Chambers by the sergeant-at-arms and may be barred from further attendance before the Council during that meeting. Unauthorized remarks from the audience, stamping of feet, whistles, yells, and similar demonstrations shall not be permitted by the Mayor/Presiding Officer. The Mayor/Presiding Officer may direct the sergeant-at-arms to remove such offenders from the room.1

3.4 Prosecution

Aggravated cases shall be prosecuted on appropriate complaint signed by the Mayor/Presiding Officer. 4.0 ENFORCEMENT OF DECORUM

In extreme cases, such as when a meeting is willfully interrupted by a group or groups of persons so as to render the orderly conduct of such meeting unfeasible and order cannot be restored by the removal of individuals as provided for in this Policy, the Mayor/Presiding Officer may order the meeting room cleared and continue in session. Only matters appearing on the agenda may be considered in such a session. Duly accredited representatives of the press or other news media, except those participating in the disturbance, shall be allowed to attend any session held pursuant to this Section. Nothing in this Section shall prohibit the City Council from establishing a procedure for readmitting an individual or individuals not responsible for willfully disturbing the orderly conduct of the meeting.

Agenda Item No. 1 Proclamation for Domestic Violence Awareness Month

(CC Mtg 10/07/2019)

No Documentation for this Agenda Item –

Proclamation for Domestic Violence Awareness Month

Agenda Item No. 2 Proclamation for Breast Cancer Awareness Month

(CC Mtg 10/07/2019)


Proclamation for Breast Cancer Awareness Month

Agenda Item No. 3 Proclamation for Fire Prevention Week (Oct. 6-12)

(CC Mtg 10/07/2019)


Proclamation for Fire Prevention Week (Oct. 6-12)

Agenda Item No. 4 Proclamation for Red Ribbon Week (Oct. 23-31)

(CC Mtg 10/07/2019)


Proclamation for Red Ribbon Week (Oct. 23-31)

Agenda Item No. 5 Stone Soup Festival Recap

(CC Mtg 10/07/2019)


Stone Soup Festival Recap

CITY OF GROVER BEACH

Treasurer's Report for October 7, 2019 City Council Meeting

September 6, 2019 to October 1, 2019

RESOURCES DESCRIPTION Balance from September 6, 2019

Deposits

Total Resources

EXPENSES DESCRIPTION Payroll Warrant Register Warrant Register Payroll Special Payroll Warrant Register

Electronic Transfers

PERIOD ENDING 9/8/19

9/22/19 9/22/19

CK DATE CHECK NUMBER 9/13/19 536613 - 536617 9/13/19 64035 - 64127 9/20/19 64128 - 64176 9/27/19 536618 - 536621 9/27 /19 536622 9/27/19 64177 - 64236

Returned Checks, Stop Pmts, Chargeback Credit Card and ACH Returned to the City

Bank Fees

Total Expenditures

Cash Balance as of October 1, 2019

Local Agency Investment Fund (L.A.l.F.) Balance:

~~ Administrative Services Director

$

$

$

$

$

$

770,518.74 *

1,962, 101.59

2,732,620.33

AMOUNT 7,255.95

492,044.36 126,350.40

6,485.99 1,870.54

464,695.88

550,885.07

5,050.09

86.60

1,654,724.88

1,077 ,895.45

6,807,085.74

• Difference in Beginning Balance is due to several items not being logged or logged incorrectly in Cash Flow: the bank adjusted our

deposit on 12-11-18 -$1.34, bank adjusted our deposit on 12-17-18 -$3.33, bank adjusted our deposit on 12-20-18 $3.37, bank ad

justed our deposit on 4-23-19 -$3.17, a special payroll for -$222.91 on 3-10-19 and for-$39.53 on 5-5-19 was missed, Admin Fees for Property Taxes were missed on 2-8-19 for -$139.00, 3-8-19 for -$67.47, 4- 19-19 for -$889.15 and 6-11-19 for -$131 .68, a bank Fee

for Excess Transactions 5-31-19 was logged incorrectly -$.54, and two online credit card payments were logged incorrectly, one on

6-17-19 which resulted in -$3,000 and on 7-3-19 which resulted in -$32,460.00 adjustments to Cash Flow.

Agenda Item No. 6

ACCOUNTS PAYABLE

Check Date: 9/13/2019

64035 ABALONE COAST ANALYTICAL INC 09/13/2019 11380.00 Coliform PIA

CDBG General Administration Contract Services -64036 ADAMS ASHBY GROUP LLC 09113/2019 6,500.00 Aug 2019

64037 AGPVideo 09113/2019 1,310.00 AGP Video-lnv7866 8-29-19

64038 AIRGAS USA LLC 09/13/2019 102.31 Large Acetylene, Large Argon. Large Oxygen

64039 Alexander's Contract Services 09/1312019 3,283.56 2828 Manually read meters I September- South

. 64040 AMERICAN FLAG & GIFT 09/1312019 51.20 Flags for 9/11 event.

ARAMARK UNIFORM SERVICES AUS 64041 WEST LOCKBOX 09/13/2019 828.55 UNIFORMS

64042 AT&T 09/1312019 1,788.93 City facilities telephone charges 6125/19 - 7124/19

64043 AT&T 09/1312019 21337.64 Ci!}'. Hall & PD Fax & Modem

STARS-SERV-CA Clearview/STARS Service for 64044 Avenu MunlServices MSC#220 09/1312019 450.00 the 1st QTR 2019 Data

64045 Blueprint Express 09/13/2019 115.63 Highland Cove Scan and Copy - 7 4 I Cassandra

64046 BRENNTAG PACIFIC INC. 0911312019 3 620.70 AQUAPURE

2019 APA California Conference- hotel for Bruce 64047 BRUCE BUCKINGHAM 0911312019 471.89 Buckingham

64048 Burdine Printing & Graphics 09/13/2019 176.31 Flyers for Dune Run Run & Walk.

64049 CALIFORNIA ELECTRIC SUPPLY 09/13/2019 94.82 Grover Heights Park Light Bulbs

64050 Cardoso Ilda 09/1312019 11072;85 Refund for account #9834

64051 CHARTER COMMUNICATIONS 0911312019 675.00 Internet char9S!! for C!JX Facilities 8/16119 - 9/15/19

Liability and Accident insurance policies for City 64052 CIMA 09/1312019 780.43 volunteers 7/1/19- 7/1120

64053 CIVIC PLUS 09/1312019 13 937.34 CivicPlus lnv189235 7-26-19

CLIFFORD H. CLARK ATTORNEY AT Rent for 255 N 10th St- July, August & September 64054 LAW 09/1312019 2,115.00 2019

64055 CNA SURETY DIRECT BILL 09/13/2019 192.60 Bond Renewal - CA Public Employees

September Grounds Maintenance #1365 Mentone 64056 COASTLAND COAST LANDSCAPE 09/1312019 3,775.00 Basin

64057 COLD CANYON LANDFILL INC. 09113/2019 749.75 Waste Disposal-13th & Longbranch CMC

DEPT OF JUSTICE ACCOUNTING 64058 OFFICE/CASHIERING UNIT 09/1312019 11135.00 Department Live Scan Statement for August 2019

64059 Dimes Media Comoration 09113/2019 470.00 Radio advertising for spacial events

Aug 2019 Document storage(Acct#0592} 16 64060 DOCUTEAM 09/1312019 40.00 Storage boxes with delivery fee

64061 Doe Kristopher 09/1312019 120.00 Revision of August claim for service for Kris Doe.

64062 Durbin Lloren s 09/13/2019 10.00 Refund for account #17187

Garnishment withholding order for an employee 64063 Employment Deveto1.2ment Department 09/1312019 50.00 paycheck date 9-13-19

64064 EXECUTIVE JANITORIAL INC. 09/1312019 80.00 Rental clean for Hagstrom event on 9rT/19.

Irrigation Repair @ Mentone Basin Park/ 25 Marleic 64065 FARM SUPPLY COMPANY 09/1312019 61.69 Ell

Garnishment withholding order for an employee 64066 FRANCHISE TAX BOARD 09/13/2019 100.00 pavcheck date 9-13-19

64067 FRANK'S LOCK & KEY 09/13/2019 209.69 Skate Park Storage - Re-keyed locks

. 64068 GetaW§Y Pro~rties LLC 09/13/2019 10.00 Refund for balance on closed account #20012

GodbeResearch ContractualObligation lnv12553 8-64069 Godbe Research 09/13/2019 13 150.00 19-19

Hale, David P - Law Offices of David P. 64070 Hale 09/1312019 14,569.50 L~al Fees {Retainer} for August 2019

Attorney fees for Friends Of Oceano Dunes 64071 Hall, Hieatt & Connely. LLP 09/1312019 665.00 Litigation {Client #20469}for Ju!Y and Au9ust 2019

HOME DEPOT CREDIT SERVICES 64072 DEPT. 32-2645086699 09/1312019 75.38 Weathered hardwood board

llMC INTERNATIONAL INSTITUTE OF 64073 MUNICIPAL CLERKS 09/1312019 305.00 llMC AnnualMernbershlp Fee-ws-nr 6-24-19

64074 J.B. DEWAR INC. 09/13/2019 3.467.35 Gasoline Vehicle Cha~ for PW-Allocated MEASURE K-14 REHABILITATION AND REPAIR PROJECT, CIP 2295-6 NEWPORT AVE, NORTH

64075 JJ Fisher Construction, Inc 09/13/2019 1851330.39 4TH STTO OAK PARK BLVD

JOHN COLLINGS OBA COLLINGS & 64076 ASSOCIATES 09/1312019 425.00 Collings Fire Alarm Review - 239 S 3rd

64on JOHN M CHIMINELLO 09/13/2019 144.77 UB refund overpayment on closing bill #16634

64078 Johnson Mary 0 09/13/2019 164.00 Refund for account #17832

64079 LANGUAGE LINE SERVICES 09/13/2019 9.40 Over the Phone Interpretation - August 2019

64080 League of California Cities 09/1312019 70.00 LCC-ChannelCountiesDivision Dinner ms 09-27-19 -64081 LENHARDT ENGINEERING INC 09/1312019 4,659.68 MS 4 Permit Compliance

LEWIS BRISBOIS BISGAARO & SMITH 64082 LLPLAWYERS 09/13/2019 50.00 LewlsBrisbOisBi~aardSmith lnv2442891 8-31-19

64083 LexlsNexis Risk Data Mana9ement, Inc. 09/1312019 733.33 AVCC Annual SubsClie!ion 8/1/19 through 8/31/19

Meats ($15.00) and Parking (2.00) to attend 64084 Logoluso Erin 09/1312019 17.00 FOS/EVOC Training in Lompoc, CA on 9/18/19

64085 Lucas Jolie c 09/13/2019 53.24 Refund for balance on closed account #17846

64086 MIER BROS LANDSCAPE PRODUCTS 09/13/2019 I 271.53 Ramona Park - Gorilla Hair

Monthly account charges for several City 64087 MINERS HARDWARE 09/13/2019 996.64 Departments

64088 New Times 09113/2019 11451.00 NewTimes lnv301372 8-8-19 PARTS FOR PUMP FOR WATER SERVICE & PARTS FOR FACILITY MAINTENANCE

64089 NOBLE SAW 09/13/2019 135.80 EQUIPMENT I STRAINER, TRIMMER LINE Petty cash for day of Dune Run Run & Walk registration area. Please can Nora when check is

64090 NORA O'DONNELL 09/1312019 200.00 reaQ)!. Thank }!gU.

Cash for Grass Rebate 553.40 sq ft@ 572 N 14th 64091 Northcote Stephanie 09/1312019 553.40 St

64092 O'REILL Y'S AUTOMOTIVE INC 09/13/2019 265.04 Fuel Filter I Wi~r fluid for truck #403

Meals ($15.00) and Parking (2.00) to attend 64093 Os~uera Isaac 09/13/2019 17.00 FOS/EVOC Training in Lompoc, CA on 9/18/19

Meals while attending 2019 League of CA Cities Conference & Expo 10/15119 through 10/18/19 in

64094 Peters John. 09/1312019 565.00 Long Beach, CA Instruction for Lego Camp held in June 2019. Bill held for questions about amount owed, now

64095 PLAY-WELL TEKNOLOGIES 09/1312019 596.25 resolved.

64096 Poswillo Maxwell S 09/1312019 75.00 Refund of a (!?rtion of Collings review fees

Monthly account charges for several City 64097 PROCARE JANITORIAL SUPPLY 09/1312019 11845.66 Departments

PROVANTAGE LLC ACCOUNTS Four MSOZ06C Surface Mouse - Silver - Retail for 64098 RECEIVABLE 09/1312019 159.47 EOC

64099 Ramirez. Jodi 09/1312019 65.87 Refund for account#19517

cash for Grass Rebate Program 819 sq ft@929 64100 REBECCA ROBLEDO 09/1312019 750.00 Sausalito Street

64101 Re~es Araceli 09/1312019 74.57 Refund for balance on closed account #19324

Sound services for 18th Annual 9/11 Memorial 64102 RICH ROLSON 09/13/2019 600.00 event.

64103 SAFEWAY INC. 09/1312019 11.98 Water for Sl:zzlin Summer concert series.

Revised claim for service for August 2019 for 64104 SANDY MERSHON 09/1312019 542.50 Sand~ Mershon.

;

\ Lost bill recently recovered by 11ny Tots Instructor . for supplies purchased for the 11ny Tots enrichment

64105 Scholastic Inc. 09/1312019 161.70 program. Meals while attending Force Encounters Analysis Training in Camarillo, CA on 1017/19 through

64106 Simm Miller 09/13/2019 215.00 10/9/19 ' HERO PARK IRRIGATION REPAIR I HUNTER

64107 Siteone Landsca1?0 Supply, LLC 09/13/2019 2, 136.25 ADJ RISER

64108 South Coun!! Chambers of Commerce 09/13/2019 1, 190.00 SCCC-StonesoueTrafficMngmntJnv9074,.8-28-19

REPAIR PROJECT CIP#2295-8. PERIOD 8/1/19-64109 SOUZA CONSTRUCTION INC. 09/13/2019 180,815.02 8131/19

STANLEY CONVERGENT SECURl1Y Monitoring Charges -16th & Mentone. 9/1/19-64110 SOLUTIONS INC. 09/13/2019 307.65 9/30/19

Child Support withholding order for an employee 64111 STATE DISBURSEMENT UNIT 09/1312019 235.00 (!!!£heck date 9-13--19

Child Support withholding order for an employee 64112 STATE DISBURSEMENT UNIT 09/1312019 216.50 pa~check date 9-13--19

Child Support withholding order for an employee 64113 STATE DISBURSEMENT UNIT 09/1312019 170.00 pa~check date 9-13-19

STATEWIDE TRAFFIC SAFE1Y & STREET SIGNS- YARD I ROAD CLOSED - MESH 64114 SIGNS INC LOCKBOX# 912 09/1312019 240.09 ROLLUP SIGN

64115 TCA Tools Inc 09/1312019 45.52 Tool for shop I Funnel

64116 TERMINIX PROCESSING CENTER 09/13/2019 306.00 Pest Control - Fire Station

I 227 .61 6-Mentone Basin Park Signs- Parks 64117 Traffic Management, Inc. 09/13/2019

Contract base rate charge and overage charge for 64118 ULTREX 09/13/2019 41.55 8/1/19 to 8/31/19for PD Coi;iier

641.19. UNIVAR USA INC. 09/13/2019. 2,552.19 Caustic Soda

US BANK CORPORATE PAYfV!ENT 64120· SYSTEMS 09/13/2019 14,994.06 SLOAnimalShelterMtij ~rking 7-30-19

64121 USA BLUE BOOK 09/13/2019 11685.60 Chemical pump for Well 4 - Ammonium Phosphate

64122 Venco Power SWeelling1 Inc. 09/13/2019 4,250.00 Street swee11in9 service. August

Police Department Cell Phone Statement for 64123 VERIZON WIRELESS 09/1312019 910.37 7/27/19 through 8/26/19

64124 VERIZON WIRELESS 09/13/2019 23.24 PW Cellular Phones

Phone charges for Code Enforcement & City 64125 VERIZON WIRELESS 09/13/2019 107.26 square monthly charges 7127 - 8/26/19

64126 Volance Language Services, LLC 09/13/2019 2.81 Over the Phone lnternretation for August 2019

Driver Safety Training - mileage to Paso Robles in 64127 Wiggin Erin 09/1312019 49.30 ~rsonal car

Total $ 492,044.36

\

ACCOUNTS PAYABLE

Check Date: 9/20/2019

CDBG contract services - Public Services:Eviction 64128 5Cities Homeless Coalition 09/20/2019 21.919.54 Prevention (subsistence payments) August 2019

64129 Angelle's Floor Coverings 09/20/2019 5,574.00 Bathroom Floor - City Hall

64130 AT&T 09/20/2019 132.12 Monthly water alarm circuits 9n/19 - 10/9/19

64131 AT&T 09120/2019 1,794.49 City Hall telephone charges 7/25/19- 8124119

64132 Avila Cabinet~ and Millwork 09/20/2019 475.00 New Riser for Counterto~

Ramona Garden Park - restring and telescoping 64133 Brad's Fl!!Jpole Repair 09120/2019 300.00 flagpole

SisterKitchen_Mtgw/S CCC_J. Brennan_8-1-64134 Bronson Matthew 09/20/2019 17.01 2019

64135 Burdine Printing & Graphics 09120/2019 58.19 Poster for Street Fair Booth

64136 CHARM-TEX INC 09/20/2019 45. 78 Spit Sock Hood, 12/Case for PD CITY OF ARROYO GRANDE Cities share of active shooter training meals

64137 ADMINISTRATIVE SERVICES 09/20/2019 260.00 7/30/19 and 813/19 North side Utility Bills, Mailing.Postage, and View Bill Service(Aug 2019 bills) and Netbill Monthly

64138 DATAPROSE LLC 09120/2019 1,700,47 Ch!!!:!Jes

DIVISION OF THE STA TE ARCHITECT Disability Access and Education Fee Quarter 64139 ATIN: SB 1186 09120/2019 144.40 Ending June 2019

Grover Heights Park - Replace wall hung sink in 64140 DJ'S PLUMBING INC 09/20/2019 334.00 men's bathroom

Install GFI outlets in Ramona Garden Gazebo. 64141 G.T. COX ELECTRIC 09120/2019 347.50 Replace light on facia of Gazebo

Nitrate Removal Plant @ 16th & Mentone, 64142 GARING TAYLOR & ASSOCIATES INC. 09120/2019 3,287.50 Operate & Monitor Treatment Plant

64143 Grover Beach United, Inc 09/20/2019 230.00 Refund of facility use deposit for contract #1977.

64144 GROVER TOOL RENTAL 09/20/2019 371.80 Concrete grinder for lifted sidewalks NCMA 2019 Annual Report I Professional services from August 1, 2019 through August

64145 GSI Water Solutions, Inc 09/20/2019 4,889.65 31,2019

Eng. Project Manager, Street Prog I Period 8/4 to 641146 Hollenbeck Consulting 09/20/2019 3,885.98 8/31/2019

Gasoline charges for Public Works vehicles 64147 J.B. DEWAR INC. 09/20/2019 2,638.00 9/1/19- 9/15/19

64148 JAS PACIFIC 09/20/2019 4,042.50 JAS Inspector Services Aug2019

I 64149 Le Sage Enterprises 09/20/2019 750.00 Cash for Grass Rebate@ 319Hwy1/1699 sq ft

64150 LENHARDT ENGINEERING INC 09120/2019 1,485.00 MS4 Permit Compliance

LEWIS BRISBOIS BISGAARD & SMITH Legal Fees - Water Issues current fees through 64151 LLPLAWYERS 09/2012019 8,094.00 5/31/19

64152 LIEBERT CASSIDY WHITMORE 09/2012019 76.00 Professional services rendered through 8131/19

Education Reimbursement - Remainder 64153 Lo~z Santino 09120/2019 440.00 2019.2020

64154 Michael K. Nunley & Associates, Inc.

64155 MISSION LINEN SUPPLY SAP #110035

64156 Mission Office Products

64157 MOSS LEVY & HARTZHEIM LLP

64158 MTM Background & Investigative Services

64159 NORA O'DONNELL

64160 Office Depot

64161 Omni-Means C/O GHD. Inc.

64162 PACIFIC GAS AND ELECTRIC

64163 PORTABLE JOHNS INC.

64164 Ready Refresh by Nestle

64165 RICKENGINEERINGCOMPANY

64166 Siteone Landscape Supply, LLC

64167 Smith

64168 SOTELO LUIS

64169 SOUTHERN CALIF GAS CO

64170 Stephen Arnold

64171 TERMINIX PROCESSING CENTER

THE LINCOLN NATIONAL LIFE 64172 INSURANCE CO

64173 TOSTE CONSTRUCTION INC

US BANK CORPORATE PAYMENT 64174 SYSTEMS

64175 Water Systems Consulting Inc. ·

64176 Zambrano

09120/2019

09/20/2019

09/20/2019

09120/2019

09/20/2019

09/20/2019

09/20/2019

09/20/2019

09/20/2019

09/20/2019

09/2012019

09/2012019

09/20/2019

Jeff 09120/2019

09/20/2019

09/20/2019

09/2012019

09/20/2019

09/20/2019

09/20/2019

09/20/2019

09/20/2019

Joseph Charles 09120/2019

Total

CDBG Waterlines I Billing Through August 24, 35,367.82 2019 .

161.89 Dust mop and mats for Community Center.

16 .. 15 Cosmic Orange Paper for ~port Writing

1,000.00 Audit to date

925.00 Police Officer Trainee Background - Castillo

Reimbursement for car wash of parks & 69.13 recreation duty vehicle.

Code Enforcement, PW & Comm Dev supplies. . Cartridge Inks, 3 hole punch, staples, tape, post-

1,013.15 its

Major Street Maintenance Project CIP 2283 / 7,164.75 Billing period through 8/24/19

197.61 Public Works Electric Charges 8112119- 9/10/19

Rental of porta-potty for Dune Run Run & Walk 396.35 event.

84.00 August monthly water delivery service for C!ty Hal! Project C16161-BOO Grover Beach Train Station Expansion I Professional services from June 29,

4,149.82 2019toJuly26,2019

46.02 Train Station I Rain Bird valve, garden valve

50.00 Smart Irrigation Controller @ 901 Margarita Ave

78.00 Refund of deposit for park rental, contract #2088.

238.87 Gas charges for City facilities 8/8119 - 8/10/19

Live removal of honeybee swarm @ 1230 264.00 Trouville

Pest control services at Ramona Garden Park 116.00 Center.

Monthly Life Insurance for C!ty Employees 2,010.48 10/1119 - 10131/19

800.00 Re-stripe 8 stop/ bars per' Cesar

• VisaCalCard-mb-ICMA ConferenceRegistration 8-2,313.12 15-19

Central Coast Blue - Interim PM Services I For 6,445.31 services rendered from 7/1/19-7/31/19

Washing Machine Rebate - tier 3@ 1034 150.00 Newport

$126,350.40

ACCOUNTS PAYABLE

Check Date: 9/27 /2019

. . . ., . ~ " . -

~ .. ·~··.. ~· ~·.'~ . . . ~ ... :_·

84177 A Live Wire Electric 09/27/2019 1,525.58 4" spot l!l:!hts, conduit ad plu11s on st~e I Council Chambers

AFLAC INC. ATTN: REMITTANCE 84178 PROCESSING SERVICES 09/27/2019 410.30 S~tember 2019 AFLAC Premiums

Reimbursement for deposit paid for use of Grover Heights Park 84179 Ajjan Salam 09/27/2019 78.00 Upper and Lower barbecue areas.

64180 AMERICAN FLAG & GIFT 09/27/2019 55.21 AmericanFlagandGifts CCFla11Holders 9-23-19

64181 Anna Lanier I

09/27/2019 697.50 P~nt for Tiny•Tots class instruction for Seetember 2019. Reimoursement fur purchases made fur the I rny I ots Enrichment Program. NOTE: Please issue as separate check;

84182 Anna Lanier 09127/2019 134.03 not with claim for service for crass instruction. Thank i'.OU.

Installation and commissioning of a new VFD for Pump #1 @ 84183 AUTOSYS INC 09127/2019 5,937.68 Nacimiento Lift Station

84184 Big Big SLO Marketing Services 09/27/2019 145.00 Pocket Planner Advertising for summer concerts.

84185 Blu~rint E!!eress 09/2712019 47.33 BluePrtntExpress lnv1905909 8-31-19

Project 171138 Train Station Expansion Project CIP#3312. 64186 CANNON ASSOCIATES 0912712019 44,952.06 Professional Srvs through Au11ust 31, 2019

84187 COASTLAND COAST LANDSCAPE 09127/2019 2,200.00 Applied Gopher Bait I #1365 Mentone Basin

84188 Coles Linen and Laundry 09/27/2019 29.46 Laundering of city tablecloths.

84189 Contreras Jensen 09/27/2019 78.00 Refund of park area security d~osit. Contract #2104

84190 DATAPROSE LLC 09/27/2019 514.00 5000 Water Quality R~orts

Garnishment withholdln(I order for an employee paycheck date 64191 Employment Development Department 09/2712019 50.00 9-27-19

64192 EXECUTIVE JANITORIAL INC. 09/27/2019 21750.00 S~ember 2019 Monthli'. Service - GB Restrooms

Reimbursement of 1/2 of roadway repair In front of new 64193 Fanucchi La!!}'. 09/2712019 2,521.50 develQEment. 338 N 8th Street

Garnishment withholding order for an employee paycheck date 64194 FRANCHISE TAX BOARD 09127/2019 100.00 9-27-19

Refund of deposit for use of the Ramona Garden Park Center. 84195 Friendship Brid!!e 09127/2019 230.00 Contract #2078

Refund of security deposit for use of Grover Heights (Upper) 64196 Garcia Michael 09/27/2019 78.00 barbecuearea. Contract#2116

84197 GARING TAYLOR & ASSOCIATES INC. 09/27/2019 86.25 CIP 2283 ~ Cl!}'. En11ineer/ Partial plan [!guest to Erin Wi911in

Refund of deposit for rental of Grover Heights Park (Lower) 84198 Gonzalez Shawndel 09/2712019 78.00 barbecue area. Contract #2110.

·-·--·-- -~ ·--·· .. .. -· - . ·-

Reimbursement for rental of the Ramona Garden Park Center. 64199 Hagstrom Krystal 09/27/2019 859.00 Contract #2071

64200 Hal!;!i'. Noland 09/27/2019 213.10 UB refund on an overpmt on closin9 bill #20170

., - . ~ .. ~ ~ - ' '"

. . . ~ . ~- ~ ~ ~ ~ -~ . :

64201 Heidl Man9iardi 09127/2019 350.00 P!:!J!ment for zumba/barre class instruction for S!£!tember 2019.

Train Station Expansion - Billing No 9 July 30 thru August 31, 64202 J.F. Will Compan:t. Inc. 09/27/2019 167,040.01 2019

LEWIS BRISBOIS BISGAARD & SMITH 64203 LLPLAWYERS 09/27/2019 495.00 LewisBrisboisBi~aardSmlth lnv2448419 9-12-19

Refund of park area security deposit for use of Grover Heights 64204 Lopez Alma 09/27/2019 . 78.00 (Upper) park. Contract #2123

64205 M!!.f!!ilan Casabar 09/27/2019 541.35 Class instruction for Tinb Tots classes In Se~tember 2019. ProJect CIGRB.150466. 1 CM & Measure -14 Street Repair & Rehab CIP 2295-6 Newport Ave, 4th St to Oak Park Blvd.

64206 MNS Engineers, Inc. 09127/2019 37,551.70 ProresSional Srvs for the period Jul:t 1 2019 toJuly: 31, 2019

Refund of deposit paid for use of Grover Heights (Lower) 64207 Morales Shanista 09/27/2019 75.00 barbecue area. Contract# 2063

64208 Municlf!!I Resource Group, LLC 09/27/2019 7,400.00 MuniciealResourceGroup lnv03-19-353 8-14-19

Reimbursement of deposit for use of the Grover Beach 64209 Patel Gita 09/27/2019 239.00 Community Center. Contract #2100.

64210 Peak WiFi.com 09127/2019 3,474.56 System for City Yard, setup and trainin9

64211 PHELAN KATHRYN 09/27/2019 192.00. ~8)'.111ent for Tai Chi class instruction for ~JPtember 2019. .. . ·-. -- ·-~-·-· - ---·--· ---· -•e-·•

64212 PORTABLE JOHNS INC. 09/27/2019 504.35 MD/SE HANDICAP UNIT-SEPTEMBER 15-2019

64213 PROCARE JANITORIAL SUPPLY 09127/2019 195.03 Can liner, cleaner/degreaser, nitrile gloves - City Hall

64214 • Readi'. Refresh bj'. Nestle 09/27/2019 77 .00 4 bottles Arrowhead Water/ 4 returns

Refund of deposit for rental of Grover Heights Park (upper) 64215 Rios Mary 09/27/2019 78.00 barbecue area. Contract # 2097

64216 ROBERT W HOBSON 0912712019 73.82 UB refund on an overpmt on closing bill #19138

64217 SAFEWAY INC. 09/27/2019 113.24 Su22Hes for Annual Dune Run Run and Walk

64218 SAN LUIS POWERHOUSE INC 09/27/2019 50,727.00 Generator

64219 SANDY MERSHON 09/2712019 1,669.35 P~nt forTIWjJots class instruction for Se~tember 2019 Reiffioursemen tor purchases made tor I myOts EnnCfiment Program. NOTE: Please issue as separate check; not with

64220 SANDY MERSHON 09/27/2019 122.31 claim for service for class instruction. Thank xou.

Payment for Ukulele Class instruction for classes held August 64221 SIMPSON RICHARD 09/2712019 575.00 27th thru September 24th.

64222 Siteone Landscape Supply._LLC 09127/2019 236.82 9th & Grand A~~Medi;:n_· lrJ!9ation rep~rsf re~r kit_ ____ ., ___ - --- --- -

SOUTH SAN LUIS OBISPO CO. 64223 SANITATION DISTRICT 09/27/2019 124,482.84 P!:!J!ment for monthl:t San District Fees for A!§!USt 2019

Child Support withholding order for an employee for paycheck 64224 STATE DISBURSEMENT UNIT 09/27/2019 235.00 date 9-27-19

. ~ - "

. . . @fusa , _IDrrii:rn. rntal ~ ·~. · .. ~ .

64225 STATE DISBURSEMENT UNIT

64226 STATE DISBURSEMENT UNIT

64227 SVETIMING

64228 Taradigm, Inc.

64229 TCA Tools Inc

64230 Thomson Reuters-West

64231 Traffic Management, Inc.

64232 VERIZON WIRELESS

64233 WALLACE GROUP

64234 Yracheta

64235 Zaval-Rivera

64236 ZEE MEDICAL SERVICE COMPANY #34

09/27/2019

09/2712019

09/2712019

09/27/2019

09/27/2019

09/2712019

09/2712019

09/27/2019

09127/2019

Elizabeth 091271201'9

Giiberto 09127/2019

0912712019

Child Support withholding order for an employee for paycheck 216.50 date 9-27-19

Child Support withholding order for an employee for paycheck 170.00 date9-27-19

Managed Timing Services for the Dune Run Run & Walk on 1,100.00September15, 2019.

298.00 Extreme Annual Maintenance- Renewal (1-49) ~ 2

90.51 1 Step Drill Bit

300.00 West lnfonnation charges for 8/1/19 through 8131/19

2 Aluminum slgns - RESERVED FOR HANDICAPPED 505.03 PARKING

52.35 Cellular Phones for Public Works Crew ProJect 063a:tlo19:00 C1fY OJ GS RegulatOry Compliance Srvs 2019-2020. Professional ser.iices rendered through August 31,

1,443.28 2019

Refund of deposit for use of 16th Street park barbecue area. 78.00 Contract #2086

Refund of deposit paid for 16th Street park barbecue area. 78.00 Contract# 2108. ·

PRE CONTACT TOWELETIES & CLEANSER 67.83 TOWELETIE/YARD .

Total 464,695.88

CITY OF GROVER BEACH

2017 STREETS BOND ACCOUNT ($15,000,000)

Treasurer's Report for October 7, 2019 City Council Meeting

September 6, 2019 to October 1, 2019

DESCRIPTION OF RESOURCES Balance from September 6, 2019

Deposit from Private Improvements:

Deposit(s) from Interest

Total Resources

DESCRIPTION OF EXPENDITURES Transfers for Staff Time: Payroll Expenses

Transfers for Non-Construction and Other: Accounts Payable Expenses

Transfers for Construction: Accounts Payable Expenses

Total Expenditures

Cash Balance as of October 1, 2019

Respecttu; c1L( urcell

A ative Services Director

$

$

$

$

$

AMOUNT 10,628, 102.39

2,000.00

1,805.34

10,631 ,907.73

AMOUNT

13,298.72

63,428.87

241,198.50

317,926.09

10,313,981.64

Agenda Item No. 7

MINUTES CITY COUNCIL MEETING

MONDAY, SEPTEMBER 16, 2019

CALL TO ORDER Mayor Lee called the meeting to order at 6:00 p.m. in the City Hall Council Chamber, 154 South Eighth Street, Grover Beach, California.

MOMENT OF SILENCE

FLAG SALUTE The flag salute was led by Merrick Martindelcampo, a third-grade student at Grover Heights Elementary School.

ROLL CALL

City Council: Council Members Karen Bright, Desi Lance, Mayor Pro Tem Mariam Shah, and Mayor Jeff Lee were present. Council Member Nicolls was absent

City Staff: City Manager Matthew Bronson, City Attorney David Hale, City Clerk Wendi Sims, Police Chief John Peters, Administrative Services Director Deanne Purcell, Public Works Director/City Engineer Greg Ray, and Parks & Recreation Program Director Kathy Petker were also present.

Also present were Fire Chief Steve Lieberman.

CLOSED SESSION ANNOUNCEMENTS City Attorney Hale read the following announcement:

1. Conference with Real Property Negotiators for the lease of City PropertyProperty: Various undefined City Rights-of-wayAgency negotiators: Matthew Bronson, City Manager, David Hale, City Attorney,and Bruce Buckingham, Director of Community Development.Negotiating parties: RTI Infrastructure, Inc.Under negotiation: (Staff’s requested direction from Council will be concerningprice and terms of payment.)This item is pursuant to Government Code section 54956.8

2. Public Employee Performance Evaluation -Consistent with Government Code Section 54957 (b)(1)Title: (City Attorney)

the City Council reconvened into open session and announced there were no reportable actions taken.

AGENDA REVIEW

Action: Upon unanimous consensus, the Council adopted the agenda as presented.

Agenda Item No. 8

Minutes: City Council Meeting Page 2 Monday, September 16, 2019

CEREMONIAL CALENDAR 1. National Preparedness Month – Presentation given by Police Chief Peters & Fire Chief Lieberman PRESENTATIONS 2. Rideshare Week Pledge (October 7-11) – Presentation given by Peter Williamson, Employer Outreach Coordinator PUBLIC COMMUNICATIONS The Mayor opened the floor to any member of the public for comment on items of interest which were within the jurisdiction of the City Council but were not listed on the agenda. A. John A. Wysong - Resident B. Liz Doukas – Resident C. Mike Richmond – Resident D. Catheryn Sells – Resident E. Debra Ugalde – Resident – gave handout to Council CONSENT AGENDA

Prior to consideration of the Consent Agenda, Item No 6 was pulled pursuant to the requests of Council Member Lance for a brief discussion on the Sign Ordinance. It was moved by Mayor Pro Tem Shah and seconded by Council Member Bright to approve Consent Agenda Item Nos. 3, 4, 5 and 7 as recommended. The motion carried on the following roll call vote:

AYES: Council Members – Bright, Lance, Mayor Pro Tem Shah, and Mayor Lee. NOES: Council Members – None ABSENT: Council Members – Nicolls ABSTAIN: Council Members – None 3. Treasurer’s Report for the Period August 2 to September 6, 2019. Action: Approved the Treasurer’s Report as submitted. 4. Treasurer’s Report for the 2017 Streets Bond Account - $15,000,000 (Measure K14:

Grover Beach Street Rehabilitation; Safety Improvement Bond Measure) for the Period August 2 to September 6, 2019.

Action: Approved the Treasurer’s Report as submitted. 5. Minutes of the City Council Meeting on Tuesday, September 3, 2019. Action: Approved the minutes as revised.


7. Authorization to Amend the Memorandum of Understanding with City of Grover Beach

Employee Groups per Side Letter Agreements –The City Council considered adopting the Resolutions Amending the Memorandum of Understanding with the City of Grover Beach Employee Groups per Side Letter Agreements. Action: Adopt the Resolutions Amending the Memorandum of Understanding with City of Grover Beach Employee Groups per Side Letter Agreements.

Resolution 19-50: A Resolution of the City Council of the City of Grover Beach, California, Amending the Memorandum of Understanding Between the City and the Executive Management Employee Group by Adopting the Side Letter of Agreement. Resolution 19-51: A Resolution of the City Council of the City of Grover Beach, California, Amending the Memorandum of Understanding Between the City and the Management and Confidential Employee Group by Adopting the Side Letter of Agreement. Resolution 19-52: A Resolution of the City Council of the City of Grover Beach, California, Amending the Memorandum of Understanding Between the City and the Grover Beach Police Management and Confidential Employee Group by Adopting the Side Letter of Agreement. Resolution 19-53: A Resolution of the City Council of the City of Grover Beach, California, Amending the Memorandum of Understanding Between the City and the Service Employees International Union Employee Group by Adopting the Side Letter of Agreement. Resolution 19-54: A Resolution of the City Council of the City of Grover Beach, California, Amending the Memorandum of Understanding Between the City and the Grover Beach Police Officer’s Association Employee Group by Adopting the Side Letter of Agreement. ORDER OF THE DAY: Upon consensus of the City Council the Order of the Day was amended under the Consent Agenda to Pull Agenda Item No. 6 for a brief discussion prior to the Regular Business Items. 6. Introduction and First Reading of an Ordinance to Amend Municipal Code Article IX

(Development Code) and Approve a Local Coastal Program Amendment to Repeal and Replace Section 3.60 Sign Regulations, Add Section 9.10.050, Sign Definitions, and Amend Section 6.20.080, Temporary Use Permits. (Development Application 18-39) – The City Council considered the first reading of an ordinance to amend sections of the Sign Regulations. Action: It was moved by Council Member Bright and seconded by Council Member Lance to 1) Conducted the first reading, by title only, and introduced the Ordinance amending Article IX Section 3.60 of the Grover Beach Municipal Code (Sign Regulations and related sections); 2)Scheduled a second reading and adoption of the Ordinance and adoption of a Resolution


approving a Local Coastal Program Amendment at the next regularly scheduled City Council meeting. The motion carried on the following roll call vote:

AYES: Council Members – Bright, Lance, Mayor Pro Tem Shah, and Mayor Lee. NOES: Council Members – None ABSENT: Council Members – Nicolls ABSTAIN: Council Members – None ORDER OF THE DAY: At this time, the Order of the Day resumed to the agenda as posted. PUBLIC HEARING None REGULAR BUSINESS 8. Tourism Marketing District and Visit SLO CAL Renewal

Mayor Lee read the title to the foregoing item and deferred to staff for a report. City Manager Bronson introduced Chuck Davidson, President and CEO from Visit SLOCAL who gave a PowerPoint presentation. Mayor Lee invited public comment on this matter. Jocelyn Brennan, CEO – South County Chambers of Commerce At this time no other public comments were received, and the Mayor closed public comment. Action: It was moved by Mayor Pro Tem Shah and seconded by Council Member Bright to Adopt a Resolution recommending that the County Board of Supervisors approve the renewal of the countywide Tourism Marketing District and the related contract with Visit SLO CAL for 10 years, with an assessment of 1.5% on all lodging establishments in the city.

The motion carried on the following roll call vote:

AYES: Council Members – Bright, Lance, Mayor Pro Tem Shah, and Mayor Lee. NOES: Council Members – None ABSENT: Council Members – Nicolls ABSTAIN: Council Members – None


Resolution 19-55: A Resolution of the City Council of the City of Grover Beach, California, Granting Consent to the County of San Luis Obispo to Renew the San Luis Obispo County Tourism Marketing District. Recess: Upon consensus of the City Council, the meeting recessed at 7:37 p.m. Reconvened: At 7:45 p.m. the meeting reconvened with all members of Council present with the exception of Council Member Nicolls who was absent. 9. FY 2018-19 General Fund Year-End Financial Review –

Mayor Lee read the title to the foregoing item and deferred to staff for a report. City Manager Bronson introduced Administrative Services Director Purcell who gave a PowerPoint presentation outlining the Fiscal Year 2018-19 Year End Financials. City Manager Bronson and Administrative Services Director Purcell responded to questions from Council. Mayor Lee invited public comment on this matter. Deborah Guerra - Resident No further public comments were received at this time and the Mayor closed public comment. Action: Received and filed the FY 2018-19 General Fund Year-End Financial Review.

10. Positions on Resolutions to be Considered at the League of California Cities Annual Conference – Mayor Lee read the title to the foregoing item and deferred to staff for a report. City Manager Bronson gave a brief report on the resolutions being presented by the League of California Cities to be voted on at their Annual Conference in October 2019. Mayor Lee invited public comment on this matter. No public comments were received at this time and the Mayor closed public comment. Action: Council provided direction to the City’s voting delegate and alternates in support of the two resolutions considered at the League of California Cities Annual Conference.


COUNCIL COMMITTEE REPORTS Council Member Lance reported on SLO County Water Resources Advisory Committee (WRAC). Council Member Bright stated that she received the agenda for the upcoming Zone 3 meeting by Council Member Lance and not the Zone Three Advisory Committee. City Management will follow up with them to ensure they have all the updated contact information. Mayor Lee reported on Integrated Waste Management Authority (IWMA) and the Council had consensus to bring forward an agenda item regarding an ordinance on polystyrene to match with the upcoming ordinance from the county once it has been adopted by the county. Mayor Pro Tem Shah mentioned the upcoming League of California Cities, Channel Counties Division dinner on Friday, September 27 in Moorpark. COUNCIL COMMUNICATIONS A. Council Member Lance mentioned having Forum/City Hall meeting with the community to

discuss what the role the City Council plays. It was discussed by the Council and a consensus was had to hold a meeting in the future.

She also mentioned the Oktoberfest on September 28 at Ramona Garden Park. B. Mayor Lee mentioned the vacancies that are available on the Parks, Recreation, and Beautification Commission and ways the community can be involved with the City.

The Mayor also commented on an open house for The Palms Luxury Townhouse at 14th Street and Ramona on Tuesday, September 17.

C. Mayor Pro Tem Shah made inquire into looking at bringing an item forward for a Straw Ban. She also mentioned WIPSLO (Women In the Pipeline in San Luis Obipso) to promote women in elected office.

CITY MANAGER'S REPORTS AND COMMENTS City Manager Bronson addressed the Forum/City Hall meeting and the possible date of October 28 or November 12 holding the forum at Ramona Garden Park Center. He also gave an update on the Street Projects and the positive outcome of the Coastal Commission decision on our Short-Term Rental Ordinance which we will start to accept applications on October 1st. City Manager Bronson mentioned the upcoming community events such as Movies in the Park and Grover Beach Clean-Up day as well as the free kids’ basketball clinics.


CITY ATTORNEY’S REPORTS AND COMMENTS None CLOSED SESSION None ADJOURNMENT There being no further business to come before the City Council, Mayor Lee adjourned the meeting at 8:51p.m. _____________________________ JEFF LEE, MAYOR Attest: ______________________________ WENDI SIMS, CITY CLERK (Approved at CC Mtg ______)

Agenda Item No. __9__

CITY COUNCIL STAFF REPORT

TO: Honorable Mayor and City Council DATE: October 7, 2019 FROM: Matthew Bronson, City Manager PREPARED BY: Matthew Bronson, City Manager Wendi Sims, City Clerk SUBJECT: Cancellation of Monday, October 21, 2019 Council Meeting RECOMMENDATION Cancel the regularly scheduled Council meeting on Monday, October 21, 2019 and schedule the regular Council meeting for Monday, November 4, 2019. BACKGROUND The 2019 City Council meeting schedule was approved on December 10, 2018 which established the dates of all regularly scheduled Council meetings. This schedule can be modified as it was in re-establishing the canceled meeting of Monday, July 15, 2019 and instead canceling the Monday, August 5, 2019 meeting for the Council’s summer meeting break. Staff is recommending the cancellation of the regular meeting of Monday, October 21, 2019 as there are no public hearing or business agenda items scheduled at this time and the City Manager will be out of town on this date attending an annual city managers conference. The next scheduled Council meeting would be on Monday, November 4, 2019 followed by the Monday, November 18, 2019 meeting. FISCAL IMPACT There is no fiscal impact from this action. ALTERNATIVES The City Council has the following alternatives to consider:

1. Cancel the regularly scheduled Council meeting on Monday, October 21, 2019 and schedule the regular Council meeting for Monday, November 4, 2019; or

2. Do not cancel the regularly scheduled Council meeting on Monday, October 21, 2019; or 3. Provide alternative direction to staff.

PUBLIC NOTIFICATION The agenda was posted in accordance with the Brown Act.

Staff Report: Cancellation of Monday, October 21, 2019 Meeting Page 2 October 7, 2019

ATTACHMENTS N/A

Agenda Item No. __10__


TO: Honorable Mayor and City Council DATE: October 7, 2019 FROM: Matthew Bronson, City Manager PREPARED BY: Erin Wiggin, Capital Improvement Project Manager Gregory A. Ray, Public Works Director/City Engineer SUBJECT: Proposition 68 - Statewide Park Development Grant Per Capita

Application RECOMMENDATION Adopt the Resolution authorizing the City to apply for the Statewide Park Development Grant per capita Funds and agreeing to the grant program conditions. BACKGROUND With the passage of Proposition 68, there is approximately $102 million in statewide per capita funding grants from the California Department of Parks and Recreation with each city entitled to $200,000 in grant funding. The funds are derived from the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018. The grant funds can be used to improve existing or construct new park facilities. The funding will require a 20% match in local funding. The approved FY 2020–24 Capital Improvement Program includes CIP 1004 16th Street Park Improvements project that identifies the per capita grant funds of $200,000 in addition to $217,000 in Park Development Impact Fees and a $40,000 grant from the Nichols Foundation for construction of a new playground, a tot lot, park lighting, and bathroom renovations. However, the City recently applied for the Statewide Park Program (SPP) Competitive Grant for the 16th Street Park project and anticipates a funding announcement by the end of 2019. If the City is successful in receiving the competitive grant, staff recommends allocating these per capita funds of $200,000 to CIP 1258 Ramona Garden Park. The per capita grant program conditions include the requirement for the Council to adopt a Resolution with certain conditions including: 1. The City certifies that it has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Grant Administration Guide 2. The Council delegates the authority to the City Manager to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the Grant Scope 3. The City agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines 4. The City will consider promoting inclusion per Public Resources Code §80001(b)(8 A-G) Staff has reviewed the requirements and has determined that the City can comply with all grant conditions and is therefore recommending the Council adopt the attached Resolution (Attachment 1). The grant application deadline is January 31, 2020, and the resolution approving the filing of the application is due no later than November 1, 2019.

Staff Report: Statewide Park Development Per Capita Grant Page 2 October 7, 2019

FISCAL IMPACT There is no fiscal impact associated with the grant application. ALTERNATIVES The City Council has the following alternatives to consider:

1. Adopt the Resolution authorizing the City to apply for the Statewide Park Development Grant Per Capita Funds and agreeing to the grant program conditions; or

2. Provide alternate direction to staff.

PUBLIC NOTIFICATION The agenda was posted in accordance with the Brown Act. ATTACHMENTS

1. Resolution

1

RESOLUTION NO. 19-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, APPROVING APPLICATION(S) FOR PER CAPITA GRANT FUNDS

WHEREAS, the State Department of Parks and Recreation has been delegated the

responsibility by the Legislature of the State of California for the administration of the Per Capita Grant Program, setting up necessary procedures governing application(s); and

WHEREAS, said procedures established by the State Department of Parks and

Recreation require the grantee’s Governing Body to certify by resolution the approval of project application(s) before submission of said applications to the State; and

WHEREAS, the grantee will enter into a contract with the State of California to complete

project(s);

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach, hereby:

1. Approves the filing of project application for Per Capita program grant project; and

2. Certifies that said grantee has or will have available, prior to commencement of project work utilizing Per Capita funding, sufficient funds to complete the project; and

3. Certifies that the grantee has or will have sufficient funds to operate and maintain the

project, and

4. Certifies that all projects proposed will be consistent with the Parks and Recreation Element of the City’s General Plan (PRC §80063(a)), and

5. Certifies that these funds will be used to supplement, not supplant, local revenues in

existence as of June 5, 2018 (PRC §80062(d)), and

6. Certifies that it will comply with the provisions of §1771.5 of the State Labor Code, and

7. (PRC §80001(b)(8)(A-G)) To the extent practicable, as identified in the “Presidential Memorandum--Promoting Diversity and Inclusion in Our National Parks, National Forests, and Other Public Lands and Waters,” dated January 12, 2017, the city will consider a range of actions that include, but are not limited to, the following:

(A) Conducting active outreach to diverse populations, particularly minority, low- income, and disabled populations and tribal communities, to increase awareness within those communities and the public generally about specific programs and opportunities.

(B) Mentoring new environmental, outdoor recreation, and conservation leaders to increase diverse representation across these areas.

(C) Creating new partnerships with state, local, tribal, private, and nonprofit organizations to expand access for diverse populations.

(D) Identifying and implementing improvements to existing programs to increase visitation and access by diverse populations, particularly minority, low-income, and disabled populations and tribal communities.

Attachment 1

2

(E) Expanding the use of multilingual and culturally appropriate materials in public communications and educational strategies, including through social media strategies, as appropriate, that target diverse populations.

(F) Developing or expanding coordinated efforts to promote youth engagement and empowerment, including fostering new partnerships with diversity-serving and youth-serving organizations, urban areas, and programs.

(G) Identifying possible staff liaisons to diverse populations.

8. Agrees that to the extent practicable, the project(s) will provide workforce education and training, contractor and job opportunities for disadvantaged communities (PRC §80001(b)(5)).

9. Certifies that the grantee shall not reduce the amount of funding otherwise available to be spent on parks or other projects eligible for funds under this division in its jurisdiction. A one-time allocation of other funding that has been expended for parks or other projects, but which is not available on an ongoing basis, shall not be considered when calculating a recipient’s annual expenditures. (PRC §80062(d)).

10. Certifies that the grantee has reviewed, understands, and agrees to the General

Provisions contained in the contract shown in the Procedural Guide; and

11. Delegates the authority to the City Manager or designee to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the grant scope(s); and

12. Agrees to comply with all applicable federal, state and local laws, ordinances, rules,

regulations and guidelines. On motion by Council Member, seconded by Council Member, and on the following roll-

call vote, to wit: AYES: Council Member – NOES: Council Member – ABSENT: Council Member – ABSTAIN: Council Member – RECUSED: Council Member –

the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 7th day of October, 2019.

___________________________________ JEFF LEE, MAYOR

Attest: _______________________________ WENDI SIMS, CITY CLERK

Agenda Item No. 11

CITY COUNCIL STAFF REPORT TO: Honorable Mayor and City Council DATE: October 7, 2019 FROM: Matthew Bronson, City Manager PREPARED BY: Bruce Buckingham, Community Development Director A. Rafael Castillo, AICP, Senior Planner SUBJECT: Second Reading of an Ordinance to Repeal Section 3.6 of Chapter 3 of

Article IX Development Code, and Adding a New Section 3.6 of Chapter 3 of Article IX, Adding Section 9.10.050, Signage Definitions to Chapter 9 of Article IX of the Grover Beach Municipal Code, Amending Section 6.20.080 of Article IX Development Code, and Approve a Local Coastal Program Amendment related to Sign Regulations. (Development Application 18-39)

RECOMMENDATION Conduct second reading, by title only, and adopt the Ordinance amending Article IX Section 3.60 of the Grover Beach Municipal Code (Sign Regulations and related sections) and adopt a Resolution approving a Local Coastal Program Amendment. BACKGROUND The City’s Sign Ordinance has not had any significant amendments since the ordinance’s adoption in 1981. The FY 2018-19 work program for the Development Review Major City Goal included amending the sign ordinance as part of improving the development review process. In addition, the City’s General Plan, West Grand Avenue Master Plan, and Economic Development Strategy all include policies on the importance of updating the sign ordinance. The City’s General Plan Land Use Element includes goals and policies to direct staff on shaping future development and infill projects. The General Plan specifically calls out signage as a part of its streetscape improvement policy.

LU-7.7 Streetscape Improvements. The City shall take the lead in upgrading the visual quality of streets in the downtown area and require individual development projects to incorporate frontage improvements. LU-20.1 Overall Design Objectives for commercial and mixed-use development. Consider the need for sign and their appropriate scale and locations early in the design process, so that they are not an afterthought.

As a part of the implementation measures, the General Plan identifies evaluation of the City’s sign ordinance and develop a program to encourage replacement/upgrade of signs that are not in conformance with the standards in the adopted West Grand Avenue Master Plan. In 2011, the Council adopted the West Grand Avenue Master Plan which contains sign guidelines that only apply to the corridor, which emphasize pedestrian scale signs and enhancement through quality sign design (reference Attachment 3). The West Grand Avenue Master Plan states:

Staff Report: Sign Ordinance Amendment Page 2 October 7, 2019

“Signs along the West Grand Avenue corridor should enhance the beach town character of the area, while providing sufficient identification of businesses. Signs should be built to the pedestrian scale but should be readable by motorists and cyclists travelling through the corridor. Signs should not overpower a building’s façade, but rather attract customers to the business through a design that harmonizes with the building and its surroundings.”

In April 2017, the City Council approved an updated Economic Development Strategy. The Strategy identified enhancement of the quality of life along the City’s key corridor, West Grand Avenue, as this is a key ingredient in attracting economic development. The Economic Development Strategy specifically calls out an action item to capitalize on beach visitors to maximize economic development:

“Large numbers of visitors are attracted to the Oceano Dunes every year, and the development and operation of the Grover Beach Lodge and Conference Center will expand and diversify the beach visitor population. To maximize the local economic benefits from this local visitor traffic, the City should develop a program to connect with those visitors and encourage them to spend time and money within the City as part of their beach visits.”

Action item 2A as part of this Strategy included the following:

Sign ordinance update and enforcement to improve aesthetic views along the corridor. Additionally, in June 2015, the U.S. Supreme Court challenged the way municipalities should approach sign ordinances. In the Reed v. Town of Gilbert, the court ruled that if a local agency implements content-based sign regulations then the regulation is presumptively unconstitutional. To validate the regulation the agency must show and make specific findings that the agency has a compelling governmental interest in imposing the regulation, the regulation furthers the objectives and purposes for which the regulation is imposed and the ordinance goes no further than what is required to implement its purpose. This is what the courts refer to as the “Strict Scrutiny Test”. Signage content-based regulations are considered regulations when they apply to particular speech because of the topic discussed or idea or message expressed on the sign. An agency’s sign ordinances have a greater legal defensibility when the municipality adopts an ordinance that is considered “content neutral,” meaning signs are only regulated by the following:

• Time – hours, day, duration a sign can be placed. • Place – location, where on a site or street a sign may be placed. • Manner – regulations in regards to size, materials, lighting, moving parts, portability, etc. of

signage. As a result, the City’s Sign Ordinance needs to be revised to bring the ordinance into compliance with Reed v. Town of Gilbert case. In April 2018, staff sought direction from the Council for potential amendments and the following direction was given to staff:

• Provide flexibility for signage to property/business owners. • Provide a variety of signage types. • Prohibit the use of feather flag signs, inflatable signs, and other distracting signs. • Prohibit video/LCD signage. • Restrict the use of A-frame signs in city right-of-way. • Allow temporary signage for a limited duration.

Staff Report: Sign Ordinance Amendment Page 3 October 7, 2019 Based on this direction provided by Council, staff began drafting a Sign Ordinance, but completion was delayed due to other City Council priority items including the short-term rental ordinance, parking ordinance, and implementation of commercial cannabis. A draft ordinance was presented to the Planning Commission at its June 26, 2019 meeting and the Commission provided the following comments:

• Consider allowing temporary feather flag signs; • Allow temporary “open house” signs; • Concerns regarding fair enforcement and sign violation complaints; and • Encourage staff to work with the Chamber of Commerce and the Pismo Coast Association

of Realtors. The Commission held a second public hearing on September 10, 2019 and recommended the Council approve the Sign Ordinance on a 5-0 vote with no revisions. This included allowing off-site directional signs on private property that would accommodate “open house” signs as discussed later in the staff report. It also included recommending feather flags be prohibited in the city. The Commission commented that staff should research how other cities regulate non-governmental flags and provide information to the Council as the Ordinance does not clearly address whether they are allowed or prohibited. Staff has included this information for the Council. The Council conducted a first reading and introduction of the Sign Ordinance on September 16, 2019 and scheduled the second reading and adoption for the October 7, 2019 meeting. Summary of Proposed Sign Ordinance Amendments The discussion below provides an overview of significant changes in the Ordinance along with alternatives for some of the sections within the Ordinance. Section 3.60.010 Purpose This Section provides the overall purpose of the section for signage. Section 3.60.020 Applicability This section provides how and when it is applicable to signs. It also differentiates between signage versus protesting and other non-commercial messages. Section 3.60.030 Exempt Signs The following is a summary of the type of signs that are proposed to be exempt from sign regulations. These signs do not require permits but must be consistent with the size and placement standards contained in the ordinance.

Proposed Exempt Signage

City, Local school district, and other government agencies

Official Government Flags


Temporary Directional Signage Based on comments received regarding “open house” real estate signs, as well as a letter received from the Pismo Coast Association of Realtors, the Planning Commission recommends adding an additional sign exemption for temporary off-site direction signage. This would allow directional signs, such as “open house” signs, “garage sale” signs and other temporary directional signs to be utilized in the City. The following are the proposed regulations for temporary off-site directional signs:

• Signs may be placed up to two hours before an event; • Sign must be removed within one hour after the event has ended; • Limited to three events per week; • Maximum sign area is five square feet; and • The sign must be located on private property with property owner permission. The signs

shall not be located in city right-of-way. This language is in the Ordinance and allows for equal treatment of directional messages in all zones.

Business information signs

Special decorations

Signs permanently affixed to vehicles

Art Murals

Temporary off-site directional signage

Non-commercial messages up to 3 square feet

Temporary window signs

Temporary Yard signs

Staff Report: Sign Ordinance Amendment Page 5 October 7, 2019 3.60.040 Prohibited Signs This section has been significantly revised compared to the existing ordinance. The previous prohibited signs section only contained language in regards to signs located within the public right-of-way or impeded ingress/egress. The revised section is concise and includes sign types that are prohibited consistent with direction from the Council to eliminate certain types of temporary signage. Signs within the public right-of-way are proposed to remain prohibited.

Proposed Prohibited Signage Off-site signs, signs that are not directly adjacent to a business

Abandoned signs are signs that advertise or identifies a business that has ceased for over 180 days.

Billboards

Digital display signs

Backlit awning signs

Roof signs

Snipe signs

Inflatable signs

Feather flags

Signs in the City’s right-of-way


Proposed Prohibited Signage People signs

Mobile billboard signs, specifically vehicles parked on streets or private property

Feather Flags Signs The Ordinance as recommended by the Commission would prohibit feather flags based on previous direction received from the City Council in April 2018. The Planning Commission received public comments in support of allowing feather flag signs as a key component of attracting customers. The Commission deliberated on the potential use of feather flags but the consensus was there are other types of temporary signage that can be used such as A-frame and banner signs and enforcement by staff on time of display could be time consuming. If the Council wants to consider allowing feather flags within the city so a business could advertise a special event or promotion for a limited time, staff would recommend the following:

• A limit on the number of feather flags per premise or business to avoid having numerous feather flags;

• A limited duration for specific events should be easily enforceable (i.e. one week versus one month or multiple months).

As an example, the Council could consider placing time, place, and manner restrictions on feather flags to a maximum of seven consecutive days, four times per year, which would provide business owners 28 days of use per year. Other Types of Flags The Planning Commission requested that staff provide research to the Council about the use of flags that are not governmental, but rather those that display commercial messages, with it is through logos, words, etc. The proposed Ordinance does not contain any restrictions on the number of flags that may be utilized, nor does it define commercial message flags. The proposed Ordinance does contain definitions for traditional, governmental flags, and these are exempt. Staff reviewed how commercial message flags are treated in neighboring Arroyo Grande and Pismo Beach. In Arroyo Grande, flags are not allowed to contain any text or other advertising message and may only be displayed for no more than 3-days within a 30-day period. Pismo Beach allows the use of flags with commercial message if approved through a permit by the Planning Commission and findings are met. Within the city, there are various businesses that utilize corporate flags on flag poles, as well as, other types of flags to advertise their businesses. Additionally, some flags that are “non-commercial” in nature may be flown by various businesses or households. Rather than limit or differentiate between commercial versus non-commercial speech, staff recommends amending the following sections in the Ordinance to add the ability for a maximum of one flag not to exceed 10 square feet in all residential zones and a maximum of one flag not to exceed 24 square feet in all commercial and industrial zones, as follows:

Existing Feather Flags


Commercial / Non-Commercial Flags

Corporate Flags Non-Commercial Flag Commercial Flag Non-Commercial Flag

Amend section 3.60.030.A and add “flags”. Flags, displaying either a commercial or non-commercial message are permitted as follows: one flag not to exceed 10 square feet in size in residential zones and one flag not to exceed 24 square feet in commercial and industrial zones • Amend the “flag” definition in Section 9.10.050. Flag. A device, generally made of

flexible materials, usually cloth, paper or plastic, usually used as a symbol of a government, school, or religion, corporation, or other lettering or symbols, and may contain either a not containing a commercial message or non-commercial message.

Section 3.60.050 Application Requirements This section defines the need to obtain a sign registration, permit, or program to place a sign on a building. Certain signs are proposed to be exempt from requiring a sign permit or registration. These include:

• All exempt signs listed in Section 3.60.030; • Changing a “face” of a sign or letters on a sign; • Changing between commercial and non-commercial messages on existing signs.

A sign permit requires submittal of plans including the proposed location of a sign, size of the proposed sign, and how the sign will be placed. A sign program is required for certain types of signage, as well as, a remedy for “special” types of signage that is considered unique for a site or business. The sign program would require approval by the Planning Commission and meet findings that are included in the section. The previous sign ordinance did not contain an ability to obtain additional signage or address unique situations for signs. Along with allowing certain types of temporary signage, staff proposes to implement a “sign registration” program as a part of the proposed ordinance. The registration program is intended for the use of “A-frame” signs (sandwich board signs) and banner signs. Business owners will be able to register on the City’s website or drop off the registration form at City Hall and staff will review and approve the proposed sign. Staff proposes that there be no fee associated with the sign registration process to encourage business owners to apply and simplify the process. 3.60.070 Requirements for All Signage This section includes measurement criteria, sign design, sign placement, and sign maintenance standards. These requirements apply to all signage in the city, except where noted. 3.60.080 Temporary Signage The current sign ordinance does not adequately address the types and size of temporary signage, and does not clearly identify what types of temporary signs are allowed or prohibited. As a result, code enforcement of temporary signs has not been actively carried out for many years, which also reflected the City’s limited code enforcement resources. However, this has recently changed with

Staff Report: Sign Ordinance Amendment Page 8 October 7, 2019 the employment of a full-time Code Compliance Officer and a greater focus on code enforcement activities by the Council. Temporary signs used as permanent signs can also convey a negative message about the permanence and quality of a business within the community. The Economic Development Strategy outlines that the City needs to enhance the aesthetic quality along West Grand Avenue, the City’s key commercial corridor, and the proliferation of temporary signs can detract from creating an inviting environment. Additionally, staff reviewed sign ordinances from several municipalities including Arroyo Grande and Pismo Beach. These municipalities allow for the use of A-frame signs, banners, flags, and ribbons. Arroyo Grande prohibits “feather” or “sail” flags, while Pismo Beach requires Planning Commission approval for any feather flags. Based on the April 2018 meeting, Council recommended a prohibition of feather flags, similar to the City of Atascadero, which recently completed a signage ordinance update in 2017 and Arroyo Grande. The following are the proposed regulations for temporary signage:

Proposed Temporary Signage Regulations A-Frame Signs

• One per business • Allowed adjacent to business. • Maximum sign area of 6 s.f. and 5 feet in height. • Must be removed at close of business. • Cannot be located in the public right-of-way. • Must complete sign registration with the City.

Banner Signs

• Maximum 24 s.f., one per business. • Maximum placement of 30 consecutive days. • Must be removed for a minimum of 30 days before

putting a new banner up. • Must complete sign registration with the City.

Projecting Image signs

• One per business. • Flashing or distracting lights cannot be used. • Maybe projected onto a wall, sidewalk, etc. • An additional sign opportunity for businesses to

utilize. • Only to be displayed during the hours of business

operation. • Projecting image signs do not require a permit.


Proposed Temporary Signage Regulations Temporary Window Signs

• Cannot exceed 50 percent of window coverage in most zones.

• Cannot exceed 33 percent window coverage along West Grand Avenue from the Hwy. 1 to 14th Street to maintain/encourage visibility into businesses and enhance the pedestrian corridor.

• Window signs considered graphics, lettering, or perforated window film

• Window signs do not require a permit.

Yard Sign – Residential

• Maximum 3 s.f. and one per residence. • Maximum height of 6-feet. • Must be well maintained. • Allowed for events such as sale/lease of property,

garage sales, yard sales, etc. • Exception created for federal, state, or local elections. • Cannot be located in the public right-of-way.

Yard Sign – Commerical

• Maximum of 32 s.f. per business • Must be well maintained. • Allowed for events such as sale/lease of property,

garage sales, yard sales, etc. • Exception created for federal, state, or local elections. • Cannot be located in the public right-of-way.

Temporary signs have additional requirements that prohibit the use of attachments to temporary signage, such as balloons, pennants, etc. Temporary Yard Signs Due to the nature of court cases and equal treatment, yard signs are the most complicated of temporary signs to craft time, place and manner regulations. As proposed, yard signs would be allowed during an “event.” For the purposes of the Ordinance, an event is defined as follows:

An occasion, gathering, or activity that is temporary in nature and has a set start time and end time. An example of an event includes but is not limited to a sale or rental of a property, an “open-house” for the sale or rental of a property, a religious gathering, a federal/state/local election, garage or yard sale.

Therefore, an event such as a real estate transaction, yard sale, garage sales are covered in the proposed ordinance and allows for yard signs that are typically used in both residential and commercial zones. Staff also included an exception to yard signs specifically during a local, state, or federal election. During this time, any yard signs on a property may be increase to an aggregate of 32 square feet.

Staff Report: Sign Ordinance Amendment Page 10 October 7, 2019 This means a property owner could have up to 32 square feet of any signs in any shape or manner, including any of the following of combinations as an example:

Yard Sign Examples

One 4-foot by 8-foot Sign

Multiple signs on a property that equal up to 32 square feet, regardless of sign message, including non-political messages, etc.

In order to treat all signs equally regardless of message consistent with Reed v. Town of Gilbert, during this specified event a property owner can choose either commercial messages or non-commercial messages up to 32 square feet in aggregate. A typical political yard sign, non-commercial or commercial message sign is 18-inches x 24-inches (3 square feet). As proposed, a property owner could have 10 “political” or “non-political” signs in their yard based on the total aggregate of 32 square feet. The Council may increase or decrease this aggregate number, but it is recommended that an aggregate remain to ensure non-content based regulations be in place and not regulate based on the total number of signs. Window Signs The Ordinance limits the use of window signs versus the existing ordinance that exempts window signs from any regulations. Because the existing ordinance had not been updated in many years, technological advances have allowed for businesses to utilize windows as a “billboard” to advertise services. For example, perforated graphic film uses tiny holes printed on a film to project an image to the outside but it is transparent from the inside of a business. There are several businesses in the community that use this type of graphic to create large business advertisements. While creating additional space to advertise business or products, these graphics limit the ability for police to see into businesses during emergency situations or calls for service and detract from the business corridor and building architecture.


Example of Perforated Graphic Film

Due to the increase in use of such medians and the lack of regulation of window signs in the existing ordinance, staff crafted window sign regulations to allow for signs on windows, while maintaining a balance of visibility within storefronts. The Ordinance proposes the following for both temporary and permanent window signs:

• 50 percent total window coverage for commercial properties on West Grand Avenue east of 14th Street,

• 33 percent total window coverage on West Grand Avenue between Highway 1 and 14th Street.

Staff would need to work with property owners in regulations of both temporary and permanent window signage and provide ample time to come into conformance with proposed regulations.

A-Frame Signs Consistent with previous Council direction, the Ordinance would allow the placement of A-frame signs on private property, likely in landscape areas. The existing ordinance does not allow A-frame signs, but as previously mentioned there has been no enforcement to remove A-frame signs of which a majority are located in the public right-of-way on sidewalks. The Council does have the alternative of allowing A-frame signs to be located within the public right-of-way, but should consider the following:

Example of Window Signs Not in Compliance with Proposed Ordinance


• Require staff approval of the exact placement to ensure a clear path of travel is maintained consistent with accessibility laws. The approval to place anything in the right-of-way requires City Engineer approval of an Encroachment Permit. This could assist a few businesses where the building is adjacent to the back of sidewalk and there is no ability to place an A-frame sign on private property;

• Allow in specific zones such as the CB, CBO and CVS zones (West Grand Avenue Corridor between Highway 1 and 14th Street);

• Weigh the risks of liability in the event that a sign causes injury to a pedestrian or blocks ADA access which the City may be liable for not providing a clear path of travel;

• Maintain a simple approach to enforceability of A-frame sign placement. 3.60.090 Permanent Signage The previous ordinance categorized signs based on zones. The proposed Ordinance is similar, however, the number of sign types allowed has been increased, along with the ability to have additional signage within multiple zones. The proposed Ordinance utilizes a table to show the different sign types available, what zones they can be used in, and development standards. The following is a quick synopsis of what is proposed in the draft ordinance.

Proposed Permanent Signage Regulations Awning Signs

• Previously not allowed. • Allowed in all commercial and

industrial zones. • One per business or tenant. • Cannot exceed 50 percent of awning

coverage.

A-Frame Sign in Public ROW


Proposed Permanent Signage Regulations Free Standing Sign

• Allowed in all commercial zones, industrial zones, Public Facilities, and Urban Reserve zones.

• One per property. • Maximum 6-foot height. • Maximum of 36 s.f. • “Pole” signs would be prohibited. • Eliminate cabinet or “box” signs in

pedestrian oriented zones (CVS, VS, CBO, and CB zones), which will create non-conforming signs

• Additional sign area allowed for businesses adjacent to Hwy. 101 and on West Grand Avenue east of 14th Street.

Projecting Sign

• One per property. • May encroach into public right-of-way. • May be used in conjunction with other

signage. • Maximum of 15 s.f.


Proposed Permanent Signage Regulations Suspended Sign

• One per business or tenant. • May be used in conjunction with other

signage. • May encroach into public right-of-way • Maximum of 10 s.f.


Proposed Permanent Signage Regulations Wall Sign

• One per business or tenant. • An additional wall sign may be

permitted on a street frontage wall/corner lot condition or building face that is visible from the public right-of-way.

• May not exceed one s.f. per lineal business/building frontage, eliminating cumbersome sign calculation based on building frontage face.

There are two changes that would make some permanent signs become nonconforming, or inconsistent with the proposed Ordinance. Consistent with Council direction in April 2018, staff is proposing the elimination of pole signs for all commercial and industrial zones. Currently there are approximately 16 pole signs and five cabinet box free standing monument signs that would become non-conforming based on the proposed ordinance. However, all of these nonconforming signs could continue to be utilized, but they could not be replaced, and would need to come under the new freestanding signage regulations if modified. Second, cabinet box signs are proposed to be eliminated for walls signs within the four pedestrian oriented zones along West Grand Avenue from Highway 1 to 14th Street (i.e., CVS, VS, CB, and CBO). This would affect approximately 50 cabinet box signs within this area. Similar to the pole signs, businesses would be able to continue to utilize the cabinet box sign and change the sign faces; however, new box sign installation would be prohibited on existing buildings and new development. The intent of both of these revisions is to improve the aesthetic character of the city, especially along West Grand Avenue from Highway 1 to 14th Street. The proposed changes would provide an improvement in the appearance and quality of signs and reduce the heights to be more pedestrian scale consistent with the West Grand Avenue Master Plan.


3.60.100 Special Consideration Signage While the proposed Ordinance attempts to address the majority of signage utilized throughout the city, staff has identified some signage that may be appropriate for unique situations. These signage types include the following:

• Changeable copy signs (letter boards); • On-site directional signs such as signs utilized to direct drivers to a drive-thru; • Off-site residential signs, typically connected with large subdivisions and multi-family

projects to direct future leases or buyers to the proposed housing project; • Residential identification signs typically completed with large subdivision or multi-family

projects; • Recognizing existing freestanding monument signs east of 14th Street along West Grand

Avenue as a major commercial corridor that should have special considerations for monument signage based on the size of existing development.

Similar to permanent and temporary signage, development standards including height, number of signs, and other information is included in this section. 3.60.110 Non-Conforming Signage This section discusses non-conforming signs. The proposed Ordinance revisions will create non-conforming signage around the City including pole signs, roof signs (12 total), and cabinet signs. The non-conforming signs would be allowed to be utilized and may be restored if damage is less than 50 percent. Essentially, existing signs may remain and will not be required to be replaced or removed. 3.60.120 Signs on City Property This statement allows for removal of any sign that is placed on City property or within its right-of-way.

Example of Cabinet Box Wall Signs along West Grand Avenue

Staff Report: Sign Ordinance Amendment Page 17 October 7, 2019 Chapter 9 Revisions A new section would be added to Chapter 9 Definitions (reference Attachment 1) to cover new definitions added based on the proposed ordinance. Chapter 6 Temporary Use Permit Revisions The temporary use permit section is proposed to be amended in order to allow for off-site residential subdivision signs. While these signs are rarely seen here in the City due to the lack of large tracts or apartments being constructed, this revision would allow such signs when associated with a temporary use permit for an on-site sales office and model homes. Local Coastal Program Amendment The ordinance would amend Chapters 3 and 9 of the Development Code (Article IX of the Municipal Code). Development Code Section 1.20.060 identifies all chapters and sections that constitute the ordinances for the implementation of the City’s Local Coastal Program (LCP) in compliance with the Coastal Act. Therefore, any amendment to Chapters 3 and 9 of the Development Code requires an LCP Amendment. An LCP Amendment requires the Coastal Commission’s approval prior to the Ordinance taking effect in the Coastal Zone. Staff has reviewed the proposed LCP Amendment with the policies in Chapter 3 of the Coastal Act and has determined that the Ordinance would have no effect on public access, recreation, environmentally sensitive habitat areas, or other coastal resources. The majority of the city is a distance from the beach and direct access is impaired by the railroad tracks. The proposed Ordinance would not change the kind, location, intensity, or density of the uses. The Ordinance is consistent with the existing policies of the LCP and is internally consistent with the current Development Code. Staff has contacted Coastal Commission staff regarding the proposed LCP Amendment and provided the draft Ordinance. Coastal staff has not expressed any concerns regarding the proposed amendment. Upon final adoption of the ordinance by the Council, staff would forward the LCP Amendment to the Coastal Commission for review. Coastal Commission staff estimates it will take approximately two months for formal approval by the Coastal Commission upon final action by the Council. Implementation of New Sign Ordinance With any proposed ordinance change that affects the way businesses attract customers, working with existing business owners is important. Staff is recommending that upon adoption of the new sign ordinance and Coastal Commission approval in December 2019, the following business outreach would occur to ensure a smooth transition and participation from the business community:

• Create a signage handbook and quick handout for new businesses and existing businesses to better understand the new ordinance;

• Visit businesses in January 2020 to educate them on the new sign ordinance by providing the handouts and identify signs that are not in compliance.

• Allow for a 90-day timeframe for businesses to voluntarily comply with the new sign ordinance, especially for temporary signage.

Staff will also bring back an amendment to the Master Fee Schedule to address revisions to the sign review and building permit fees.

Off-site Subdivision Sign

Staff Report: Sign Ordinance Amendment Page 18 October 7, 2019 Environmental Review This action is not a project within the meaning of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.) Section 15378(b)(5) and is therefore exempt from CEQA because it will not result in any direct or indirect physical changes in the environment. ALTERNATIVES The City Council has the following alternatives to consider:

1. Conduct second reading and approval of the ordinance to repeal Section 3.6 of Chapter 3 of Article IX Development Code, and adding a new Section 3.6 of Chapter 3 of Article IX, adding Section 9.10.050, signage definitions to Chapter 9 of Article IX of the Grover Beach Municipal Code, amending Section 6.20.080 of Article IX Development Code and approve a Local Coastal Program amendment related to sign regulations;

2. Provide alternative direction to staff. PUBLIC NOTIFICATION On September 26, 2019, a one-eighth page public hearing notice was published in the New Times. The agenda was posted in accordance with the Brown Act and a notice was sent to all business owners within the City of Grover Beach. ATTACHMENTS 1. Revised Sign Ordinance 2. Draft LCP Amendment 3. Planning Commission Minutes June 26, 2019 4. Open House Sign Survey – Pismo Coast Association of Realtors

Attachment 1

ORDINANCE NO. 19-__

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA REPEALING SECTION 3.60 OF CHAPTER 3 OF ARTICLE IX DEVELOPMENT CODE, AND ADDING A NEW CHAPTER OF ARTICLE IX DEVELOPMENT CODE, AND ADDING, SECTION 9.10.050, SIGNAGE DEFINITIONS TO CHAPTER 9, OF ARTICLE IX, DEVELOPMENT CODE, OF THE GROVER BEACH MUNICIPAL CODE

WHEREAS, the City of Grover Beach is a General Law city organized pursuant to Article XI of the California Constitution; and WHEREAS, pursuant to the authority granted the City by Article XI, Section 7 of the California Constitution, the City has the police power to adopt regulations designed to promote the public convenience or the general prosperity, as well as regulations designed to promote the public health, the public morals or public safety; and WHEREAS, comprehensive zoning and land use regulations lie within the City’s police power; and

WHEREAS, the City Council has initiated an amendment to the City’s signage regulations; and WHEREAS, the amendments are not a project within the meaning of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.) Section 15378 because the amendments will not result an direct or indirect physical change in the environment and does not involve an irrevocable commitment of resources by the City; and

WHEREAS, this Code amendment requires a Local Coastal Program Amendment; and

WHEREAS, the Planning Commission held public hearings on June 26, 2019 and September 10 and recommended the City Council approve the Development Code and Local Coastal Program amendments; and

WHEREAS, the City Council conducted an introduction and first reading of the Development Code amendment and Local Coastal Program amendments on September 16, 2019; and;

WHEREAS, the City Council conducted a public hearing and second reading and adoption

of the Development Code amendment and Local Coastal Program amendments on October 7, 2019; and NOW THEREFORE, BE IT HEREBY ORDAINED BY THE CITY COUNCIL OF THE CITY OF GROVER BEACH AS FOLLOWS: PART 1. Article IX Development Code, Section 3.60 Sign Regulations is hereby deleted in its entirety and replaced with the following:

Ordinance No. 19-__ Page 2

Chapter 3: Standards for All Development and Land Uses

3.60 Sign Regulations

Sections:

3.60.010 - Purpose 3.60.020 - Applicability 3.60.030 - Exempt Signs 3.60.040 - Prohibited Signs 3.60.050 - Application Requirements 3.60.060 - Signage within the Coastal Zone 3.60.070 - Requirements for All Signage 3.60.080 - Temporary Signs 3.60.090 - Permanent Signs 3.60.100 - Special Consideration Signs 3.60.110 - Nonconforming Signs 3.60.120 - Signs on City Property

3.60.010 Purpose

A. The purpose of this Section is to promote public safety and welfare by regulating signs in keeping with the following objectives:

1. The design, construction, installation, repair and maintenance of signs will not interfere with traffic safety or otherwise endanger public safety;

2. Regulations established by the City Council will provide reasonable protection to the visual environment by controlling the size, height, spacing, and location of signs;

3. That residents, visitors, and sign users will benefit from signs having improved legibility, readability, and visibility; and

4. Adequacy of message opportunities will be applicable to sign users without dominating the visual appearance of the area.

3.60.020 Applicability

A. This Section applies to all signs including on-site signs, off-site signs, and temporary signs within the City.


B. No person shall install, alter, or relocate any sign within the City without first meeting requirements of Section 3.60.050 (Application Requirements) unless otherwise exempt consistent with Section 3.60.030.

C. Nothing in this Section shall be construed to prohibit a person from holding a sign while picketing or protesting on City property and/or right-of-way that is open to the public, so long as the person holding the sign does not block ingress and egress from buildings, create a safety hazard by impeding travel on sidewalks, in bike or vehicle lanes, or on trails, or violate any other reasonable time, place, and manner restrictions adopted by the City.

D. This Section is not intended to, and does not, restrict speech on the basis of its content, viewpoint, or message. No part of this Section shall be construed to favor commercial speech over non-commercial speech.

E. A non-commercial message may be substituted for any commercial message displayed on a sign, or the content of any non-commercial message displayed on a sign may be changed to a different non-commercial message, without the need for any approval or permit, provided that the size, and location of the sign is not altered. The purpose of this provision is to prevent any inadvertent favoring of commercial speech over non-commercial speech or favoring of any particular non-commercial message over any other non-commercial message. To the extent any provision of this Section is ambiguous, the term shall be interpreted not to regulate on the basis of the content of the message. This provision prevails over any more specific provisions to the contrary.

F. Where a particular type of sign is proposed in a permit application, and the type is not expressly allowed, restricted, or prohibited by this Section, the Review Authority shall approve, conditionally approve, or deny the application based on the most similar sign type that is expressly regulated by this Section.

G. Where a sign may be subject to multiple provisions of this Section 3.60 (Sign Regulations) because it may be considered to fall within more than one of the sign type definitions of Section 9.10.50 (Signage Definitions), the sign shall comply with the most restrictive requirements.

3.60.030 Exempt Signs

A. Types of exempt signage. The sign types listed below are exempt from the requirement of a Sign Permit, Registration, and Program, and any corresponding fees provided that the sign is consistent with the standards of Section 3.60. The size and placement standards set forth in subsequent Sections shall be adhered to in order for such sign to qualify as exempt. However, any sign listed below that requires a Coastal Development Permit as provided in Section 3.60.060 shall not be exempt.

1. Any sign, posting, notice, or similar signs placed, installed, or required by law by the City, local school districts, Federal, or State governmental agency.


2. Official Government Flags.

3. Flags. Flags displaying either a commercial or non-commercial message are permitted as follows: one flag not to exceed 10 square feet in size in residential zones, and one flag not to exceed 24 square feet in commercial and industrial zones.

4. Business information signs. Non-illuminated signs which provide business information including, but not limited to, credit card acceptance, business hours, open/closed, or menus provided signs do not exceed an aggregate six square feet in sign area.

5. Special event decorations that display non-commercial messages may be in place up to 45 days per event, except for signs listed in Section 3.60.040.

6. Signs affixed to a vehicle through magnets, vinyl application, or other forms of permanent adhesive. Such signage shall not be a banner, board, paper, wood material, or any temporary sign and shall not project or deviate above or from the vehicle profile.

7. Art murals displaying a non-commercial message and does not include any registered trademarks, logos, etc. that promotes a commercial product or service.

8. Temporary off-site directional signs for limited duration events, placed on private property with permission of the property owner, a maximum of two hours before and one hour after the conclusion of an event. Events are limited to a maximum of three events per week. Maximum sign area is five square feet.

9. Non-commercial message signage with a maximum aggregate of three-square feet for each residence or business in all zones, except in the OS zones.

10. Temporary yard signs.

11. Temporary projected image signs.

12. Temporary window signs.

13. Directory signs affixed to a building.

3.60.040 Prohibited Signs

A. The following sign types are prohibited within the City.

1. Off-site signage unless expressly authorized by this Section 3.60.

2. Abandoned signs.

3. Signs that simulate in color or design any traffic sign or signal, or which makes use of words, symbols, or characters in such a manner to interfere


with, mislead, or confuse pedestrian or vehicular traffic, including signage that is highly reflective.

4. Digital display/LED messaging signs including animated, moving, flashing, blinking, reflecting, glaring, or revolving, or any other similar sign, except electronic message boards displaying time, temperature, or required prices of gasoline or similar fuels.

5. Backlit, translucent, semi-transparent and illuminated awnings from a light source under or within the awning.

6. Roof signs.

7. Snipe signs or any other sign attached to a tree, utility pole, fence post, etc.

8. Inflatable signs, including but not limited to air-activated graphics.

9. Feather flag signs.

10. Signs, including non-commercial signs that are placed or encroach into the right-of-way without a valid encroachment permit issued by the City Engineer.

11. Signs emitting audible sounds, odors or particulate matter.

12. People signs except human signs used as in-person protest picketing.

13. Mobile signs that utilize the parking of off-site mobile billboard advertising displays for the direct purpose of advertising a business off-site, as defined herein, either standing alone, or attached to a motor vehicle, upon any public street, City owned land, or on private property.

14. Billboards.

15. No sign shall be located within the sight triangle as defined in Section 3.10.030 of the Development Code.

3.60.050 Application Requirements

A. Applicability.

1. Sign Registration.

a. A Sign Registration is required for temporary A-frame and banner signs as specified in this Section and shall be submitted and approved by the Director prior to installation of the sign.

2. Sign Permit.

a. A Sign Permit is required for all signs unless otherwise specified in this Section and shall be submitted and approved by the Director prior to installation of the sign.

3. Sign Program.


a. A Sign Program is required as specified in this Section or modifications are requested for exceptions to the requirements of this Section. This can be approved in conjunction with other development applications.

b. A Sign Program shall require approval of a Use Permit consistent with Section 6.20.060.

c. As part of a Sign Program approval, exceptions may be granted to the standards of this Section if the findings can be made as required in Subsection 3.60.050.C.

B. Procedures.

1. Application requirements. An application for a Sign Registration, Sign Permit, or Sign Program shall be filed on the form(s) provided by the Department, together with all required fees and all other information and materials specified by the application submittal requirements provided by the Department. It is the applicant’s responsibility to provide evidence to support any required findings.

2. Other permits required. In addition to the requirements of this Section, all signs shall be in compliance with applicable requirements of the California Building Code and any additional permits or requirements.

3. Review authority. Table 3.4 identifies the Review Authority responsible for reviewing and making a decision on each type of sign approval.

Table 3.4 – Review Authority

Type of Action Director Commission Council

Sign Registration Decision Appeal Appeal

Sign Permit Decision Appeal Appeal

Sign Program Recommendation Decision Appeal

C. Findings. The Planning Commission may approve a Sign Program, only after making the following findings:

1. There are special circumstances applicable to the property including size, shape, topography, location, surroundings, building placement, public access or architectural style that warrant modified standards.

2. The sign is in substantial compliance with any applicable design guidelines and Sign Design Subsection 3.60.070.C.

3. The sign’s design or proposed construction will not threaten the public health, safety, or welfare.


3.60.060 Signage within the Coastal Zone

Within the Coastal Zone, new signs shall be of a size, location, and appearance so as not to detract from scenic areas or views from public roads and other public viewing points. A Coastal Development Permit is required for any sign that could impact public recreational access, including parking opportunities near beach access points or parklands, including any changes in parking timing and availability, and any signage indicating no public parking, no trespassing, and/or no public coastal access allowed. Coastal Development Permits for signs shall be consistent with all applicable Local Coastal Program standards.

3.60.070 Requirements for All Signage

A. Sign Message.

1. Allowed signage may contain commercial or non-commercial message, provided that the sign complies with the size, height, area, location, and other requirements of this Section.

B. Sign Measurement Criteria. The measurement of sign area and height shall be regulated as follows:

1. Sign area. The area of a sign is calculated by enclosing the extreme limits of all framing, emblem, logo, representation, writing, or other display composed of squares or rectangles with no more than eight (8) lines as shown in Figure 3.6.

Figure 3.6 – Sign Area Calculations

2. Sign structure. Supporting sign frame and support structures that are incidental to the display itself shall not be computed as sign area.

3. Double-sided signs. The area of a double-sided sign that has no more than 24 inches separating the outer surfaces of the sign’s two parallel planes shall be computed by multiplying the total height by the total length of only one side of the sign area.

4. Three-dimensional objects. Where a sign consists of one or more three dimensional objects (e.g., balls, cubes, clusters of objects, sculpture, or


statue-like trademarks), the sign area is measured at their maximum projection upon a vertical plane.

5. Multiple objects. When signs are composed of individual elements, the area of all sign elements, which together convey a single complete message, are considered a single sign as shown in Figure 3.7

Figure 3.7 – Multiple Objects

6. Height. Sign height is measured as the vertical distance from the highest elevation of the finished grade below or surrounding the base of the sign to the top of the highest element of the sign. In cases where substantial fill is proposed, “finished grade” shall be established by the Director, consistent with properties in the immediate vicinity, and shall not be artificially raised to gain additional sign height. If highest finished grade surrounding the sign is lower than the grade of an adjacent street, the height of the sign shall be measured from the top of curb elevation nearest to the sign as shown in Figure 3.8

Figure 3.8 – Sign Height

C. Sign design, materials, and illumination. All signs shall be designed and constructed in compliance with the following standards:

1. Design and construction.


a. Signs shall be in compliance with all applicable Council adopted design guidelines and standards.

b. The size of the structural elements (e.g., columns, crossbeams, and braces) shall be proportional to the sign type they are supporting.

c. Signage shall be designed so that it is integrated with the design of a building.

d. Signs shall be securely attached to a building, structure or ground.

e. Freestanding signs utilizing bases shall be a minimum of one foot in height with a maximum height of three feet. Bases shall be decorative and located in a landscape planter.

2. Materials.

a. Sign materials including framing, supports, and base, shall be compatible with the type and scale of materials used in the building’s design.

b. Sign materials shall be durable and capable of withstanding weathering over the life of the sign with reasonable maintenance.

c. Use of raceways to place signage shall be painted to match the building color.

3. Illumination.

a. Lighting for signs shall not create a hazardous glare for pedestrians or vehicles.

b. The light source shall be shielded from view, except for diffused exposed neon.

c. Externally illuminated signs shall utilize focused light fixtures that are directed towards the sign.

d. Signs shall be designed so that illumination does not exceed 10 foot candles (100 lumens) measured at a distance of 10 feet from the sign.

e. Signs in commercial and industrial zones with building elevations that directly face adjacent residential zones shall not be illuminated.

D. Sign Maintenance. All signs shall be continuously maintained in compliance with the following standards:

1. Each sign and supporting hardware shall be maintained in good repair so that it is able to function properly at all times. This includes the replacement of burned out or broken light bulbs, and repair or replacement of faded, peeled, cracked, or otherwise damaged parts of a sign.

2. Any repair to a sign shall be of materials and design of equal or better quality as the original sign.

3. Signs that have been physically damaged by weather or physical impact shall be repaired.


4. When an existing sign is replaced, all brackets, poles, and other supports that are no longer required shall be removed.

3.60.080 Temporary Signs

A. Purpose. The purpose of these regulations is to ensure that temporary signs do not create a distraction to the traveling public or cause visual blight to the aesthetic environment.

Figure 3.11 – Temporary Signs

B. Temporary signs allowed. The following temporary signs are allowed:

1. A-Frame signs.

a. Zones allowed. Allowed in commercial zones, industrial zones, Recreational, Education, and Public uses in the Public Facilities zone as defined in Section 2.50.020, and Urban Reserve zone.

b. Maximum sign area. Six square feet. c. Number of signs. One per business. d. Sign height. Minimum sign height of two feet. Maximum sign height of

five feet. e. Location. A-frame signs shall be placed on private property and cannot

interfere with pedestrian ingress or egress as required by the Building Code. A-frame signs are strictly prohibited in the right-of-way.

f. Time of display. A-frame signs shall only be displayed during the hours of business operations.

2. Banner signs.

a. Zones allowed. Allowed in commercial zones, industrial zones, Recreational, Education, and Public uses in the Public Facilities zone as defined in Section 2.50.020, Recreational, Education, and Public uses in residential zones as defined in Section 2.20.030, and Urban Reserve zone.

b. Maximum sign area. 24 square feet. c. Number of signs. One per business. d. Location. Shall not be located above a first story or located on roof. e. Time of display. May be in place a maximum of 30 consecutive days.

Once removed, a minimum of 30 consecutive days must pass before installing a new banner sign.


3. Projected image signs.

a. Zones allowed. Allowed in commercial zones and industrial zones. b. Number of signs. One projected image sign per business. c. Projected image signs may be in place a maximum of 30 days. A

minimum of 30 consecutive days must pass before installing a new projected image sign.

d. Time of display. Only be displayed during the hours of business operation.

4. Window signs. Window signage is considered graphics, lettering, or

perforated window film on windows visible from the right-of-way. a. Zones allowed. Allowed in commercial zones, industrial zones,

Recreational, Education, and Public uses in the Public Facilities zone as defined in Section 2.50.020, and Urban Reserve zone.

b. Maximum sign area. Window signs shall not exceed 50 percent of window area, except for properties in the CVS, VS, CB and CBO zones, where window signs shall not exceed 33 percent of window area.

c. Location. Shall not be located above a first story window. d. Time of display. May be in place a maximum of 180 consecutive days.

Once removed, a minimum of 30 consecutive days must pass before installing a new temporary window sign.

5. Yard Signs in residential zones.

a. Maximum sign area. Three square feet. b. Number of signs. One per property or residential unit when multiple units

are located on one common lot. Residential developments with a common lot are allowed a maximum of one yard sign per unit during an event on the common lot, with permission of the common lot ownership.

c. Maximum height. Six feet as measured from average natural grade. d. Location. May be located within the front and street side setback, behind

the back of sidewalk or curb if no sidewalk is present. In no instance may a yard sign be placed on a sidewalk, public or private street.

e. Time of display. All yard signs shall be temporary and only placed during an event subject to the following:

i. Event. Yard signs may be placed prior to an event, but must be removed within seven days after the event or purpose for which the sign is erected. For purposes of example only, a political sign shall be removed within seven days after an election. A yard sign that designates a sale or rental of a property would be required to be removed within seven days after the property is sold, leased or rented. A sign for an on-site sales event shall be removed within seven days after the event.

6. Yard signs in commercial zones, industrial zones, Public Facilities zone, and

Urban Reserve zone.


a. Zones prohibited. Yard signs are prohibited in Open Space zones. b. Maximum sign area. 32 square feet. c. Number of signs. One per business. d. Maximum Height. Six feet. e. Location. Must be located on private property and shall not encroach

within the right-of-way (streets, sidewalks, easements, etc.). f. Time of display. All yard signs shall be temporary and only placed during

an event subject to the following: i. Event. Yard signs shall be placed prior to an event but must be

removed within seven days after the event or propose for which the sign is erected. For purposes of example only, a political sign shall be removed within seven days after an election. A real estate sign shall be removed within seven days after the property is sold, leased or rented. A sign for on-site sales event shall be removed within seven days after the event.

6. Yard Sign Exceptions. The following are exceptions to yard signage standards in all zones, excluding Open Space zones, for all properties or multiple units/tenants located on one common lot, 60 days prior to a federal, state, or local election and up to seven days after an election:

a. Maximum sign area. Total sign area shall not exceed an aggregate of 32 square feet in addition to other allowed yard signs.

B. General to Temporary Signage requirements. Temporary signs are allowed only in compliance with the provisions of this Section 3.60 and shall not have any attachments, including, but not limited to, balloons, pennant flags, ribbons, loudspeakers, or other items to attract attention.

3.60.090 Permanent Signs

Signs shall comply with the standards provided in this Section. The purpose of these regulations is to ensure that permanent signs serve a common purpose to promote, identify, and provide information on a business or commercial activity located on the premise.


3.10 – Typical Building Sign Types

A. Permanent Sign Standards. As listed in Table 3.5, signs shall comply with the following standards applicable to the specific sign type.

Table 3.5 – Sign Type Performance Standards

Sign Type Zones Allowed

Max. Sign Area1

Number of sign(s) permitted

Max. Height

2 Special Requirements

1. Awning Commercial zones, Industrial zones, PF zone,

and UR zone

One square foot per one lineal foot of

awning canopy, not to exceed 50%

coverage of the awning

One per business or tenant

Not above

first story

(a) Minimum vertical clearance from the ground of eight feet.

(b) May project a maximum of five feet into the right-of-way with approved encroachment permit.

(c) Valance limited to 75% maximum coverage.

2. Free Standing

Commercial zones, Industrial zones PF zone, and UR zone

36 s.f.

One per property

Six feet (a) New cabinet type signs shall be prohibited in the CVS, VS, CB, and CBO zones.

(b) A singular pole, whether circular or rectangular is prohibited.

(c) In the CVS and RC zones properties with frontage along El Camino Real are allowed one freeway oriented free-standing monument sign as follows: • Maximum height shall not

exceed 40-feet for freestanding monument signage.

• Total sign area shall not exceed 100 square feet.

3. Projecting Commercial zones, Industrial zones, PF zone,

and UR zone

15 s.f. One per public street

frontage

20 feet above

finished grade

(a) May encroach up to two feet within the right-of-way with issuance of an encroachment permit.

(b) Sign shall be perpendicular to the building or wall.

(c) Sign may be at an angle if located at the corner of a building located on a corner lot.


Table 3.5 – Sign Type Performance Standards

Sign Type Zones Allowed

Max. Sign Area1

Number of sign(s) permitted

Max. Height

2 Special Requirements

4. Suspended Commercial zones, Industrial zones, PF zone,

and UR zone

10 s.f. One per business or tenant

Not above

first story

5. Wall Commercial zones, Industrial zones PF zone, and UR zone

One square foot per lineal

foot of business/ building frontage

One per public street

frontage

Based on

building height

(a) Business frontage is the lineal front of owned or leased space.

(b) Wall signs shall be located below the top of the parapet or roofline on single story buildings and below the second-floor sill on multi-story buildings.

(c) Cabinet type signs shall be prohibited in the CVS, VS, CB, and CBO zones.

(d) An additional wall sign may be permitted for a business that has an additional building face visible from the right-of-way.

(e) The sign’s size shall be in scale and proportion to the building.

6. Permanent Window Signs/

7. Lettering

Commercial zones, Industrial zones PF zone,

and UR zone

50 percent of window area, except CVS, VS, CB and CBO zones

33 percent of

window area in CVS, VS, CB,

and CBO zones

One per business or tenant

Not above

first story

(a) Limited to lettering, graphics, and perforated window film.

(b) Window area is aggregate of both temporary and permanent signage.

Notes: 1. Maximum sign area measured in square feet (s.f.). 2. Maximum height measured in feet (ft) and from finished grade for all sign types.

3.60.100 Special Consideration Signs

A. Signs with special consideration. This Section applies to permanent signs that are unique, or for sites located in specific locations, or based on size of sites.

1. Changeable copy signs.

a. Zones allowed. Commercial zones, industrial zones, and Recreational, Education, and Public uses in residential zones as defined in Section 2.20.030.

b. Number of signs. One per property.

c. Maximum height. Six feet.


d. Design standards. Signs shall comply with design standards in Section 3.60.070.C.

e. Permit requirements. A Sign Program shall be approved by the Planning Commission.

2. Site Directional/Wayfinding signs.

a. Zones allowed. Commercial and Industrial zones.

b. Maximum height. Five feet.

c. Design standards. Signs shall comply with design standards in Section 3.60.070.C.

d. Permit requirements. A Sign Program shall be approved by the Planning Commission.

3. Residential Identification Signs.

a. Zones allowed. All residential zones.

b. Maximum sign area. 24 square feet.

c. Maximum sign height. Six feet.

d. Number of signs. One per street frontage.

e. Minimum number of units. A minimum of five units are required for installation of residential identification signs.

f. Design standards. Signs shall comply with design standards in Section 3.60.070.C.

g. Permit requirements. A Sign Permit shall be approved by the Director.

4. Free Standing Monument Sign Exception. In the RC zone east of 14th Street with frontage along West Grand Avenue exceptions to Section 3.60.090 are allowed as follows:

a. Properties less than 20,000 square feet with more than three tenants. One free standing monument sign per street frontage with a maximum height of 10 feet not exceeding 60 square feet is permitted.

b. Properties greater than 20,000 square feet. One free standing monument sign per street frontage with a maximum height of 15 feet not exceeding 120 square feet is permitted.

c. Permit requirements. A Sign Program shall be approved by the Planning Commission.

3.60.110 Nonconforming Signs

A. Applicability. This Section applies to any permanent sign, including its physical structure and supporting elements, which was lawfully erected and maintained


in compliance with all applicable laws in effect at the time of original installation, but which does not currently comply with the provisions of this Section.

B. Allowed modifications to nonconforming signs. The following modifications to nonconforming signs are allowed:

1. The use of a nonconforming sign may continue and shall be maintained in good condition as required by this Section, unless provided otherwise.

2. Sign copy and sign face changes, non-structural modifications, and non-structural maintenance (e.g., painting and rust removal) are allowed if there is no alteration to the physical structure or support elements of the sign.

3. A non-conforming sign may be restored to its original condition if less than 50 percent of the sign is damaged, provided that the restoration is started within 90 days of the damage occurring and diligently completed. A nonconforming sign is deemed to be more than 50 percent damaged, if the estimated cost of re-construction or repair exceeds 50 percent of the replacement cost as determined by the Director based on an appraisal prepared by the owner.

C. Prohibited modifications to nonconforming signs. A nonconforming sign shall not be:

1. Changed to another nonconforming sign;

2. Structurally altered to extend its useful life;

3. Altered unless required by law or unless the alteration results in the elimination of the nonconformity;

4. Enlarged; or

5. Moved or replaced.

D. A nonconforming sign shall be removed or modified to comply with this Section if the following occurs:

1. Any modifications prohibited by Subsection 3.60.110.C are made to the sign;

2. The sign is temporary; or

3. The sign is or may become a danger to the public or is unsafe.

3.60.120 Signs on City Property

A. Any sign placed on property owned by the City, or within the right-of-way of a dedicated public street without the permission of the City may be removed by the City without prior notice.


PART 2. Article IX Development Code, Section 9.10.050 Sign Regulation Definitions is

hereby added as follows:

Definitions

Sections: 9.10.010 - 9.10.020 - 9.10.030 - 9.10.040 - 9.10.050 – Sign Regulation Definitions

9.10.050. Sign Regulation Definitions

For the purposes of Section 3.60, Sign Regulations, the following definitions shall apply:

Abandoned Sign. Any lawfully erected sign that, for a period of 180 days or more, no longer advertises or identifies an ongoing business, activity, product, service, or other use available on the premise where the sign is located.

A-frame Sign. A freestanding portable sign ordinarily in the shape of an “A” or some variation thereof, which is readily moveable and not permanently attached to the ground or any structure; also referred to as a sandwich board sign.

Alteration. Any change of size, shape, illumination, position, location, construction or supporting structure of an existing sign.

Animated Sign. A sign with action or motion, rotating, flashing or color changes.

Art Mural. A non-commercial message that does not use an image, logo, or trademark to promote a commercial product or service and therefore not subject to sign ordinance regulations.

Awning Sign. A covering attached to the exterior wall of a building. It is typically composed of canvas woven of acrylic, cotton or polyester yarn, or vinyl laminated to polyester fabric that is stretched tightly over a light structure of aluminum, iron or steel, possibly coot or transparent material.

Banner Sign. A temporary sign composed of cloth, canvas, plastic, fabric, or similar lightweight, non-rigid material that can be mounted to a structure with cord, rope, cable, or a similar method.

Base. Constructed of material such as wood, steel, aluminum, concrete block, brick or other types of materials that support a solid freestanding sign structure.

Building Face. Any exterior elevation of a building.

Building Frontage. The width of a building occupied by a single business tenant that fronts on a public street where customer access to the building is available. Width is measured as the widest point on an architectural elevation.


Business Information Sign. Signs that are a part of a business operation that are non-illuminated signs that provide business information including types of purchase methods accepted such as credit card, business hours, menus, and other informational signs that pertain to the business.

Cabinet Sign. Also referred to as “can sign”. A sign that contains all the text and/or logo symbols on the display face of an enclosed cabinet, where text is static and non-digitally displayed. Cabinet signs typically are internally illuminated with sign faces transparent to be visible during evening hours.

Canopy Sign. Any sign that is part of a projecting awning, canopy, or other fabric, plastic, or structural protective cover over a door, entrance or window or outdoor service area, or otherwise attached to a building face.

Changeable Copy Sign. A sign with changeable copy, regardless of the method of attachment or the materials of construction, that is non-digital.

Commercial Message. Any wording, logo or other representation that, directly or indirectly, names, advertises or calls attention to a commercial or industrial business, product, good, service or other commercial or industrial activity.

Commercial Sign. Any sign with wording, logo, or other representation that, directly or indirectly, names, advertises, or calls attention to a business, product, service, or other commercial activity.

Commercial Zones. Commercial zones include the following zones: OP, NC, CB, CBO, VS, CVS, RC, CC, and CGC.

Digital Display. The portion of a sign message made up of internally illuminated components capable of changing a message periodically. Digital displays may include but not limited to LCD, LED, plasma, or high intensity displays (hid).

Directional Sign. Signage that directs pedestrians or drivers to locations such as parking, drop off, or other wayfinding elements.

Directory Sign. A sign less than 8 square feet that directs pedestrians or visitors to tenants within a multi-tenant building.

Event. An occasion, gathering, or activity that is temporary in nature and has a set start time and end time. An example of an event includes but not limited to a sale or rental of a property, an “open-house” for the sale or rental of a property, a religious gathering, a federal/state/local election, garage or yard sale, etc.

Flag. A device, generally made of flexible materials, usually cloth, paper or plastic, usually used as a symbol of a government, school, or religion, corporation, or other lettering or symbols, and may contain either a not containing a commercial message or non-commercial message.

Foot Candle. A unit of illuminance or illumination, equivalent to the illumination produced by a source of one candle at a distance of one foot and equal to one lumen incident per square foot.


Freestanding Sign. Any sign supported by structures or supports that are placed on, or anchored in, the ground which are independent from any building or other structure. These signs are also known as monument signs, and pylon signs.

Feather Flag. Also known as a blade sign, teardrop sign, or similar type of temporary signage that is constructed of cloth, canvas, plastic fabric, or similar lightweight, non-rigid material and that is supported by a single vertical pole mounted into the ground or portable structure for means of advertising.

Illegal Sign. Any sign erected without complying with all ordinances and regulations in effect at the time of its construction and erection or use.

Illuminated Sign. Any sign employing the use of lighting sources for the purpose of decorating, outlining, accentuating or brightening the sign area.

Industrial Zones. Industrial zones include the following zones: I, CI, and CIC.

Inflatable Sign. Any air or gas filled device located, attached, or tethered to the ground, site, merchandise, building, or roof and used for the purpose of signage, advertising or attention-getting.

Legal Nonconforming Sign. A sign which was legal when first erected, with all necessary permits, but due to a change in the law it became nonconforming (inconsistent with the current requirements of this Section).

Lumen. A unit equal to the light emitted in a unit solid angle by a uniform point source of one candle intensity.

Mobile Sign. The use of a moving trailer, automobile, truck, or any other vehicle to display commercial or noncommercial messages primarily for advertising purposes unrelated to the principal use of such vehicle.

Multi-Faced Sign. A sign with two or more sign faces where any two sign faces are oriented such that they have an interior angle of greater than forty-five (45) degrees from each other.

Noncommercial Signage. Any signage which is not determined to be commercial signage, as defined herein.

Noncommercial Message. Any wording, logo or other representation that does not directly or indirectly, name, advertise or calls attention to a commercial or industrial business, product, good, service or other commercial or industrial activity.

Off-Site Sign. Signage that is not located on the same legal lot of the business, accommodations, services, or commercial activity served by the sign. In commercial centers where there are multiple legal lots that comprise a commercial center and there is an agreement that allows the use of the sign by the business.

Off-Site Directional Sign. Signs displaying direction to a limited duration event that is located off-site and not located within the public right-of-way.

On-Site Sign. A sign advertising the business, accommodations, services or commercial activities provided on the site on which the sign is located.


Open Space Zones. Open spaces zones include the following zones: COS, OS, CVB, CPB and PR.

People Sign. A person, live or simulated, who is attired or decorated with insignia, images, costumes, masks, or other symbols that display commercial messages with the purpose of drawing attention to or advertising for an on-premise activity. Such person may or may not be holding a sign. Also known as human mascots, sign spinner, or walking signs.

Perforated Window Film. A calendared adhesive-backed PVC vinyl that contains pattern of round, evenly spaced holes that allow graphics printed on a glass surface, such as windows, to be seen from the outside, but appear invisible from the inside building space.

Permitted Sign. Signs permitted pursuant to Section 3.60.

Pole Signs. A sign wholly supported by a singular shape and separated from the ground by air.

Portable Sign. Any freestanding, moveable sign.

Projection. A sign that extends beyond the building wall, where the horizontal sign face is not parallel to a building wall.

Projecting Sign. A sign which projects more than two (2) feet from the exterior face of a building wall or facade and which uses the building wall as its primary source of support.

Projected Image Sign. A sign which involves an image projected on the face of a wall, structure, sidewalk, or other surface from a distant electronic device such that the image does not originate from the plan of the wall, structure, sidewalk, or other surface.

Residential Zones. Residential zones include the following zones: CPR1, R1, CR1, R2, CR2, R3, and CR3.

Residential Subdivision Sign. A sign which advertises for sale or lease residential units being constructed or rented within the City of Grover Beach.

Right-of-way. A public or private highway, road or thoroughfare which affords the principal means of property access. For the purposes of the signage section, this means roadway/ alleyway, sidewalk (if present), gutter (if present) and curb, whether concrete or asphalt.

Roof Sign. A sign erected upon or above a roof (angled surface) or a parapet of a building or structure, and not contained within a dormer (flat surface).

Sign. Any device, fixture, placard, or structure that uses any color, form, graphic, illumination, symbol, or writing to advertise, announce the purpose of, or identify the purpose of a person or entity, or to communicate information of any kind to the public, with the exception of the following:

Sign Copy. Any words, letters, numbers, figures, designs or other symbolistic representation incorporated into a sign with the purpose of attracting attention to the subject matter.

Sign Face. The surface of the sign upon, against, or through which the message is displayed or illustrated on the sign.


Sign Structure. Any structure that supports or is capable of supporting any sign as defined in this Section. A sign structure may be a single pole and may or may not be an integral part of the building.

Site. A lot, or group of contiguous lots, with or without development, in single ownership, or having multiple owners, all of whom join in an application for signage.

Snipe Signs. Means anything that is attached to trees, wires, the ground, or to other objects that has a message appearing on it that does not apply to the present use of the premises or structure upon which the sign is located.

Street. A public or private highway, road or thoroughfare which affords the principal means of access to adjacent lots.

Suspended Sign. A sign which hangs from the underside of a roof, a porch, awning, or covered walkway.

Temporary Sign. A sign that is not permanently anchored or secured to a building and not having supports or braces permanently secured in the ground, including but not limited to a-frame signs, banner signs, pennants, inflatables signs, flags, feather flags, or similar devices intended for a limited period of display.

Valance. A free-hanging projection of fabric below the main frame of an awning to create a decorative skirt.

Vertical Plane. A sign passing through the point of sight and perpendicular to the ground and to the structure of the sign.

Wall Sign. A sign attached to or painted on the exterior wall of a building or structure with the display surface of the sign approximately parallel to the building or structure wall.

Wayfinding Sign. An on or off-premises sign along the path of travel directing potential patrons to an area in which three or more businesses of the same type are located and to businesses within that area

Window Sign. A sign that is painted on, attached to, or suspended directly behind or in front of a window or the glass portion of a door.

Utility Pole. An outdoor pole consisting of either wood, metal, or other similar material, installed by an entity operating under the jurisdiction of the California Public Utilities Commission or other similar state or federal agency to support telephone, electric, and other cables.

Yard Sign. Any temporary sign placed in the ground or attached to a supporting structure, posts, or poles, that is not attached to any building, not including banners.

PART 3. Article IX Development Code, Section 6.20.080. Temporary Use Permits,

Subsection F Allowed short-term activities is hereby amended as follows:

F. Allowed short-term activities. A Temporary Use Permit may authorize the following short-term activities within the specified time limits, but in no event for more than 12 months. Other activities that are proposed to occur for no more than 12 months, but


do not fall within the categories defined below shall instead comply with the development permit requirements and development standards that otherwise apply to the property.

1. Events. Art and craft exhibits, carnivals, circuses, fairs, farmer’s markets, festivals, flea markets, food events, open-air theaters, outdoor entertainment/sporting events, promotional events, rummage sales, swap meets, and other special events.

2. Seasonal sales lots. Seasonal sales activities (e.g., Christmas tree lots, pumpkins, agricultural products grown on the premises, etc.) including temporary residence/security trailers.

3. Model homes & sales office. A model home(s) and/or sales office associated with a residential project. This may include off-site directional signs located on private property with written permission from the property owners. The maximum sign area shall be 36 square feet for each sign and a maximum sign height of six feet.

4. Temporary structures. A temporary classroom, office, or similar structure (not for storage), including a manufactured or mobile unit, may be approved as an accessory use for a maximum of 12 months.

5. Temporary storage containers. A temporary storage or cargo container not associated with an active building permit may be approved for a maximum of 30 days. The storage container shall be located on-site.

6. Temporary office and living quarters. A trailer or mobile home used as a temporary work and/or living quarters when associated with an active construction site.

7. Construction yards - Off-site. Off-site contractors' construction yards, for an approved non-City construction project. The construction yard shall be removed immediately upon completion of the construction project, or the expiration of the Building Permit authorizing the project, whichever occurs first.

8. Similar short-term activities. A short-term activity that the Director determines is similar to the other activities listed in this Section, and compatible with the applicable zone and surrounding land uses.

PART 4. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held invalid by a court of competent jurisdiction, such a decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, or phrases, be declared invalid. PART 5. All ordinances and parts of ordinances in conflict with those sections amended or added herein are hereby repealed. PART 6. Effective Date. This Ordinance shall not become effective and in full force and effect until 12:01 a.m. on the thirty first day after its final passage and final certification by the


California Coastal Commission. However, within fifteen (15) days after adoption by the City Council, the Ordinance shall be published once, together with the names of the Council Members voting thereon, in a newspaper of general circulation within the City.

INTRODUCED at a regular meeting of the City Council held on ____________ and PASSED, APPROVED, and ADOPTED by the City Council on _________, on the following roll call vote, to wit: AYES: Council Members - NOES: Council Members - ABSENT: Council Members - ABSTAIN: Council Members - RECUSED: Council Members -

___________________________________ JEFF LEE, MAYOR Attest: ______________________________ WENDI SIMS, CITY CLERK Approved as to Form: _____________________________ DAVID P. HALE, CITY ATTORNEY

** D R A F T **

Attachment 2

RESOLUTION NO. 19-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA AUTHORIZING AND DIRECTING THE COMMUNITY DEVELOPMENT DIRECTOR TO SUBMIT THE LOCAL COASTAL IMPLEMENTATION AMENDMENT ASSOCIATED WITH ORDINANCE NO. 19-__ TO THE CALIFORNIA COASTAL COMMISSION FOR FINAL CERTIFICATION

WHEREAS, the LCP amendment would amend the City’s commercial cannabis land use ordinance to revise development standards; and

WHEREAS, the Ordinance requires a Local Coastal Program Amendment because it is amending Development Code Sections 3.60, 6.20.080, and 9.10; and

WHEREAS, the Local Coastal Program Amendment is intended to be carried out in a manner that is fully in conformity with the Coastal Act; and

WHEREAS, the Planning Commission held public hearings on June 26, 2019 and September 10, 2019 and recommended the City Council approve the sign ordinance amendment and Local Coastal Program Amendment; and

WHEREAS, the City Council at its meeting on September 16, 2019 conducted first reading of the Sign Ordinance and related amendments, and adopted the Sign Ordinance at its meeting on October 7, 2019; and

WHEREAS, the proposed amendment is exempt from the California Environmental

Quality Act (CEQA) Guidelines Section 15061 based on the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment and where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The proposed amendment would not expand the types of uses allowed, or result in an increase in potential development.

WHEREAS, the proposed Local Coastal Program Amendment will take effect

automatically upon final certification by the Coastal Commission unless revisions are made by the Coastal Commission.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach DOES HEREBY AUTHORIZE AND DIRECT the Community Development Director to submit an amendment of Article IX Development Code associated with Ordinance No. 19-__, to the California Coastal Commission for final certification. On motion by Council Member ________, seconded by Council Member ________, and on the following roll-call vote, to wit:

AYES: Council Members - NOES: Council Members - ABSENT: Council Members - ABSTAIN: Council Members - RECUSED: Council Members -

Resolution No. 19-__ LCP Amendment Sign Ordinance Update Page 2

the foregoing Resolution No. 19-__ was PASSED, APPROVED, and ADOPTED at a regular meeting by the City Council on October 7, 2019.

____________________________________

JEFF LEE, MAYOR Attest: ______________________________ WENDI SIMS, CITY CLERK

** D R A F T **

MEETING MINUTES PLANNING COMMISSION

CITY HALL COUNCIL CHAMBER 154 SOUTH EIGHTH STREET

GROVER BEACH, CALIFORNIA WEDNESDAY, JUNE 26, 2019

CALL TO ORDER 6:30 p.m.

FLAG SALUTE Commissioner Halverson

ROLL CALL: Commissioners Halverson, Rodman, Vice Chair Blum were present. Commissioners Holden and McLaughlin were absent.

City Staff: Community Development Director Bruce Buckingham, Senior Planner Rafael Castillo, Assistant Planner Cassandra Mesa, and City Attorney David Hale.

ELECTION OF PLANNING COMMISSION CHAIR AND VICE CHAIR: Vice Chair Blum announced that this item would be postponed until the next meeting when all Commission members would be in attendance. He also announced that he would act as Chair for the meeting.

AGENDA REVIEW: Director Buckingham requested that Item 5, Sign Regulations, be considered before Item 4, Commercial Cannabis Development Standards.

Action: It was m/s by Commissioner Rodman / Commissioner Halverson to take Item #5, ahead of Item #4, while the rest of the agenda is as presented. The motion passed unanimously.

PUBLIC COMMENTS: There was no one present that wished to speak.

CONSENT ITEMS:

1. Meeting Minutes of the May 22, 2019 Planning Commission Meeting

Action: It was m/s by Commissioner Rodman / Vice Chair Blum to approve the meetingminutes from the May 22, 2019 Planning Commission meeting as presented, and the motionpassed unanimously.

PUBLIC HEARING ITEMS:

2. Development Application 19-07Applicant – Douglas JohnsonThe Planning Commission will consider a Tentative Parcel Map for a two unit, two-storyPlanned Unit Development. The project was previously approved on March 8, 2017. Theproperty is located at 344 and 348 North 5th Street (APN 060-145-005) in the MediumDensity Residential (R2) Zone. The project is categorically exempt from the CaliforniaEnvironmental Quality Act.

Assistant Planner Mesa presented the staff report.

Attachment 3

Planning Commission Minutes – June 26, 2019 Page 2

Vice Chair Blum opened the public hearing, and seeing no one who wished to speak, closed the public hearing.

Action: It was m/s by Commissioner Halverson / Commissioner Rodman to approve Development Application 19-07.


AYES: Commissioners Halverson, Rodman, and Vice Chair Blum. NOES: None. ABSENT: Commissioners Holden and McLaughlin. ABSTAIN: None.

RESOLUTION NO. 19-10: A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF GROVER BEACH APPROVING DEVELOPMENT APPLICATION 19-17 FOR A RECONSIDERATION OF TENTATIVE PARCEL MAP G-16-0234 FOR 344 & 348 NORTH 5TH STREET (Applicant: Douglas Johnson)

3. Development Application 19-09Applicant – Scott PaceThe Planning Commission will consider a Development Permit and Tentative Parcel Map toconstruct a two unit Planned Unit Development. The property is located at 773 ManhattanAvenue (APN 060-277-014) in the High Density Residential (R3) Zone. The project iscategorically exempt from the California Environmental Quality Act.

Assistant Planner Mesa presented the staff report.

Upon question by Commissioner Rodman, Assistant Planner Mesa stated that the existingpalm tree would be removed as part of the proposed project.

Vice Chair Blum opened the public hearing.

Scott Pace, applicant and Arroyo Grande resident, stated that two or three trees will beplanted.

Vice Chair Blum closed the public comment.

Action: It was m/s by Commissioner Rodman / Commissioner Halverson to approveDevelopment Application 19-09.


AYES: Commissioners Halverson, Rodman, and Vice Chair Blum. NOES: None. ABSENT: Commissioners Holden and McLaughlin. ABSTAIN: None.

RESOLUTION NO. 19-11: A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF GROVER BEACH APPROVING DEVELOPMENT APPLICATION 19-09 FOR A DEVELOPMENT PERMIT AND TENTATIVE PARCEL MAP LOCATED AT 773 MANHATTAN AVENUE (Applicant: Scott Pace)


4. Development Application 18-39Applicant – City of Grover BeachThe Planning Commission will consider making a recommendation to the City Council toamend Grover Beach Municipal Code Article IX Development Code Section 3.60 SignRegulations, and approve a Local Coastal Program amendment. The amendment is acomprehensive update of the sign regulations for all zones within the City. The amendmentis not a project within the meaning of the California Environmental Quality Act (CaliforniaPublic Resources Code §§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14California Code of Regulations §§ 15000, et seq.) Section 15378 and are therefore exemptfrom CEQA.

Senior Planner Castillo presented the staff report. He and Director Buckingham respondedto questions from the Commission regarding the following:

• the prohibition of feather flags except with a Temporary Use Permit• modification of yard sign regulations to address Planned Unit Developments and

other deep lot developments where only the front lot has street frontage• retention or replacement of non-conforming historic signs


The following people spoke: Jim Cravens, Grover Beach resident and sign business owner, cited examples of the

benefits of allowing feather flags and sandwich boards due to high volume of vehicles travelling to beach

Tom Rehder, Grover Beach business owner, stated that the real estate apps are not as effective as temporary open house signs, requested clarification regarding cost difference for permit/registration for temporary signage versus feather flags; stated quality of materials used for temporary signs affects the appearance and life span of the sign, stated temporary signs are necessary to attract tourists

Chris Rivas, Grover Beach business owner, stated his existing signage is necessary to convey his services and products

Charlie Brunetti, Grover Beach business owner, stated concerns regarding fair enforcement and processing of complaints

Debbie Peterson, Grover Beach business owner, encouraged staff to work with the Chamber and Pismo Coast Association of Realtors, sign companies, businesses along West Grand Avenue; requested reconsideration of back-lit awnings

Director Buckingham addressed concerns raised regarding enforcement and outreach. He stated that the draft addresses feather flags separately from other types of temporary signage due to initial direction from Council, but the Commission can provide a different recommendation.

Action: It was m/s by Commissioner Rodman / Commissioner Halverson to to continue the public hearing a date certain (July 24, 2019).


AYES: Commissioner Halverson, Rodman, and Vice Chair Blum. NOES: None. ABSENT: Commissioners Holden and McLaughlin. ABSTAIN: None.


5. Development Application 19-19Applicant – City of Grover BeachThe Planning Commission will consider making a recommendation to the City Council toamend Grover Beach Municipal Code Article IX Section 4.10.045 and approve a LocalCoastal Program amendment to revise the commercial cannabis development standards.The amendment is not a project within the meaning of the California Environmental QualityAct (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA Guidelines(Title 14 California Code of Regulations §§ 15000, et seq.) Section 15378 and are thereforeexempt from CEQA.

Director Buckingham presented the staff report.


The following people spoke in support:Julie Reed, Arroyo Grande resident

Vice Chair Blum closed the public hearing.

Action: It was m/s by Commissioner Rodman / Commissioner Halverson to recommend the City Council amend the Grover Beach Municipal Code Article IX Section 4.10.045 and approve a Local Coastal Program amendment to revise the commercial cannabis development standards.


AYES: Commissioner Halverson, Rodman, and Vice Chair Blum. NOES: None. ABSENT: Commissioners Holden and McLaughlin. ABSTAIN: None.

COMMISSIONERS' COMMENTS Upon question by Commissioner Rodman and Vice Chair Blum, Director Buckingham provided information regarding revenues from commercial cannabis businesses and the status of various commercial cannabis businesses. Upon question by Commissioner Rodman, he also provided updates on hotel projects located at 950 El Camino Real and 1598 El Camino Real.

COMMUNITY DEVELOPMENT DIRECTOR’S REPORT Director Buckingham provided a summary of the short-term rental regulations adopted by Council.

ADJOURNMENT 8:08 PM

/s/ COMMISSIONER RODMAN

/s/ SECRETARY TO THE PLANNING COMMISSION BRUCE BUCKINGHAM, COMMUNITY DEVELOPMENT DIRECTOR

(approved at PC meeting of July 24, 2019)

1

Rafael Castillo

From: Matthew BronsonSent: Wednesday, July 31, 2019 11:36 AMTo: Bruce A. Buckingham; David Hale; Rafael CastilloSubject: FW: information regarding signsAttachments: Open House sign survey 7 2019 city council.xls

FYI

From: Cindy Doll <[email protected]> Sent: Wednesday, July 31, 2019 11:28 AM To: Matthew Bronson <[email protected]> Subject: information regarding signs

Mr. Bronson,

I would like to share some information regarding real estate directional signs. I know the City is undergoing an important sign ordinance revisions, and the staff will be submittingl be submitting language in August. It is very important for sellers to let potential buyers know how to locate their homes during open house events, generally held for a few hours on Saturdays and a few hours on Sundays. That conclusion was validated by the survey sent to south county Realtors in which 199 survey responses were submitted within 4 days, with the overwhelming majority indicating potential buyers found the open house by following directional signs. The full survey is attached in an Excel sheet for your review. If the City could ensure the ability to use/place open house directional signs remains in‐tact, that would be extremely helpful to Grover Beach sellers, as well as those potential buyers who are considering a home in Grover Beach. Thank you for your time, and feel free to contact me any time with real estate related questions or concerns.

Cindy Doll, RCE, ePRO® Association Executive Pismo Coast Association of REALTORS®, Inc 1126 E. Grand Ave Arroyo Grande, CA 93420 (805) 489‐7303 – office(805) 712‐3743 ‐ [email protected]

ATTENTION: This email originated from outside the City of Grover Beach.Use caution with links and attachments

Attachment 4

Days/m

o h

old

op

en h

ou

se?U

se sign

s?%

of visito

rs from

sign

s?A

dd

ition

al com

men

ts

1 to

3 tim

es per m

onth

yard sign

sWe u

se street signs to

help

guide p

eople to

the o

pen

houses. A

lot p

eople

tend to

just d

rive around an

d go

to open

houses b

ased off o

f seein

g the

open

house sign

s we p

ut o

ut th

at same d

ay pointin

g them

in th

e directio

n

of th

e open

house. I th

ink clien

ts and poten

tial buyers like th

e open

house

signs. Th

e open

house sign

s make a h

uge d

ifference in

the real estate

community

andpoten

tialbuyers

1 to

3 tim

es per m

onth

10%

1 to

3 tim

es per m

onth

yard sign

s10%

1 to

3 tim

es per m

onth

10%

1 to

3 tim

es per m

onth

yard sign

s15%

1 to

3 tim

es per m

onth

yard sign

s15‐20%

I think th

ey make a b

ig differen

ce especially co

ming o

ff grand o

ak park o

r

4th. Th

x1 to

3 tim

es per m

onth

yard sign

s15‐20%

Open

house sign

s are up ju

st a few hours an

d help

to gu

ide p

eople to

the

house even

if they saw

it onlin

e. Especially th

e older fo

lks. I hope yo

u will

contin

ueto

allowthem

!1 to

3 tim

es per m

onth

yard sign

s20%

1 to

3 tim

es per m

onth

yard sign

s20%

1 to

3 tim

es per m

onth

yard sign

s20%

1 to

3 tim

es per m

onth

yard sign

s20%

Yard sign

s direct clien

ts to th

e property

never

yard sign

s20%

1 to

3 tim

es per m

onth

yard sign

s20‐30%

I think o

pen

house sign

s are still necessary to

help

buyers fin

d th

e property

(even th

ough

they fo

und out ab

out o

pen

house o

nlin

e). Also

, I usually get a

lot o

f neigh

bors o

ff the o

pen

house sign

s which

could possib

ility lead to

poten

tialclients.

1 to

3 tim

es per m

onth

yard sign

s25%

1 to

3 tim

es per m

onth

yard sign

s25%

1 to

3 tim

es per m

onth

25%

1 to

3 tim

es per m

onth

yard sign

s25%

open

house sign

not o

nly ad

vertise the o

pen

house th

ey provid

e directio

ns

to th

e property an

d often

attract peo

ple ju

st drivin

g by w

ho did not kn

ow

of th

e open

house. Th

ey are only u

p usually fo

r the d

uratio

n of th

e open

house an

d th

erefore n

ot a p

ublic n

uisan

ce. Our city h

as more p

ressing

concern

sthat

open

house

signs

4 to

6 tim

es per m

onth

yard sign

s30%

Man

y peo

ple state th

at they w

ere just o

ut d

riving aro

und an

d saw

the sign

.

1 to

3 tim

es per m

onth

yard sign

s30%

KSB

Y onlin

e

1 to

3 tim

es per m

onth

yard sign

s30%

About 1

/3 of th

e open

house visito

rs come b

ecause th

ey see the sign

s, but

the sign

s also help

peo

ple n

avigate to th

e open

house even

if they are

comingbecau

sethey

sawitad

vertisedonlin

e1 to

3 tim

es per m

onth

yard sign

s30%

7 or m

ore tim

es per m

onth

yard sign

s30‐40%

1 to

3 tim

es per m

onth

yard sign

s30‐40%

Usefu

l to direct p

eople to

the o

pen

house

1 to

3 tim

es per m

onth

yard sign

s30‐50%

1 to

3 tim

es per m

onth

yard sign

s30‐50%

Open

House Sign

s are very importan

t!! Peo

ple o

ften decid

e to co

me in

on a

wim

, which

increased

traffic for th

e sellers which

is vital.

1 to

3 tim

es per m

onth

yard sign

s33%

4 to

6 tim

es per m

onth

yard sign

s33%

I have visito

rs stop by all th

e time an

d say th

ey saw th

e open

house sign

s. It

actually sp

arks their cu

riosity w

hen

they see a sign

, or p

lants a seed

so to

speak th

at they to

o co

uld eith

er sell their h

ome o

r find a n

ew sim

ilar home.

I really cannot im

agine n

ot b

eing ab

le to place o

pen

house sign

s on co

rners

and strategic lo

cations to

draw

in visito

rs. And Don't Fo

rget even

if visitors

viewed

the o

pen

house ad

vertising o

nlin

e, the d

irectional sign

s offer a

quick easy w

ay to lo

cate the h

ome. Q

uestio

n: A

re there co

mplain

ts from

the p

ublic th

at Open

House sign

s are causin

g problem

s?

1 to

3 tim

es per m

onth

yard sign

s33%

When

I hold an

open

house I alw

ays ask how th

ey found it. I still alw

ays get

peo

ple w

ho have seen

the o

pen

house sign

s. Also

, open

houses aren

't just

for agen

t promotio

n an

ymore. W

ith our lim

ited in

ventory, m

any serio

us

buyers, o

ften rep

resented

by realto

rs, are out lo

okin

g on an

y given

weeken

d. So

limitin

g temporary o

pen

house sign

s can hinder a

homeo

wners ab

ility to sell th

eir home q

uickly an

d fo

r the h

ighest p

rice

possib

le1 to

3 tim

es per m

onth

35%

1 to

3 tim

es per m

onth

yard sign

s40%

1 to

3 tim

es per m

onth

yard sign

s40%

4 to

6 tim

es per m

onth

yard sign

s40%

I have h

ad a h

igh percen

tage of b

uyers co

me th

rough

an open

house

becau

se of a yard

sign on a co

rner so

mew

here, an

d th

en purch

ase with

in

days.

4 to

6 tim

es per m

onth

yard sign

s45%

Since w

e are such a vacatio

n destin

ation.Its w

ay easier for p

oten

tial buyers

to like a n

eighborhood, see an

open

house sign

, to drop in

and see w

hat

the n

eighborhoid co

st. Meet a fu

ture h

ardworkin

g represen

tative afent o

f

our n

eighborhood. Ive h

ad clien

ts fall in lo

ve instan

tly and purch

ase a

home

1 to

3 tim

es per m

onth

yard sign

s50%

I always ask w

here th

ey heard

about th

e open

. Man

y say they say th

e

signs.

1 to

3 tim

es per m

onth

yard sign

s50%

Yard sign

s are such a n

ecessity! If a garage sale sign is o

k.....an open

house

sign sh

ould be as w

ell. :)1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

I also use o

pen

house sign

s to help

direct agen

ts durin

g agent C

aravan. I

can not im

agine n

ot b

eing ab

le to properly ad

vertise a special even

t such as

agent C

aravan or O

pen

Houses. It ju

st need

s to be d

one resp

onsib

ly and

safely.4 to

6 tim

es per m

onth

yard sign

s50%

Grover B

each need

s to allo

w us to

do busin

ess here. O

ur sign

s are

temporary an

d picked

up at th

e end of th

e open

house. I am

a Grover

Beach

residen

t and it is extrem

ely obvio

us th

at the city N

EEDS M

ONEY! Let

ussellan

dbrin

gmore

money

totown.

1 to

3 tim

es per m

onth

yard sign

s50%

7 or m

ore tim

es per m

onth

yard sign

s50%

Havin

g yard sign

s for an

open

house is im

perative. N

ot o

nly d

oes it h

elp

with

marketin

g and draw

ing in

poten

tial buyers, it h

elps w

ith directio

n an

d

getting th

e custo

mer to

the h

ome. N

ot everyo

ne is tech

savvy and/or ab

le

touse

aGPSsystem

.

1 to

3 tim

es per m

onth

50%

By yard

signs d

o yo

u in

clude d

irectional sign

s? Are th

ey referring to

perm

anen

t yard sign

s or p

ortab

le signs? I b

elieve directio

nal sign

s are

absolutely critical to

getting b

uyers to

open

houses. I o

ften tim

es have

sellers request th

at a yard sign

NOT b

e installed

. I believe th

at in our gated

community, th

e lack of a sign

isn't so

much of a d

etrimen

t. Outsid

e in a

typical n

eighborhood, th

e signs are n

ecessary and in

crease showings.

1 to

3 tim

es per m

onth

yard sign

s50%

A lo

t of th

e buyers co

me b

y as a result o

f an ad

. however, q

uite a large

percen

tage of b

uyers sto

p by as a resu

lt of th

e signs. Fu

rtherm

ore, th

e

neigh

bors are u

sually a great so

urce o

f help

ing fin

d a fam

ily mem

ber o

r

friend who wan

t to m

ove in

to th

e neigh

borhood so

they w

ill always sto

p

by

1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

4 to

6 tim

es per m

onth

yard sign

s50%

It is extemely im

portan

t to allo

w sign

age directin

g poten

tial buyers to

the

homes...Th

ese signs are set‐u

p on a very sch

eduled

short term

temporary

basis

andcollected

bytheagen

ts....1 to

3 tim

es per m

onth

yard sign

s50%

I can't even

imagin

e not h

aving an

OPEN

HOUSE sign

‐‐it is part o

f the

whole m

arketing p

lan!!!

1 to

3 tim

es per m

onth

50%

1 to

3 tim

es per m

onth

50 %

1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

4 to

6 tim

es per m

onth

yard sign

s50%

My m

arketing d

epen

ds o

n Open

house sign

s . Please keep

bein

g able to

use th

em.

1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

Yard sign

s are a viable an

d tem

porary w

ay to id

entify yo

ur o

pen

house, an

d

to m

ake the gen

eral public aw

are that th

e home w

ill be o

n open

house.

Not everyo

ne is in

ternet aw

are. The key w

ords are id

entify an

d tem

porary

signage.

1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

Most p

eople w

ould not co

me in

to an

open

house if th

ere was n

o open

house sign

1 to

3 tim

es per m

onth

50%

1 to

3 tim

es per m

onth

yard sign

s50%

never

50%

1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

4 to

6 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

1 to

3 tim

es per m

onth

yard sign

s50%

Wow, th

is is worse th

an Arro

yo Gran

de, I h

ave not fo

llowed

this o

ne in

Grover, w

hat is cau

sing th

em a p

roblem

with

open

house sign

s? 7 or m

ore tim

es per m

onth

yard sign

s50%

Alth

ough

social m

edia is u

sed m

ore so

by o

ur yo

ung d

emograp

htic, w

hy

would we co

mpletely elim

inate th

ose th

at can not o

r do not h

ave in

ternet

resources

tolocate

ouropen

s.1 to

3 tim

es per m

onth

yard sign

s50%

Signage is im

portan

t for o

pen houses an

d its u

sually o

nly 2

‐3 hours o

n a

Saturday o

r Sunday. Th

e only o

ther tim

e is Friday fo

r Caravan

.1 to

3 tim

es per m

onth

yard sign

s50%

Most all fin

d th

e homes o

n th

e Intern

et now so

I feel the o

nly sign

really

need

ed is th

e one in

front o

f the h

ome b

eing h

eld open

. 4 to

6 tim

es per m

onth

yard sign

s50%

7 or m

ore tim

es per m

onth

yard sign

s50%

most o

f my p

eople co

me fro

m open

house sign

s.

1 to

3 tim

es per m

onth

yard sign

s50%

4 to

6 tim

es per m

onth

yard sign

s50%

4 to

6 tim

es per m

onth

yard sign

s50% +

Directio

nal sign

s are VER

Y importan

t given th

at a large percen

tage of o

ur

buyers are visito

rs from outsid

e the area. Th

ey frequen

tly drive

neigh

borhoods th

ey like on th

e weeken

ds an

d fin

d open

houses b

y

stumblin

g upon th

em. Th

ey also fin

d our o

pen

houses o

nlin

e and m

ay be

unfam

iliar with

the n

eighborhood so

the d

irectionals are im

portan

t in

help

ing th

em to

locate th

e home. M

any tim

es we h

ave buyers co

me in

that

weren

't thinkin

g of atten

ding an

open

house o

r lookin

g for an

open

house

but w

hen

they see th

e signs o

ut th

ey attend out o

f curio

sity and en

d up

beco

ming b

uyers. Th

e use o

f directio

nals are V

ERY im

portan

t for creatin

g

awaren

ess about o

ur listin

gs and assistin

g in exp

osure fo

r the p

roperty. It

seems to

me th

at it would be in

violatio

n of w

hat an

y small b

usin

ess owner

does to

drive traffic to

their b

usin

ess. Are all san

dwich

signs fo

r all

busin

esses now in

questio

n?

4 to

6 tim

es per m

onth

yard sign

s50% +

1 to

3 tim

es per m

onth

yard sign

s50% +

open

house sign

s help

drivers n

avigate to th

e open

house w

ith less relian

ce

on devices; th

e signs affirm

that a co

rrect route is b

eing fo

llowed

and

reduce d

rivers' tenden

cy to lo

ok d

own at d

evices, around at th

e

surro

undings an

d search

for o

ften hard

to see ro

ad sign

s.

1 to

3 tim

es per m

onth

yard sign

s50‐60%

4 to

6 tim

es per m

onth

yard sign

s60%

1 to

3 tim

es per m

onth

yard sign

s60%

1 to

3 tim

es per m

onth

yard sign

s60%

It is integral to

the real estate in

dustry to

be ab

le to place "o

pen

house'

signs o

n sid

ewalks an

d street co

rners. Th

is help

s pull in

custo

mers w

ho are

drivin

g by o

r visiting th

e area from out o

f town. It also

help

s perso

ns w

ho

already live in

the n

eighborhood, w

ho m

ay have a frien

d or fam

ily mem

ber

interested

in th

e neigh

borhood but w

ho is really n

ot w

atching th

e ads in

prin

torsocialm

edia

1 to

3 tim

es per m

onth

yard sign

s60%

1 to

3 tim

es per m

onth

yard sign

s60%

4 to

6 tim

es per m

onth

yard sign

s60%

We n

eed to

be ab

le to put o

ur o

pen

house sign

s.

1 to

3 tim

es per m

onth

yard sign

s60%

1 to

3 tim

es per m

onth

yard sign

s60%

I find th

at most p

eople fin

d th

e open

house sign

age help

ful to

finding

properties o

n open

house. It is a great traffic gen

erator in

additio

n to

socialm

ediaad

vertising.

1 to

3 tim

es per m

onth

yard sign

s60%

Open

house sign

s are a huge p

art of ad

vertising m

y clients' h

ome fo

r sale.

For th

e 3 hours th

ey are out th

ey alert the w

hole co

mmunity th

at the

home is o

n th

e market m

ore effectively th

an an

y other m

edia. It is

unrealistic to

expect u

s to get th

e perm

ission of p

rivate property o

wners to

put u

p sign

s. I have n

ever seen a real estate sign

actually b

lockin

g the righ

t

of w

ay. They p

rovid

e a sough

t after public in

form

ation an

d wayfin

ding

service1 to

3 tim

es per m

onth

yard sign

s65%

4 to

6 tim

es per m

onth

yard sign

s65%

1 to

3 tim

es per m

onth

yard sign

s65‐75%

1 to

3 tim

es per m

onth

yard sign

s70%

1 to

3 tim

es per m

onth

yard sign

s70%

1 to

3 tim

es per m

onth

yard sign

s70%

I've held

over 4

00 open

houses in

the p

ast 6 years an

d th

e signs are very

much a p

art of gettin

g buyers in

to th

e homes. M

any ju

st stop on a w

him

and have n

ot seen

the listin

g onlin

e. Signs are very im

portan

t.

1 to

3 tim

es per m

onth

yard sign

s70%

1 to

3 tim

es per m

onth

yard sign

s70%

It really help

s the o

wners th

at open

house sign

brin

gs more b

uyers th

at

have n

ot seen

it in other areas o

f the m

edia o

r other ad

ds.

1 to

3 tim

es per m

onth

yard sign

s70%

4 to

6 tim

es per m

onth

yard sign

s70%

1 to

3 tim

es per m

onth

yard sign

s70%

4 to

6 tim

es per m

onth

yard sign

s70%

7 or m

ore tim

es per m

onth

yard sign

s70%

4 to

6 tim

es per m

onth

yard sign

s70%

Yard sign

s and directio

nal sign

s are a MUST. M

ost visito

rs are not fam

iliar

with

the n

eighborhood, streets o

r locatio

ns. M

any "d

rop in

" visitors cam

e

in so

lely BEC

AUSE th

ey saw m

y sign. Yard

signs are an

integral p

art of m

y

success, an

d m

y ability to

show m

y client's p

roperty to

it's best au

dien

ce.

Take this aw

ay, and yo

u are n

ot o

nly h

urtin

g the R

eal Estate market an

d m

y

earning p

oten

tial, you are lim

iting th

e tax payin

g homeo

wners p

oten

tial

buyers. W

hy w

ould th

ey wan

t to buy a h

ome in

a city that is n

ot allo

wing

them

to best m

arket their h

omes w

hen

they d

ecide to

sell?

1 to

3 tim

es per m

onth

yard sign

s70%+

Poten

tial buyers ten

d to

drive aro

und neigh

borhoods lo

okin

g at homes.

They so

metim

es have a list w

ith th

em. M

ore o

ften, th

ey do not. O

pen

houses sell h

ouses. Sign

s sell houses. Th

e more q

uickly a h

ouse is so

ld, th

e

better th

e price fo

r it will b

e. I believe a sign

ordinan

ce, like in AG, w

ould

drive d

own th

e values o

f property in

Grover B

each.

4 to

6 tim

es per m

onth

yard sign

s70‐90%

Open

house d

irectional sign

s are a critical componen

t of h

olding an

open

house. A

s is the yard

signage an

d rid

ers on th

e for sale sign

s. If not allo

wed

,

busin

esswould

bead

verselyaffected

.1 to

3 tim

es per m

onth

yard sign

s75‐100%

At least R

ealtors take d

own th

eir signs after th

e open

house...w

hat ab

out

1 to

3 tim

es per m

onth

yard sign

s75‐80%

4 to

6 tim

es per m

onth

yard sign

s75%

1 to

3 tim

es per m

onth

yard sign

s75%

In Grover B

each th

e Open

House Sign

is the m

ain draw

.

4 to

6 tim

es per m

onth

yard sign

s75%

1 to

3 tim

es per m

onth

yard sign

s75%

I have literally h

ad all m

y open

house p

eople sh

ow up fro

m m

y open

house

4 to

6 tim

es per m

onth

yard sign

s75%

Open

house sign

s not o

nly b

ring in

traffic, they h

elp peo

ple fin

d th

e open

house w

hen

drivin

g around an

d unfam

iliar with

the n

eighborhood.

1 to

3 tim

es per m

onth

yard sign

s75%

There are m

ore p

eople w

ho see th

e signs th

an an

y other ad

vertising.

7 or m

ore tim

es per m

onth

yard sign

s75%

Yard sign

s are crucial in

the sale an

d m

arketing o

f houses. I h

ope th

at GB

isn't co

nsid

ering b

anning th

e directio

nal sign

s altogeth

er. When

AG wen

t

thru th

eir sign ordinan

ce , temporary o

pen

house sign

rules w

ere

establish

ed. Th

e 3 hour, tem

porary o

pen

house sign

s shouldn't b

e a

hindran

ce1 to

3 tim

es per m

onth

yard sign

s75%

1 to

3 tim

es per m

onth

yard sign

s75%

Open

house d

irectional sign

s are crucial to

guide p

rospective b

uyers in

to

the n

eighborhoods th

at appeal to

them

. One yard

side is a d

isservice to

theseller

andnotasolid

marketin

gap

proach

.1 to

3 tim

es per m

onth

yard sign

s75%

I have fo

und it is u

sually b

ecause th

ey are passin

g by an

d decid

e to take a

look. Th

ey are either in

terested or kn

ow so

meo

ne th

at is lookin

g.

1 to

3 tim

es per m

onth

yard sign

s75%

1 to

3 tim

es per m

onth

yard sign

s75%

4 to

6 tim

es per m

onth

yard sign

s75%

I believe it is im

perative fo

r realtors to

have o

pen

house an

d fo

r sale signs.

With

out th

em I b

elieve that realto

rs may fro

wn on listin

gs from Grover

Beach

.1 to

3 tim

es per m

onth

yard sign

s75%

Open

house is a vital to

ol in

selling a p

roperty. P

lease do not rem

ove th

is

tool. B

uyers lo

ok fo

r open

houses to

review th

eir need

s and wan

ts vs

their p

rice point. O

pen

house sign

are their w

ay to fin

d properties

4 to

6 tim

es per m

onth

yard sign

s75%

4 to

6 tim

es per m

onth

yard sign

s75%

1 to

3 tim

es per m

onth

yard sign

s75%

1 to

3 tim

es per m

onth

yard sign

s75%

4 to

6 tim

es per m

onth

yard sign

s75%

1 to

3 tim

es per m

onth

yard sign

s75%

1 to

3 tim

es per m

onth

yard sign

s75%

1 to

3 tim

es per m

onth

yard sign

s80%

Buyers lo

ok fo

r signs

4 to

6 tim

es per m

onth

yard sign

s80%

We m

ust b

e able to

use o

pen

house sign

s to direct p

oten

tial buyers to

our

listings. A

s long as th

ey are not b

lockin

g sidew

alks or o

n private p

roperty it

is not a p

roblem

. Man

y visitors to

open

houses u

se the sign

s to direct th

em

totheproperty.

4 to

6 tim

es per m

onth

yard sign

s80%

Signs are n

eeded

to direct p

eople to

the o

pen

house. M

ost p

eople co

me to

the o

pen

house o

ff of th

e open

house sign

s. Some p

roperties are

located

where m

any sign

s are need

ed, so

that th

e prospective b

uyers can

find th

e

house th

at is for sale. It is a d

isservice to th

e home o

wner n

ot to

be ab

le to

putupopen

house

signs

4 to

6 tim

es per m

onth

yard sign

s80%

7 or m

ore tim

es per m

onth

yard sign

s80%

Would glad

ly pay C

ounty fee to

have a p

ermit to

leave out sid

ewalk

signage.

1 to

3 tim

es per m

onth

yard sign

s80%

Peo

ple ten

d to

drive n

eighborhood th

at they w

ant. M

ost o

f the tim

e that's

how we co

nnect. Sign

s and Open

houses are o

ne o

f the b

est tools fo

r

sellingan

owners

property.

7 or m

ore tim

es per m

onth

yard sign

s80%

The traffic w

e get in open

houses in

Grover B

each an

d Pism

o Beach

appears to

be co

nsid

erably m

ore th

an in

Arro

yo Gran

de. W

here w

e can't

place

signsin

visibleplaces

trafficisred

uced

.1 to

3 tim

es per m

onth

yard sign

s80%

1 to

3 tim

es per m

onth

yard sign

s80%

1 to

3 tim

es per m

onth

yard sign

s80%

I feel limitin

g or d

isallowing o

pen

house sign

s will create a real

disad

vantage to

the seller w

ho is tryin

g to sell th

eir home. I am

not su

re

why th

ey would wan

t to put su

ch a co

nstrain

t on a p

roperty o

wner. It

really affects the h

omeo

wner an

d not ju

st the agen

t. I live by R

amona P

ark

and th

e City o

f Grover B

each puts o

ut th

e oran

ge tall pillars statin

g "no

parkin

g" durin

g the m

usic co

ncerts all su

mmer lo

ng. Th

ey do not take

them

down at th

e end of th

e 3 hour co

ncert o

n Su

nday an

d th

en put th

em

back n

ext Sunday....th

ey are left out fo

r 4 m

onths straigh

t until th

e end of

Septem

ber. W

hy is th

e City allo

wed

to leave sign

age out b

ut n

ot a

homeo

wner fo

r several hours in

an attem

pt to

sell their h

ome?? Is a 3

hour co

ncert really an

y differen

t than

a 3 hour o

pen

house??

4 to

6 tim

es per m

onth

yard sign

s80%

1 to

3 tim

es per m

onth

yard sign

s80%

With

out th

e freedom (o

f spee

ch) to

put o

ut yard

signs, o

pen

houses w

ould

generally b

e a waste o

f time...

4 to

6 tim

es per m

onth

yard sign

s80%

1 to

3 tim

es per m

onth

yard sign

s80%

4 to

6 tim

es per m

onth

yard sign

s80%

1 to

3 tim

es per m

onth

yard sign

s80%

Open

House Sign

s are a very importan

t way to

advertise.

1 to

3 tim

es per m

onth

yard sign

s80%

I feel a home sellss faster w

hen

a sign is in

the yard

.

7 or m

ore tim

es per m

onth

yard sign

s80%

They are tem

porary.... I d

o not b

lock sid

ewalks...th

ey are critical to our

busin

ess. Selling h

omes is go

od fo

r the eco

nomy an

d go

od fo

r Grover!

They

should

help

us...n

ottake

oursign

san

dtie

ourhan

ds.

7 or m

ore tim

es per m

onth

yard sign

s80%

Three‐q

uarters o

f the visito

rs tell me th

ey go cru

ising aro

und in

neigh

borhoods th

ey would like to

buy a h

ouse an

d sto

p where th

ere is an

Open

House sign

s. Doing aw

ay with

open

house sign

s radically restricts th

e

saleofahome.

1 to

3 tim

es per m

onth

yard sign

s80%

1 to

3 tim

es per m

onth

yard sign

s80%

1 to

3 tim

es per m

onth

yard sign

s80%

4 to

6 tim

es per m

onth

yard sign

s80%

1 to

3 tim

es per m

onth

yard sign

s80%

I would defin

itely let the city kn

ow "O

pen

House" sign

s help

direct an

d sell

homes in

all cities. There h

as been

man

y buyers th

at go to

open houses

that en

d up buyin

g the h

ouse w

hen

they see an

open

house sign

. This

would create an

issue fo

r Realto

rs and Sellers in

preven

ting o

pen

house

signed

to be p

laced on th

e street. My su

ggestions w

ould be th

e city can

place an

ordinan

ce that sign

s can not b

e placed

a day b

efore o

r left over

nigh

tlike

Ihave

seendone

1 to

3 tim

es per m

onth

yard sign

s80%+

1 to

3 tim

es per m

onth

yard sign

s85%

Open

house sign

s are imperative fo

r advertisin

g and drive b

ys...

1 to

3 tim

es per m

onth

yard sign

s85%

No sign

age would defin

itely imped

e sales. Man

y buyers d

rive around on

week‐en

ds lo

okin

g for o

pen

houses. So

me h

ave no in

tentio

n of b

uyin

g but

when

they fall in

love w

ith a h

ome th

at all chan

ges. Signage is a h

uge p

art

ofdoingbusin

ess.4 to

6 tim

es per m

onth

yard sign

s85%

1 to

3 tim

es per m

onth

yard sign

s90%

1 to

3 tim

es per m

onth

yard sign

s90%

With

out o

pen

house sign

s you have n

o open

house.

1 to

3 tim

es per m

onth

yard sign

s90%

Some h

omes n

eed directio

nal to

property. O

pen

house sign

s are importan

t.

It is my u

nderstan

ding if yo

u have o

wners p

ermissio

n it’s o

k to put u

p sign

s.

Most agen

ts need

to be ed

ucated

to not p

lace signs in

sidew

alks this seem

s

tobetheonlyproblem

1 to

3 tim

es per m

onth

yard sign

s90%

1 to

3 tim

es per m

onth

yard sign

s90%

1 to

3 tim

es per m

onth

yard sign

s90%

1 to

3 tim

es per m

onth

yard sign

s90%

4 to

6 tim

es per m

onth

yard sign

s90%

1 to

3 tim

es per m

onth

yard sign

s90%

Open

house sign

s have b

een a lo

ng‐stan

ding trad

ition an

d very b

eneficial

to our h

omeo

wners an

d buyers.

4 to

6 tim

es per m

onth

yard sign

s90%

Please d

on’t take aw

ay this u

seful to

ol.

1 to

3 tim

es per m

onth

yard sign

s90%

I know m

y open

house atten

dan

ce and m

y RE b

usin

ess would be greatly

effected by n

ot h

aving sign

s. 1 to

3 tim

es per m

onth

yard sign

s90%

With

out yard

signs, it w

ould m

ake open

houses alm

ost a w

aste of tim

e.

1 to

3 tim

es per m

onth

yard sign

s90%

seldom do peo

ple see it o

nlin

e, believe it o

r not!

4 to

6 tim

es per m

onth

yard sign

s95%

Open

House sign

s are an in

tricate marketin

g tool fo

r our in

dustry.

1 to

3 tim

es per m

onth

yard sign

s95%

Open

house traffic is h

ighly d

epen

den

t on th

e signs.

4 to

6 tim

es per m

onth

yard sign

s95%

New

spap

er has h

ad m

inim

al impact in

my 2

0+ years. M

ost p

eople rely o

n

directio

nal yard

signs to

find properties o

f interest to

them

.

1 to

3 tim

es per m

onth

yard sign

s96%

1 to

3 tim

es per m

onth

yard sign

s98%

1 to

3 tim

es per m

onth

yard sign

s99%

Alm

ost A

LL of m

y activity has b

een gen

erated by d

irectional o

pen

house

signs!

1 to

3 tim

es per m

onth

yard sign

s99%

Since th

e begin

ning o

f time.... o

r at least the b

eginning o

f real estate, lawn

signs an

d directio

n sign

s have b

een used

to help

agents m

arket homes

offered

for sale. I h

ave never really h

eard of an

y objectio

ns to

this p

ractice

in m

y 30+ years o

f real estate. It seems th

at AG attacked

all signage

inclu

ding tem

porarily d

isplayed

real estate signs to

address th

e problem

of

others p

uttin

g up sign

s of an

objectio

nab

le natu

re. Since I h

ave

successfu

lly used

lawn an

d directio

nal sign

s to help

market real estate, I

hate to

see this m

arketing m

ethod su

dden

ly mad

e "illegal." I prefer

common sen

se and lead

ership over an

other rid

iculous o

rdinan

ce.

4 to

6 tim

es per m

onth

yard sign

s99%

All o

f our 5

Cities h

ave to understan

d th

at the o

pen

house sign

s are only

temporary. Th

ey are usually p

icked up after every o

pen

house. A

lso, every

home th

at closes escro

w in

their C

ity they actu

al make o

n th

e tax revenue

of each

home th

at sells. Plus, b

ringin

g buyers in

to Grover B

each help

s the

economy fro

m th

e top to

the b

otto

m of th

e food ch

ain. C

ities should be

letting real estate agen

ts do th

eir job an

d not p

uttin

g restraints o

n our

open

house sign

s and not givin

g us every o

pportu

nity to

market th

e

tdt

llit1 to

3 tim

es per m

onth

yard sign

s100%

Open

house sign

s are extremely effective. I h

ave sold houses to

peo

ple

who weren

’t even lo

okin

g and ju

st hap

pen

ed to

see the o

pen

house sign

anddropspot.

7 or m

ore tim

es per m

onth

100%

Temporary "san

dwich

" open

house sign

s are importan

t to every o

pen

house.

1 to

3 tim

es per m

onth

yard sign

s100%

1 to

3 tim

es per m

onth

yard sign

s100%

1 to

3 tim

es per m

onth

yard sign

s100%

There w

as no co

rrect answ

er to th

e first questio

n. I d

o open

houses w

hen

I

have listin

gs and can

do th

em

1 to

3 tim

es per m

onth

100%

Open

House sign

s are super im

portan

t on th

e day o

f the O

pen

House. It

help

s Buyers fin

d th

e property m

ore easily. Esp

ecially, if they are o

ut

lookin

gat

severalproperties.

4 to

6 tim

es per m

onth

yard sign

s100%

The o

pen

house sign

s are very im

portan

t, sometim

es there w

ill be tw

o or

three h

omes th

at are on th

e market w

ithin th

e same Street. Th

e open

house sign

s help

the b

uyer fin

d th

e home th

at is open

. It is puzzlin

g that

Grover B

each would wan

t to disco

urage R

eal Estate open

house sign

s

1 to

3 tim

es per m

onth

yard sign

s1‐5%

Usually o

nly a n

eighbor p

ops b

y with

street signs. Everyo

ne else at m

y

open

houses fin

d th

em onlin

e‐and I ask everyo

ne th

at stops in

how th

ey

foundtheopen

house.

1 to

3 tim

es per m

onth

yard sign

s2 or 3

1 to

3 tim

es per m

onth

yard sign

sAlm

ost all visito

rs.I d

o not u

nderstan

d why yard

signs are su

ch a b

ig deal. Th

e only th

ing th

at

would irritate m

e would be if th

e agent fo

rgot to

take them

down.

1 to

3 tim

es per m

onth

yard sign

salm

ost all!

Please d

on't h

amper o

ur ab

ility to help

your citizen

s sell their h

omes!

1 to

3 tim

es per m

onth

yard sign

sdon't kn

ow

I don't b

elieve open

house sign

s are as importan

t as they seem

, peo

ple are

lookin

g to open

house via m

edia. O

pen

house b

rings in

lookie‐lo

us

never

I dont kn

ow.

1 to

3 tim

es per m

onth

yard sign

slarge %

for su

re!

7 or m

ore tim

es per m

onth

yard sign

sless th

an 10%

Most A

ll of m

y visitors are fro

m m

y door kn

ockin

g campaign

, and in

ternet

advertisin

g.1 to

3 tim

es per m

onth

yard sign

smajo

ritymajo

rity only kn

ow fro

m sign

s

1 to

3 tim

es per m

onth

yard sign

sMan

y

7 or m

ore tim

es per m

onth

yard sign

sMan

y

1 to

3 tim

es per m

onth

yard sign

sMost

The o

pen

house sign

is an histo

rical meth

od of b

ringin

g poten

tial buyers to

the p

roperty fo

r sale. Given

the in

creased property taxes o

n real estate

sales, I believe en

couragin

g rather th

an fo

rbidding th

eir use is th

e best

decisio

n!

1 to

3 tim

es per m

onth

yard sign

smost

yard

signs

most

Agen

ts have G

OT to

respect o

wners righ

ts and ASK

PER

MISSIO

N befo

re

placin

g signs. Th

e City n

eeds to

understan

d th

at, somed

ay, it could be th

eir

home o

n th

e market an

d th

ey'll wan

t all the exp

osure th

ey can get.

Agenda Item No. _12_


TO: Honorable Mayor and City Council DATE: October 7, 2019 FROM: Matthew Bronson, City Manager PREPARED BY: Matthew Bronson, City Manager SUBJECT: Economic Development Activities RECOMMENDATION Receive information on the City’s economic development activities as identified in the 2019-21 Major City Goals work program and 2017 Economic Development Strategy and provide input and direction to staff. BACKGROUND During the FY 2019-20 budget development process, the Council requested a future agenda item to discuss the City’s current economic development activities and identify potential opportunities. Staff is bringing such an item to the Council at this time following earlier agenda items in August and September related to water resources and housing needs. These three topics are connected and represent three critical elements of what makes a successful and viable community for all. Similar to the previous items on water and housing, the purpose of this economic development agenda item is to provide information on what the City has done to promote economic development and receive the Council’s input and direction on other activities that could be done. Staff would bring back specific items for further discussion as identified by the Council. FY 2019-20 Economic Development Work Program Economic development has long been one of the City’s priorities and is one of the City’s Major City Goals as shown in Attachment 1. Each of the Major City Goals has a defined work program to list key activities that will be carried out by staff during the fiscal year. Attachment 2 shows the Economic Development work program for FY 2019-20 which is centered around four categories:

• Business Retention and Attraction • Tourism Development • Commercial Cannabis Activities • Permit Processing

Economic development achievements in the prior fiscal year 2018-19 are shown in Attachment 3. Since the first quarter of the current fiscal year has just been completed, it is too early to determine overall achievements with this year’s work program. Staff has begun to make progress in a number of areas identified below and on the following page:

• Working with South County Chambers of Commerce on business and economic development issues including co-working space and economic development website

Staff Report: Economic Development Activities Page 2 October 7, 2019

• Working with Digital West on the continued implementation of the broadband fiber network • Processing the development application for the 1598 El Camino Real hotel project and

working with the developer on construction of the 950 El Camino Real hotel project • Participating in Grover Beach Lodge plan development discussions with State Parks and

Pacifica Companies on the private development project on State property • Continuing to process development applications for commercial cannabis businesses with

10 businesses now operating out of the 26 permits issued • Completing the Sign Ordinance update

In developing this year’s work program, staff recognized that the work plan activities were limited with only $25,000 in General Fund resources allocated aside from staff time. $10,000 of these funds has been allocated to the Economic Vitality Corporation for regional economic development assistance along with other cities and $10,000 has been allocated to support the future Chamber co-working space. However, staff acknowledged that one-time funds from SB 1090 economic development funding tied to the closure of the Diablo Canyon Power Plant could support additional economic development work. The City has received a total of $220,000 in these one-time funds from the County to be used for economic development purposes. In addition, the Council may elect to augment these funds with additional General Fund funding to support identified economic development activities either this year or in subsequent years. 2017 Economic Development Strategy As the Council considers potentially new economic development activities, it is important to put this in the context of the City’s updated Economic Development Strategy accepted by the Council on April 17, 2017. This updated Strategy was developed by an outside consultant (BAE Urban Economics) through the Community Development Block Grant program to update the City’s initial Strategy adopted in 2008. The process to update the Strategy included review of existing economic conditions, demographic trends, real estate market conditions, SWOT analysis (strengths/weaknesses/opportunities/threats), and business outreach. The updated Strategy and Background Report (shown as Attachment 4) contains an Action Plan that consists of four strategies with key actions as follows: Strategy 1: Build on Local Assets

• Action 1A: Grover Beach Lodge and Conference Center • Action 1B: Commercial Medical Cannabis • Action 1C: Promote the Benefits of Grover Beach's Broadband System • Action 1D: Promote the City's Train Station • Action 1E: Build on the City's Business Friendly Reputation • Action 1F: Capitalize on Beach Visitors

Strategy 2: Enhance Quality of Life

• Action 2A: Enhance West Grand Avenue • Action 2B: Homeless Assistance • Action 2C: Arts Initiative • Action 2D: Expanded Family Activities

Strategy 3: Foster Collaboration

• Action 3A: Continue to Participate in Countywide Tourism Business Improvement District • Action 3B: Develop Collaboration Between Grover Beach, Arroyo Grande, & Pismo Beach • Action 3C: Develop Collaboration Between Local Businesses


Strategy 4: Build Image and Awareness • Action 4A: Marketing Initiative • Action 4B: Enhance the City’s Identity on Highway 101

Overall, the City has made progress in advancing these strategies to build a stronger and more diversified economy particularly in Strategy 1 (Build on Local Assets). Examples under this strategy include work on the Grover Beach Lodge project and other hotel projects, establishment of the commercial cannabis industry, installation of the broadband fiber network, construction of the train station expansion project, installation of wayfinding signs, and development of an economic development financial assistance policy. With regards to Strategy 2 (Enhance Quality of Life), notable actions include update of the Sign Ordinance, partnerships with other agencies on homeless assistance, development of the City’s public art guidelines and utility box art program, and development of new playground facilities for young families. Under Strategy 3 (Foster Collaboration), the City has continued its active involvement in the Countywide Tourism Business Improvement District operated by Visit SLO CAL and enhanced collaboration with nearby cities along with the Chamber and local businesses. However, the City has not fully achieved or implemented all the actions identified in the Economic Development Strategy given resource limitations and other workload priorities. Under Strategy 1, the City has not yet capitalized on beach visitors to maximize economic benefits from visitors while the City has not fully enhanced West Grand Avenue or expanded family activities shown under Strategy 2. The biggest gap in staff’s assessment is in Strategy 4 (Build Image and Awareness) where the City has not made significant progress in developing a marketing initiative and enhancing the City’s identity on Highway 101 given the lack of dedicated resources including staffing for marketing and outreach. Such ongoing efforts are important in building a stronger identity or image and telling the story about why the city is a great location for business. Attachment 5 is an example of a brochure about the city developed recently by an online business magazine which will be useful with marketing but doing this work on a regular basis takes time and resources. Potential New Economic Development Activities With the context of the current work program and Economic Development Strategy, staff is seeking Council direction on potentially new economic development activities the City should prioritize either this current fiscal year or in subsequent years. Pending such direction on priority activities, staff will bring back additional information to the Council on the identified activities including work scope, timeframe, and resources needed. Below are possible activities identified by staff for consideration along with other ideas that may be generated by the Council:

• Revisit 2011 West Grand Avenue Master Plan and prioritize continued implementation • Improve lighting and other streetscape improvements on West Grand Avenue • Improve traffic calming/pedestrian/bicycle amenities on West Grand Avenue • Additional wayfinding and/or gateway signage • Focused tourism marketing and outreach • Industrial area marketing and recruitment to businesses for investment opportunities • Technology company marketing and recruitment given the broadband fiber network • Enhanced business recruitment, site selection, and retention assistance • Business improvement grants such as façade improvements


FISCAL IMPACT The City currently has $25,000 in General Fund funding allocated in FY 2019-20 for the Economic Development work plan of which $5,000 is currently unallocated. There is a total of $220,000 in additional one-time funding from the SB 1090 allocation for economic development activities. Additional funding from General Fund reserves could be used to augment these funds for specific activities though staff would continue to advise a degree of caution in allocation of these reserve funds until later this fiscal year as part of the mid-year budget review process. ALTERNATIVES The City Council has the following alternatives to consider:

1. Receive information on the City’s economic development activities as identified in the 2019-21 Major City Goals work program and 2017 Economic Development Strategy and provide input and direction to staff; or

2. Provide alternative direction to staff.

PUBLIC NOTIFICATION The agenda was posted in accordance with the Brown Act. ATTACHMENTS 1. 2019-21 Major City Goals 2. FY 2019-20 Economic Development Work Program 3. FY 2018-19 Economic Development Work Program Year-End Report 4. Economic Development Strategy and Background Report 5. Example of City Marketing Brochure

City of Grover Beach 2019-21 City Council Goals

MAJOR CITY GOALS

ECONOMIC DEVELOPMENT. Develop and implement economic development strategies that support business retention and attraction, tourism including hotel development, revenue generation and effective permit processing.

ENVIRONMENTAL SUSTAINABILITY. Integrate environmentally sustainable principles and practices into City operations and new development plans and standards; increase resource conservation and reduce carbon emissions through initiatives such as Central Coast Blue, Community Choice Energy and electric vehicle charging stations.

PUBLIC SAFETY. Ensure quality, contemporary public safety services (police, fire, emergency medical) by providing adequate resources to meet existing demands; and by engaging businesses and the community in addressing public safety challenges, such as vagrancy problems near commercial areas, neighborhoods and parks.

STREET AND OTHER CAPITAL IMPROVEMENTS. Continue improvements to major and local streets using Measure K-14 funds, SB1 funds and other resources, incorporating where feasible other desirable capital improvements (e.g. upgrade/maintenance of water, sewer, storm water and curb, gutter and sidewalk); and improve other infrastructure such as City parks, recreation facilities and other public buildings.

OTHER IMPORTANT GOALS

CITY BEAUTIFICATION. Enhance the appearance of the community through tree maintenance and landscaping, utility undergrounding, public art and signage, especially along the Grand Avenue corridor.

CODE ENFORCEMENT. Strengthen the code enforcement program to be more proactive in inspecting and addressing such issues as overgrown landscaping, short term rental violations, illegal advertising/business signage, conflicting right-of-way encroachments and continued monitoring of the cannabis industry.

HOMELESSNESS. Partner with regional agencies and organizations to address homelessness challenges, potentially through joint efforts to provide daytime services, warming stations, transitional housing, shelter, and mental health support.

PEDESTRIAN AND BICYCLE SAFETY. Make Grover Beach a more pedestrian and bicycle friendly community by adding and/or enhancing bicycle lanes, sidewalks, street lights, street and crosswalk striping and enhancements, and other traffic calming measures.

ADDRESS AS RESOURCES PERMIT

COMMUNITY ENGAGEMENT. Provide opportunities for community members to engage and be involved with their community through programs, initiatives and events.

HOUSING AFFORDABILITY. Collaborate with developers and non-profits in efforts to increase affordable housing availability, and pursue other strategies such as State housing density incentives, added accessory dwellings units, and grants that support affordable housing programs/projects.

RECREATION AND COMMUNITY PROGRAMS. Provide viable recreation, youth, and special event programs designed to meet current and emerging needs, while avoiding duplication of programs offered by other providers.

Attachment 1

MAJOR CITY GOAL 2019-20 WORK PROGRAM

ECONOMIC DEVELOPMENT

GOAL STATEMENT

Develop and implement economic development strategies that support business retention and attraction, tourism including hotel development, revenue generation and effective permit processing.

STAFF LEAD: Matthew Bronson, City Manager; Bruce Buckingham, Community Development Director

TASK DATE

Business Retention and Attraction

1. Work with Chamber to meeting periodically with local businesses on key issuesfacing business community

2. Work with Chamber to promote use of new Grover Beach co-working space asbusiness development strategy

3. Collaborate with partner agencies to identify economic development strategies tosupport regional economy

4. Work with Digital West on marketing efforts to promote broadband use bybusinesses as initial service begins

Tourism Development

1. Begin oversight and construction management for Urban Commons hotel on ElCamino Real

2. Process development application for 1598 El Camino Real hotel project forCouncil consideration and entitlement

3. Finalize plans and issue City permits for Grover Beach Lodge in conjunction withState Parks plan checking and permit issuance

4. Initiate discussions regarding formation of a Tourism Business ImprovementDistrict to promote tourism to Grover Beach

Commercial Cannabis Activities

1. Continue compliance activities and revenue collection for commercial cannabisbusinesses

2. Process additional development applications for commercial cannabis businesses

3. Review current ordinances, regulatory costs and fees, and tax structure andengage the Council on potential changes

4. Revise ordinances as directed by Council and present revised ordinances foradoption

Ongoing

Ongoing

Ongoing

Ongoing

July 2019

August 2019

January 2020

Spring 2020

Ongoing

Ongoing

April 2020

June 2020

Attachment 2

MAJOR CITY GOAL 2019-20 WORK PROGRAM


Permit Processing

1. Begin update of Engineering City Standards and Specifications 2. Work with Arroyo Grande to explore opportunities for shared building inspection

and plan check resources 3. Complete sign ordinance update with amended ordinance for Council adoption 4. Present additional development code updates to Council for consideration 5. Complete Engineering City Standards and Specifications 6. Continue to implement other recommendations from 2018 development review

study to streamline development review process

July 2019

July 2019

September 2019

November 2019

January 2020

Ongoing

KEY POLICY/OPERATIONAL ISSUES

• Continued need for focus on hotel development projects given additional tax revenues and development

opportunities • Continued high level of staff time and focus on commercial cannabis industry given its complexity and

additional tax revenues • Importance of maximizing potential of broadband network for business attraction and retention • City’s involvement in regional economic development strategies to ensure community economic vitality in

the future • SB 1090 allocation expected in 2019-20 would provide approximately $192,000 in one-time economic

development funding and lead to workplan revisions pending Council direction

FINANCIAL RESOURCES REQUIRED

2019-20 Cost Summary

Economic and business development assistance (not including SB 1090 allocation) $25,000 Total $25,000

2019-20 Funding Sources

General Fund funding $25,000 Total $25,000

MAJOR CITY GOAL FY 2018-19 YEAR-END IMPLEMENTATION REPORT


July 15, 2019

GOAL STATEMENT

Strengthen the City’s economic base by implementing an economic development strategy that includes construction of the Grover Beach Lodge and other hotels, establishment of commercial cannabis businesses, implementation of broadband fiber in industrial and commercial areas, and opportunities to generate additional transient occupancy and business tax revenues.

STAFF LEAD: Matthew Bronson, City Manager

TASK PLANNED STATUS COMMENTS

Hotel Developments

1. Begin oversight and construction management forUrban Commons hotel on El Camino Real

2. Process development application for 1598 El CaminoReal hotel project for Planning Commission andCouncil consideration

3. Finalize plans and issue local permits for GroverBeach Lodge in conjunction with State Parks planchecking and permit issuance

4. Begin City coordination with constructionmanagement for Grover Beach Lodge construction

Commercial Cannabis Activities

1. Begin compliance activities and revenue collectionas initial cannabis businesses begin operating

2. Process additional development applications forcommercial cannabis businesses

Summer 2018

Summer/Fall 2018

Fall 2018

Fall/Winter 2018

July 2018

July 2018

In Progress

Completed

In Progress

Postponed

Completed

Completed

City oversight and construction management beginning with project construction anticipated to begin in fall 2019.

Project application deemed complete in fall 2018 and Planning Commission and Council review scheduled for summer 2019.

City provided review of initial offsite civil improvement plans submitted to State with City permit issued for Grand Avenue improvements expected to be carried out in summer 2019.

City construction management coordination expected to begin in FY 2019-20 or FY 2020-21 for offsite civil improvements pending final State permitting.

Compliance and revenue collection activities underway with opening of initial commercial cannabis businesses.

City processing applications as submitted with 26 businesses currently permitted with another two applicants currently in the development process.

Attachment 3



July 15, 2019

3. Review current ordinances, regulatory costs and fees, and tax structure and engage the Council on potential changes

4. Revise ordinances as directed by Council and present

revised ordinances for adoption Broadband Network

1. Work with Digital West on marketing efforts to promote broadband use by businesses as initial service begins

2. Work with Digital West on additional opportunities

to expand the broadband network beyond the initial industrial and commercial areas

Business Development

1. Work with Chamber to begin meeting periodically with local businesses on key issues facing business community

2. Conduct outreach with hotels and businesses on

potential changes to the transient occupancy tax and business tax certificate tax to support core City services

3. Begin working with partners on regional economic

development study to identify future economic strategies after the closure of the Diablo Canyon Power Plant

January 2019

Spring 2019

July 2018

December 2018

July 2018

Summer/Fall 2018

Summer 2018

Completed Completed Completed In Progress Completed Completed Postponed

Review carried out by staff team and presented to the Council in May 2019 for direction on ordinance changes. Revised land use ordinance reviewed by Planning Commission in June 2019 with Council action scheduled in July 2019. Staff collaborated with Digital West on marketing efforts prior to unveiling of the new network in December 2018. City working with Digital West and Peak WiFi on additional marketing and opportunities to expand network to other commercial and industrial areas along with residential areas. Business outreach meetings initiated in April 2019 with periodic meetings planned throughout the year. Outreach conducted with businesses and Chamber on November 2018 revenue measures which were ultimately approved by voters. Regional study put on hold given issues with selected consultant. City participating in discussions with other cities about regional economic development opportunities such as enhancing tourism infrastructure.



July 15, 2019

4. Work with the Chamber and other partners on business development opportunities

Fall 2018

In Progress

Staff working with the Chamber and EVC on business development opportunities such as greater awareness of the broadband network and developing business incubator space.

Key Policy/Operational Issues

• Continued need for focus on hotel development projects given additional tax revenues and development opportunities

• Continued high level of staff time and focus on commercial cannabis industry given its complexity and financial importance

• Importance of maximizing potential of broadband network to demonstrate return on the City’s funding investment

• Challenge of carrying out business recruitment and retention activities given lack of economic development staff and competing staff priorities

• City’s involvement in regional economic development strategies to ensure economic vitality following closure of Diablo Canyon

bae urban economics

Ci ty o f Grover Beach

Final Economic Development Strategy April 11, 2017

Attachment 4

i

Table of Contents

ACKNOWLEDGEMENTS .............................................................................................................. ii

INTRODUCTION .......................................................................................................................... 1

Purpose ......................................................................................................................................... 1

Relationship to Other City Policies .............................................................................................. 1

Economic Development Strategic Planning Timeframe ............................................................ 2

Overview of the Economic Development Strategy Development Process ................................ 2

Roles and Responsibilities .......................................................................................................... 3

SUMMARY OF KEY FINDINGS .................................................................................................... 4

Economic Strengths and Competitive Advantages .................................................................... 4

Economic Weaknesses and Competitive Disadvantages .......................................................... 5

Opportunities for Economic Growth and Development ............................................................. 7

Threats to Economic Growth and Development ......................................................................... 8

Real Estate Development Feasibility .......................................................................................... 9

STRATEGY FRAMEWORK ......................................................................................................... 12

Goals .......................................................................................................................................... 12

Strategies ................................................................................................................................... 12

Actions ....................................................................................................................................... 12

ACTION PLAN ........................................................................................................................... 15

Strategy 1: Build on Local Assets ............................................................................................ 15

Strategy 2: Enhance Quality of Life ......................................................................................... 18

Strategy 3: Foster Collaboration .............................................................................................. 21

Strategy 4: Build Image and Awareness ................................................................................. 22

ii

ACKNOWLEDGEMENTS

Preparation of this component of the Grover Beach Economic Development Strategy was

funded by 2013 Community Development Block Grant Funds.

We gratefully acknowledge the following people for their assistance in producing this Strategy.

City Council:

John P. Shoals, Mayor

Mariam Shah, Mayor Pro Tem

Jeff Lee, Council Member

Barbara Nicolls, Council Member

Debbie Peterson, Council Member

City Staff:

Matthew Bronson, City Manager

Bruce Buckingham, Community Development Director

Consultant Team:

Matt Kowta, Principal, BAE Urban Economics

Aaron Nousaine, Vice President, BAE Urban Economics

Amanda Wallace, Associate, BAE Urban Economics

Matt Fairris, Analyst, BAE Urban Economics

1

INTRODUCTION

Purpose

The Grover Beach Economic Development Strategy was developed using a three-phase

process that has been successfully implemented in numerous other communities and then

tailored to meet the City’s specific needs. The first phase identified Goals that reflect the

community values and previously established guiding principles. The second phase built upon

the first, adding specificity and detail by identifying supporting Strategies and actions based on

the findings from the existing conditions analysis, the SWOT analysis, the financial feasibility

analysis, and the public outreach process. The objective is to provide the City with a strategic

framework, as well as a set of discrete implementing actions designed for completion by the

City, and its strategic community partners, over the next five to ten years. The strategic

framework is designed to facilitate the creation of annual work programs that identify the

individual components to be undertaken, during a discrete period of time, to move the City

towards fulfillment of the identified goals. As progress is made and economic conditions

change, the City should periodically review the strategic plan, and update it as necessary, in

consultation with key strategic partners and other important community stakeholders.

Relationship to Other City Policies

The Economic Development Strategy builds upon a series of policy documents developed on

behalf of the City of Grover Beach over the past decade and beyond. Two important starting

points for development of the updated Economic Development Strategy include the 2004

Visioning Project and the previous Economic Development Strategy developed in 2008. The

2004 Visioning Project was intended to build “Consensus Vision” for the future of Grover

Beach as part of a comprehensive update of the General Plan Land Use Element completed in

2010. The 2008 Economic Development Strategy similarly established the City’s vision for

economic development in Grover Beach and outlined a series of actions designed to achieve

the identified goals. This updated Economic Development Strategy is designed to

acknowledge and build upon the content of these historic documents, while recognizing the

community’s contemporary vision and changing economic conditions and opportunities.

In addition to these two foundational documents, the updated Economic Development

Strategy also incorporates components of the 2010 Technology Master Plan and the 2011

West Grand Avenue Master Plan. The Technology Master Plan outlines the steps necessary to

establish and successfully leverage a municipal broadband network, including establishing the

infrastructure, managing the network, promoting internet based business development, and

building a technologically competent labor force, among other key goals. The 2011 West

Grand Avenue Master Plan establishes high-quality guidelines for architectural design and

public streetscape enhancements along three strategic sections of West Grand Avenue to

facilitate revitalization.

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The updated Economic Development Strategy also acknowledges a number of broader

regional economic strategies, including the 2010 Clusters of Opportunity Economic Strategy

and 2015 Economic Strategy Update developed by the San Luis Obispo Economic Vitality

Corporation.

Economic Development Strategic Planning Timeframe

As mentioned previously, the City’s prior Economic Development Strategy was adopted in

2008. Adoption of this updated Economic Development Strategy puts the City of Grover Beach

on track to refresh its Economic Development Strategy approximately once every ten years.

This is a reasonable time horizon for an economic development strategy, as it is long enough

to give the City time to work on implementation and understand the results that are achieved,

but not so long that the economic conditions, trends, and opportunities will fundamentally

change before the next update. With an approximately ten-year time horizon in mind, this

strategy focuses primarily on short- and mid-term actions that the City can take to strengthen

the local economy.

Overview of the Economic Development Strategy Development Process

Preparation of this economic development strategy followed a relatively streamlined process,

as follows:

• Preparation of a Background conditions assessment, which was scoped to utilize

existing information as much as possible, while also compiling new economic and

demographic information.

• Review of background information and discussion of economic development concerns

with City Council. The background conditions assessment served as the basis for a

presentation and discussion with the Grover Beach City Council on June 20, 2016.

BAE presented the initial background findings and solicited additional input from the

City Council and members of the public.

• Key stakeholder interviews. Subsequent to the City Council meeting, BAE then

conducted interviews with a range of key stakeholders, covering a range of local

economic development topics.

• Financial feasibility analysis for catalyst projects. BAE also worked with City staff to

define prototype development projects to analyze for financial feasibility, and deployed

an online survey to obtain input on economic development topics from local business

people.

• Administrative Draft Economic Development Strategy. BAE utilized the information

from the research components, key findings from which are summarized in the

following section, to prepare an Administrative Draft Economic Development Strategy

for review and discussion with City staff.

• Draft Economic Development Strategy. BAE refined the Administrative Draft Economic

Development Strategy based on City staff input, and prepared a revised draft for public

review.

3

• Review Draft Economic Development Strategy with City Council and finalize. BAE and

City staff presented the Draft Economic Development Strategy to the City Council at

their March 20, 2017 meeting and solicited input from the public before obtaining

direction from the City Council to finalize the Economic Development Strategy. BAE

prepared the Final Economic Development Strategy for acceptance by the City Council

at a future meeting.

Roles and Responsibilities

City Council

The City Council’s role in implementing the Economic Development Strategy is to provide policy

direction and oversee City staff activities related to implementing programs and actions

included in the strategy, authorize staff time, funding and other resources necessary to

implement the strategy, and to make broader decisions for the community while keeping in

mind the implications for success of the strategy.

City Staff

City staff will be responsible for handling the day to day implementation of the Economic

Development Strategy, including planning and managing programs and actions that are

included in the strategy. City staff will also solicit the cooperation with other partner

organizations, and coordinate with their staff as necessary to implement the strategy. City

staff will also monitor progress in implementing the economic development strategy, report on

progress to the City Council, and seek the Council’s direction and authorization to pursue an

annual economic development work plan, to implement the strategy in a deliberate manner,

but also responding to priorities and opportunities as they arise.

Other Organizations

This document targets several partner organizations to assist the City in implementing the

Economic Development Strategy. Part of the work in implementing the strategy will require

that City staff reach out to representatives of the targeted organizations to solicit their

cooperation and assistance in helping the City to implement the strategy, and to then

coordinate the actual implementation actions. Key partner organizations include the Arroyo

Grande/Grover Beach Chamber of Commerce, the neighboring Cities of Arroyo Grande and

Pismo Beach, and the San Luis Obispo Economic Vitality Corporation.

4

SUMMARY OF KEY FINDINGS

The following is a summary of key findings from the Economic Development Strategy

Background Report, prepared as part of the process to develop this updated Economic

Development Strategy. The detailed Background Report is available as a separate document,

and includes an assessment of local demographic and economic trends, real estate market

conditions, and real estate development feasibility. It also documents the results of

stakeholder interviews, and findings from a local business survey. The Background Report

identified strengths, weaknesses, opportunities, and threats to economic development in

Grover Beach, which helped to inform the development of this updated Economic

Development Strategy.

Economic Strengths and Competitive Advantages

The following outlines the economic strengths and competitive advantages identified through

background research that may be leveraged to facilitate and encourage economic growth and

development within the City of Grover Beach over the next ten years.

• Located within the broader Five Cities and San Luis Obispo County market areas.

• In close proximity to multiple tourism destinations, including Pismo State Beach,

Oceano Dunes State Recreation Area, and the Guadalupe-Nipomo Dunes National

Wildlife Refuge.

o Grover Beach is the “gateway” to Pismo State Beach and the Oceano Dunes.

• Housing costs are lower in Grover Beach compared to other communities throughout

the Five Cities area and San Luis Obispo County, which is becoming an increasingly

important competitive advantage in terms of promoting residential development and

expansion of the retail sector, particularly in a climate of ever increasing regional

housing costs.

• With a population that is somewhat younger than average, the city may be well

positioned to leverage youth culture to develop a vibrant, walkable, neighborhood

environment.

• The historically low countywide industrial vacancy may allow Grover Beach to position

itself to capture spill-over demand, since the city is one of the few areas within the

Southern San Luis Obispo County area that has undeveloped industrial land.

• Recent jobs growth in the Wholesale Trade sector indicates a potential competitive

advantage in that industry, while growth in Manufacturing indicates an increase in

specialization and the opportunity to capitalize in the land available in the business

park area for business expansion and relocation.

5

• Transient occupancy tax revenue in Grover Beach recovered relatively quickly following

the Great Recession, though somewhat more slowly than in San Luis Obispo County

overall. This indicates a relatively stable and robust market for visitor

accommodations, though Grover Beach remains somewhat less attractive to visitors,

compared to nearby Pismo Beach. The development of the Grover Beach Lodge and

Conference Center will provide Grover Beach with its first opportunity to promote

beachside hotel accommodations.

• While unlikely to capture significant demand from large office users, the city is well

positioned to capture spillover demand from local residents who work in the region’s

larger office markets, but are looking for smaller supplemental office spaces closer to

home; however, the City should be cautious that too much part-time office space

concentrated in any given area might not create a vibrant activity center.

• While the local retail market is largely saturated with existing local-serving

establishments, brokers indicated that a few higher quality retail and food service

establishments have entered the market and increased the city’s regional draw (i.e.,

expanding the market).

• The residential market features a vacancy rate that is at the low end of what

economists would typically consider normal, after adjusting for units held vacant for

seasonal use. This indicates that the market is fairly healthy and that rents and prices

are likely to increase. It also indicates that the City should work to ensure that the

local housing market can expand, to accommodate new housing demand from

employees of new or expanding businesses.

• Low comparative residential rental rates and home prices provide an opportunity for

Grover Beach to market itself as an affordable option within an expensive regional

market, which working families can afford beachside living.

• Grover Beach has a reputation as a business-friendly community with a local

government that is fairly easy to work with, compared to other communities.

Economic Weaknesses and Competitive Disadvantages

Alternatively, this subsection outlines economic weaknesses and competitive disadvantages

that Grover Beach is likely to face while working to promote economic growth and

development over both the near- and long-term.

• Relatively slow population and household growth indicates that Grover Beach is not as

well positioned to capture residential growth, compared to San Luis Obispo, Pismo

Beach and Arroyo Grande. The City does not have substantial amounts of vacant land

to accommodate residential development. However, the availability of lower cost

housing and infill development sites presents a distinct opportunity.

6

• Historically, the City has had a weaker competitive position within the Five Cities and

San Luis Obispo County market areas, in terms of retail sales capture, tourism

accommodations, and food service and entertainment options.

• Limited ocean frontage, the height of the dunes, and the distance to the water make it

more difficult to leverage the City’s oceanfront location for economic development.

• Limited highway frontage, lack of larger vacant sites, and poor access to US 101 make

it difficult for the City to capitalize on highway oriented development, such as big box

retail.

• The pass-through nature of West Grand Avenue, with limited differentiation between

Grover Beach and Arroyo Grande, hampers efforts to develop the corridor into a more

complete retail and lifestyle destination.

• Lower levels of educational attainment in Grover Beach, compared to the county as a

whole, indicate that the labor force may be less prepared for higher-wage, higher-

skilled employment opportunities, compared to residents of other areas, like San Luis

Obispo.

• Similarly, with a majority of Grover Beach residents employed in support-oriented

occupations, like Office and Administrative Support, Sales and Related occupations,

and Building and Grounds Cleaning and Maintenance, the workforce is not well

positioned to benefit from higher-wage jobs growth within the broader San Luis Obispo

County area.

• Grover Beach lost 550 jobs between 2004 and 2014, with only limited jobs growth in

Wholesale Trade, Health Care and Social Assistance, and Real Estate Rental and

Leasing.

• With below-average incomes compared to the rest of San Luis Obispo County, it may

be difficult to support additional expansion of the retail sector while relying solely on

demand from the local population.

• Subsequently, Grover Beach’s primarily resident-serving retail sector achieves per

capita taxable sales that are roughly half of the countywide per capita value.

• Based on the retail leakage analysis, the retail sector within the Five Cities area is

largely saturated, with limited leakage in Food and Beverage Stores and of Sporting

Goods, Hobby, Book and Music Stores likely being absorbed by the existing General

Merchandise sector.

• The location of Grover Beach between the two primary office markets (i.e., San Luis

Obispo and Santa Maria) mean that the city is not likely to capture significant regional

office demand.

7

• Existing rental rates in both the residential and commercial markets are currently

insufficient to justify the development of new leasable real estate, except in limited

circumstances.

• Although much of the existing retail building stock is older and of lower quality

compared to more newly developed product in Arroyo Grande and elsewhere, current

market rents continue to provide income sufficient to justify the continued use of the

buildings, due largely to the fact that many property owners have a comparatively low

basis in the land and improvements.

o Therefore, the price that a property owner would need to receive for their land

in order to justify redevelopment of existing properties, including those that are

heavily underutilized, may be higher than what new development can currently

pay in order to undertake redevelopment projects.

• Grover Beach has historically lacked a strong business identify and has gone “under

the radar,” without much regional awareness of what the city has to offer.

Opportunities for Economic Growth and Development

Similar to the economic strengths and competitive advantages discussed above, this

subsection identifies some of the discrete near- and long-term opportunities for economic

growth and development in Grover Beach.

• Development of the Grover Beach Lodge and Conference Center will increase the

number and quality of the tourist accommodations available in Grover Beach and

provide an anchor for pedestrian and visitor-serving activities at the western terminus

of West Grand Avenue.

• Ongoing investments in street improvements are helping to mitigate some of the less

than favorable perceptions of Grover Beach as a lower-quality/cost alternative to

Pismo Beach.

• Continued investments in line with the West Grand Avenue Master Plan (2011) will

help to further improve the automotive and pedestrian environment along the corridor,

and will help to build up new perceptions of West Grand Avenue in Grover Beach as a

high-quality environment.

• Completion of the Municipal Broadband Project will introduce a comparatively scarce,

high-quality amenity, which may be leveraged to help to attract new residents and

businesses.

• There is an opportunity to develop stronger ties to Cal Poly San Luis Obispo, to connect

business start-ups that are spun out of the university with Grover Beach’s lower cost

facilities, high speed internet, and a beachfront lifestyle with comparatively low cost

housing opportunities.

8

• There is an opportunity for Grover Beach to leverage its available business park land to

attract small to mid-sized manufacturers and other light industrial businesses,

including those that need to relocated from elsewhere in San Luis Obispo County due

to lack of viable expansion opportunities.

o Grover Beach could position itself as the south county option for business

expansion.

• Updates to the Development Code in 2012 have already removed considerable

barriers to development and redevelopment in Grover Beach, particularly along West

Grand Avenue.

• With a population that is somewhat younger than average, the City may benefit from

activities designed to foster youth culture, including music, the arts, and technology.

• Coordinating industrial land availability with the fiber optic network may help to attract

higher-end industrial users to help diversify the City’s economic base.

• While current rental rates are too low to justify development of new residential and

mixed-use projects, a moderate increase in residential rents would be sufficient to

justify higher density residential development in the near-term, though mixed-use

development may take longer to become a profitable development option.

• Grover Beach’s reputation and public image have improved over the past half-decade

or so, with notable streetscape improvements, the re-paving project, train station

improvements, and the planned Grover Beach Lodge and Conference Center.

• As the City’s commercial focal point, enhancements to West Grand Avenue are a key

opportunity, including traffic calming, better pedestrian amenities, cleaning up signs

and displays, and improving lighting and landscape treatments. Included in this was

the desire to see additional nice restaurants and retail shops to attract visitors to the

area.

• The City’s efforts to proactively establish regulation for siting and operating cannabis

related businesses may provide near-term opportunities for economic growth; and

revenues from the recently approved cannabis tax should be considered for support of

economic development in other sectors.

• Grover Beach may also benefit from efforts to market itself as an affordable location

for small to mid-size companies that market lifestyle products and services that are

compatible with the city’s beachside location and lifestyle.

Threats to Economic Growth and Development

Similar to the economic weaknesses and competitive disadvantages discussed above, this

subsection identifies some of the discrete threats to sustained economic growth and

development in Grover Beach.

9

• Grover Beach lacks a clearly defined economic niche:

o The city has a previous stereotype as a working-class bedroom community with

poorly lit roads in deteriorating condition, haphazard signage along commercial

corridors, mom-and-pop and fast food type businesses, and a small number of

businesses catering to seasonal visitors to the dunes.

• While some identify the cannabis industry as a potential opportunity area, interview

participants indicated that the industry should be dealt with cautiously, ensuring that

new businesses are clean, well-maintained, and attractive.

• While Grover Beach is the gateway to Pismo State Beach and Oceano Dunes, many

visitors to those attractions arrive in their own self-contained vehicles, with

accommodations and supplies that limit their need to patronize local businesses when

they visit.

• Similarly, the new retail project in Arroyo Grande, at Elm and East Grand Avenue, could

compete with Grover Beach for shoppers and divert sales from an already weak Grover

Beach retail sector.

• The scheduled closure of the Diablo Canyon Power Plant will likely impact Grover

Beach, due to indirect impacts from local residents who could face job loss or

relocation.

• Discussion regarding the potential closure of the dunes to vehicular recreation

highlights concerns that changes in recreation patterns at the beach could

dramatically impact the desirability of Grover Beach as a destination for recreation and

overnight accommodations.

Real Estate Development Feasibility

In addition to identifying broad strengths, weaknesses, opportunities, and threats, City staff

requested a real estate development feasibility analysis to identify barriers to new construction

and redevelopment in Grover Beach, particularly along West Grand Avenue. The following is a

summary of key findings from that analysis, which is contained in the Background Report.

• Pro-forma financial analysis uses a simplified financial model to test the potential

financial feasibility of a development concept and is often conducted as a preliminary

step, prior to developing more detailed project specifications and a more sophisticated

cash-flow financial feasibility model.

• While simplistic in nature, pro-forma models can help policy makers to better

understand the economic realities impacting the decision to pursue real estate

development projects within their jurisdictions.

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• The two development prototypes used for this exercise assume construction of a three-

story structure on a hypothetical 0.34-acre parcel, located mid-block on West Grand

Avenue.

o Note that mid-block parcels are more highly constrained in terms of

development potential due to limitations on ingress and egress.

• The mixed-use prototype included two retail spaces covering 1,400 square feet each

and nine residential units averaging 1,030 square feet each.

• The exclusively residential prototype included 13 units averaging 908 square feet

each.

• All cost and revenue assumptions were identified based on a review of local market

data and conversations with local real estate professionals and developers. Financing

costs are based on prevailing market conditions and information provided by bank

representatives from banks providing construction financing in the County.

• Under current market conditions, neither project would meet the minimum profitability

requirement of at least a 15 percent return on cost identified by local developers.

• Both financial models indicate that residential and mixed use projects in Grover Beach

are particularly sensitive to changes in average rental rates, particularly for residential

projects, as well as changes in the capitalization rate.

o For the mixed-use project, increasing the residential rental rate from $1.52 per

square foot (current market rate in Grover Beach) to $2.00 per square foot

(current market rate in Pismo Beach) increased the net developer return on

cost to 15.3 percent.

o For the residential project, increasing the residential rental rate from $1.77 per

square foot (current market rate in Grover Beach) to $2.00 per square foot

(current market rate in Pismo Beach) increased the net developer return on

cost to 20.7 percent.

o Note that the per square foot residential rental rates differ between the two

prototypes recognizing differences in desirability between different sized units.

• The capitalization rates used in the analysis were fairly low, which reflects that

investors do not have many other options to invest money at lower risk with equal or

higher returns. However, some highly constrained housing markets with rapid price

appreciation can command capitalization rates that are even lower.

• Where the traditional pro-forma models evaluate the decision-making process of

developers, who purchase sites then build structures, City staff also requested an

evaluation of the decision-making process of existing Grover Beach Property Owners.

o This analysis recognizes that property owners receive revenue from existing

buildings that are rented out or used to house commercial businesses.

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o The value of new construction was compared to the capitalized value of a

single-story commercial building, based on current market rents, which was

divided by the lot size to estimate the minimum price per lot square foot that

the property owner would need to receive to justify sale to a developer.

o The analysis assumes a 0.34-acre site with an existing 4,000 square foot strip

retail building and a 16-space surface parking lot.

o The per square foot minimum sale price was then compared to the land price

that could be supported by each of the prototype development projects.

o Based on recent land sales and interviews with developers, the prototypes

assume a land price of $35 per lot square foot, while the hypothetical property

owner would need to receive at least $64 per lot square foot to make sale for

redevelopment economically attractive. This indicates that rents and sales

prices will need to increase relative to development costs, before

redevelopment will become widely attractive to owners of existing older

buildings that can still generate rental income.

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STRATEGY FRAMEWORK

Goals

The Economic Development Strategy establishes broad goals for what the City of Grover Beach

wishes to accomplish with its economic development strategy, which are to attract more head

of household jobs that pay enough for people to afford housing; increase economic

opportunities for local businesses and workers; and create a stronger and more diversified

local tax base that can help provide the municipal services necessary to maintain the City’s

high quality of life in conjunction with a mutually beneficial relationship with economic

development.

Strategies

Economic development strategies emerged in response to strengths, weaknesses,

opportunities, and threats identified through analysis of existing conditions and trends, the

business survey, stakeholder interviews, and the financial feasibility analysis for new

development. The strategy is organized around four primary strategies, which are intended to

be mutually reinforcing, including:

1. Build on Local Assets

2. Enhance Local Quality of Life

3. Foster Collaboration

4. Build Image and Awareness

The rationale for each of the different strategies is explained within the Action Plan.

Actions

The Action Plan explains the actions that are necessary for the City and its partners to make

progress toward implementation of the strategies, in working towards the over-arching goals.

The Action Plan also identifies implementation requirements for each Action, including costs or

resources needed, timing for implementation, and potential implementation partners.

Following is a key for the costs/resources component:

$ = Actions handled within existing budget and staff work programs

$$ = Actions requiring re-allocation of staff priorities and/or budget allocations under $20,000

$$$ = Actions requiring budget allocations of $20,000 to $50,000

$$$$ = Actions requiring budget allocations of more than $50,000 and/or new staff

Following is a key for the timeframe component:

Ongoing = Actions that are currently underway and/or will be implemented on an ongoing

basis

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Near-Term = Actions that should be initiated within six to twelve months

Mid-Term = Actions that should be completed within one to five years

Long-Term = Actions that may require five to ten years to complete

Table 1 summarizes the Actions associated with each of the Strategies.

Table 1: Summary of Strategies and Actions

Implementation Costs and/orStrategy 1: Build on Local Assets Timing Staff Resources Potential Partners

Action 1A: Grover Beach Lodge and Conference Center Near to Mid-Term $$$$ Pacifica Companies; CA State ParksAction 1B: Commercial Medical Cannabis Ongoing $$$$ CA Cannabis Industry Assn.; ChamberAction 1C: Promote the Benefits of Grover Beach's Broadband System Ongoing $ Digital West; ChamberAction 1D: Promote the City's Train Station Near-Term; Ongoing $ Amtrak; Chamber; Pacifica CompaniesAction 1E: Build on the City's Business Friendly Reputation Near-Term; Ongoing $ Chamber; local businessesAction 1F: Capitalize on Beach Visitors Mid to Long-Term; Ongoing $$$ Pacifica Companies; Chamber; California State

Parks; local businesses

Strategy 2: Enhance Quality of LifeAction 2A: Enhance West Grand Avenue Ongoing; Long-Term $$$$ Chamber; West Grand Ave. businesses; SLOCOGAction 2B: Homeless Assistance Ongoing $$$ County; PB; AG; homeless advocacy organizationsAction 2C: Arts Initiative Near-Term; Ongoing $$ Arts Council; art galleries, collectives, studios;

LMUSD; Clark Center Foundation; ChamberAction 2D: Expanded Family Activities Near-Term; Ongoing $$ YMCA; local sports leagues/organizations

Strategy 3: Foster CollaborationAction 3A: Continue to Participate in Countywide Tourism Business Improvement District Ongoing $ Visit SLO CAL; ChamberAction 3B: Develop Collaboration Between Grover Beach, Arroyo Grande, and Pismo Beach Near to Mid-Term; Ongoing $$ AG; PB; Chamber; Central Coast Tourism Council;

Visit SLO CALAction 3C: Develop Collaboration Between Local Businesses Near-Term; Ongoing $ Chamber; local businesses

Strategy 4: Build Image and AwarenessAction 4A: Marketing Initiative Near-Term; Ongoing $$$$ Local businesses; SLOEVC; Chamber; Central

Coast Tourism Council; Visit SLO CAL

KEY

$ = Actions handled within existing budget and staff work programs$$ = Actions requiring re-allocation of staff priorities and/or budget allocations under $20,000$$$ = Actions requiring budget allocations of $20,000 to $50,000$$$$ = Actions requiring budget allocations of more than $50,000 and/or new staff

Ongoing = Actions that are currently underway and/or will be implemented on an ongoing basisNear-Term = Actions that should be initiated within six to twelve monthsMid-Term = Actions that should be completed within one to five yearsLong-Term = Actions that may require five to ten years to complete

Chamber = AG/GB Chamber of CommerceSLOEVC = San Luis Obispo Economic Vitality CorporationSLOCOG = San Luis Obispo Council of GovernmentsLMUSD = Lucia Mar Unified School DistrictAG = City of Arroyo GrandePB = City of Pismo Beach

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ACTION PLAN

Strategy 1: Build on Local Assets

Grover Beach, like most small communities, has limited resources that it can tap to implement

a local economic development strategy. Therefore, a critical strategy for the City will be to

leverage the local economic development assets that are endemic to the location or in which

the City has already invested, including:

Action 1A: Grover Beach Lodge and Conference Center

In collaboration with California State Parks and Pacifica Companies, continue to work towards

development of the Grover Beach Lodge and Conference Center, which was approved by the

City Council in 2014. The City should finalize its financial assistance to facilitate development

of the proposed project, based on the broad economic benefits to the City and its residents,

such as numerous employment opportunities, real estate and business taxes, and tourism

development opportunities. The City should work to ensure the provision of these public

benefits, as well as continued public access to the beach and connectivity between the Lodge

and other parts of the community, coordinating development of the Lodge with redevelopment

and improvements along West Grand Avenue, in particular.

Cost/Resources Needed: $$$$

Timing: Near- to Mid-Term

Potential Partnerships: Pacifica Companies; California State Parks.

Action 1B: Commercial Medical Cannabis

Complete the process of adopting the ordinances and use the early adoption of cannabis

policies to facilitate recruitment of new high quality cannabis-related businesses. The City

should actively monitor how the amended land use ordinance and commercial cannabis taxes

are received by the industry, as well as how local residents, existing businesses, and visitors

respond to the introduction of these new businesses into the community, making adjustments

to the ordinance as necessary to mitigate potential conflicts or concerns. The City and its

partners should leverage the City’s pioneering actions on cannabis to develop the Grover

Beach brand and industry identify, through concerted marketing efforts directed at the broader

medical cannabis industry (see Action 4A, below). Special care should be taken to monitor

and align the City’s policies and taxing mechanisms with implementation of statewide

cannabis regulations and taxes.


16

Timing: Ongoing

Potential Partnerships: California Cannabis Industry Association; Chamber of Commerce.

Action 1C: Promote the Benefits of Grover Beach’s Broadband System

The City has made an investment in bringing the broadband system to the industrial area and

West Grand Avenue. The City, in conjunction with Digital West, needs to promote this

investment as a valuable amenity for businesses that are tied to the internet and need high

speeds at relatively low cost.

Cost/Resources Needed: $

Timing: Near-Term; Ongoing

Potential Partnerships: Digital West; Chamber of Commerce.

Action 1D: Promote the City’s Train Station

Grover Beach is fortunate to host an Amtrak train station that links the community to other

destinations for train travelers throughout the state and the nation. The City should develop a

plan to promote the City as a tourism destination for people who prefer to travel by train, and

back that with actions that will allow train travelers to spend time in Grover Beach without

depending on a car, such as the walkability enhancements recommended in Action 1A,

integrating train station access in promotional materials for the Grover Beach Lodge and

Conference Center as well as a larger marketing initiative (Action 4A), and shuttles and bike

share programs that could serve the station.

Cost/Resources Needed: $ (most costs would be embedded in other Actions 1A and 4A


Potential Partnerships: Amtrak; Chamber of Commerce; Pacifica Companies (Grover Beach

Lodge and Conference Center).

Action 1E: Build on the City’s Business Friendly Reputation

A business friendly reputation is a valuable asset that the City can enhance, by implementing

projects to make it easier for businesses to interact with the City, including:

• Online information on regulations

• Online permit center

• Other resources to assist businesses

17

In addition, the City should continue to collect valuable feedback from local businesses

regarding their needs and their perceptions of the local business environment. This can be

done efficiently through future online surveys such as the one conducted as part of the

economic development strategy process and/or through direct outreach to targeted

businesses. For example, background analysis for this study ascertained that just 25 five

businesses account for two-thirds of the City’s taxable sales.



Potential Partnerships: Chamber of Commerce; local businesses.

Action 1F: Capitalize on Beach Visitors

Large numbers of visitors are attracted to the Oceano Dunes every year, and the development

and operation of the Grover Beach Lodge and Conference Center will expand and diversify the

beach visitor population. To maximize the local economic benefits from this local visitor traffic,

the City should develop a program to connect with those visitors and encourage them to spend

time and money within the City as part of their beach visits. Specific actions to consider

include:

• Build up the 4th Street and West Grand Avenue intersection as a visitor-serving node

targeted to visitors who use 4th Street to access the beach and dunes. Provide signage

at that node to encourage visitors to explore the entire West Grand Avenue commercial

district.

• Attract a vendor to rent beach umbrellas, boogie boards/surf boards, beach toys and

other gear, to diversify the crowd that is currently primarily focused on motor vehicle

recreation.

• Develop a cross-promotional program between the Grover Beach Lodge and

Conference Center and various dunes-related recreational activities.

• Develop a program to better inform beach visitors of the retail, dining, and service

options that are available in Grover Beach to support their visits. This could include

exploration of placing a visitor information kiosk at a location on the Grover Beach

Lodge and Conference Center site that would be visible to passersby.

Cost/Resources Needed: $$$

Timing: Mid- to Long-Term; Ongoing

Potential Partnerships: Pacifica Companies (Grover Beach Lodge and Conference Center);

Chamber of Commerce; local businesses.

18

Action 1G: Leverage Public Infrastructure Investments

The City of Grover Beach invested in infrastructure improvements in support of the Holiday Inn

project on El Camino Real. In addition to serving the hotel project, these improvements can

facilitate further development of underutilized property along El Camino Real. The City should

work with property owners, real estate brokers, developers, and interested businesses to

identify and attract suitable uses, with a goal of creating signature development that will

support economic development and enhance the City’s identity along Highway 101.


Timing: Near-Term

Potential Partnerships: Property owners; real estate brokers; developers; businesses.

Strategy 2: Enhance Quality of Life

Communities and economic development practitioners recognize that economic growth is

increasingly knowledge-driven, meaning that economic growth depends upon a highly

educated and skilled workforce. Businesses seek locations for their operations where a high

quality of life helps to attract and retain a talented workforce. Thus, investing in maintaining,

enhancing, and improving the local quality of life is a key strategic ingredient for economic

development.

Action 2A: Enhance West Grand Avenue

As Grover Beach’s central business district, its main East-West artery, and gateway from

Highway 101 and gateway to the dune, West Grand Avenue is critical to supporting the quality

of life for Grover Beach businesses, residents, and visitors. Input gathered throughout the

strategy development process pointed to the need for continuing efforts to improve the street,

including:

• Implement the West Grand Avenue Master Plan.

• Lighting on West Grand Avenue, to make the street more inviting at night.

• Traffic calming, to slow traffic down and improve visibility of stores; consider a project

with diagonal parking or other methods to also increase parking capacity.

• Sidewalks/walkability; ensure that West Grand Avenue is a comfortable walking route,

connecting to the lodge and conference center; in addition, the walking route could be

extended to tie into the butterfly grove, and other attractions.

• Focusing commercial activity in key nodes and establishing those nodes as target

areas for use of resources to help improve the feasibility of private mixed-use

19

development, including public investments, fee waivers or deferrals, design

assistance, relaxation of development standards, and other incentives.

• Sign ordinance update and enforcement to improve aesthetic views along the corridor.


Timing: Ongoing, with Long-Term completion

Potential Partnerships: Chamber of Commerce; West Grand Avenue businesses, SLOCOG.

Action 2B: Homeless Assistance

Homelessness is a problem that is not likely to be fully resolved in the near- to mid-term, yet it

is one of the major concerns raised throughout the process of developing this Economic

Development Strategy. In order to minimize the adverse impacts to all involved, the City

should take steps that are within its control to help address the homelessness problem,

including:

• Continue building on recent Council ordinances to address vagrancy issues and Police

Department initiatives to clear illegal camps.

• Explore options to provide homeless with services in appropriate locations where

problems will not spill over to commercial and residential areas.

• Consider the potential role of a South County homeless service center in improving the

situation.

Cost/Resources Needed: $$$

Timing: Ongoing

Potential Partnerships: San Luis Obispo County; City of Pismo Beach; City of Arroyo Grande; 5

Cities Homeless Coalition and other non-profit homeless advocacy organizations; Community

Action Partnership of San Luis Obispo County; Homeless Foundation of San Luis Obispo

County.

Action 2C: Arts Initiative

Research for this strategy identified that Grover Beach has a history as an artist community;

however, arts have not been a very visible component within the City in recent years. Many

other communities have recognized development of the arts as important ingredients to both

economic development and improving quality of local quality of life. Components of a City arts

initiative could include:

• Public art program

20

o Establish a utility box painting program - public art in cooperation with School

District, paint merchants, and other business sponsors, with students as

artists.

o Other public art

• Temporary use of underutilized retail spaces as artist studios; City could rent a space

to jump start the program; reach out to artists who work out of their homes to occupy

the spaces and increase their visibility

• Periodic open studios/arts walks; similar to the SLO County Arts Council or possibly

using the Parks & Recreation Department’s annual garden tour or similar event as a

model

• Establishing a public art fund

Ideally, the City would partner with local artists and arts groups to develop a detailed plan for

arts initiative and collaborate on implementation.

Cost/Resources Needed: $$


Potential Partnerships: San Luis Obispo County Arts Council; Local art galleries and art

collectives; Lucia Mar Unified School District; Clark Center Foundation; Chamber of Commerce;

local performing art studios.

Action 2D: Expanded Family Activities

To encourage young entrepreneurs and established business people to choose Grover Beach

as a business location, it will be important to bolster Grover Beach’s reputation as a family-

friendly community. The City should seek to expand the range of activities and amenities for

families and children. One specific suggestion is to study the possibility of establishing a

permanent space for the YMCA to utilize as a base to provide programs within the City,

building on their involvement in managing the City’s skatepark.

• Reach out to the YMCA to explore the expansion or addition of youth programs.

• Continue to publish an up-to-date activity guide for children and young adults that

identifies the organized activities and facilities available for use, with contact

information and costs.

• Explore additional facilities and programming necessary to satisfy unmet needs and

which would make Grover Beach more desirable to young families.


21


Potential Partnerships: San Luis Obispo County YMCA; local sports leagues and organizations.

Strategy 3: Foster Collaboration

As a small city, with limited resources, Grover Beach is not in a position to undertake large

economic development initiatives on its own. Rather, the City should seek opportunities to

foster collaboration with neighboring jurisdictions, and also to encourage local businesses

collaborate among themselves for mutual benefit.

Action 3A: Continue to Participate in Countywide Tourism Business Improvement District

The City should continue with this program, particularly as it looks to expand its hotel room

inventory with the Grover Beach Lodge and Conference Center project and the new hotel on El

Camino Real.


Timing: Ongoing

Potential Partnerships: Visit SLO CAL; Chamber of Commerce.

Action 3B: Develop Collaboration Between Grover Beach, Arroyo Grande, and Pismo Beach

Grover Beach and its neighboring cities along with the Chamber of Commerce should build on

the regional marketing efforts by developing projects to collaborate on a sub-regional basis.

• Promote south county; position AG/GB/PB to compete regionally as a destination

rather than go alone.

• Coordinate events/activities; such as PB/AG music series

• Improve coordination with Pismo Beach on beach-oriented events promotion and

management


Timing: Near- to Mid-Term; Ongoing

Potential Partnerships: City of Arroyo Grande; City of Pismo Beach; Chamber of Commerce;

Central Coast Tourism Council; Visit SLO CAL.

22

Action 3C: Develop Collaboration Between Local Businesses

The City should work with local business leaders to explore formation of a Grover Beach

business association that can provide a unifying voice and a venue for local businesses to

identify common interests and develop programs to address them. This could take the form of

an informal business group that meets periodically to network, a more formal organization

such as a business improvement district, or some other form. It is important that business

leaders take the lead in such an endeavor, but the City could help support the initial formation

of the groups, and consider providing ongoing support. Once established, such a group could

be a conduit to the City to assist in identifying priorities for implementation of the Economic

Development Strategy, and help to marshal resources to assist with implementation, such as

expertise, volunteer labor, and in-kind donations.



Potential Partnerships: Local businesses; Chamber of Commerce.

Strategy 4: Build Image and Awareness

One of the key findings from the research conducted for this study is that Grover Beach suffers

within the regional marketplace from the lack of a strong identity or image, which means that

the City is not often at the top of the list for businesses within the region that are seeking to

relocate and/or expand their operations.

Action 4A: Marketing Initiative

Grover Beach should develop a story about why it is a great location for business and then

effectively and consistently communicate that message to build awareness of what the City

offers, including:

• Business park with land available for businesses that need to expand

o Currently not visible or known outside of Grover Beach

o Broadband that is faster and more economical than what is available in many

other communities

• Recent positive steps, such as the street repair project and the broadband initiative

• Exciting new projects, including the Grover Beach Lodge and Conference Center

• Interesting new dining restaurants

• Affordability for businesses and employees

• Beachside community lifestyle with ample recreational and cultural opportunities

23

Specific targets for this messaging could include:

• Businesses within clusters identified by the San Luis Obispo Economic Vitality

Corporation (SLOEVC) as part of the San Luis Obispo County Economic Strategy

Project. This includes the following clusters:

o Building Design and Construction

o Knowledge & Innovation

o Uniquely SLO County

o Advanced Manufacturing

o Health Services

o Energy

• Briefings and business park tour for commercial real estate brokers who are active in

the San Luis Obispo County area, so that they know what Grover Beach has to offer

• Growing small- to mid-sized manufacturing companies located in San Luis Obispo

County that may be looking for a place to expand

• Specialty manufacturers who make products with lifestyle ties to local area

• Businesses that have heavy broadband needs (example is application developers, web

site developers); the fiber’s symmetrical speeds are important, particularly as more

businesses use the cloud; businesses that need to access the Pacific Rim and South

America with the shortest latency possible

• Businesses within the medical cannabis industry consistent with City regulations

• Second homeowners who have small businesses and could be encouraged to relocate

the business to Grover Beach

• Local businesses, to promote business retention and expansion

The City can work with a graphic designer to develop collateral materials to use in business

outreach activities, such as a general community background folder, along with cut sheets

with information and messaging aimed at specific targeted business types that can be

inserted in the folder as appropriate.



Potential Partnerships: Local businesses, including commercial real estate brokerages;

SLOEVC; Chamber of Commerce; Central Coast Tourism Council; Visit SLO CAL.

24

Action 4B: Enhance the City’s Identity on Highway 101

One of the challenges facing Grover Beach is the City’s relatively low profile within San Luis

Obispo County. One potential opportunity for the City to raise its profile is to project a stronger

identity to travelers on Highway 101. The City should work with property owners, developers,

and businesses involved with proposals to develop vacant land on El Camino Real in a way

that incorporates signage visible to freeway traffic that announces the City of Grover Beach, as

well as the business(es) located on the affected property.


Timing: Near-Term

Potential Partnerships: Property owners/developers/businesses.

Funded by 2013 Community Development Block Grant Funds

bae urban economics

Ci ty o f Grover Beach

Final Economic Development Strategy Background Report April 11, 2017

Table of Contents

ACKNOWLEDGEMENTS ............................................................................................................. iii

INTRODUCTION .......................................................................................................................... 1

Contextual Overview ..................................................................................................................... 1

EXISTING CONDITIONS ANALYSIS ............................................................................................. 5

Demographic Trends .................................................................................................................... 5

Economic Conditions ................................................................................................................ 13

Real Estate Market Analysis ..................................................................................................... 34

DEVELOPMENT FEASIBILITY .................................................................................................... 45

Prototype Projects ..................................................................................................................... 45

Cost and Income Assumptions ................................................................................................. 46

Value Analysis ............................................................................................................................ 47

Redevelopment Feasibility ....................................................................................................... 48

COMMUNITY OUTREACH ......................................................................................................... 55

Stakeholder Interviews ............................................................................................................. 55

Business Survey Results ........................................................................................................... 61

RELATIONSHIP TO ECONOMIC DEVELOPMENT STRATEGY ..................................................... 75

APPENDIX A: FIVE CITIES MARKET AREA DEFITINION ............................................................. 76

APPENDIX B: STAKEHOLDER INTERVIEW PARTICIPANTS ........................................................ 76

APPENDIX C: GROVER BEACH BUSINESS SURVEY SUMMARY ............................................... 78

i

Table of Tables

Table 1: Population and Household Trends, 2000 and 2010-2014 ........................................... 8

Table 2: Age Distribution, 2000 and 2010-2014 .......................................................................... 9

Table 3: Educational Attainment of Residents 25 Years and Over, 2000 and 2010-2014 ..... 10

Table 4: Household Income Characteristics, 1999 and 2010-2014 ......................................... 11

Table 5: Population and Household Forecast, 2010-2035 ........................................................ 12

Table 6: Labor Force and Unemployment, 2010-2015 .............................................................. 21

Table 7: Occupational Employment, 2000 and 2010-2014 ...................................................... 22

Table 8: Employment by Industry, 2004 and 2014 .................................................................... 24

Table 9: Location Quotient and Shift Share Analysis, San Luis Obispo County, 2009-2014 ... 25

Table 10: Location Quotient and Shift Share Analysis, City of Grover Beach, 2004-2014 ...... 26

Table 11: Employment by Industry Projections, San Luis Obispo County, 2012-2022 ............ 27

Table 12: San Luis Obispo County Taxable Sales by Category, 2009 to 2013 ......................... 28

Table 13: Retail Leakage and Injection, 2016 ............................................................................ 29

Table 14: Transient Occupancy Tax Receipts, 2000-2015 ........................................................ 32

Table 15: Visitor Spending by Commodity, San Luis Obispo County, 2000-2015 .................... 33

Table 16: Industrial Market Conditions, City of Grover Beach and San Luis Obispo County,

Fourth Quarter 2015 ...................................................................................................................... 38

Table 17: Office Market Conditions, City of Grover Beach and San Luis Obispo County,

Fourth Quarter 2015 ...................................................................................................................... 39

Table 18: Retail Market Conditions, City of Grover Beach and San Luis Obispo County,

Fourth Quarter 2015 ...................................................................................................................... 40

Table 19: Housing Units by Units in Structure, 2010-2014 ....................................................... 40

Table 20: Occupancy and Vacancy Status, 2000 and 2010-2014 ............................................ 41

Table 21: Single-Family Home Sales, City of Grover Beach, June 2015 to June 2016 ............ 41

Table 22: Planned Unit Development (PUD) Home Sales, City of Grover Beach, June 2015

to June 2016 ................................................................................................................................... 42

Table 23: Other Home Sales Statistics, June 2015 to June 2016 ............................................. 42

Table 24: Select Residential Rental Properties, City of Grover Beach, June 2016 ................... 43

Table 25: Multifamily Market Overview, City of Grover Beach and San Luis Obispo County .... 44

Table 26: Mixed-Use Pro-Forma, Multifamily Rental with Ground Floor Retail .......................... 50

Table 27: Residential Pro-Forma, Multifamily Rental .................................................................. 52

Table 28: Commercial Pro-Forma, Existing Single-Story Strip Commercial ............................... 54

Table 29: Does Your Business Own or Lease the Space at its Current Grover Beach

Location? ......................................................................................................................................... 67

Table 30: How Satisfied Are You With the Present Location of Your Business? ....................... 68

Table 31: Do You Have Plans to Expand or Move Your Business Within the Next Three

Years? .............................................................................................................................................. 68

ii

Table of Figures

Figure 1: City of Grover Beach and Surrounding Area ................................................................... 3

Figure 2: City of Grover Beach and San Luis Obispo County ........................................................ 4

Figure 3: Population Trends, 2000 to 2016 .................................................................................. 6

Figure 4: Historic Unemployment Rate, 2000-2015 ................................................................... 13

Figure 5: Taxable Sales, Grover Beach and San Luis Obispo County, 2000-2013 ................... 17

Figure 6: Transient Occupancy Tax Receipts, 2000-2015 ......................................................... 20

Figure 9: Visitor Spending by Commodity, San Luis Obispo County, 2000-2015 ..................... 21

Figure 8: What Year Was Your Business Established? ................................................................ 62

Figure 9: How Many Years… .......................................................................................................... 63

Figure 10: What Industry Does Your Business Work In? ............................................................. 64

Figure 11: How Many Employees Does Your Business Have?.................................................... 65

Figure 12: How Do You Expect Your labor needs to Change Within the Next Three Years? ..... 66

Figure 13: How Much Space Does Your Business Occupy in Grover Beach? ............................ 67

Figure 14: If You Plan to Relocate or Open a New Business Location, What Type of Facility Will

You Need? ....................................................................................................................................... 69

Figure 15: If You Plan to Relocate or Open a New Location, What Size Facility Will You Need?

......................................................................................................................................................... 69

Figure 16: Please Rate the Degree to Which You Experience the Following Business

Challenges ....................................................................................................................................... 71

Figure 17: With Your Business in Mind, How Important are the Following Possible City Funded

Improvements? ............................................................................................................................... 72

Figure 18: Please Indicate the Degree to Which the Following Programs Would Help Your

Business .......................................................................................................................................... 73

iii

ACKNOWLEDGEMENTS

Preparation of this component of the Grover Beach Economic Development Strategy was

funded by 2013 Community Development Block Grant Funds.

We gratefully acknowledge the following people for their assistance in producing this Strategy.

City Council

John P. Shoals, Mayor

Mariam Shah, Mayor Pro Tem

Jeff Lee, Council Member

Barbara Nicolls, Council Member

Debbie Peterson, Council Member

City Staff:

Matthew Bronson, City Manager

Bruce Buckingham, Community Development Director

Consultant Team:

Matt Kowta, Principal, BAE Urban Economics

Aaron Nousaine, Vice President, BAE Urban Economics

Amanda Wallace, Associate, BAE Urban Economics

Matt Fairris, Analyst, BAE Urban Economics

We also gratefully acknowledge the 33 representatives who responded to the 2016 Business

Survey and the 11 stakeholders who participated in telephone interviews. Their input was

invaluable in the development of the goals, strategies, and actions framework.

1

INTRODUCTION

The following Economic Development Existing Conditions Analysis was developed in 2016 by

BAE Urban Economics on behalf of the City of Grover Beach. The purpose is to readily

summarize the city’s contemporary demographic characteristics (e.g., population and

household growth, age distribution, educational attainment, and household incomes, etc.) and

economic trends (e.g., labor force and unemployment characteristics, industry and

occupational employment, and trends in taxable sales and transient occupancy tax (TOT)

receipts, etc.), as well as real estate market conditions (e.g., market rents and sale prices,

vacancy, development feasibility, etc.). The analysis also includes a financial feasibility

analysis of two hypothetical development prototypes, which is intended to identify potential

constraints to new development and redevelopment along West Grand Avenue. To solicit

additional input regarding existing and anticipated future constraints, weaknesses,

opportunities, and threats (SWOT) to economic development, BAE also conducted a series of

key informant interviews and administered a survey of local property owners and businesses.

The results of this analysis will be used to clearly defined strategy framework that outlines the

City’s economic development goals, while also identifying the strategies and specific actions

that the City will use to achieve those goals.

Contextual Overview

The City of Grover Beach is a predominantly working class community located in southern San

Luis Obispo County. Located between the City of San Luis Obispo and the City of Santa Maria,1

on California’s Central Coast, the area around Grover Beach, known as the Five Cities area, is

a well-known summer tourist destination, with sites like Pismo State Beach, Oceano Dunes

State Recreation Area, and the Guadalupe-Nipomo Dunes National Wildlife Refuge drawing

tens of thousands of visitors into the area each year. However, with only four to five thousand

feet of ocean frontage and one point of access to Pismo State Beach and Oceano Dunes State

Recreation Area, the City of Grover Beach has not been able to fully capitalize on the tourist

spending that occurs within the county, losing out to communities like Avila Beach and Pismo

Beach, which offer better beach access. Similarly, while the City is located between State

Route 1 (SR 1) and U.S. Route 101 (US 101), the City has struggled to capitalize on highway

oriented development, with only around 4,000 feet of frontage along US 101. While West

Grand Avenue functions as the main thoroughfare in Grover Beach, drawing traffic from Pismo

State Beach to US 101, the pass-through nature of that traffic and a lack of easy connectivity

with US 101 have hampered efforts to develop the corridor into a more complete retail and

lifestyle destination.

1 For additional information regarding the location of the City of Grover Beach, please refer to Figures 1 and 2.

2

Despite these limitations, the City of Grover Beach has taken steps to promote economic

development, improve its appeal as a tourism destination, and encourage the development of

West Grand Avenue as a more desirable retail destination. For example, the City approved the

development of a 132-room Holiday Inn, which is scheduled to open in 2018 and is actively

encouraging the development of the Grover Beach Lodge and Conference Center, which will

function as a catalyst project at the western terminus of West Grand Avenue. The Grover

Beach Lodge project will include 150 hotel rooms, as well as a stand-alone conference center,

activities which should help to anchor future development activity along West Grand Avenue.

Furthermore, residents of the City approved the issuance of up to $48 million in bonds to fund

street improvements, while the City has already utilized grant funds on the construction of

streetscape enhancements along West Grand Avenue from the beach to 4th Street and from

8th to 11th Streets. The City also updated the General Plan Land Use Element in 2010,

adopted the West Grand Avenue Master Plan in 2011, and conducted an update of the

Development Code in 2012, to help remove regulatory barriers to future redevelopment of

existing vacant and underutilized sites along the corridor.

In addition to the City’s efforts to promote redevelopment and tourism, the City has also

actively pursued the development of a high-speed broadband network through the Municipal

Broadband Project to be constructed in 2017, which is a collaboration between the City and

Digital West Networks, Inc. that is slated to provide fiber optic networking with speeds up to

100 mbps to the City’s industrial areas and along the West Grand Avenue Corridor. With the

adoption of the Technology Master Plan, the City has committed to building out this high-tech

infrastructure with the hopes of luring technology companies and data centers to develop

facilities on the many vacant and underutilized industrial sites located throughout the City.

In August 2016, the City Council directed staff to draft an ordinance to allow commercial

medical cannabis uses, including dispensaries, cultivation, manufacturing, testing, storage,

and distribution. The Council held several public meetings in 2017 to consider the draft

ordinance with adoption anticipated later in spring 2017. Based on the number of public

inquiries received to date, the demand for space for a variety of medical cannabis businesses

could facilitate economic development within the City’s industrial zones.

3

Figure 1: City of Grover Beach and Surrounding Area

Sources: U.S. Census Bureau, TIGER/Line Shapefiles, 2016; BAE, 2016.

4

Figure 2: City of Grover Beach and San Luis Obispo County

Sources: U.S. Census Bureau, TIGER/Line Shapefiles, 2016; BAE, 2016.

5

EXISTING CONDITIONS ANALYSIS

As introduced previously, the Existing Conditions Analysis provides an overview of the existing

and anticipated future demographic and economic conditions within the City of Grover Beach

and surrounding communities. This includes contemporary demographic and economic trends

and real estate market conditions. The section includes a summary of findings from the 2016

Business Survey and key informant interviews, and concludes with a summary of key

strengths, weaknesses, opportunities, and threats.

Demographic Trends

This following is a summary of existing and anticipated future demographic trends in the City

of Grover Beach, San Luis Obispo County, and California. Demographic data were collected

from the U.S. Census Bureau (Census) and the California Department of Finance (DoF).

Population and household growth projections are from the San Luis Obispo Council of

Governments (SLOCOG), DoF, and the California Department of Transportation (Caltrans).

Population and Household Trends

According to DoF, the population residing within the City of Grover Beach increased at a slower

rate between 2000 and 2016, relative to San Luis Obispo County. As seen in Figure 3, Grover

Beach had a resident population of 13,031 in 2000. The population grew slightly between

2000 and 2001, but subsequently declined to 13,027 by 2003. Between 2003 and 2007,

the Grover Beach population reached a high of 13,220 in 2004 followed by a decline, reaching

13,036 in 2007, prior to the recession. With the onset of the recession, the Grover Beach

population increased steadily, reaching 13,147 residents in 2010. Between 2000 and 2010,

the population of Grover Beach increased at an average annual rate of 0.1 percent. More

recent trends indicate that the Grover Beach population is increasing at a slightly higher rate

relative to pre-recession trends, with an average annual growth rate of 0.3 percent, reaching

13,397 residents in 2016. Figure 3 also demonstrates the population growth in San Luis

Obispo County over the same period. As displayed in the figure, the County experienced

significantly more robust population growth between 2000 and 2010, with an average annual

growth rate of 0.9 percent. While countywide population growth has slowed somewhat,

recording an average annual growth of 0.5 percent between 2010 and 2016, the county still

outpaces the City of Grover Beach, reaching 277,977 residents in 2016.

6

Figure 3: Population Trends, 2000 to 2016

Sources: California Department of Finance, 2016; BAE, 2016.

According to Census data, household growth in the City of Grover Beach generally mirrored

population growth between 2000 and 2010-2014, however household characteristics

changed somewhat over the same period. For example, Table 1 reports data from the 2000

Census and 2010-2014 American Community Survey (ACS), which indicate that the City of

Grover Beach added roughly 180 new households during this time, representing an increase

of 0.3 percent per year. Comparatively, San Luis Obispo County and California both

experienced population and household growth approaching 1.0 percent annually. After

accounting for the presence of group quarters populations, the average household size in

Grover Beach decreased from 2.58 persons to 2.56 persons between 2000 and 2010-2014,

which is contrary to the countywide and statewide trend of an increasing average household

size. Both Grover Beach and San Luis Obispo County contain a smaller proportion of family

households compared to the state as a whole, a figure that decreased between 2000 and

2010-2014 in the City of Grover Beach, but increased countywide. While the proportion of

owner-occupied households decreased in all three areas, the City of Grover Beach experienced

a more noticeable decline in owner households between 2000 and 2010-2014. Where

owner-occupied households comprised 50.7 percent of the households in Grover Beach in

2000, this figure decreased to 41.2 percent between 2010 and 2014, indicating that renters

now account for the majority households in Grover Beach. For comparison, the 2010-2014

ACS data indicate that owner households comprise 58.0 percent and 54.8 percent of

households within San Luis Obispo County and California, respectively.

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7

Age Distribution

The City of Grover Beach features a somewhat younger population relative to San Luis Obispo

County. This is evident from the estimated median age of 38.3 years in Grover Beach,

compared to 39.5 in San Luis Obispo County. According to the distribution of residents by age,

shown in Table 2, the City of Grover Beach contains a significantly higher percentage of

middle-aged adults (i.e., between 25 and 54 years of age), compared to the county and the

state. The City of Grover Beach and San Luis Obispo County both demonstrate lower

proportions of residents under the age of 18, relative to the statewide average. Grover Beach

also features a lower proportion of residents age 55 and over, compared to San Luis Obispo

County as a whole, with a proportion that is much more similar to the statewide average.

Educational Attainment

According to data presented in Table 3, Grover Beach residents generally have lower levels of

educational attainment compared to residents of San Luis Obispo County as a whole, but have

somewhat higher levels compared to their statewide counterparts. For example, 14.4 percent

of Grover Beach residents age 25 and over have less than a high school diploma, compared to

10.4 percent countywide and 18.5 percent statewide. Conversely, the proportion of Grover

Beach Residents with post-secondary education is notably lower than in both San Luis Obispo

County and California. This indicates that most residents of Grover Beach are high school

graduates; though most have either no college experience, or some college but no degree.

Household Income Characteristics

According to Census data presented in Table 4, household incomes in Grover Beach and San

Luis Obispo County are somewhat below the statewide median. For example, the median

household income throughout California between 2010 and 2014 was $61,489, which was

$2,035 higher than the San Luis Obispo County median income of $59,454 and $12,071

higher than the Grover Beach Median income of $49,418. Prior to adjusting for inflation,

Census data indicate that the median income increased more rapidly in San Luis Obispo than

elsewhere in California. For example, the nominal median income increased by approximately

$17,026 statewide since 1999, or around 40.1 percent. By comparison, the median income

increased by around $11,331, or 29.8 percent, in Grover Beach and by $13,996, or 29.5

percent, statewide. After adjusting for inflation, it appears that the real purchasing power of

the median income decreased in all three areas. Due to its robust nominal income growth, the

inflation adjusted median income in San Luis Obispo County decreased by only 1.5 percent,

while the median incomes in Grover Beach and California decreased by 8.8 percent and 9.0

percent in real (i.e., inflation adjusted) terms, respectively.

Population and Household Growth Forecast

According to the available SLOCOG projections, published in 2011, the Grover Beach

population is estimated to increase by approximately 783 residents by 2030, or roughly 0.4

percent per year, under the low-growth scenario. In 2017, SLOCOG focused its projections on

the low-growth scenario. Under the same scenario, SLOCOG projects the San Luis Obispo

8

County population to expand at nearly double the annual rate relative to Grover Beach.

Between 2015 and 2030, the San Luis Obispo County population is estimated to increase by

roughly 33,700 residents, at an annual rate of 0.8 percent per year, indicating that the county

population will surpass 300,000 residents by 2030.

Table 1: Population and Household Trends, 2000 and 2010-2014

AverageAnnual

2000 2010-2014 Change (a)

City of Grover Beach

Population 13,067 13,337 0.2%

Households 5,023 5,205 0.3%

Average Household Size 2.58 2.56

Household TypeFamilies 65.8% 64.3%Non-Families 34.2% 35.7%

Household TenureOw ner 50.7% 41.2%Renter 49.3% 58.8%

San Luis Obispo County

Population 246,681 274,184 0.9%

Households 92,739 102,350 0.8%




State of California

Population 33,871,648 38,066,920 1.0%

Households 11,502,870 12,617,280 0.8%




Note:(a) Average annual change uses 2012 as the midpoint of the 2010-2014 American Community Survey estimate.

Sources: U.S. Census Bureau, Census 2000, Summary File 1, 2016; U.S. Census Bureau, 2010-2014 American Community Survey,2016; BAE, 2016.

9

Table 2: Age Distribution, 2000 and 2010-2014

2000 2010-2014Age Distribution Number Percent Number Percent


Under 18 3,346 25.6% 2,934 22.0%18-24 1,188 9.1% 1,221 9.2%25-34 1,953 14.9% 2,000 15.0%35-44 2,233 17.1% 2,056 15.4%45-54 1,807 13.8% 2,086 15.6%55-64 1,035 7.9% 1,383 10.4%65-74 818 6.3% 913 6.8%75-84 521 4.0% 502 3.8%85 years & over 166 1.3% 242 1.8%Total, All Ages 13,067 100% 13,337 100%

Median Age 35.2 38.3


Under 18 53,413 21.7% 50,725 18.5%18-24 33,571 13.6% 42,130 15.4%25-34 28,177 11.4% 32,213 11.7%35-44 38,416 15.6% 29,519 10.8%45-54 36,150 14.7% 36,178 13.2%55-64 21,269 8.6% 38,673 14.1%65-74 18,094 7.3% 24,429 8.9%75-84 13,415 5.4% 13,937 5.1%85 years & over 4,176 1.7% 6,380 2.3%Total, All Ages 246,681 100% 274,184 100%


State of California

Under 18 9,249,829 27.3% 9,212,288 24.2%18-24 3,366,030 9.9% 3,988,766 10.5%25-34 5,229,062 15.4% 5,513,196 14.5%35-44 5,485,341 16.2% 5,175,688 13.6%45-54 4,331,635 12.8% 5,248,476 13.8%55-64 2,614,093 7.7% 4,310,599 11.3%65-74 1,887,823 5.6% 2,553,063 6.7%75-84 1,282,178 3.8% 1,417,512 3.7%85 years & over 425,657 1.3% 647,332 1.7%Total, All Ages 33,871,648 100% 38,066,920 100%


Sources: U.S. Census Bureau, Census 2000, Summary File 1, 2016; U.S. Census Bureau, 2010-2014 American Community Survey,2016; BAE, 2016.

10

Table 3: Educational Attainment of Residents 25 Years and Over, 2000 and 2010-2014

2000 2010-2014Educational Attainment Number (a) Percent Number Percent


Nursery to 8th grade 396 4.6% 520 5.7%Some high school, no diploma 1,075 12.6% 806 8.8%High school graduate (inc. GED) 2,039 23.9% 2,526 27.5%Some college, no degree 2,566 30.1% 2561 27.9%Associate's degree 794 9.3% 925 10.1%Bachelor's degree 1,112 13.0% 1,307 14.2%Master's degree 327 3.8% 277 3.0%Professional school degree 165 1.9% 203 2.2%Doctorate degree 58 0.7% 57 0.6%Total, Age 25 and Over 8,533 100% 9,182 100%


Nursery to 8th grade 7,861 4.9% 8,163 4.5%Some high school, no diploma 15,176 9.5% 10,638 5.9%High school graduate (inc. GED) 34,837 21.8% 36,714 20.2%Some college, no degree 44,654 28.0% 50,435 27.8%Associate's degree 14,529 9.1% 17,219 9.5%Bachelor's degree 27,735 17.4% 36,175 19.9%Master's degree 9,269 5.8% 14,387 7.9%Professional school degree 3,633 2.3% 4,299 2.4%Doctorate degree 2,003 1.3% 3,299 1.8%Total, Age 25 and Over 159,697 100% 181,329 100%

State of California

Nursery to 8th grade 2,441,372 11.5% 2,523,377 10.1%Some high school, no diploma 2,491,366 11.7% 2,079,609 8.4%High school graduate (inc. GED) 4,279,772 20.1% 5,153,257 20.7%Some college, no degree 4,869,460 22.9% 5,465,764 22.0%Associate's degree 1,515,330 7.1% 1,934,950 7.8%Bachelor's degree 3,632,789 17.1% 4,870,524 19.6%Master's degree 1,285,237 6.0% 1,889,640 7.6%Professional school degree 491,507 2.3% 575,093 2.3%Doctorate degree 248,956 1.2% 373,652 1.5%Total, Age 25 and Over 21,255,789 100% 24,865,866 100%

Note:(a) The percent distribution of educational attainment is from Census 2000, Summary File 3, w hile the total population 25 years andover is from Census 2000 Summary File 1.

Sources: U.S. Census Bureau, Census 2000, Summary File 1 and Summary File 3, 2016; U.S. Census Bureau, 2010-2014 AmericanCommunity Survey, 2016; BAE, 2016.

11

Table 4: Household Income Characteristics, 1999 and 2010-2014

1999 2010-2014Household Income Number (a) Percent Number Percent


Less than $15,000 681 13.6% 583 11.2%$15,000 to $24,999 756 15.1% 669 12.9%$25,000 to $34,999 719 14.3% 569 10.9%$35,000 to $49,999 1,045 20.8% 815 15.7%$50,000 to $74,999 1,027 20.4% 836 16.1%$75,000 to $99,999 418 8.3% 656 12.6%$100,000 to $149,999 225 4.5% 716 13.8%$150,000 and above 152 3.0% 361 6.9%Total, All Households 5,023 100% 5,205 100%

Median Household Income $38,087 $49,418

Adjusted Median Income (b) $54,169 $49,418


Less than $15,000 14,498 15.6% 11,960 11.7%$15,000 to $24,999 11,516 12.4% 8,710 8.5%$25,000 to $34,999 11,971 12.9% 9,825 9.6%$35,000 to $49,999 15,134 16.3% 13,356 13.0%$50,000 to $74,999 18,719 20.2% 17,287 16.9%$75,000 to $99,999 9,736 10.5% 13,946 13.6%$100,000 to $149,999 7,259 7.8% 16,025 15.7%$150,000 and above 3,906 4.2% 11,241 11.0%Total, All Households 92,739 100% 102,350 100%



State of California

Less than $15,000 1,614,585 14.0% 1,377,408 10.9%$15,000 to $24,999 1,317,198 11.5% 1,202,447 9.5%$25,000 to $34,999 1,314,040 11.4% 1,138,708 9.0%$35,000 to $49,999 1,744,573 15.2% 1,531,281 12.1%$50,000 to $74,999 2,201,122 19.1% 2,111,201 16.7%$75,000 to $99,999 1,325,515 11.5% 1,544,981 12.2%$100,000 to $149,999 1,191,670 10.4% 1,881,400 14.9%$150,000 and above 794,167 6.9% 1,829,854 14.5%Total, All Households 11,502,870 100% 12,617,280 100%



Notes:(a) The percent distribution of annual household income is from Census 2000, Summary File 3, w hile the total household estimateis from Census 2000 Summary File 1.(b) Census 2000 median household income estimates are adjusted to 2014 dollars based on the Consumer Price Index (CPI)for All Urban Consumers in the Western Region of 1.422.

Sources: U.S. Census Bureau, Census 2000, Summary File 1 and Summary File 3, 2016; U.S. Census Bureau, 2010-2014American Community Survey, 2016; BAE, 2016.

12

Table 5: Population and Household Forecast, 2010-2035

Absolute Avg. AnnualGrowth Growth Rate

2015 2020 2025 2030 (2015-2030) (2015-2030)

Low-Growth Scenario


Population 13,142 13,432 13,650 13,925 783 0.39%Housing Units 5,787 5,878 5,973 6,092 305 0.34%


Population 275,040 285,106 293,702 304,479 29,439 0.68%Housing Units 119,249 123,621 127,913 133,293 14,044 0.75%

Moderate-Growth Scenario





High-Growth Scenario





Sources: San Luis Obispo Council of Governments, 2040 Population, Housing & Employment Forecast, 2011; BAE, 2016.

13

Economic Conditions

The following is a summary of existing and forecasted economic conditions in the City of

Grover Beach, San Luis Obispo County, and California. The analysis includes data regarding

existing labor force characteristics, employment by industry, and large employers published by

the California Employment Development Department (EDD), as well as occupational

employment data published by the Census Bureau. Long-term industry employment

projections include those published by the San Luis Obispo Council of Governments (SLOCOG).

In addition, this section presents information regarding a number of special subjects, including

historical trends in taxable sales, the results of a detailed retail leakage analysis, an evaluation

of historical trends in Transient Occupancy Tax (TOT) receipts, a review of available data

regarding tourist visitation and spending patterns.

Labor Force and Unemployment

According to the EDD, the historical annual unemployment rate in Grover Beach and San Luis

Obispo County was notably and consistently lower than the statewide average. For example,

the data provided in Table 6 indicate that the unemployment rate in both areas since 2010

was at least one percentage point below the statewide average. As seen in Figure 4, between

2000 and 2015, unemployment in San Louis Obispo County and the state remained relatively

stable until 2008 when unemployment spiked as a result of the Recession. Although historic

unemployment data is not available for the City of Grover Beach prior to 2010, the city’s

unemployment rate likely falls in between the county and statewide trend, given the consistent

pattern between 2010 and 2015. Unemployment levels in Grover Beach recovered from the

Recession, and as of 2015 the unemployment rate in the city reached a low of 5.1 percent,

which is what most economists would consider a normal structural unemployment rate.

Although the Grover Beach unemployment rate was slightly higher than the countywide

average of 4.6 percent, it is below the statewide average of 6.2 percent.

Figure 4: Historic Unemployment Rate, 2000-2015

Sources: Bureau of Labor Statistics, 2016; BAE, 2016.

4.0% 4.0%4.6% 4.7% 4.6% 4.3% 3.9% 4.3%

5.8%

8.8%

10.1%9.6%

8.2%

6.8%

5.6%4.6%

4.9%5.4%

6.7% 6.8%6.2%

5.4%4.9%

5.4%

7.3%

11.2%12.2%

11.7%

10.4%

8.9%

7.5%

6.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Une

mplo

yem

tn R

ate

San Luis Obispo County California

14

Occupational Employment

Residents of the City of Grover Beach are more likely to work in support occupations, such as

Office and Administrative Support and Building and Grounds Cleaning and Maintenance

occupations, than their countywide counterparts. Table 7 shows that, of the city’s

approximately 6,192 employed residents, 18.5 percent worked in the Office and

Administrative Support occupations, 11.5 percent in Sales and Related occupations, and 8.9

percent in the Building and Grounds Cleaning and Maintenance occupations. While the

proportion of residents employed in sales occupations generally tracks the county and

statewide trends, the proportion of Grover Beach residents employed in the Office and

Administrative Support occupations is 5.5 percent higher than the statewide and countywide

trend of 13 percent, and roughly 4.5 percent higher than the statewide and countywide trend

of 4.5 percent for the Building and Grounds Cleaning and Maintenance occupations.

Compared to statewide and countywide averages, the City of Grover Beach is

underrepresented in high skilled jobs such as Management, Business, and Financial

occupations; Computer, Legal, Community Service, Arts, and Media occupations; and

Healthcare Practitioners and Technical occupations. For example, 7.6 percent of city residents

work in the Management, Business and Financial occupations, which is 5.9 percent less than

the countywide average of 13.5 percent, and 7.5 percent less than the statewide average of

15 percent. Additionally, Table 7 shows that between 2000 and 2014, residents employed in

the Management, Business and Financial occupation declined more than any other

occupation. In 2000, 12.5 percent of Grover Beach residents worked in the Management,

Business and Financial occupation, compared to only 7.6 percent in 2014, representing a

decline of 5.9 percent (322 employees), whereas the number of residents employed in the

occupation statewide only declined 1.5 percent, and countywide only 0.5 percent.

Jobs by Industry

Additional data from the EDD indicate that there are roughly 2,660 jobs in Grover Beach, as of

2014, which represents a decrease of roughly 550 jobs since 2004, a decline of around 17.2

percent. As seen in Table 8, the industries that lost the greatest number of jobs during this

period include Construction (278 jobs, 42.1 percent), Administrative and Waste Services (120

jobs, 46.9 percent), Accommodation and Food Services (96 jobs, 25.6 percent), and

Manufacturing (87 jobs, 20.6 percent), among others. The only industry sectors to gain

employment between 2004 and 2014 include Wholesale Trade (68 jobs, 97.1 percent), Heath

Care and Social Assistance (41 jobs, 16.9 percent), and Real Estate and Rental and Leasing

(10 jobs, 17.5 percent). Construction and Retail Trade continue to represent the two largest

employment industries in Grover Beach, each representing 14.4 percent of the total

employment. Other significant employment sectors include Manufacturing (12.6 percent),

Health Care and Social Assistance (10.6 percent), and Accommodation and Food Services

(10.5 percent).

15

Industry Location Quotients

Table 9 summarizes industry sector location quotients for San Luis Obispo County and a shift-

share analysis conducted for the period from 2009 to 2014. Location quotients measure

whether an industry is particularly concentrated in the local economy, compared to the

statewide economy. A location quotient of 1.0 indicates that a particular industry is

proportionately represented in the county, compared to the state as a whole. Significantly

lower location quotients signal that the industry is underrepresented in the county, while

significantly higher location quotients signal a disproportionate concentration of employment

in the local area. In 2014, seven industries in San Luis Obispo County reported location

quotients of greater than one. The greatest degree of local specialization was in Utilities, with

a location quotient of 5.4, and State Government, with a location quotient of 2.7. The

industries with the next highest degree of specialization were Agriculture, Forestry, Fishing and

Hunting, with a location quotient of 1.6, and Accommodation and Food Services, with a

location quotient of 1.5.2 The Construction and Retail sectors also showed notable economic

specialization with location quotients of 1.3 and 1.2, respectively. The Real Estate, Rental and

Leasing industry reported a location quotient of 1.0, indicating it is proportionally represented

in the County. All other industries reported a location quotients value of less than 1.0,

indicating they are underrepresented within the county, compared to the state as a whole.

As reported in Table 10, there are six industry sectors that show an above average

concentration of employment in the City of Grover Beach. These include Construction;

Manufacturing; Real Estate and Rental and Leasing; Retail Trade; Wholesale Trade; and

Accommodations and Food Service. All but two of these industry sectors experienced

increases in their location quotient values since 2004, indicating an increasing degree of

economic specialization. The location quotient value for the Construction Sector, by

comparison, decreased from 3.6 in 2004 to 3.4 in 2014, though the industry continues to

maintain the highest location quotient of all reported industry sectors. The location quotient

for Accommodation and Food Service also decreased somewhat, from 1.5 in 2004 to 1.1 in

2014, reflecting a minor contraction in that industry. Other notable changes include a

strengthening of the specialization in Manufacturing, with an increase in the location quotient

from 1.3 in 2004 to 1.6 in 2014, as well as an increase in the location quotient for Wholesale

Trade from 0.5 in 2004 to 1.2 in 2014, indicating that the Grover Beach went from having a

significant lack of specialization in that sector to a significant specialization in only ten years.

Shift-Share Analysis

Shift-share analysis measures the performance of various sectors in the local economy in

relation to the state as a whole. Sectors that out-performed the rest of the local economy as

well as the same sector in the larger statewide economy are considered the most competitive.

As reported in Table 9, the most competitive sectors in the San Luis Obispo County in 2014

2 These sectors fall into what the San Luis Obispo Economic Vitality Corporation (EVC) calls “Uniquely SLO” industry

clusters.

16

were Administrative and Waste Services and Health Care and Social Assistance, followed by

Mining, Educational Services, Management of Companies and Enterprises, Transportation and

Warehousing, and Agriculture. The relative competitiveness of the Administrative and Waste

Services sector is largely driven by growth in the industry both within San Luis Obispo County

and statewide, as evidenced by the Differential Shift and Statewide Growth Factor components

of the shift-share calculation. The high shift-share value in Health Care and Social Assistance,

by comparison, is completely driven by robust statewide economic growth, as well as

employment growth that outpaced the economy at the statewide level. These factors are

represented in the Statewide Growth Factor and Proportional Shift values. What is notable in

the Health Care and Social Assistance Sector, is that the local industry actually

underperformed the statewide industry, indicating a possible opportunity for local

development.

As reported in Table 10, the three most competitive industry sectors in the City of Grover

Beach are wholesale Trade, Real Estate and Rental and Leasing, and Professional and

Technical Services. The remaining nine industry sectors all show negative combined shift-

share values. In six of those cases, the industry sector is generally underperforming at all

levels, both statewide and locally. However, there are three sectors where the local industry is

underperforming, while the statewide industry is growing robustly. These include

Administrative and Waste Services, Health Care and Social Assistance, and Accommodations

and Food Service. While it is unlikely that the City of Grover Beach could be competitive in

Health Care and Social Assistance, due to a lack of major medical facilities, the City’s location

near the Pacific Ocean and the Oceano Dunes State Recreation Area indicate that the City may

face an opportunity to leverage robust statewide and regional growth in the accommodations

and food service industry. This would complement the city’s existing specialization in the Real

Estate and Rental and Leasing sector. The two other sectors where the city shows an existing

competitive advantage are also somewhat interesting. Robust growth in the Wholesale Trade

sector (i.e., 7.0 percent growth between 2004 and 2014) indicates an opportunity to leverage

the city’s existing industry inventory to encourage a niche in the Wholesale Trade sector within

the greater San Luis Obispo area. If directed appropriately, this would not necessarily detract

from the City’s efforts to encourage visitor serving industries. Similarly, while local

employment growth in the Professional and Technical Services sector is quite low, and

contracted since 2004, robust statewide growth in the industry may provide opportunities for

Grover Beach to leverage investments in high-speed internet to grow the local industry.

Industry Growth Forecast

Based on EDD employment projections reported in Table 11, San Luis Obispo County may

expect to gain 24,500 new jobs between 2012 and 2022, which equals an average annual

growth rate of 2.1 percent. The largest employment gains are expected to occur in Education,

Health Care, and Social Assistance (4,400 jobs, 12.9 percent); Accommodation and Food

Service (3,300 jobs, 13.3 percent); Professional and Business Services (2,700 jobs, 10.6

17

percent); Retail Trade (2,500 jobs, 12.3 percent); and Mining, Logging, and Construction

(2,000 jobs, 5.7 percent).

Taxable Sales Trends

Figure 5 below demonstrates recent trends in taxable sales for the City of Grover Beach and

San Luis Obispo County, as reported by the State Board of Equalization (SBOE). As shown in

the figure, San Luis Obispo and the City of Grover Beach experienced modest increases in

taxable sales prior to the Great Recession, reaching a peak in 2006, when the city and county

saw $76 million and $3.1 billion in taxable sales, respectively. Both areas then experienced a

gradual decline in taxable sales through 2009. Taxable retail sales in Grover Beach declined

by roughly 17 percent, while countywide taxable sales declined closer to 20 percent. More

recent trends show that taxable sales in the city and county have rebounded, now exceeding

pre-recession levels. As of 2013, the most recent year for which data are available, taxable

sales in Grover Beach totaled roughly $78 million, while the county saw a total of $3.2 billion.

Figure 5: Taxable Sales, Grover Beach and San Luis Obispo County, 2000-2013

Sources: California Board of Equalization, 2016; BAE, 2016.

Additional analysis of the SBOE taxable sales data indicates that per capita taxable sales in

Grover Beach are roughly half of the countywide value. For example, where Grover Beach

captured roughly $7,376 per capita from all outlets in 2013, the County of San Luis Obispo

captured roughly $18,363 per capita from all outlets during the same year. This indicates that

the retail sector Grover Beach underperforms significantly, compared to the county as a whole.

While the SBOE does not publish taxable sales by spending category below the county level,

profiling comparable data for San Luis Obispo County provides at least some insight regarding

how well certain retail categories are represented within the broader countywide market. As

$0

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

City of Grover Beach San Luis Obispo County

18

reported in Table 12, non-retail taxable sales account for 36 percent of all taxable sales

countywide. This category includes the sale of products by non-retail establishments, such as

direct business-to-business sales. Other significant taxable retail sales categories include Food

Service and Drinking Places ($530 million, 11 percent), Gasoline Stations ($503 million, 10

percent), and Motor Vehicles and Parts Dealers ($481 million, 10 percent). Overall, taxable

retail sales, excluding non-retail sales, increased by 6.6 percent between 2009 and 2013.

Among the Retail and Food Service sectors, Non-Store Retailers had the largest increase,

growing by roughly 215 percent, or 33 percent annually, over the same time frame. Activities

in Non-Store Retailers category include mail order and internet sales. Other sectors that

experienced growth during this period include Motor Vehicles and Parts Dealers (61,5 percent,

12.7 percent annually), and Gasoline Stations (52 percent, 11 percent annually). The only

sector that experienced declining taxable sales was Electronics and Appliance Stores, which

decreased 0.4 percent, or 0.1 percent per year.

Retail Leakage Analysis

To assess the net balance of trade in the retail sector, BAE compiled data on retail sales and

consumer expenditures from Nielsen, a private data vendor, for three distinct geographic

areas. These include the City of Grover Beach, the Five Cities area, and San Luis Obispo

County. The Five Cities area includes Census block groups within the cities of Arroyo Grande,

Grover Beach, Pismo Beach, Shell Beach, and the community of Oceano. BAE utilized the Five

Cities area in order to capture the retail establishments outside the City of Grover Beach where

residents are likely to make every day purchases.

As reported in Table 13, City of Grover Beach residents spent approximately $227 million on

retail purchases in 2016. This is much higher than the approximately $166 million in retail

sales within the city, resulting in a net annual retail leakage of roughly $61 million. After

accounting for the additional retail establishments within the Five Cities Market Area,

consumer expenditures increased almost four-fold, while retail supply increased more than

five-fold, amounting to a net retail sales injection within the broader Five Cities market area of

$30.7 million. San Luis Obispo County had a net injection of $115.5 million.3 While it is not

realistic for any community to capture 100 percent of its residents’ expenditures, the leakage

analysis indicates potential opportunities for the City of Grover Beach to capture additional

sales from sectors with leakage in the Five Cities Market Area and County.

The data indicate that there were four retail categories with leakage in the Five Cities Market

Area. The industries with leakage include Food and Beverage; Sporting Goods, Hobby, Book

and Music; Non-Store Retailers; and Motor Vehicle and Parts Dealers. The balance of trade for

3 In economic terms, leakage refers to the flow of local resident expenditures out of a local economy, while an

injection refers to an inflow of dollars into the local economy from shoppers who live outside of the local area. A net

leakage occurs when the outflow of exceeds the inflow, while an injection occurs when the inflow of dollars into the

economy exceeds the outflow. A sustained net leakage results in a shrinking of the local economy, while a

sustained net injection results in economic growth.

19

these specific sectors represented a gross leakage of $170.5 million. By applying sales per

square foot estimates by retail category published by the Urban Land Institute (ULI), BAE

estimates that the leakage identified in Table 13 could potentially support up to 92,952

square feet of additional retail floor area in the City of Grover Beach. This means that the

dollars spent by local residents outside of the Five Cities area would be sufficient to support

more than 90,000 square feet of additional retail development. However, it is unlikely that

100 percent of this spending could be captured within the Five Cities area. For example, retail

categories like Motor Vehicles and Parts Dealers (i.e., car dealerships) often require very large

market areas. While the consumer base in the Five Cities area is sufficient to support many

different types of retail, auto dealerships likely need to pull support from a much larger area,

indicating that the Five Cities area is unlikely to support an auto dealership without drawing in

consumer support from other surrounding areas.

Of the categories indicating the potential for additional supportable square footage, the most

significant opportunity as it relates to the City of Grover Beach, is in Motor Vehicles and Parts

dealers, which notes the potential for roughly 2 acres of additional supportable space. Table

13 also indicates the potential for roughly 66,133 additional square feet of Food and

Beverage Stores, and 26,819 square feet of Sporting Goods, Hobby, Book and Music Stores.

However, a significant portion of leakage within these sectors may be captured currently in

nearby General Merchandise stores within the Five Cities Market Area such as the Wal-Mart, K-

Mart, Marshalls and Dollar Tree stores in neighboring Arroyo Grande, or the Pismo Beach

Premium Outlets in Pismo Beach. This indicates that the potential for near-term retail

expansion within Grover Beach, based on the existing consumer spending power within the

broader Five Cities market area, may be limited.

Transient Occupancy Tax (TOT) Receipts

The data on Transient Occupancy Tax (TOT) receipts published by the California Travel and

Tourism Commission (CTTC) show that while the hotel industry in Grover Beach remained

relatively stable though the recession, it grew at a slightly slower rate and had a longer

recovery than neighboring jurisdictions and San Luis Obispo County. Table 14 shows that TOT

revenue in Grover Beach increased by 66 percent between 2000 and 2007, or approximately

eight percent per year, until peaking at $238,500 in 2007. With the onset of the recession in

2008, TOT revenue fell slightly, reaching a low of $220,300 in 2011, which represented an

eight percent decrease from the 2007 peak. However, by 2012, TOT revenue surpassed pre-

recession levels, peaking in the most recent year at $333,300. Whereas the City of Grover

Beach experienced four years of declining TOT revenue between 2007 and 2011, the County

only experienced two years of decline between 2008 and 2010. During this time, County TOT

revenue declined only six percent, and exceeded pre-recession levels by 2011.

20

Figure 6: Transient Occupancy Tax Receipts, 2000-2015

Sources: California Travel and Tourism Commission, 2016; BAE, 2016.

Tourist Visitation and Spending

Table 15 summarizes data reported by the CTTC in the annual California Travel Impacts by

County, 2000-2015p report, published in April of 2016. The data indicates that visitor

spending in San Luis Obispo County steadily increased between 2000 and 2007, when it

peaked at $1.2 billion. The increase in visitor spending during this period totaled around 34

percent, or four percent per year, representing an increase of approximately $39 million per

year. With the onset of the Great Recession in 2008, visitor spending declined slightly,

reaching a low of $1.12 billion in 2009, representing a decline of eight percent, or roughly four

percent per year. Visitor spending quickly rebounded, and as of 2010 began steadily

increasing, exceeding pre-recession levels in 2011 and reaching a high of $1.5 billion in 2015.

According to the CTTC, visitor generated taxable sales accounts for approximately 12 percent

of total taxable sales in San Luis Obispo County in 2015. The available data regarding the

distribution of visitor spending indicates that an estimated 28 percent of the total dollars

spent by visitors went to Food Service, which represents $418.8 million in annual spending.

Accommodations were the second largest spending category, accounting for 26 percent of

total visitor spending, or around $398.2 million. The third largest category was Retail Sales,

which accounted for 18 percent of dollars spent by visitors, representing $266.8 million. Arts,

Entertainment and Recreation was the fourth largest category, accounting for 13 percent of

total visitor spending, representing $189.7 million in spending. Transportation and Gas

accounted for the last major spending category, accounting for 11 percent of total visitor

spending, representing $162.1 million. As shown in Figure 7, these categories maintained a

consistent share of total visitor spending since 2000, indicating that visitor spending patterns

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

San

Luis O

bis

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Gro

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City of Grover Beach San Luis Obispo County

21

remain stable and that changes in spending are driven by changes in the number of people

visiting the area each year.

Figure 7: Visitor Spending by Commodity, San Luis Obispo County, 2000-2015


Table 6: Labor Force and Unemployment, 2010-2015

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,0002

00

0

200

1

200

2

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201

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201

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201

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201

3

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4

201

5

Visitor Air Tran.

Food Stores

Local Tran. & Gas

Arts, Ent. & Rec.

Retail Sales

Accommodations

Food Service

Employed UnemploymentYear Labor Force Residents Unemployment Rate


2010 7,000 6,200 800 11.0%2011 7,000 6,300 700 10.5%2012 7,100 6,500 600 9.0%2013 7,200 6,700 500 7.5%2014 7,300 6,800 400 6.1%2015 7,400 7,000 400 5.1%


2010 133,700 120,200 13,400 10.1%2011 134,400 121,500 12,900 9.6%2012 137,600 126,200 11,300 8.2%2013 138,600 129,100 9,400 6.8%2014 141,000 133,200 7,800 5.6%2015 143,300 136,600 6,600 4.6%

State of California

2010 18,336,300 16,091,900 2,244,300 12.2%2011 18,415,100 16,258,100 2,157,000 11.7%2012 18,551,400 16,627,800 1,923,600 10.4%2013 18,670,100 17,001,000 1,669,000 8.9%2014 18,827,900 17,418,000 1,409,900 7.5%2015 18,981,800 17,798,600 1,183,200 6.2%

Sources: California Employment Development Department, 2016; BAE, 2016.

22

Table 7: Occupational Employment, 2000 and 2010-2014 (Page 1 of 2)

2000 2010-2014Occupation Number Percent Number Percent


Management, business, and f inancial occupations 791 12.5% 469 7.6%Computer, engineering, and science occupations 194 3.1% 245 4.0%Edu, legal, comm. service, arts, and media occupations 591 9.3% 520 8.4%Healthcare practitioners and technical occupations 286 4.5% 222 3.6%Healthcare support occupations 140 2.2% 188 3.0%Protective service occupations 171 2.7% 79 1.3%Food preparation and serving related occupations 568 9.0% 394 6.4%Building and grounds cleaning and maint. occupations 278 4.4% 553 8.9%Personal care and service occupations 220 3.5% 339 5.5%Sales and related occupations 634 10.0% 712 11.5%Office and administrative support occupations 910 14.4% 1,147 18.5%Farming, f ishing, and forestry occupations 107 1.7% 43 0.7%Construction and extraction occupations 451 7.1% 470 7.6%Installation, maintenance, and repair occupations 319 5.0% 251 4.1%Production occupations 312 4.9% 265 4.3%Transportation occupations 227 3.6% 145 2.3%Material moving occupations 135 2.1% 150 2.4%Total, All Workers 6,334 100% 6,192 100%


Management, business, and f inancial occupations 13,458 12.3% 16,530 13.5%Computer, engineering, and science occupations 5,820 5.3% 6,703 5.5%Edu, legal, comm. service, arts, and media occupations 13,021 11.9% 13,959 11.4%Healthcare practitioners and technical occupations 5,282 4.8% 6,943 5.7%Healthcare support occupations 2,002 1.8% 2,202 1.8%Protective service occupations 3,430 3.1% 3,388 2.8%Food preparation and serving related occupations 6,957 6.3% 8,727 7.1%Building and grounds cleaning and maint. occupations 4,620 4.2% 5,661 4.6%Personal care and service occupations 3,564 3.2% 5,391 4.4%Sales and related occupations 12,712 11.6% 14,007 11.5%Office and administrative support occupations 15,081 13.8% 15,974 13.1%Farming, f ishing, and forestry occupations 2,281 2.1% 1,939 1.6%Construction and extraction occupations 6,851 6.2% 6,877 5.6%Installation, maintenance, and repair occupations 3,881 3.5% 3,868 3.2%Production occupations 6,047 5.5% 5,190 4.2%Transportation occupations 3,029 2.8% 2,847 2.3%Material moving occupations 1,633 1.5% 2,046 1.7%Total, All Workers 109,669 100% 122,252 100%

- Continued on next page -

Sources: U.S. Census Bureau, Census 2000, Summary File 3, 2016; U.S. Census Bureau, 2010-2014 American CommunitySurvey, 2016; BAE, 2016.

23

Table 7: Occupational Employment, 2000 and 2010-2014 (Page 2 of 2)

2000 2010-2014Occupation Number Percent Number Percent

State of California

Management, business, and financial occupations 2,145,895 14.6% 2,539,208 15.0%Computer, engineering, and science occupations 960,491 6.5% 1,047,605 6.2%Edu, legal, comm. service, arts, and media occupations 1,616,604 11.0% 1,850,953 11.0%Healthcare practitioners and technical occupations 572,079 3.9% 821,041 4.9%Healthcare support occupations 248,893 1.7% 340,972 2.0%Protective service occupations 287,994 2.0% 363,400 2.2%Food preparation and serving related occupations 652,139 4.4% 940,119 5.6%Building and grounds cleaning and maint. occupations 531,761 3.6% 744,421 4.4%Personal care and service occupations 453,087 3.1% 770,520 4.6%Sales and related occupations 1,672,752 11.4% 1,874,713 11.1%Office and administrative support occupations 2,266,631 15.4% 2,199,501 13.0%Farming, f ishing, and forestry occupations 196,695 1.3% 279,641 1.7%Construction and extraction occupations 719,976 4.9% 788,849 4.7%Installation, maintenance, and repair occupations 519,184 3.5% 481,017 2.8%Production occupations 1,078,262 7.3% 875,296 5.2%Transportation occupations 457,525 3.1% 532,418 3.2%Material moving occupations 338,960 2.3% 440,768 2.6%Total, All Workers 14,718,928 100% 16,890,442 100%


24

Table 8: Employment by Industry, 2004 and 2014

Avg. Annual2004 2014 Change

City of Grover Beach Number Percent Number Percent (2004-2014)Agriculture, Forestry, Fishing & Hunting (a) n.a. (a) n.a. n.a.Mining (a) n.a. (a) n.a. n.a.Utilities (a) n.a. (a) n.a. n.a.Construction 661 20.6% 383 14.4% -5.3%Manufacturing 422 13.1% 335 12.6% -2.3%Wholesale Trade 70 2.2% 138 5.2% 7.0%Retail Trade 399 12.4% 383 14.4% -0.4%Transportation and Warehousing (a) n.a. 34 1.3% n.a.Information (a) n.a. (a) n.a. n.a.Finance and Insurance 55 1.7% 42 1.6% -2.7%Real Estate and Rental and Leasing 57 1.8% 67 2.5% 1.6%Professional and Technical Services 84 2.6% 70 2.6% -1.8%Management of Companies and Enterprises (a) n.a. (a) n.a. n.a.Administrative and Waste Services 256 8.0% 136 5.1% -6.1%Educational Services (a) n.a. (a) n.a. n.a.Health Care and Social Assistance 242 7.5% 283 10.6% 1.6%Arts, Entertainment, and Recreation (a) n.a. (a) n.a. n.a.Accommodation and Food Services 375 11.7% 279 10.5% -2.9%Other Services, Ex. Public Admin 107 3.3% 70 2.6% -4.2%Federal Government (a) n.a. (a) n.a. n.a.State Government (a) n.a. (a) n.a. n.a.Local Government 222 6.9% 181 6.8% -2.0%Unclassif ied Establishments 0 0.0% 8 0.3% n.a.Total, All Industries (b) 3,213 100% 2,660 100% -1.9%

Avg. Annual2004 2014 Change

San Luis Obispo County Number Percent Number Percent (2004-2014)Agriculture, Forestry, Fishing & Hunting 4,039 4.0% 4,624 4.2% 1.4%Mining 144 0.1% 132 0.1% -0.9%Utilities 2,075 2.1% 2,187 2.0% 0.5%Construction 7,027 7.0% 6,290 5.7% -1.1%Manufacturing 6,365 6.3% 6,765 6.1% 0.6%Wholesale Trade 2,393 2.4% 2,799 2.5% 1.6%Retail Trade 13,513 13.4% 13,707 12.4% 0.1%Transportation and Warehousing 1,440 1.4% 1,743 1.6% 1.9%Information 1,468 1.5% 1,387 1.3% -0.6%Finance and Insurance 2,588 2.6% 2,187 2.0% -1.7%Real Estate and Rental and Leasing 2,011 2.0% 1,883 1.7% -0.7%Professional and Technical Services 4,159 4.1% 5,078 4.6% 2.0%Management of Companies and Enterprises 684 0.7% 557 0.5% -2.0%Administrative and Waste Services 4,144 4.1% 6,196 5.6% 4.1%Educational Services 546 0.5% 713 0.6% 2.7%Health Care and Social Assistance 9,637 9.6% 12,949 11.7% 3.0%Arts, Entertainment, and Recreation 1,334 1.3% 1,464 1.3% 0.9%Accommodation and Food Services 13,084 13.0% 15,220 13.8% 1.5%Other Services, Ex. Public Admin 4,338 4.3% 4,832 4.4% 1.1%Federal Government 639 0.6% 538 0.5% -1.7%State Government 7,807 7.8% 8,252 7.5% 0.6%Local Government 11,115 11.1% 10,468 9.5% -0.6%Unclassif ied Establishments 3 0.0% 373 0.3% n.a.Total, All Industries (b) 100,553 100% 110,345 100% 0.9%

Notes:(a) Data supressed for confidentiality purposes.(b) Figures may not sum to total due to rounding and data supression.

Sources: California Employment Development Deparment, Quarterly Census of Employment and Wages, 2016; BAE, 2016.

25

Table 9: Location Quotient and Shift Share Analysis, San Luis Obispo County, 2009-2014

Location Location Statewide CombinedQuotient Quotient Growth Proportional Differential Shift-Share

Industry 2009 2014 Factor (a) Shift (b) Shift (c) 2009-2014Agriculture, Forestry, Fishing & Hunting 1.5 1.6 11.2% 3.1% 12.1% 26.4%Mining 0.6 0.7 20.0% 11.9% 26.7% 58.6%Utilities 5.5 5.4 -3.5% -11.5% 0.7% -14.3%Construction 1.2 1.3 8.4% 0.3% 12.0% 20.7%Manufacturing 0.6 0.8 -0.9% -9.0% 22.2% 12.3%Wholesale Trade 0.6 0.6 9.8% 1.7% 4.9% 16.4%Retail Trade 1.2 1.2 7.2% -0.8% -0.9% 5.6%Transportation and Warehousing 0.5 0.6 11.8% 3.8% 10.9% 26.5%Information 0.4 0.4 4.2% -3.9% 7.5% 7.8%Finance and Insurance 0.7 0.6 -4.5% -12.6% -5.0% -22.1%Real Estate and Rental and Leasing 1.0 1.0 3.6% -4.4% 10.1% 9.4%Professional and Technical Services 0.7 0.6 15.7% 7.6% -10.8% 12.5%Management of Companies and Enterprises 0.3 0.4 14.2% 6.1% 7.4% 27.7%Administrative and Waste Services 0.7 0.9 22.0% 13.9% 34.0% 69.9%Educational Services 0.3 0.3 13.6% 5.5% 17.5% 36.6%Health Care and Social Assistance 1.1 0.9 39.4% 31.3% -15.5% 55.2%Arts, Entertainment, and Recreation 0.9 0.8 13.6% 5.6% -12.3% 6.9%Accommodation and Food Services 1.6 1.5 17.7% 9.6% -4.7% 22.7%Other Services, Ex. Public Admin 1.0 1.4 -31.9% -40.0% 25.0% -46.9%Federal Government 0.4 0.3 -3.2% -11.3% -11.6% -26.2%State Government 2.7 2.7 -4.5% -12.6% 1.3% -15.9%Local Government 0.9 0.9 -5.1% -13.2% 1.5% -16.8%Unclassif ied Establishments 0.6 0.9 -6.0% -14.1% 36.5% 16.3%

Notes:(a) Statew ide economic grow th component is the overall change in the industry w ithin the statew ide economy.(b) Proportional shift component is the measure of the statew ide grow th of the industry relative to the overall statew ide economic grow th.(c) Differential shift component is the measure of the grow th of the particular sector in the local economy relative to the same sector in the statew ide economy.

Sources: California Employment Development Department, Quarterly Census of Employment and Wages, 2016; BAE, 2016.

26

Table 10: Location Quotient and Shift Share Analysis, City of Grover Beach, 2004-2014

Location Location Statewide CombinedQuotient Quotient Growth Proportional Differential Shift-Share

Industry (a) 2004 2014 Factor (b) Shift (c) Shift (d) 2004-2014Construction 3.6 3.4 -20.8% -26.5% -21.2% -68.6%Manufacturing 1.3 1.6 -16.7% -22.4% -3.9% -43.0%Wholesale Trade 0.5 1.2 9.0% 3.3% 88.1% 100.5%Retail Trade 1.2 1.4 0.6% -5.1% -4.6% -9.1%Finance and Insurance 0.4 0.5 -16.8% -22.5% -6.9% -46.1%Real Estate and Rental and Leasing 1.0 1.5 -4.5% -10.2% 22.0% 7.4%Professional and Technical Services 0.4 0.4 28.5% 22.7% -45.1% 6.1%Administrative and Waste Services 1.3 0.8 9.2% 3.5% -56.1% -43.4%Health Care and Social Assistance 0.9 0.8 55.8% 50.0% -38.8% 67.0%Accommodation and Food Services 1.5 1.1 23.4% 17.6% -49.0% -8.0%Other Services, Ex. Public Admin 0.7 0.8 -24.3% -30.0% -10.3% -64.6%Local Government 0.6 0.7 -1.8% -7.6% -16.6% -26.0%

Notes:(a) Consists of the industries for w hich Grover Beach employment data w ere available.(b) Statew ide economic grow th component is the overall change in the industry w ithin the statew ide economy.(c) Proportional shift component is the measure of the statew ide grow th of the industry relative to the overall statew ide economic grow th.(d) Differential shift component is the measure of the grow th of the particular sector in the local economy relative to the same sector in the statew ide economy.

Sources: California Employment Development Department, Quarterly Census of Employment and Wages, 2016; BAE, 2016.

27

Table 11: Employment by Industry Projections, San Luis Obispo County, 2012-2022

Absolute Avg. Annual2012 2022 Growth Growth Rate

Industry Number Percent Number Percent (2012-2022) (2012-2022)Agriculture 5,100 4.8% 6,500 4.9% 1,400 2.5%Mining, Logging and Construction 5,500 5.1% 7,500 5.7% 2,000 3.2%Manufacturing 6,400 6.0% 8,000 6.1% 1,600 2.3%Wholesale Trade 2,600 2.4% 3,400 2.6% 800 2.7%Retail Trade 13,700 12.8% 16,200 12.3% 2,500 1.7%Transportation, Warehousing, and Utilities 3,800 3.5% 4,400 3.3% 600 1.5%Information 1,200 1.1% 1,600 1.2% 400 2.9%Finance and Insurance 2,400 2.2% 3,100 2.4% 700 2.6%Real Estate and Rental and Leasing 1,700 1.6% 2,300 1.7% 600 3.1%Professional and Business Services 11,200 10.4% 13,900 10.6% 2,700 2.2%Education, Health Care, and Social Assistance 12,600 11.8% 17,000 12.9% 4,400 3.0%Arts Entertainment and Rec 1,500 1.4% 1,800 1.4% 300 1.8%Accommodation and Food Services 14,200 13.2% 17,500 13.3% 3,300 2.1%Other Services 4,700 4.4% 5,200 3.9% 500 1.0%Federal Government 600 0.6% 600 0.5% 0 0.0%State Government 9,600 9.0% 10,600 8.0% 1,000 1.0%Local Government 10,600 9.9% 12,100 9.2% 1,500 1.3%Total Employment 107,200 100% 131,700 100% 24,500 2.1%

Sources: California Employment Development Department, Industry Employment Projections, 2016; BAE, 2016.

28

Table 12: San Luis Obispo County Taxable Sales by Category, 2009 to 2013

2009 2010 2011Sales Category All Sales Per Capita All Sales Per Capita All Sales Per CapitaBldg. Matrl. and Garden Equip. and Supplies $256,282,449 $957.93 $251,070,711 $932.19 $269,506,568 $997.05Clothing and Clothing Accessories Stores $178,574,101 $667.47 $186,385,466 $692.03 $189,253,544 $700.15Electronics and Appliance Stores $70,572,310 $263.79 $69,918,447 $259.60 $69,443,627 $256.91Food and Beverage Stores $219,822,332 $821.65 $219,590,261 $815.31 $227,027,433 $839.89Food Services and Drinking Places $441,332,711 $1,649.61 $437,460,255 $1,624.24 $462,823,311 $1,712.23Furniture and Home Furnishings Stores $58,543,351 $218.82 $61,674,527 $228.99 $67,780,069 $250.75Gasoline Stations $331,193,886 $1,237.94 $392,463,312 $1,457.17 $485,425,430 $1,795.84General Merchandise Stores $320,634,540 $1,198.47 $320,144,547 $1,188.66 $341,192,368 $1,262.25Health and Personal Care Stores $74,401,065 $278.10 $76,589,479 $284.37 $80,860,444 $299.15Miscellaneous Store Retailers $135,344,956 $505.89 $141,452,664 $525.20 $143,780,849 $531.92Motor Vehicle and Parts Dealers $298,014,326 $1,113.92 $327,375,711 $1,215.51 $371,418,001 $1,374.07Nonstore Retailers $15,987,526 $59.76 $15,577,509 $57.84 $15,365,225 $56.84Sporting Goods, Hobby, Book, and Music Stores $94,646,661 $353.77 $95,789,719 $355.66 $100,337,631 $371.20Total Retail and Food Services $2,495,350,217 $9,327.12 $2,595,492,608 $9,636.74 $2,824,214,500 $10,448.25

All Other Outlets $947,081,008 $3,540.00 $1,018,862,233 $3,782.91 $1,193,774,059 $4,416.40

Total All Outlets $3,442,431,225 $12,867.12 $3,614,354,841 $13,419.65 $4,017,988,559 $14,864.65

2012 2013 2009 to 2013 GrowthSales Category All Sales Per Capita All Sales Per Capita Total Grow th Avg. AnnualBldg. Matrl. and Garden Equip. and Supplies $284,735,680 $1,056.06 $319,236,744 $1,179.00 24.6% 5.6%Clothing and Clothing Accessories Stores $211,277,538 $783.61 $228,524,808 $843.99 28.0% 6.4%Electronics and Appliance Stores $71,828,199 $266.41 $70,283,606 $259.57 -0.4% -0.1%Food and Beverage Stores $236,297,577 $876.41 $250,858,198 $926.47 14.1% 3.4%Food Services and Drinking Places $499,765,010 $1,853.59 $530,288,751 $1,958.46 20.2% 4.7%Furniture and Home Furnishings Stores $69,137,742 $256.43 $76,722,383 $283.35 31.1% 7.0%Gasoline Stations $515,543,514 $1,912.11 $503,081,763 $1,857.98 51.9% 11.0%General Merchandise Stores $359,873,559 $1,334.74 $363,170,164 $1,341.26 13.3% 3.2%Health and Personal Care Stores $81,645,190 $302.82 $83,873,248 $309.76 12.7% 3.0%Miscellaneous Store Retailers $151,069,159 $560.30 $155,572,112 $574.56 14.9% 3.5%Motor Vehicle and Parts Dealers $416,833,243 $1,546.00 $481,169,023 $1,777.05 61.5% 12.7%Nonstore Retailers $24,693,869 $91.59 $50,468,888 $186.39 215.7% 33.3%Sporting Goods, Hobby, Book, and Music Stores $101,900,528 $377.94 $109,976,778 $406.17 16.2% 3.8%Total Retail and Food Services $3,024,600,809 $11,218.01 $3,223,226,466 $11,904.02 29.2% 6.6%

All Other Outlets $2,001,203,438 $7,422.31 $1,794,562,924 $6,627.68 89.5% 17.3%

Total All Outlets $5,025,804,247 $18,640.32 $5,017,789,390 $18,531.69 45.8% 9.9%

Sources: California State Board of Equalization, 2016; BAE, 2016.

29

Table 13: Retail Leakage and Injection, 2016 (Page 1 of 3)


Consumer Retail (Leakage)/ Estimated SupportableRetail Category Expenditures Supply Injection Sales/SF (a) Square Feet (b)Furniture and Home Furnishings Stores $4,428,344 $2,281,819 ($2,146,525) $209 10,257Electronics and Appliance Stores $4,093,510 $3,570,292 ($523,218) $302 1,731Building Material, Garden Equip Stores $22,576,548 $44,291,875 $21,715,327 $389 n.a.Food and Beverage Stores $31,143,931 $29,678,288 ($1,465,643) $412 3,556Health and Personal Care Stores $11,717,403 $6,488,836 ($5,228,567) $429 12,186Clothing and Clothing Accessories Stores $10,368,313 $2,652,103 ($7,716,210) $233 33,162Sporting Goods, Hobby, Book, Music Stores $3,992,466 $2,569,530 ($1,422,936) $220 6,472General Merchandise Stores $26,184,428 $2,148,669 ($24,035,759) $375 (c) 64,095Miscellaneous Store Retailers $5,912,007 $4,137,081 ($1,774,926) $248 7,171Non-Store Retailers $19,579,851 $1,208,520 ($18,371,331) n.a. n.a.Food Service and Drinking Places $26,878,090 $26,857,673 ($20,417) $314 65Subtotal, Non-Automotive $166,874,891 $125,884,686 ($40,990,205) 138,695

Consumer Retail (Leakage)/ Estimated SupportableRetail Category Expenditures Supply Injection Sales/Acre (d) Acreage (d)Motor Vehicle and Parts Dealers $42,984,390 $19,859,984 ($23,124,406) $12,634,000 2Gasoline Stations $17,444,443 $20,399,076 $2,954,633 $5,806,423 n.a.Subtotal, Automotive $60,428,833 $40,259,060 ($20,169,773) 2

Net Balance of Trade $227,303,724 $166,143,746 ($61,159,978)Categories with Leakage $187,282,733 $101,452,795 ($85,829,938)


Sources: Nielsen, 2016; ULI, 2008; SBOE, 2015; BAE, 2016.

30


Five Cities Market Area (e)

Consumer Retail (Leakage)/ Estimated SupportableRetail Category Expenditures Supply Injection Sales/SF (a) Square Feet (b)Furniture and Home Furnishings Stores $18,001,243 $18,396,008 $394,765 $209 n.a.Electronics and Appliance Stores $16,078,622 $17,071,576 $992,954 $302 n.a.Building Material, Garden Equip Stores $94,102,851 $151,086,268 $56,983,417 $389 n.a.Food and Beverage Stores $118,047,733 $90,787,240 ($27,260,493) $412 66,133Health and Personal Care Stores $49,520,073 $63,457,023 $13,936,950 $429 n.a.Clothing and Clothing Accessories Stores $39,851,900 $40,812,770 $960,870 $233 n.a.Sporting Goods, Hobby, Book, Music Stores $15,278,702 $9,382,494 ($5,896,208) $220 26,819General Merchandise Stores $101,739,763 $148,623,495 $46,883,732 $375 (c) n.a.Miscellaneous Store Retailers $22,828,341 $37,978,764 $15,150,423 $248 n.a.Non-Store Retailers $77,751,674 $26,739,879 ($51,011,795) n.a. n.a.Food Service and Drinking Places $103,199,521 $145,114,731 $41,915,210 $314 n.a.Subtotal, Non-Automotive $656,400,423 $749,450,248 $93,049,825 92,952

Consumer Retail (Leakage)/ Estimated SupportableRetail Category Expenditures Supply Injection Sales/Acre (d) Acreage (d)Motor Vehicle and Parts Dealers $164,818,987 $78,448,040 ($86,370,947) $12,634,000 7Gasoline Stations $64,536,496 $88,581,936 $24,045,440 $5,806,423 n.a.Subtotal, Automotive $229,355,483 $167,029,976 ($62,325,507) 7

Net Balance of Trade $885,755,906 $916,480,224 $30,724,318Categories with Leakage $375,897,096 $205,357,653 ($170,539,443)



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Consumer Retail (Leakage)/ Estimated SupportableRetail Category Expenditures Supply Injection Sales/SF (a) Square Feet (b)Furniture and Home Furnishings Stores $102,391,983 $88,506,830 ($13,885,153) $209 66,347Electronics and Appliance Stores $96,968,245 $138,763,065 $41,794,820 $302 n.a.Building Material, Garden Equip Stores $536,842,133 $1,125,989,895 $589,147,762 $389 n.a.Food and Beverage Stores $676,776,994 $550,941,444 ($125,835,550) $412 305,270Health and Personal Care Stores $270,511,326 $353,158,192 $82,646,866 $429 n.a.Clothing and Clothing Accessories Stores $235,075,589 $198,385,241 ($36,690,348) $233 157,686Sporting Goods, Hobby, Book, Music Stores $94,854,954 $115,390,332 $20,535,378 $220 n.a.General Merchandise Stores $580,230,317 $510,527,637 ($69,702,680) $375 (c) 185,874Miscellaneous Store Retailers $134,376,896 $216,053,145 $81,676,249 $248 n.a.Non-Store Retailers $442,007,703 $228,347,996 ($213,659,707) n.a. n.a.Food Service and Drinking Places $608,124,754 $627,114,786 $18,990,032 $314 n.a.Subtotal, Non-Automotive $3,778,160,894 $4,153,178,563 $375,017,669 715,177

Consumer Retail (Leakage)/ Estimated SupportableRetail Category Expenditures Supply Injection Sales/Acre (d) Acreage (d)Motor Vehicle and Parts Dealers $1,021,509,012 $789,973,754 ($231,535,258) $12,634,000 18Gasoline Stations $377,158,609 $349,181,418 ($27,977,191) $5,806,423 5Subtotal, Automotive $1,398,667,621 $1,139,155,172 ($259,512,449) 23

Net Balance of Trade $5,176,828,515 $5,292,333,735 $115,505,220Categories with Leakage $3,435,150,207 $2,715,864,320 ($719,285,887)

Notes:(a) Sales per square foot are based on data reported in the Dollars and Cents of Shopping Centers , published by the ULI.(b) Supportable square footage estimates include a 14 percent non-retail adjustment and a 10 percent vacancy allow ance.(c) General Merchandise Stores sales per square foot estimate is based on the average sales per square foot reported by major big box general merchandise stores.(d) Sales per acre estimates are based on taxable sales per establishment f igures derived from data published by the SBOE. The figures assume that an average motorvehicle dealership w ill range in size betw een 5.3 and 6.4 acres, w hile a typical gasoline station w ould occupy approximately one acre.(e) The Five Cities Market Area is defined 2010 Census Tracts. For a complete listing of the included Census Tracts, please refer to Appendix A.


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Table 14: Transient Occupancy Tax Receipts, 2000-2015

City of San Luis Neighboring JurisdictionsYear Grover Beach Obispo County2000 $143,600 $13,900,0002001 $140,200 $15,800,0002002 $165,600 $16,000,0002003 $158,100 $16,300,0002004 $174,900 $17,400,0002005 $180,700 $17,900,0002006 $220,400 $19,700,0002007 $238,500 $22,000,0002008 $232,900 $23,300,0002009 $230,800 $22,400,000 `2010 $220,400 $21,800,0002011 $220,300 $23,900,0002012 $260,800 $26,100,0002013 $273,400 $28,400,0002014 $248,700 $32,700,0002015 $333,300 $36,400,000

Avg. AnnualChange ('00-'15) 5.8% 6.6%


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Table 15: Visitor Spending by Commodity, San Luis Obispo County, 2000-2015

Commodity TypeYear Food Service Accommodations Retail Sales Arts, Ent. & Rec. Local Tran. & Gas Food Stores Visitor Air Tran. Total2000 $233,100,000 $183,900,000 $225,400,000 $139,700,000 $88,600,000 $42,900,000 $0 $913,600,0002001 $232,200,000 $193,700,000 $217,700,000 $136,200,000 $85,600,000 $45,500,000 $2,000,000 $912,900,0002002 $244,500,000 $203,500,000 $219,800,000 $141,100,000 $86,500,000 $50,200,000 $3,300,000 $948,900,0002003 $254,700,000 $209,300,000 $219,800,000 $145,500,000 $99,900,000 $52,100,000 $7,000,000 $988,300,0002004 $263,900,000 $215,400,000 $217,500,000 $147,200,000 $109,300,000 $52,300,000 $7,300,000 $1,012,900,0002005 $280,900,000 $231,100,000 $224,600,000 $151,900,000 $131,100,000 $55,800,000 $9,100,000 $1,084,500,0002006 $301,900,000 $254,700,000 $236,700,000 $161,000,000 $153,500,000 $61,000,000 $9,400,000 $1,178,200,0002007 $318,100,000 $272,200,000 $238,400,000 $164,500,000 $159,900,000 $61,500,000 $10,600,000 $1,225,200,0002008 $316,500,000 $260,600,000 $227,500,000 $158,200,000 $163,500,000 $59,900,000 $10,000,000 $1,196,200,0002009 $312,700,000 $242,500,000 $219,600,000 $150,700,000 $132,400,000 $55,800,000 $9,200,000 $1,122,900,0002010 $331,700,000 $262,000,000 $231,400,000 $156,200,000 $148,500,000 $56,000,000 $6,900,000 $1,192,700,0002011 $343,700,000 $278,100,000 $237,200,000 $162,900,000 $172,500,000 $59,600,000 $6,700,000 $1,260,700,0002012 $366,800,000 $308,400,000 $249,600,000 $173,100,000 $180,600,000 $60,300,000 $7,700,000 $1,346,500,0002013 $374,500,000 $332,900,000 $254,000,000 $176,900,000 $179,100,000 $62,000,000 $10,600,000 $1,390,000,0002014 $394,900,000 $363,200,000 $259,900,000 $183,000,000 $173,400,000 $65,700,000 $11,000,000 $1,451,100,0002015 $418,800,000 $398,200,000 $266,800,000 $189,700,000 $162,100,000 $68,700,000 $12,500,000 $1,516,800,000

Avg. AnnualChange ('00-'15) 4.0% 5.3% 1.1% 2.1% 4.1% 3.2% 14.0% 3.4%


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Real Estate Market Analysis

The following section summarizes existing real estate market conditions in Grover Beach and

San Luis Obispo County. The primary data source utilized for this analysis is CoStar, a private

real estate market data vendor. Additional data regarding the for-sale residential real estate

market are from ListSource, another private data vendor that tracks real estate transactions.

BAE also collected data regarding the rental residential real estate market through a review of

current rental listings, as provided by Zillow, CoStar, Apartments.com, Padmapper, and

Craigslist. Where possible, BAE collected additional information regarding the primary drivers

of demand within each land use category through interviews with real estate brokers and

property managers active in the Grover Beach and San Luis Obispo County areas.

Industrial Market Conditions

According to CoStar, the Grover Beach industrial market includes approximately 288,000

square feet of industrial space, as reported in Table 16. As of the fourth quarter of 2015,

roughly 11,000 square feet of industrial space was vacant, translating into a vacancy rate of

3.8 percent. This is slightly higher than the Countywide vacancy rate of 2.0 percent, but

indicative of a healthy industrial market. Average asking rents within the City were $1.18 per

square foot, triple-net,4 which is somewhat higher than the Countywide asking rate of $0.96

per square foot, triple-net. It is worth noting that local industrial brokers indicated the reported

asking rent in the City is slightly higher than expected, specifically indicating that the average

asking rent is likely similar to the Countywide rate, ranging from $0.90 to $1.00 per square

foot, triple-net. One possible explanation for the higher reported rental rate is the nature of

the existing industrial buildings within the City. Whereas the County consists of various

building types, including large warehouse buildings that receive lower rental rates, the Grover

Beach industrial stock generally consist of smaller light industrial spaces, some of which more

closely resemble flex spaces, that command somewhat higher rents.

Since 2010, the Grover Beach industrial market has experienced a varying vacancy rate. The

reported vacancy rate in the fourth quarter of 2010 was 9.4 percent, which increased to 10.8

percent in 2011. In 2012, however, the city experienced a positive net absorption of roughly

26,000 square feet, reducing the vacancy rate to just 1.8 percent, followed by another year of

positive absorption in 2013, reducing the vacancy rate to 0.7 percent. Since 2013, the

vacancy rate has steadily increased, though still well within the range indicating a healthy

market. Countywide, the vacancy rate has steadily decreased, with all years since 2010

reporting positive absorption, except for 2012. This historically low vacancy rate within the

County is a possible area of opportunity for the City of Grover Beach. Considering the vacant

stock of industrial space is becoming more limited, the Grover Beach may be able to position

4 A triple-net lease agreement requires the lessee or tenant to pay all real estate taxes, building maintenance, and

insurance on the property, in addition to rent, utilities, and other expenses. The lessee is also typically responsible

for maintenance of any common areas. This is opposed to a single or double net lease, where the lessee pays

property taxes and insurance, but is not held responsible for maintenance.

35

itself to capture spill-over demand from elsewhere in the County. While the current vacant

stock of industrial space within the City will not adequately capture the potential demand, the

city is one of the few areas within the Southern San Luis Obispo County area that has

undeveloped industrial land. This available land, in conjunction with the commercial medical

cannabis uses and fiber optic network, may help to diversify the City’s economic base.

Office Market Conditions

As seen below in Table 17, the City of Grover Beach contains approximately 136,000 square

feet of office space. As of the fourth quarter of 2015, roughly 15,000 square feet of the

inventory was vacant, indicating a vacancy rate of 10.9 percent, a figure that is significantly

higher than the Countywide rate of just 2.6 percent. Average asking rents within the City were

$1.62 per square foot for a full service gross lease, which is similar to the reported countywide

rate of $1.59 per square foot. Interviews with local office brokers again highlighted that the

CoStar rental rate figures are somewhat higher than expected, stating that the most desirable

office spaces in Grover Beach command rents for between $1.60 to $1.70 per square foot,

while older, less desirable, office spaces rent for between $1.10 to $1.30 per square foot for a

full service gross lease.

Recent trends in absorption indicate little activity within the City of Grover Beach, with a

positive net absorption of 1,140 square feet between 2010 and 2015, while the County

demonstrates significant positive absorption over the same period. Office brokers indicated

that the significant positive absorption of office space within the County is likely driven by the

City of San Luis Obispo market and surrounding areas, as the City of San Luis Obispo acts as

the primary professional business center. While not represented in the data, office brokers

also noted that Santa Maria features another major concentration of office users, suggesting

that Grover Beach lies between two primary office markets and is not likely to capture

significant demand. That said, brokers did indicate a recent increase in demand for small

office spaces from residents that work in the City of San Luis Obispo or Santa Maria that were

interested in an office space closer to home that would allow them to work remotely.

Retail Market Conditions

According to CoStar, the City of Grover Beach contains roughly 565,000 square feet of retail

space. Of the total inventory, only 8,500 square feet were available in the fourth quarter of

2015, amounting to a vacancy rate of just 1.5 percent, somewhat higher than the countywide

vacancy rate of 4.2 percent. Interviews with local retail brokers indicated that the vacancy rate

reported by CoStar may be somewhat lower than expected, but in general the Grover Beach

retail market contains few vacancies. Average asking rents in the fourth quarter of 2015

within the City were $1.22 per square foot for a triple-net lease, representing an increase of

nearly 11 percent over the average asking rents in the same quarter of 2014. San Luis

Obispo County average asking rents were $1.85 per square foot on a triple-net lease basis,

indicating that retail rents within Grover Beach are well below the countywide average.

Additional insight provided by regional retail brokers indicate that the lower rents within the

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city are a result of significantly lower sales per square foot figures, in addition to an aging

stock of retail space with minimal investment from local property owners.

Between 2010 and 2015, the City of Grover Beach experienced a net positive absorption of

nearly 27,500 square feet with no new construction, indicating that vacancy rates have

steadily declined and the retail market has recovered from the recent recession. Countywide,

absorption rates have followed similar trends, with an aggregated net positive absorption of

roughly 342,000 square feet between 2010 and 2015, though 2015 yielded a net negative

absorption of approximately 125,000 square feet. With regard to new retail construction,

CoStar indicates a lack of new retail development within the City between 2010 and 2015,

while the county added an additional 534,000 square feet over the same time frame. More

recent trends indicate that new development countywide may be slowing, as only three new

buildings were added to the existing inventory of retail buildings in 2015, representing roughly

20,000 square feet of additional retail space.

Local retail brokers indicated that Grover Beach retailers are typically resident serving

establishments, which are saturated in the market and driven by local population growth.

Brokers did, however, highlight the opportunity for Grover Beach to increase the inventory of

destination retail and food service establishments. More specifically, brokers noted a select

number of new retail and restaurant establishments that have increased the regional draw of

Grover Beach, which highlights a possible opportunity for new establishments to attract both

regional consumers and the vast number of tourists drawn to the Five Cities area.

Residential Market Conditions

According to the Census Bureau, between 2010 and 2014, the City of Grover Beach contained

5,850 total housing units, representing approximately five percent of San Luis Obispo County

residential units. As seen in Table 19, detached single-family units accounted for 52.5 percent

of units within the City between 2010 and 2014, compared to 66.7 percent countywide.

Grover Beach subsequently contains a higher proportion of multifamily units, though the units

tend to be in smaller structures. For example, residential units in structures of two to four

units represented 20.5 percent of Grover Beach housing stock between 2010 and 2014,

compared to 8.6 percent countywide. Similarly, 11.2 percent of the Grover Beach housing

stock was in structures containing between five and 19 units between 2010 and 2014,

relative to 6.8 percent countywide. Despite the large proportion of multifamily units, the City

contains a lower percentage of units in large multifamily structures, with just 0.6 percent of

residential units located in structures of 50 or more units, compared to 1.5 percent statewide.

Additional data from the Census Bureau indicate that approximately 11.0 percent of housing

units within the City of Grover Beach were vacant between 2010 and 2014. This represents

an increase in 4.4 percentage points relative to the vacancy rate recorded in 2000.

Countywide, approximately 13.4 percent of units were vacant between 2010 and 2014, an

increase in 4.1 percent relative to 2000. Of the vacant units, those held for seasonal or

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recreational use comprised the majority of vacant housing stock within both the city and

county. For example, units held for occasional use comprised 7.4 percent and 8.0 percent of

all units within Grover Beach and San Luis Obispo County, respectively. Indicating that the

structural vacancy is closer to 3.6 percent in Grover Beach and 5.4 percent countywide. The

remaining vacant units include units for rent, those that are rented or sold but not occupied,

and other vacant units. Other vacant units include units which were vacant for reasons other

than the defined categories including units held for occupancy of a caretaker or janitor, held

for settlement of an estate, or held for personal reasons of the owner.

For-Sale Residential

Table 21 reports home sales data collected from ListSource, a private data vendor, for the

period from June 2015 to June 2016. Based on these records, the median sale price for

single-family homes in Grover Beach was $450,000. Of the home sales reported during this

period, approximately 51 percent were three-bedroom units, while two-bedroom units

accounted for 26 percent. Four-Bedroom units accounted for 13.3 percent, while one-

bedroom and units with five or more bedrooms accounted for 5.3 percent and 4.4 percent,

respectively. Over the same period, 32 Planned Unit Development (PUD) homes were sold, as

reported in Table 22. According to the Grover Beach Housing Element, PUDs are small-lot

subdivisions that allow detached or attached single-family homes on individual lots. Based on

the sales records, the median sale price for PUD units in Grover Beach was $352,000. Of the

recorded PUD sales, roughly 60 percent were two-bedroom units, while the remaining 40

percent were three-bedroom units. Table 23 reports the characteristics of homes other than

single-family and PUD units sold during the same period, including condominiums, as well as

duplex, triplex, and quadruplex units. The median sale price for condominium units sold

during this period was $371,250, which was similar to the reported median sale price for PUD

units. The median recorded sale price for duplex units was $520,000, while the median sale

price for triplex units was $552,500. Lastly, only one quadruplex unit was sold over the

allotted time frame, with a sale price of $740,000.

According to List Source, a private residential sales tracking service, the Grover Beach median

home sale price has historically tracked between 10 and 25 percent below the countywide

median. Additional data indicate that the neighboring communities of Arroyo Grande and

Pismo Beach feature notably higher median home sale prices relative to Grover Beach and

San Luis Obispo County. These comparison figures demonstrate the relative affordability of

Grover Beach within both the Five Cities Area and the County as a whole.

Rental Residential

BAE utilized a variety of data sources to identify residential units available for lease in June

2016, including Zillow, CoStar, Apartments.com, Padmapper, and Craigslist. Table 24

provides examples of rental housing identified in the previously noted sources. Three units

(822 N. 5th Street, 222 N. 3rd Street, and 1847 Newport Avenue) had three bedrooms and two

bathrooms, with rents ranging from $2,500 to $3,500 per month. Two additional units (1513

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Brighton Avenue and 1664 Manhattan Avenue) had three bedrooms and two and one-half

baths, with rents ranging from $1,900 to $2,100 per month. Only one units contained more

than three bedrooms (895 Newport Avenue) with four bedrooms and 3 bathrooms, with a

rental rate of $2,950 per month. The final two available units (1692 Brighton Avenue and 493

4th Street) both contain two bedrooms and one bathroom, with rents ranging between $1,600

and $1,795.

As shown in Table 25, data on multifamily rentals in Grover Beach available through CoStar

show 215 units located in the City, which is only 2.1 percent of the total countywide

multifamily housing stock. The CoStar data indicate that Grover Beach and San Luis Obispo

County contain very low vacancy rates, at 0.9 percent and 0.5 percent, respectively. Low

vacancy, coupled with the fact that Grover Beach’s average asking rent is roughly $125 more

than the San Luis Obispo County average indicates the relatively strong demand for rental

housing in Grover Beach.

Table 16: Industrial Market Conditions, City of Grover Beach and San Luis Obispo County, Fourth Quarter 2015

Industrial Market Overview

City of San Luis ObispoGrover Beach County

Summary, Q4 2015Inventory 287,962 6,574,762 Occupied Stock 277,132 6,446,396 Vacant Stock 10,830 128,366 Vacancy Rate 3.8% 2.0%Inventory (% of San Luis Obispo County) 4.4%

Asking Rents (a)Avg Asking Rent (psf), Q4 2014 $1.19 $0.94Avg Asking Rent (psf), Q4 2015 $1.18 $0.96% Change -0.8% 2.1%

Net AbsorptionNet Absorption 2010 - 2015 7,177 198,012 Net Absorption, 2015 (3,000) 88,206

New Activity (b)New Construction, 2010-2015 - 59,480 New Construction, 2015 - 30,397

Notes:(a) Average asking rents reflect NNN leases.(b) Reflects new construction based on properties tracked by CoStar.

Sources: CoStar, 2016; BAE, 2016.

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Table 17: Office Market Conditions, City of Grover Beach and San Luis Obispo County, Fourth Quarter 2015

Office Market Overview



Asking Rents (a)Avg Asking Rent (psf), Q4 2014 $1.35 $1.48Avg Asking Rent (psf), Q4 2015 $1.62 $1.59% Change 20.0% 7.4%

Net AbsorptionNet Absorption 2010 - 2015 1,140 431,431 Net Absorption, 2015 (1,957) 146,138


Notes: (a) Average asking rents reflect full service leases. (b) Reflects new construction based on properties tracked by CoStar.


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Table 18: Retail Market Conditions, City of Grover Beach and San Luis Obispo County, Fourth Quarter 2015

Table 19: Housing Units by Units in Structure, 2010-2014

Retail Market Overview



Asking Rents (a)Avg Asking Rent (psf), Q4 2014 $1.10 $1.85Avg Asking Rent (psf), Q4 2015 $1.22 $1.85% Change 10.9% 0.0%

Net AbsorptionNet Absorption 2010 - 2015 27,494 342,269 Net Absorption, 2015 18,529 (126,716)


Notes:(a) Average asking rents reflect NNN leases.(b) Reflects new construction based on properties tracked by CoStar.


City of Grover Beach San Luis Obispo CountyUnits in Structure Number Percent Number PercentDetached Single-Family 3,074 52.5% 78,879 66.7%Attached Single-Family 498 8.5% 5,918 5.0%2 to 4 Units 1,201 20.5% 10,151 8.6%5 to 19 Units 658 11.2% 8,080 6.8%20 to 49 Units 28 0.5% 2,212 1.9%50 Units or More 37 0.6% 1,756 1.5%Mobile Homes 340 5.8% 11,057 9.4%Boats, RV's, Vans, Other 14 0.2% 156 0.1%Total, All Units 5,850 100% 118,209 100%

Sources: U.S. Census Bureau, 2010-2014 American Community Survey, 2016; BAE, 2016.

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Table 20: Occupancy and Vacancy Status, 2000 and 2010-2014

Table 21: Single-Family Home Sales, City of Grover Beach, June 2015 to June 2016

2000 2010-2014Occupancy/Vacancy Number Percent Number Percent


Occupied Housing Units 5,023 93.3% 5,205 89.0%Vacant Housing Units 359 6.7% 645 11.0%

For rent 69 1.3% 63 1.1%For sale only 22 0.4% 0 0.0%Rented or sold, not occupied 17 0.3% 75 1.3%For seasonal or recreational use 211 3.9% 433 7.4%For migrant workers 0 0.0% 0 0.0%Other vacant (a) 40 0.7% 74 1.3%

Total, All Units 5,382 100% 5,850 100%


Occupied Housing Units 92,739 90.7% 102,350 86.6%Vacant Housing Units 9,536 9.3% 15,859 13.4%

For rent 1,183 1.2% 1,549 1.3%For sale only 619 0.6% 1,172 1.0%Rented or sold, not occupied 621 0.6% 1,028 0.9%For seasonal or recreational use 6,179 6.0% 9,514 8.0%For migrant workers 27 0.0% 79 0.1%Other vacant (a) 907 0.9% 2,517 2.1%

Total, All Units 102,275 100% 118,209 100%

Notes:(a) Includes all vacant units that do not f it into any of the other categories of vacancy.


Number of Units Sold (a)Sale Price Range 1 Bdrm 2 Bdrm 3 Bdrm 4 Bdrm 5+ Bdrm Total % of TotalLess than $200,000 0 0 2 0 0 2 1.8%$200,000-$299,999 4 2 3 0 0 9 8.0%$300,000-$399,999 1 16 5 3 0 25 22.1%$400,000-$499,999 1 7 29 4 1 42 37.2%$500,000-$599,999 0 0 15 4 1 20 17.7%$600,000-$699,999 0 2 2 4 1 9 8.0%$700,000 or more 0 2 2 0 2 6 5.3%Total 6 29 58 15 5 113 100%% of Total 5.3% 25.7% 51.3% 13.3% 4.4% 100%

Median Sale Price $237,500 $375,000 $467,500 $520,000 $660,000 $450,000Average Sale Price $289,167 $421,069 $458,140 $503,667 $635,500 $453,545Average Size (sf) 878 1,183 1,444 1,885 2,404 1,448Average Price/sf $344 $372 $325 $271 $285 $329

Note:(a) Consists of all sales of single-family residences betw een June 1, 2015 and June 1, 2016 in the City of Grover Beach.

Sources: ListSource, 2016; BAE, 2016.

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Table 22: Planned Unit Development (PUD) Home Sales, City of Grover Beach, June 2015 to June 2016 (a)

Table 23: Other Home Sales Statistics, June 2015 to June 2016

Number of Units Sold (b)Sale Price Range 2 Bdrm 3 Bdrm Total % of TotalLess than $250,000 0 0 0 0.0%$250,000-$299,999 11 0 11 34.4%$300,000-$349,999 3 2 5 15.6%$350,000-$399,999 3 1 4 12.5%$400,000-$449,999 2 6 8 25.0%$450,000-$499,999 0 3 3 9.4%$500,000 or more 0 1 1 3.1%Total 19 13 32 100%% of Total 59.4% 40.6% 100%

Median Sale Price $290,000 $435,000 $352,000Average Sale Price $318,158 $425,692 $361,844Average Size (sf) 1,151 1,589 1,329Average Price/sf $276 $271 $274

Notes:(a) PUDs are small-lot subdivisions that allow detached or attached single-family homes on individual lots(b) Consists of all sales of PUD units betw een June 1, 2015 and June 1, 2016 in the City of Grover Beach.


Median Median PriceNumber Square Footage per Square Foot Median Average

Home Type of Sales of Living Area of Living Area Sale Price BedroomsCondominium 10 1,303 $274 $371,250 2.3Duplex 2 1,777 $294 $520,000 4.0Triplex 2 2,705 $204 $552,500 6.0Quadruplex 1 n.a. n.a. $740,000 n.a.


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Table 24: Select Residential Rental Properties, City of Grover Beach, June 2016

Property Address Unit Type Size (sf) Rent $/sf

822 N. 5th StreetGrover Beach, CA 93433 3 BD / 2 Bth 1,700 $3,500 $2.06

222 N. 3rd StreetGrover Beach, CA 93433 3 BD / 2 Bth 1,506 $3,000 $1.99

1847 Newport AvenueGrover Beach, CA 93433 3 BD / 2 Bth 1,348 $2,500 $1.85

895 Newport AvenueGrover Beach, CA 93433 4 BD / 3 Bth 2,100 $2,950 $1.40

1513 Brighton AvenueGrover Beach, CA 93433 3 BD / 2.5 Bth 1,533 $2,100 $1.37

1664 Manhattan AvenueGrover Beach, CA 93433 3 BD / 2.5 Bth 1,450 $1,900 $1.31

1692 Brighton AvenueGrover Beach, CA 93433 2 BD / 1 Bth n.a. $1,795 n.a.

493 4th StreetGrover Beach, CA 93433 2 BD / 1 Bth n.a. $1,600 n.a.

Sources: Zillow .com, 2016; Craigslist.com, 2016; Padmapper.com, 2016; BAE, 2016.

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Table 25: Multifamily Market Overview, City of Grover Beach and San Luis Obispo County

City of San LuisGrover Beach Obispo County

Total Complexes 13 240Total Units 215 10,339Vacant Units 2 50Vacancy Rate 0.9% 0.5%Average Unit Size (Sq. Ft.) 884 850Average Asking Rent $1,303 $1,178Average Asking Rent/Sq. Ft. $1.57 $1.40


45

DEVELOPMENT FEASIBILITY

The following section summarizes the results of a pro-forma financial feasibility analysis that

BAE conducted for two different prototype real estate development projects. A pro-forma

analysis is a simplified financial model that developers often use to test the potential financial

feasibility of a development concept, before developing more detailed project specifications

and a more sophisticated cash-flow financial based feasibility model. As such, a pro-forma

analysis is also a useful tool that can help policy makers better understand the economic

realities of undertaking development projects within their jurisdictions. This information can

be used to shape land use and development policies, provide the basis to understand how

economic conditions influence property owners’ and developers’ decisions about how to use

property, and develop realistic expectations about the timing and pace of new development.

In brief, the analysis that is detailed below indicates that residential and mixed-use

development project prototypes defined for the purposes of this study are not feasible in

Grover Beach’s current economic environment, but with relatively modest increases in rental

rates, the projects could become feasible. For context, some properties in the cities of Arroyo

Grande and Pismo Beach currently command rents that are at or above the levels that a

Grover Beach project would need to achieve feasibility. With few vacant sites in suitable

locations, rents will also need to increase relative to development costs before redevelopment

of properties with older buildings becomes economically attractive.

Prototype Projects

The two development prototypes developed for this pro-forma financial feasibility analysis are

assumed to occupy vacant parcel of approximately 0.34 of an acre in size. The parcel is

assumed to be located mid-block on West Grand Avenue, in the heart of the City of Grover

Beach. Note that parcels located mid-block are more highly constrained in terms of their

development potential, compared to corner lots, due to limitations on ingress and egress. The

site is assumed to require minimal grading and preparation, with all necessary utilities in close

proximity. The two projects occupy roughly the same building footprint. For more detail

regarding each prototype development project, please refer to Tables 26 and 27.

Mixed-Use Prototype

The first prototype includes two ground floor retail spaces and nine residential units over three

stories, with a total of 12,075 square feet of interior space. The ground floor includes two

retail spaces totaling 2,800 square feet, along with two residential units totaling 1,226 square

feet. The upper two floors include seven additional residential units covering 8,050 square

feet. The upper floor residential units range in size from 1,006 square feet to 1,342 square

feet. The average size of all residential units is 1,098 square feet. Under section 3.50.050 of

the City of Grover Beach Development Code, developments including two or more uses that

have distinct daily traffic usage periods can reduce the number of required parking spaces to

46

align with the use that generates the highest demand. In this case, the project is assumed to

require 1.5 spaces per unit, or 14 total spaces, based on the adopted standard for residential

mixed use buildings. Parking spaces are assumed to equal approximately 300 square feet

each, including circulation.

Residential Prototype

The second prototype includes 13 residential units, with no retail, across three stories, with a

total of 11,800 square feet of interior space. All floors are occupied by residential uses. This

includes two 500 square foot units, eight 900 square foot units, and three 1,200 square foot

units, for an average of 908 square feet. This prototype assumes that the developer would

utilize California Density Bonus law to increase the total allowable density on the site; though,

in exchange, the developer would need to deed restrict two units, presumably the two

smallest, for occupancy by income qualified households. The developer would also be allowed

to reduce the number of required parking spaces to one space per bedroom, pursuant to

section 65915, subsection (p), of the California Government Code. Parking spaces are

assumed to equal approximately 300 square feet each, including circulation.

Cost and Income Assumptions

The second column in each of the tables contains the development cost assumptions for each

prototype, as well as the assumptions about the potential income that the completed project

could generate. BAE developed the cost and income assumptions through a review of

available real estate transaction records, printed industry data sources, and conversations

with developers, contractors, real estate brokers, and other real estate professionals.

Key construction cost assumptions include site acquisition, residential and commercial

construction costs, parking construction costs, and “soft” costs. Soft costs include

miscellaneous costs incurred by the developer that are not separately identified, such as

architectural and engineering fees and general developer overhead for project permitting and

project management. Site acquisition costs are based on review of local real estate

transactions and consultations with local real estate brokers and developers. BAE developed

the construction cost assumptions based on information collected from a range of local

developers who are active in Grover Beach and the surrounding area. Cost assumptions

assume no significant demolition, grading, water retention, or environmental remediation.

Operations assumptions are based on a review of local market data and conversations with

local real estate professionals and developers. Lease rate assumptions are based on local

market data. BAE assumed that newly constructed or newly renovated space would command

a premium in relation to the overall average market rents in Grover Beach. Operating cost

assumptions are based on prior experience with similar projects and information provided by

local developers and real estate professionals.

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Capitalization (cap) rates are an indicator of the rate of return that an investor is willing to

accept when purchasing a property, based on net operating income divided by purchase price.

The lower the cap rate, the more valuable a building will be, based on a given level of net

operating income. Cap rates are also an indicator of the risk associated with a given property.

Investors will demand relatively high cap rates when perceived risk is high, while developers

will accept relatively low cap rates when perceived risk is low and there is an expectation of

upside investment returns due to overall increases in property value due to real estate

appreciation. In the pro-forma models, an assumption about the applicable cap rate is

combined with the project’s estimated net operating income to estimate the project’s value

upon completion. This is compared to estimated project costs to determine profitability.

Financing costs are based on prevailing financial market conditions and information provided

by representatives of banks that provide construction financing in the San Luis Obispo region.

Value Analysis

The value estimate reported for each development prototype is a function of the

characteristics and configuration of each development, as well as the various income

assumptions associated with each project component. The estimated project value is

compared to the estimated project costs to determine if the project would be profitable (i.e.,

project value is greater than project costs). According to local developers, the minimum

profitability threshold necessary to warrant investment is achieved when the project value is at

least 15 percent greater than the cost to develop the project, with even greater profit potential

indicating that projects will be more attractive to developers.

Mixed-Use Prototype

As reported in Table 26, the mixed-use development prototype modeled for the purposes of

this research results in a completed project value that is significantly lower than the cost to

develop the project, indicating that the project would not be financially feasible under existing

market conditions. Sensitivity analysis indicates that the model is particularly sensitive to

changes in average rental rates, particularly for the residential component of the project, as

well as to changes in the capitalization rate. For example, if the residential rental rate is

increased from an average of $1.52 per square foot to $2.00 per square foot, the project

would result in a 15.3 percent developer return on cost. An analysis of applicable multifamily

rental rates in nearby Pismo Beach and Arroyo Grande indicates that higher quality properties,

particularly those located closer to the beach, are already commanding rents upwards of

$2.00 per square foot, with the highest identified rent being equal to $2.48 per square foot in

Pismo Beach near the Dinosaur Caves Park. While the cap rates utilized for this analysis are

already fairly low, which reflects the fact that investors do not have many other options to

invest money at lower risk and generate comparable or higher rates of return, some strong

residential markets can command residential cap rates as low as 4.5 percent, assuming that

vacancy rates are low, construction is highly constrained, and economic conditions support

strong housing demand. If the residential cap rate is reduced to 4.5 percent and the

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commercial cap rate is reduced to 5.0 percent, the project would result in a 4.0 percent return

on cost. While this indicates that the project value under this scenario would be greater than

the cost to develop the project, it is still below the minimum rate of return of 15 percent

developer return to cost.

Residential Prototype

As reported in Table 27, the residential development prototype modeled for the purposes of

this research results in a completed project value that higher than the cost to develop the

project, indicating that the project would be financially feasible under existing market

conditions. However, at existing rent levels, the developer return on cost is less than the 15

percent that a developer would need in order to invest in the project. Similar to the mixed-use

prototype, sensitivity analysis indicates that the residential development prototype is

particularly sensitive to changes in average rental rates, as well as to changes in the

capitalization rate. For example, if the residential rental rate is increased from an average of

$1.77 per square foot to $2.00 per square foot, the project would result in a 20.7 percent

developer return on cost. Again, while the cap rates utilized for this analysis are already fairly

low, a reduction in the cap rate to 4.5 percent would result in an 18.8 percent developer

return on cost.

Redevelopment Feasibility

Interviews with local stakeholders identified a perceived need for redevelopment of

underutilized sites within the City of Grover Beach, with an emphasis placed on vacant,

underutilized, and underperforming properties located along West Grand Avenue. To provide

insight into the decision-making process of property owners, BAE developed a simple financial

model that quantifies the income stream generated by a “typical” commercial building. By

calculating the capitalized value of the asset, then dividing by the total site size in square feet,

BAE calculated the minimum purchase price that a property owner would need to receive in

order to sell their property, while recovering its full value. BAE then compared that value to the

land price that could be supported by each of the prototype development projects, while

meeting the developers return requirements. If the amount that the property owner would

need to receive is less than the amount that the development could support, the property

owner would choose to hold onto the property, rather than participating in redevelopment.

Prototype Commercial Building

The model utilizes the same 0.34 acre site utilized in the prior development prototypes. The

site is assumed to include an existing 4,000 square foot strip retail building that faces onto

West Grand Avenue, with 16 parking spaces located in the back of the building. The model

assumes that the average rental rate for the commercial space is $1.22 per square foot,

triple-net, which is equal to the average asking rent in Grover Beach during the fourth quarter

of 2015. The model assumes a normal five percent vacancy rate, with operating costs equal

to five percent of gross revenue, and a cap rate of 5.5 percent. Based on these assumptions,

the building would generate approximately $52,700 annually in net operating income, which

49

results in an estimated capitalized value of $958,255. When divided by the total site size of

15,000 square feet, this equals an average value per square foot of $64.

Residual Land Value

Based on an analysis of existing land sales, as well as interviews with developers and local

real estate professionals, two development prototypes use a per square foot land acquisition

price of $35. This is significantly lower than the $64 per square foot price that the

hypothetical existing property owner would need to receive to sell the site or undertake

redevelopment themselves.

Under existing conditions (i.e., rental rates), the mixed-use development prototype would need

to receive a net subsidy of $4 per square foot of land to meet the developer’s return

requirement of 15 percent return on cost. If the average residential rent increased to $2.00

per square foot, the residual land value would still be only $35 per square foot. This indicates

that the mixed-use project would only be feasible on a vacant site, if the land could be

purchased for $35 or less and if rents increased to at least $2.00 per square foot.

Similarly, the residential development prototype could afford to pay up to $21 per square foot

of land and still meet the developer’s return requirement. If average residential rent increased

to $2.00 per square foot, the residual land value would still be only $45 per square foot. This

indicates that the residential project would only be feasible on a vacant site, if the land could

be purchased for $35 or less and if rents increased to at least $2.00 per square foot.

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Table 26: Mixed-Use Pro-Forma, Multifamily Rental with Ground Floor Retail (Page 1 of 2)

Development Program Assumptions Cost and Income Assumptions Development Costs Value AnalysisSite - gross acres 0.34 Site Acquisition Site Acquisition $525,000 ResidentialSite - gross square feet 15,000 Purchase price for land per sq. ft. $35 Gross Rent $169,470

Demolition/On and Offsite Costs $225,000 Less vacancy ($8,474)Leasable area - res. 9,275 Construction Less operating expenses ($50,841)Dw elling units (du) 9 On and offsite costs per site sq. ft. (c) $15 Parking Costs $20,250 Net operating income (NOI) $110,156Average Size (sq. ft.) 1,031 Construction costs - res. $1,391,250 Capitalized Value - Res $2,203,110

Construction hard costs, per sq. ft. - res. $150 Construction costs - comm. $350,000leasable area (sq. ft.) - comm. 2,800 Construction hard costs, per sq. ft. - comm. $125 Tenant improvements - comm. $224,000 CommercialNumber of spaces 2 Tenant improvements, per sq. ft. - comm. $80 Subtotal Hard Development Costs$2,210,500 Gross Rent $50,400Average size (sq. ft.) 1,400 Less vacancy ($2,520)

Parking construction cost, per space $1,500 Total Permits/Impact fees $172,528 Less operating expenses ($2,520)Efficiency factor (%) - res. 100% City permit/impact fees (d) $172,528 Other soft costs $154,735 Net operating income (NOI) $45,360Efficiency factor (%) - comm. 100% Soft costs, % of hard costs 7% Subtotal Soft Costs $327,263 Capitalized Value - Retail $824,727

Total leasable sq. ft. 12,075 Operations Interest on construction loan $142,749 Value & FeasibilityTotal number of stories 3 Residential Construction loan fees $19,033 Total Capitalized Value $3,027,837

Rental rate per sq. ft./mo. $1.52 Subtotal Finance Costs $161,782 Less development costs ($3,224,546)Parking spaces - res. 14 Vacancy 5% Gross profit ($196,709)Parking spaces - comm. 0 Annual op. cost, % of revenue 30% Total Development Costs $3,224,546 Developer return on total cost -6.1%

Parking spaces - all 14 Cap Rate 5.0% Developer return on equity -14.9%

Total sq. ft. - parking 4,050 CommercialRental rate per sq. ft./mo., NNN $1.50Vacancy 5%Annual op. cost, % of revenue 5%Cap Rate 5.5%

FinancingConstruction loan to cost ratio 75%Loan fees 1%Interest rate 5.0%Period of initial loan (months) 18Draw dow n factor 100%

Total loan amount $1,903,323Equity Contribution $1,321,223

- Continued on following page -

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Table 26: Mixed-Use Pro-Forma, Multifamily Rental with Ground Floor Retail (Page 2 of 2)

Notes:(a) The table below outlines the unit size and rental rate assumptions utilized for this analysis:

Average Gross GrossNumber Square Feet Total Rent per Monthly Rent Monthly Rent

Building Type of Units Per Unit/Space Square Feet Square Foot Per Unit/Space All UnitsThird Floor Residential 3 1,342 4,025 $1.40 $1,878 $5,635Second Floor Residential 4 1,006 4,025 $1.50 $1,509 $6,038First Floor Residential 2 613 1,225 $2.00 $1,225 $2,450First Floor Commercial 2 1,400 2,800 $1.50 $2,100 $4,200Total, All Floors 11 1,098 12,075 $1.56 $1,666 $18,323

Residential 9 1,031 9,275 $1.52 $4,613 $14,123

Commercial 2 1,400 2,800 $1.50 $2,100 $4,200

(b) According to section 3.50.050 of the City of Grover Beach Development Code, w here tw o or more uses have distinct and differing traff ic usage periods, the required number of spaces may be reduced to no less than the number required for the single use that generates the highest parking demand.

SpacesResidential - Mixed Use 1.5 per dw elling unitCommercial - Gen. Retail 1 per 250 sq. ft. of leasable space

(c) Includes grading, curb cuts, landscaping, drainage, onsite utilities, etc.(d) Permit/Impact fees, provided by the City of Grover Beach, include fees such as planning and permitting fees, utility connection fees, and public facilities impact fees.

Sources: City of Grover Beach, 2016; BAE, 2016.

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Table 27: Residential Pro-Forma, Multifamily Rental (Page 1 of 2)

Development Program Assumptions Cost and Income Assumptions Development Costs Value AnalysisSite - gross acres 0.34 Site Acquisition Site Acquisition $525,000 ResidentialSite - gross square feet 15,000 Purchase price for land per sq. ft. $35 Gross Rent $250,872

Demolition/On and Offsite Costs $225,000 Less vacancy ($12,544)Leasable area - res. 11,800 Construction Less operating expenses ($75,261)Dw elling units (d.u.) 13 On and offsite costs per site sq. ft. (d) $15 Parking Costs $24,000 Net operating income (NOI) $163,067Average Size (sq. ft.) 908 Construction costs - res. $1,770,000 Capitalized Value - Res $3,261,331

Construction hard costs, per sq. ft. - res. $150 Construction costs - comm. $0leasable area (sq. ft.) - comm. 0 Construction hard costs, per sq. ft. - comm. $125 Tenant improvements - comm. $0 CommercialNumber of spaces 0 Tenant improvements, per sq.ft. - comm. $80 Subtotal Hard Development Costs$2,019,000 Gross Rent $0Average size (sq. ft.) 0 Less vacancy $0

Parking construction cost, per space $1,500 Total Permits/Impact fees $199,413 Less operating expenses $0Efficiency factor (%) - res. 100% City permit/impact fees (e) $199,413 Other soft costs $141,330 Net operating income (NOI) $0Efficiency factor (%) - comm. 100% Soft costs, % of hard costs 7% Subtotal Soft Costs $340,743 Capitalized Value - Comm. $0

Total leasable sq. ft. 11,800 Operations Interest on construction loan $145,392 Value & FeasibilityTotal number of stories 3 Residential Construction loan fees $19,386 Total Capitalized Value $3,261,331

Rental rate per sq.ft./mo. $1.77 Subtotal Finance Costs $164,777 Less development costs ($3,049,521)Parking spaces - res. 16 Vacancy 5% Gross profit $211,811Parking spaces - comm. 0 Annual op. cost, % of revenue 30% Total Development Costs $3,049,521 Developer return on total cost 6.9%

Parking spaces - all (c) 16 Cap Rate 5.0% Developer return on equity 19.1%

Total sq. ft. - parking 4,800 CommercialRental rate per sq. ft./mo., NNN $1.50Vacancy 5%Annual op. cost, % of revenue 5%Cap Rate 5.5%

FinancingConstruction loan to cost ratio 75%Loan fees 1%Interest rate 5.0%Period of initial loan (months) 18Draw dow n factor 100%

Total loan amount 1,938,557 Equity Contribution 1,110,963

- Continued on following page -

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Table 27: Residential Pro-Forma, Multifamily Rental (Page 2 of 2)

Notes:(a) The table below outlines the unit size and rental rate assumptions utilized for this analysis:

Average Gross GrossNumber Square Feet Total Rent per Monthly Rent Monthly Rent

Building Type of Units Per Unit/Space Square Feet Square Foot Per Unit/Space All UnitsTw o Bedroom 3 1,200 3,600 $1.50 $1,800 $5,400One Bedroom 8 900 7,200 $1.80 $1,620 $12,960One Bedroom 2 500 1,000 $2.07 $1,033 $2,066Total, All Floors 13 908 11,800 $1.77 $1,571 $20,426

(b) The tw o 500 square foot units are assumed to be deed-restricted as affordable to low -income households. The applicable rent is based on the 2016 Affordable Housing Standards publishedby the San Luis Obispo County Department of Planning and Building for one-person households. Rents also include costs associated w ith sew er, w ater, and trash collection, based on the 2015utility allow ance published by the Housing Authority of San Luis Obispo.(c) Parking standards are reduced pursuent to section 65915, subsection (p), of the California Government Code pertaining to density bonuses and other incentives.

SpacesResidential 1 per bedroom

(d) Includes demolition, grading, curb cuts, landscaping, drainage, onsite utilities, etc.(e) Permit/Impact fees, provided by the City of Grover Beach, include fees such as planning and permitting fees, utility connection fees, and public facilities/services impact fees.


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Table 28: Commercial Pro-Forma, Existing Single-Story Strip Commercial

Development Program Assumptions Cost and Income Assumptions Value AnalysisSite - gross acres 0.34 Operations CommercialSite - gross square feet 15,000 Rental rate per sq. ft./mo., NNN $1.22 Gross Rent $58,560

Vacancy 5% Less vacancy ($2,928.00)Leasable area (sq. ft.) 4,000 Annual op. cost, % of revenue 5% Less operating expenses ($2,928)Number of spaces 4 Cap Rate 5.5% Net operating income (NOI) $52,704Average size (sq. ft.) 1,000 Capitalized Value - Retail $958,255

Efficiency factor (%) 100% Value per square foot of land (a) $64

Total leasable sq. ft. 4,000Total number of stories 1

Parking spaces 16

Total sq. ft. - parking 4,800

Note:(a) Equal to the capitalized value divided by the site size in square feet.


55

COMMUNITY OUTREACH

Stakeholder Interviews

As part of the research for the Economic Development Strategy, BAE interviewed a range of

key local stakeholders regarding current and historic perceptions of Grover Beach as a

business location, the City’s primary existing economic niches and strengths in attracting

businesses, primary challenges in attracting and retaining businesses, short or long-term

threats to the City’s economy, and long-term opportunities to build the local economy. BAE

also asked interviewees about actions that the City should be taking to make it more attractive

to new businesses and actions to improve the business climate for existing businesses.

BAE’s interviewees included City Council members; the CEO of the San Luis Obispo Economic

Vitality Corporation; the CEO of the City’s broadband network partner, Digital West; the

Executive Director of the Grover Beach/Arroyo Grande Chamber of Commerce; and local

commercial and residential property owners, managers, and developers. A list of the

stakeholders interviewed is included in Appendix B. To protect the confidentiality of the

comments that individual stakeholders provided, the following is an aggregated summary of

the comments and insights shared by the stakeholders.

Grover Beach’s Image as a Business Location Over Time

Historically, Grover Beach has not had a strong identity as a business location. It has been

perceived as “under the radar”, with not a lot of awareness of the city and what it has to offer

within the larger region. One interviewee expressed concern that by waiting too long to tell its

story, Grover Beach has missed opportunities as businesses are looking at other locations. To

the extent that there has been awareness of Grover Beach, the image has primarily been that

of a bedroom community known for poorly lit roads in deteriorating condition, haphazard

signage along commercial corridors, mom and pop businesses, fast food establishments, and

small businesses catering to visitors to the dunes. Community identity has suffered due lack

of defined gateways. The community has also had an image of not much change and few

notable businesses; however, the City is regarded as a business-friendly community where

commercial lease rates are relatively affordable and where working families can afford to live.

Over time, interviewees felt that Grover Beach’s image has been improving over the last half

decade or so. They cited the streetscape improvements on West Grand Avenue, the street re-

paving project, the broadband project, train station improvements, and the planned Grover

Beach Lodge and Conference Center. Also, several interviewees mentioned the fact that

Grover Beach has attracted a few eateries that are more upscale, and that these

establishments have been receiving favorable press, which in turn is attracting and introducing

new people to Grover Beach. Additionally, the business areas appear to be improving, with

declining vacancy rates and rents ticking up in smaller spaces. One individual felt that the

56

City’s image has evolved slightly more in the direction of a tourist destination than as a

business location.

Moving forward, interviewees felt that Grover Beach has an opportunity to communicate a

positive story and build better awareness within the region; highlighting the street re-paving

project, broadband for businesses, upscale eateries, available business park land, affordable

lease rates, and coastal living that is accessible to working families.

Grover Beach’s Primary Economic Niches at Present

As with the City’s image, interviewees struggled to identify any strong economic niches that the

City has defined for itself over time. One identified niche was that of a gateway to the dunes.

Another identified niche was that of a second home location for people who own businesses

located in places like Bakersfield or Fresno; however, those second homeowners do not tend

to relocate to Grover Beach until they retire. Echoing comments from the discussions

regarding the City’s image as a business location, several people mentioned that the City

historically has been known for lower-end retail, such as fast food, thrift stores, and smoke

shops and other “main street” type businesses that rely on the high traffic counts on West

Grand Avenue.

Several interviewees mentioned the City’s efforts to proactively establish regulations for siting

and operation of cannabis businesses as a step that may position the City to establish a strong

niche in the near future; however, there was caution about the handling of that industry and

ensuring that new businesses be clean, well-maintained, and attractive, and lead to

improvements, rather than new problems. With the broadband project, several interviewees

stated that the City should work on developing a niche as a location for tech businesses that

rely on affordable, fast internet connectivity. Another suggestion was that the City should

market itself as an affordable location for small to mid-size companies that market lifestyle

products compatible with the City’s beachside location and lifestyle. Interviewees again

mentioned that new upscale restaurants are helping to show that Grover Beach can be a

successful business location.

Grover Beach’s Primary Economic Strengths or Assets

Proximity to the beach and the City’s location as a gateway to the Oceano Dunes are viewed as

one of Grover Beach’s unique economic assets, as well as its coastal weather. Another

strength cited repeatedly was the fact that Grover Beach is believed to be one of the few

locations in San Luis Obispo County that has available land and infrastructure to support

expanding industrial businesses, including the main industrial area in the southwest part of

the City, as well as the small business park area at the foot of West Grand Avenue that also

has room for additional light industrial/tech buildings. Interviewees stated that the availability

of broadband to serve these areas and the West Grand Avenue corridor will enhance these

assets.

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Because Grover Beach lacks large scale retail parcels with freeway visibility and access, the

City’s retail niche is more oriented to small, independent specialty retailers, as opposed to big

box stores and mass merchants. Because of the proximity to the dunes, interviewees

identified a niche in providing retail and services that cater to beachgoers.

Grover Beach’s Primary Challenges to Attracting New Businesses

Grover Beach’s primary challenge to attracting new businesses appears to be related to the

City’s historic image, which was, at best, “under the radar”, but often characterized as old and

tired and with deteriorating infrastructure. While the road bond project is addressing the

latter, this is not well known outside of the community. Another challenge related to the City’s

image problem noted by interviewees was the fact that the City’s business areas are

discontinuous (i.e., lack of cohesion along West Grand Avenue; shoppers can’t park once and

visit multiple destination stores) and have limited visibility (i.e., business park area).

Although interviewees who live in Grover Beach feel that the City offers an attractive quality of

life, many interviewees also noted that there are some challenges that affect the community’s

ability to attract businesses, including highly visible homelessness in the City’s commercial

areas, and limited amenities, such as sit-down restaurants. Interviewees acknowledged that

there has been improvement in the homeless situation since the new Police Chief came on

board and has taken proactive steps to address problems.

Although homelessness is a challenge that many communities face, one unique challenge

identified for Grover Beach was the fact that the dunes are a major visitor attraction; however,

it is difficult for the City to leverage its proximity to the dunes to generate local business

activity. A number of issues were identified, including the fact that many dunes visitors take

4th Street from the freeway to get to the dunes, bypassing the West Grand Avenue business

district. In addition, many dunes visitors have self-contained recreational vehicles, and bring

supplies for their visit with them, rather than shopping locally, making it a challenge to attract

the visitors to explore Grover Beach’s commercial areas.

Interviewees acknowledged that Grover Beach’s image as a business-friendly community

helps, as well as its reputation for being easy to work with; however, one interviewee noted

that the City’s zoning codes and General Plan are outdated (e.g., need formal shared parking

provisions for mixed-use project) and that the lack of technology use at City Hall might be a

hindrance, suggesting that the City should offer more information and services online, such as

building permit applications. GB sign ordinance really needs to be upgraded and then

enforced to improve image.

One observer noted that the Grover Beach Lodge and Conference Center project has been

years in the making, during which time Pismo Beach has added many new hotel rooms.

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Threats to Economic Well-Being

Interviewees identified several key local threats to economic well-being, including the new

retail project in Arroyo Grande, at Elm and East Grand Avenue, which could compete with

Grover Beach for shoppers; the potential indirect impacts from the closure of Diablo Canyon

due to employees who live in Grover Beach; and discussions about potentially closing the

dunes to vehicular recreation. There are ongoing concerns about the impact of the homeless

situation on local quality of life, as well as a more general concern about the working poor who

cannot afford housing, as costs increase. One interviewee expressed concern that if the

Grover Beach Lodge and Conference Center project falls short of its expectations, it could be a

setback for the community, and observed that Grover Beach’s small independent retailers

face challenges in differentiating themselves from Wal-Mart, since they cannot compete on

cost.

Interviewees expressed concerns about the trickle-down effect of national and state economic

trends, should the economy falter in a future recession, mentioning the challenges the City

could face from unfunded state mandates, and also noting the dependence of Grover Beach

higher levels of government to maintain and improve Highway 101 as a conduit for local

tourism. Additionally, there was concern expressed about the possibility of continuing

challenges associated with water availability from prolonged drought conditions though this

year’s wet winter has restored some of the water supply reduced by drought conditions.

Opportunities to Build the Economy

A recurrent theme in comments from interviewees was the need for Grover Beach to foster

regional cooperation to build the local economy. Interviewees noted that there is cooperation

now, but there is a need to expand and continue with cooperative marketing efforts, and

coordination to plan and promote events, such as beach related events in Pismo and Grover

Beach. One example was competing Sunday concert series in Arroyo Grande and Grover

Beach. One other suggestion was further consolidation and coordination of public services,

using Five Cities Fire as a good model.

Several interviewees emphasized enhancing local quality of life as an important opportunity to

support the success of the local economy. As the City’s commercial focal point,

enhancements to West Grand Avenue are seen as a key opportunity, including traffic calming,

better pedestrian amenities, cleaning up the image of garish signs and displays, and limited

lighting and landscape improvements. Included in this was the desire to see additional nice

restaurants to attract visitors to the area. Interviewees identified the potential to enhance

local quality of life through development and promotion of expanded arts and cultural

activities.

The City’s efforts to establish a proactive policy towards regulating cannabis businesses, and

the interest in the City by cannabis businesses, is viewed as an economic opportunity for

Grover Beach, but one that bears caution. Interviewee comments acknowledged that there

59

isn’t widespread community consensus on how aggressively the City should promote medical

marijuana and/or recreational marijuana-related business activity; however, it was

acknowledged that if the marijuana tax generates significant new revenues, the City would

have an opportunity to invest in building other sectors of the local economy.

Interviewees felt that one of Grover Beach’s primary economic opportunities was to leverage

its available business park land to attract small to mid-sized manufacturers and other light

industrial businesses that need to relocate from other locations in San Luis Obispo County in

order to accommodate growth, citing the lack of expansion opportunities in other

communities. It was suggested that Grover Beach position itself as the south county option for

business expansion, while Atascadero would likely attract expanding north county businesses.

Along with this, interviewees suggested creating better ties to Cal Poly, to connect with

business start-ups that are spun out of the university, and specifically focusing efforts on

attracting companies marketing lifestyle products that are compatible with Grover Beach’s

quality of life and image as a small beachside community. One interviewee suggested that the

City encourage the development of higher quality buildings in the business park area, to

upgrade its image and appeal to tech-oriented firms.

The Grover Beach Lodge and Conference Center is viewed as an important project for the City,

and interviewees identified the opportunity to leverage the investment in the project to help

benefit West Grand Avenue. Suggestions included the need to ensure that there are good

sidewalks and pedestrian connectivity linking the Grover Beach Lodge and Conference Center

to the rest of West Grand Avenue, so that lodge visitors are encouraged to explore the rest of

the community. Also, it was noted that the Grover Beach Lodge and Conference Center, along

with the train station improvements and transit connectivity create an opportunity to market

Grover Beach as a destination for visitors who travel by train, and who could walk, rather than

need to rent a car, once they arrive in Grover Beach.

Things That Grover Beach Should Be Doing Now

Interviewees identified a number of specific short term actions things that Grover Beach

should undertake to improve the local economy, many focusing on West Grand Avenue as the

City’s key commercial corridor. Building up the node at 4th Street and West Grand Avenue was

one suggestion that would help to create another distinct focal point along the West Grand

Avenue, but also serve as a point to capture dunes visitors who are using 4th Street to access

the beach. Along West Grand Avenue, interviewees suggested that the City work on improved

public wayfinding and higher quality signage on private property; ensuring that sidewalks are

walkable; and providing enhanced lighting for evening safety. One specific action that was

recommended was to update the City’s sign ordinance and more aggressively enforce it, to

clean up the streetscape image by removing temporary signs and banners. Several

interviewees mentioned the need for traffic calming on West Grand Avenue, because current

conditions encourage cars to drive fast and miss businesses. Specific suggestions included

installation of diagonal parking like on Price Street in Pismo Beach, to calm traffic and

60

increase parking capacity, especially in the area east of 4th Street. Another suggestion was to

hold a design competition or workshop to generate ideas for design improvements along the

corridor.

In addition to improving the pedestrian experience, interviewees identified the need to create

more reasons for people to want to walk along West Grand Avenue, suggesting that the City

install public art, decorate utility boxes, and attract businesses that showcase the arts. One

interviewee noted that the City has a history as an artist community, but that arts are not very

visible now. Another suggestion was to actively build a restaurant cluster on West Grand

Avenue, including offering incentives and assistance to restaurants. One specific opportunity

identified was to tie in the City’s music festival to West Grand Avenue, to get West Grand

Avenue businesses exposure to the visitors, rather than bringing in non-local vendors. Another

specific suggestion was to bring back the City’s façade improvement program to encourage

upgrading the appearance of West Grand Avenue storefronts.

A series of interview comments related to the engagement of the business community itself in

economic development activities, and to get the more involved with communicating and

collaborating with each other. There was some concern that with the combined Arroyo

Grande/Grover Beach Chamber of Commerce, there is not a strong voice that is focused on

Grover Beach business interests. The idea of establishing a Grover Beach Chamber of

Commerce, or a local business improvement district was discussed; however, it was

acknowledged that it would be a challenge for a Grover Beach business organization to be self-

supporting, given the large number of small mom and pop businesses who have limited

resources to support such an organization. Interviewees felt that the City would need to be a

partner in supporting a local business organization (not necessarily taking the lead), and assist

with going after grants, and/or potentially provide some financial support through revenues

from the marijuana license tax. Formation of a local business organization might also create

the opportunity to expand upon regional tourism promotion efforts, by implementing a sub-

regional (i.e., south county) tourism promotion strategy.

Interviewees indicated that is important for the City to continue to maintain an “open for

business” attitude, keep an open mind to opportunities for economic growth, make changes,

and effectively communicate throughout the region the positive steps that the City is taking,

while avoiding “drifting” over time. One interviewee suggested the need for the City to make a

conscious decision to pursue quality and communicate that vision, backed by incentives for

developers and businesses. Another emphasized the importance of the City’s role as a

partner for businesses, and recognizing their contributions to the local community. Other

suggestions emphasized the importance of ensuring that business regulations are user-

friendly, and easily accessible online, making it easier for businesses to interact with City hall.

Interviewees indicated that it is important that the City stay on top of homeless issues and

continue with a proactive approach to dealing with problems, as that is one of local

businesses’ main concerns. Interviewees suggested that the City identify ways to create

61

incentives for businesses that would harness and cultivate entrepreneurial spirit, including re-

establishing the façade improvement program. An important short term opportunity identified

by several interviewees was to capitalize on the fact that there is very little opportunity for

larger manufacturers to expand in the south county, except the space available in Grover

Beach’s industrial area. Interviewees suggested that the city work on building a tech business

cluster tied to broadband, while marketing to expanding local (i.e., San Luis Obispo County)

companies that want to stay in the County but need expansion space.

Finally, interviewees identified the importance of ensuring that Grover Beach is an attractive

place for families, to ensure the community is attractive to businesses. Suggestions included

providing an adequate supply of housing for new families to move in, and providing a range of

quality amenities and activities that will be attractive to families. The importance promoting a

positive message about local school quality was also mentioned.

Business Survey Results

BAE also administered a survey of business establishments in Grover Beach between August

and November of 2016. The survey collected information on key business characteristics

(e.g., the age of the business, the industry in which it works, number of employees, etc.),

respondents’ near-term (i.e., three years) business development outlook, the strengths and

weaknesses of Grover Beach as a business location, and interest in potential supportive

programs and initiatives. BAE administered the survey using Survey Monkey©, though options

to complete the survey in hard copy or over the phone.

Business Characteristics

Of the 33 completed surveys, nearly all respondent businesses are headquartered in Grover

Beach, including five home-based businesses. Respondent businesses have been in business

in Grover Beach for around 18 years, on average. Figure 8 illustrates that only 9.7 percent of

respondent businesses were established before 1979, with 54.8 percent established in 2000

or later, and with than 32.3 percent established in 2010 or later.

62

Figure 8: What Year Was Your Business Established?

Source: Grover Beach Economic Development Strategy, Business Survey, 2016; BAE, 2016.

Based on the survey data, there is a clear distinction between long-established businesses,

versus new arrivals. For example, approximately 34.4 percent of businesses have been in

their current location for five years or less, compared to 28 percent who have been in their

current location for more than twenty years. Most respondent businesses have had the same

operator over their entire tenure in Grover Beach. Looking forward, 41.4 percent of

respondents intend to continue operating their business in Grover Beach over the long term

(i.e., more than 10 years), while 58.6 percent are confident they will continue operating their

business in Grover Beach at least in the near-term (i.e., up to 10 years).

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%32.3%

22.6%

9.7%

25.8%

3.2%0.0%

6.5%

Year of Establishment

n = 31

63

Figure 9: How Many Years…

Note:

(a) None of the respondents indicate they intend to continue operating in Grover Beach less than one year.


Figure 10 illustrates the industries sectors that the respondent businesses work in. There are

two key groupings. The first includes lower-wage service sectors, including Consumer Retail or

Services and Restaurants. A total of six out of 31 respondents (i.e., 19.4 percent) work in the

Consumer Retail and Services sector, while five respondents (i.e., 16.1 percent) work in the

Restaurant Industry. The second key grouping includes higher wage professional industries,

including Business or Professional Services and Finance, Insurance, and Real Estate. A total

of six out of 31 respondents (i.e., 19.4 percent) work in Business or Professional Services and

Finance, while four (i.e., 12.9 percent) work in Finance, Insurance, and Real Estate.

0%

20%

40%

60%

80%

100%

…has your business been in operation in Grover Beach?

…has your business been at its present address in

Grover Beach?

…have you been the

operator of your business?

…do you intend to continue

operating your business

in Grover Beach? (a)

Over 20

11 to 20

6 to 10

1 to 5

Under 1

n = 32 n = 32 n = 32 n = 29

64

Figure 10: What Industry Does Your Business Work In?

Note:

(a) None of the respondents represent businesses in the transportation or utilities; wholesale trade; hospitality and

entertainment; or Government industries.


Respondent businesses have roughly 3.7 full-time employees and 4.0 part-time employees on

average. As shown in Figure 11, 43.3 percent of respondents have between one and three

full-time employees, while 33.3 percent have no full-time employees. Meanwhile, 26.7

percent have one and three part-time employees, while 50.0 percent have no part-time

employees. Only three respondents indicated that they have more than 10 employees, with

only one indicating that they have more than 25 full-time or part-time workers.

3.2% 3.2%3.2%

19.4%

16.1%

6.5%6.5%

19.4%

3.2%

12.9%

3.2%3.2%

n = 31Agriculture or Forestry

Natural Resources, Mining, Construction

Manufacturing

Transportation or Utilities (a)

Wholesale Trade (a)

Consumer Retail or Service

Restaurant

Hospitality and Entertainment (a)

Recreation

Warehouse/Distribution

Business or Professional Services

Technology

Finance, Insurance, Real Estate

Healthcare/Medical

Education

Government (a)

65

Figure 11: How Many Employees Does Your Business Have?

Note:

(a) None of the respondents have businesses that employ four to five or 40 or more part-time employees.


As illustrated in Figure 12, 58.1 percent of respondent businesses anticipate that their labor

needs will remain roughly the same over the next three years. The remaining survey

respondents anticipate that their labor needs will increase over the same period, with 12.9

percent anticipating less than ten percent growth, 16.1 percent anticipating 11 to 25 percent

growth, and another 12.9 percent anticipating growth of more than 25 percent. None of the

31 respondent businesses who answered this question indicated that they anticipate their

labor needs to decline within the next three years, indicating an overall positive outlook.

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Zero 1 to 3 4 to 5 (a) 6 to 9 10 to 24 25 to 39 40 or More(a)

Number of Employees

n = 30

Full-Time Employees Part-Time Employees

66

Figure 12: How Do You Expect Your labor needs to Change Within the Next Three Years?

Note:

(a) None of the respondents anticipate that their labor needs will decline in the next three years.


As reported in Table 29, more than half of survey respondents (55.2 percent) own the space

that their business currently occupies. The remaining 34.5 percent subsequently lease the

space that their business currently occupies. However, 10.3 percent of respondent

businesses indicate that while they lease their current space, they would prefer to purchase a

space that their business can occupy on a more permanent basis. Another 10.3 percent of

respondent businesses have some other type of business tenure, with 6.9 percent of

respondent businesses indicating that they are home based businesses.

58.1%

12.9%

16.1%

12.9%

n = 31

My labor needs will stay aboutthe same

My labor needs will grow lessthan 10% from current levels

My labor needs will growbetween 11% and 25% fromcurrent levelsMy labor needs will grow morethan 25%

My labor needs will decline,but by less than 10% (a)

)My labor needs will declinebetween 11% and 25% (a)

My labor needs will decline bymore than 25 (a)

67

Table 29: Does Your Business Own or Lease the Space at its Current Grover Beach Location?

Figure 13 illustrates the distribution of respondent businesses based on the amount of

physical space that their business occupies, be it retail, office, industrial, or other. Based on

this information, businesses in Grover Beach occupy roughly 3,200 square feet on average.

The distribution of respondents based on their floor area needs is fairly even across the

identified size categories. Nonetheless, there are two notable concentrations. These include

businesses (i.e., 29.2 percent) that occupy between 500 and 999 square feet, as well as

businesses (i.e., 16.7 percent) that occupy between 2,500 and 4,999 square feet.

Figure 13: How Much Space Does Your Business Occupy in Grover Beach?


Business Needs and Near Term Business Development Outlook

Proximity to home is the most frequently cited reason respondents chose to locate their

business in Grover Beach, with a number of businesses indicating that they run a home-based

business or chose to work near where they live. Other frequently cited reasons respondents

chose to locate their business in Grover Beach include greater affordability and accessibility

and specific business opportunities (i.e., purchasing a business or property).

ResponsesAnswers Options Count PercentOw n 16 55.2%Lease 7 24.1%Lease, w ant to purchase 3 10.3%Other (please specify): 3 10.3%

Home 2 6.9%

Total, All Responses 29 100%

Source: Grover Beach Economic Development Strategy, Business Survey, 2016.

Less than250

250 to499

500 to999

1,000 to2,499

2,500 to4,999

5,000 to14,999

15,000to

24,999

25,000or More

12.5% 12.5%

29.2%

8.3%

16.7%

12.5%

8.3%

0.0%

Sqaure Feet Currently Occupied

n = 24

68

As reported in Table 30, 89.3 percent respondents are pleased with their current business

location, with 39.3 percent reporting they are very satisfied. Seven percent of respondents

feel neutral about their current location, while one business indicated they are unsatisfied.

Table 30: How Satisfied Are You With the Present Location of Your Business?

As illustrated in Table 31, 50.0 percent of respondent businesses indicated that they plan to

expand their business at its current location within the next three years. Meanwhile, 25.0

percent plan to move to a new location, or locations. A total of 41.7 percent also indicated

that they plan to open a new location, in addition to their current location, or locations. Of

those businesses that reported the desire to relocate or open a new location, 75.0 percent

indicated that they would prefer to do so in a location located outside of Grover Beach.

Table 31: Do You Have Plans to Expand or Move Your Business Within the Next Three Years?

Though the sample is fairly small, a total of six businesses indicated that they would be

interested in purchasing a building, with only one indicating that they would seek new space

for their business on a for-lease basis. Figure 14 illustrates the percent of respondents who

plan to relocate or open a new location based on the type of space they would prefer to

occupy. Roughly 50.0 percent of respondents indicated that they would look for retail or office

space, while 37.5 percent would prefer an industrial setting.

ResponsesAnswer Options Count PercentVery Safisfied 11 39.3%Satisfied 14 50.0%Neutral 2 7.1%Unsatisfied 0 0.0%Very Unsatisfied 1 3.6%Total, All Responses 28 100%

Source: Grover Beach Economic Development Strategy, Business Survey, 2016.

ResponsesAnswer Options Count Percent (a)I have plans to expand at my current location(s) 6 50.0%I have plans to move to a new location(s) 3 25.0%I have plans to open a new location, in addition to my current location(s) 5 41.7%

Note:(a) Calculated as a percent of the 12 total responses.

Source: City of Grover Beach Business Survey, 2016.

69

Figure 14: If You Plan to Relocate or Open a New Business Location, What Type of Facility Will You Need?


The size requirements of respondent businesses that plan to relocate are quite varied. As

shown in Figure 15, two respondents out of six need a facility between 1,000 and 2,499

square feet, while four need spaces ranging from 2,500 and 14,999 square feet. Overall,

respondent businesses are looking to occupy approximately 4,792 square feet per location, on

average.

Figure 15: If You Plan to Relocate or Open a New Location, What Size Facility Will You Need?


25.0%

25.0%

37.5%

12.5%

n=8

Retail Space

Office Space

Industrial Space

Other Type of Space

Less than1,000

1,000 to2,499

2,500 to4,999

5,000 to7,499

7,500 to9,999

10,000 to14,999

15,000 orMore

0

2

1 1 1 1

0

Num

ber

of

Resp

ond

ent

s

Square Feet Needed

n=6

70

Of those respondents that plan to relocate or open a new business location outside Grover

Beach, most indicate the need for expansion as the primary driver behind leaving the area.

While one respondent plans to expand, but maintain their Grover Beach location, another is

considering staying in Grover Beach, but is discouraged due to issues associated with the

homeless and transient population, and attracted to other cities that offer aggressive tax

breaks and greater availability of land for potential expansion. Other reasons for locating

outside the city include a lack of constant foot traffic and perceived low tourist visitation.

Challenges to Grover Beach as a Business Location

Respondents rate panhandling, vagrancy, vandalism, and graffiti as the greatest challenges to

doing business in Grover Beach. As shown in Figure 16, 69.2 percent of respondent business

indicated that panhandling and vagrancy are a key challenge, while 61.5 percent indicated

vandalism or graffiti is a challenge. Half of all respondents identified the high cost of

employee wages and benefits to be an issue, while 44.4 percent indicated that it is difficult to

recruit and retain employees in Grover Beach. Other key challenges include “restrictive

business regulations,” “insufficient parking,” and “lack of pedestrian traffic.” Additional open

responses indicate that some respondents are also concerned about missing or nonfunctional

lighting on the street and in surface parking lots, as well as the difficulty of navigating the

City’s events ordinance, and the impact to businesses of infrastructure improvements and

associated road closures. Survey responses reveal that “conflict with building owners or other

tenants”, “product delivery and loading, poor building condition”, “shoplifting or theft”, and

“insufficiently skilled workers” are not challenges to doing business in Grover Beach.

71

Figure 16: Please Rate the Degree to Which You Experience the Following Business Challenges


Strengths of Grover Beach as a Business Location

Respondent businesses most frequently identified the city’s relatively affordable commercial

rents and proximity to the beach and other central coast cities as primary strengths of Grover

Beach as a business location. Other identified strengths include the proximity to one’s place

of residence (i.e., investing in your community), the moderate climate, high visibility on West

Grand Avenue, manageable traffic, and access to supportive businesses.

Respondents most frequently identified vagrancy, and infrastructure issues, such as poor road

conditions, limited regional north and south connectivity, and lack of working street lighting, as

the top three weaknesses of Grover Beach as a business location. Other frequently cited

weaknesses include vandalism and graffiti, lack of new/higher quality development, high

regional housing costs, inefficient and/or expensive City processes/fees/licenses, and the

perception that Grover Beach is a lower (i.e., working) class community, compared to Arroyo

Grande and Pismo Beach which are more appealing to higher-end clientele and tourists.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Don't Know

No Challenge

Minor Challenge

Major Challenge

72

Interest in Potential Supportive Programs and Initiatives

Respondents’ overwhelmingly ranked street resurfacing as the most important City funded

improvement for their businesses, with 92.3 percent indicating it was important or very

important. As shown in Figure 17, the City funded improvements ranked most important to

businesses include street resurfacing, pedestrian and automotive wayfinding/signage, exterior

landscaping (i.e., flowers and trees), and streetscape enhancements, and façade

improvement. Respondents are generally divided over the importance of public art

installations, with 26.9 percent indicating it is important, 23.1 percent indicating it is not

important, and 50 percent unsure. Other potential city funded improvements identified by

respondents using the write-in option include:

• Working street lights

• Creation and promotion of more farmer’s markets

• Making West Grand Avenue more pedestrian friendly

• Making the crosswalk on West Grand Avenue and 4th Street more visible

• Addressing vagrancy

• Installing Fiber optic service

• Construct a beachfront hotel

• Increased trash clean up

Figure 17: With Your Business in Mind, How Important are the Following Possible City Funded Improvements?


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Very Important Important Not Important Don't Know

73

In terms of potential programs to support businesses, respondents indicated that enhanced

security patrols and maintenance of public spaces are most needed, which corresponds with

prior indications of the perceived significance of issues associated with vagrancy and

homelessness. As shown in Figure 18, roughly 80 percent of respondents believe these

programs will help their business. To a lesser degree, respondents feel building improvement

grants or loans, promotional material such as business directories, brochures, maps and

signage, and special event promotion and coordination would be helpful. Respondents

indicate the least helpful programs would be group business training, such as workshops or a

speaker series, cooperative advertising and marketing, and website development assistance.

Figure 18: Please Indicate the Degree to Which the Following Programs Would Help Your Business


Overall, respondents indicate Grover Beach is an excellent place to operate a business and

that businesses located in the community often work collaboratively by purchasing products

and directing customers to other local establishments. Respondents also indicated a high

degree of satisfaction with local emergency services, such as police and fire. Despite this,

respondents identified safety and security as a concern, particularly along West Grand Avenue,

as well as sidewalk and street maintenance. When asked to provide additional suggestions

for improving Grover Beach as a business location, respondents identified the following:

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Don't Know

Not Helpful

Helpful

Very Helpful

74

• Make more information available of the City’s website

• Create a better relationship with the beach

• Add bike patrols by the Police Department

• Improve the pedestrian environment

o Slow down traffic, specifically on West Grand Avenue

o Make crosswalks safer and more visible

o Plant and maintain more trees

o Create enticing public spaces

• Encourage a mix of commercial uses

• Set fees that are sensitive to small businesses

• Build on existing tourism industry in Pismo Beach

75

RELATIONSHIP TO ECONOMIC DEVELOPMENT

STRATEGY

The purpose of the preceding analysis was to identify strengths, weaknesses, opportunities,

and threats to economic development in Grover Beach. The findings from this background

analysis directly informed the development of an economic development strategy framework

that outlines the City’s economic development goals, while also identifying the strategies and

specific actions that the City will use to achieve those goals. The resulting City of Grover Beach

Economic Development Strategy is contained in a separate document, and it includes a

section that summarizes the key findings from this background analysis.

76

APPENDIX A: FIVE CITIES MARKET AREA

DEFITINION

Five Cities Market Area Definition, 2010 Census Tracts

Census Tract ID Definition6079011701 San Luis Obispo County, Census Tract 117.016079011704 San Luis Obispo County, Census Tract 117.046079011800 San Luis Obispo County, Census Tract 1186079011901 San Luis Obispo County, Census Tract 119.016079011902 San Luis Obispo County, Census Tract 119.026079012000 San Luis Obispo County, Census Tract 1206079012102 San Luis Obispo County, Census Tract 121.026079012200 San Luis Obispo County, Census Tract 122

Sources: U.S. Census Bureau, Census 2010 Tiger Files, 2010; BAE, 2016.

77

APPENDIX B: STAKEHOLDER INTERVIEW

PARTICIPANTS

Judith Bean, Executive Director, Arroyo Grande/Grover Beach Chamber of Commerce

Jeff Lee, Grover Beach City Council, Mayor Pro Tem

Mike Manchak, CEO, San Luis Obispo Economic Vitality Corporation

Barbara Nichols, Grover Beach City Council

Mariam Shah, Grover Beach City Council

Duke and Lori Sterling, commercial building owners, managers, and builders

Tim Williams, CEO, Digital West

David Stearns, Owner/Manager, Central Coast Casino

Gary Grossman, CEO, Coastal Community Builders

Carl Dudley, Vice President, Pacific Western Bank

Brad Forde, Owner, Forde Properties and Construction

Rudy Bachmann, President, Specialty Construction

78

APPENDIX C: GROVER BEACH BUSINESS

SURVEY SUMMARY

Question 1-4: Business Name/Address/Contact Information

Data suppressed for confidentiality purposes


Question 5: Where is your business headquartered?

ResponsesLocation Count PercentGrover Beach 29 96.7%Santa Maria 1 3.3%Total, All Responses 30 100%


Question 6: What year was your business established?

EstablishmentsYear Count Percent2010 or later 10 32.3%2000-2009 7 22.6%1990-1999 3 9.7%1980-1989 8 25.8%1970-1979 1 3.2%1960-1969 0 0.0%Pre-1960 2 6.5%Total, All Responses 31 100%

Avg. Year of Establishment 1998


Question 7: How many years: (Select one response for each item)

Number of YearHow many years: Under 1 1 to 5 6 to 10 11 to 20 Over 20 All…has your business been in operation in Grover Beach? 2 10 2 8 10 32…has your business been at its present address in Grover Beach? 2 11 3 7 9 32…have you been the operator of your business? 2 10 4 7 9 32…do you intend to continue operating your business in Grover Beach? 0 8 9 3 9 29


Question 8: What industry does your business work in?

ResponsesIndustry Count PercentAgriculture or Forestry 1 3.2%Natural Resources, Mining, Construction 1 3.2%Manufacturing 1 3.2%Transportation or Utilities 0 0.0%Wholesale Trade 0 0.0%Consumer Retail or Service 6 19.4%Restaurant 5 16.1%Hospitality and Entertainment 0 0.0%Recreation 2 6.5%Warehouse/Distribution 2 6.5%Business or Professional Services 6 19.4%Technology 1 3.2%Finance, Insurance, Real Estate 4 12.9%Healthcare/Medical 1 3.2%Education 1 3.2%Government 0 0.0%Total, All Responses 31 100%


Question 9: How many employees does your business have?

Establishments by Number of EmployeesFull-Time Employees Part-Time Employees

Number of Employees Count Percent Count PercentZero 10 33.3% 15 50.0%1 to 3 13 43.3% 8 26.7%4 to 5 0 0.0% 1 3.3%6 to 9 4 13.3% 3 10.0%10 to 24 2 6.7% 1 3.3%25 to 39 1 3.3% 1 3.3%40 or More 0 0.0% 1 3.3%Number of Responses 30 100% 30 100%

Avg. Number of Employees 3.7 4.0


Question 10: How do you expect your labor needs to change within the next three years?

ResponsesAnswers Options Count PercentMy labor needs will stay about the same 18 58.1%My labor needs will grow less than 10% from current levels 4 12.9%My labor needs will grow between 11% and 25% from current levels 5 16.1%My labor needs will grow more than 25% 4 12.9%My labor needs will decline, but by less than 10% 0 0.0%My labor needs will decline between 11% and 25% 0 0.0%My labor needs will decline by more than 25 0 0.0%Total, All Responses 31 100%


Question 11: Does your business own or lease the space at its current Grover Beach location(s)?

ResponsesAnswers Options Count PercentOwn 16 55.2%Lease 7 24.1%Lease, want to purchase 3 10.3%Other (please specify): 3 10.3%

Home 2 6.9%

Total, All Responses 29 100%


Question 12: How much space does your business occupy in Grover Beach?

ResponsesSquare Feet Count PercentLess than 250 3 12.5%250 to 499 3 12.5%500 to 999 7 29.2%1,000 to 2,499 2 8.3%2,500 to 4,999 4 16.7%5,000 to 14,999 3 12.5%15,000 to 24,999 2 8.3%25,000 or More 0 0.0%Total, All Responses 24 100%

Average Occupied Space (Sq. Ft.) 3,216


Question 13: Please describe why you chose to open your business in Grover Beach.

Free Responses- Rec Department Classes- I reside in Grover Beach- property available- I wanted to work close to home- Home occuppied business, its where we live- I live in 5 Cities and love being close to the beach type properties my Clients love so much. - I live here and run a consulting business from home- Close to home. Affordable rent.- Because it's where we live; the business does not require a separate building; I work from home.- I live in Grover Beach.- Location and opportunity.- Bought existing business.- I grow microgreens in a greenhouse on my property. - Great location and I like the space- Location- Price of land was affordable in 1992- someone was selling, and we wanted to buy instead of rent- Central Location to my trade area, and proximity to my residence- I provide a product that customers want in the Five Cities area.- I live in Grover Beach. It's at the Beach. It's more affordable and accessible.- bring revenue to GB ; Good warehouse site


Question 14: How satisfied are you with the present location of your business?

ResponsesAnswer Options Count PercentVery Safisfied 11 39.3%Satisfied 14 50.0%Neutral 2 7.1%Unsatisfied 0 0.0%Very Unsatisfied 1 3.6%Total, All Responses 28 100%


Question 15: Do you have plans to expand or move your business within the next three years?

ResponsesAnswer Options Count PercentI have plans to expand at my current location(s) 6 50.0%I have plans to move to a new location(s) 3 25.0%I have plans to open a new location, in addition to my current location(s) 5 41.7%


Question 16: If you plan to relocate or open a new location, will the new location be:

ResponsesAnswer Options Count PercentOn West Grand Avenue 1 12.5%Elsewhere in Grover Beach 1 12.5%Outside of Grover Beach 6 75.0%Total, All Responses 8 100%


Question 17: If you plan to relocate or open a new location, what type of facility will you need:

ResponsesAnswer Options Count PercentBuilding to lease 1 6.7%Building to purchase 6 40.0%Retail Space 2 13.3%Office Space 2 13.3%Industrial Space 3 20.0%Other Type of Space 1 6.7%Total, All Responses 15 100%


Question 18: If you plan to relocate or open a new location, what size of facility will you need?

ResponsesSquare Feet Count PercentLess than 1,000 0 0.0%1,000 to 2,499 2 33.3%2,500 to 4,999 1 16.7%5,000 to 7,499 1 16.7%7,500 to 9,999 1 16.7%10,000 to 14,999 1 16.7%15,000 or More 0 0.0%Total, All Responses 6 100%

Avg. Space Needed (Sq. Ft.) 4,792


Question 19: If you plan to relocate or open a new location outside of Grover Beach, please explain:

Free Response- expansion- I would like to keep an office in Grover as well as open one or more small offices in different surrounding cities. - I need to be near constant foot traffic and convenient for not only those that reside in the area but also tourists.


Question 20: Please rate the degree to which you experience the following business challenges.

Major Challenge Minor Challenge No Challenge Don't Know All ResponsesAnswer Options Count Percent Count Percent Count Percent Count Percent Count PercentConflict with building owner or other tenant 1 3.8% 1 3.8% 22 84.6% 2 7.7% 26 100%Difficulty recruiting or retaining employees 1 3.7% 11 40.7% 14 51.9% 1 3.7% 27 100%Expensive employee wages or benefits 4 15.4% 9 34.6% 12 46.2% 1 3.8% 26 100%Expensive rent and associated costs 3 11.5% 6 23.1% 15 57.7% 2 7.7% 26 100%Product delivery or loading challenges 2 8.0% 4 16.0% 17 68.0% 2 8.0% 25 100%Insufficient availability of financing 0 0.0% 4 16.0% 16 64.0% 5 20.0% 25 100%Insufficient parking 2 7.7% 9 34.6% 14 53.8% 1 3.8% 26 100%Competition from nearby areas 0 0.0% 9 34.6% 15 57.7% 2 7.7% 26 100%Competition from internet sales 1 3.8% 7 26.9% 15 57.7% 3 11.5% 26 100%Poor building condition 1 3.8% 4 15.4% 20 76.9% 1 3.8% 26 100%Restrictive business regulations 3 11.5% 9 34.6% 13 50.0% 1 3.8% 26 100%Shoplifting or theft 1 3.8% 6 23.1% 17 65.4% 2 7.7% 26 100%Vandalism or graffiti 2 7.7% 14 53.8% 8 30.8% 2 7.7% 26 100%Insufficiently skilled workers 2 7.4% 6 22.2% 17 63.0% 2 7.4% 27 100%Perception of safety 1 3.8% 11 42.3% 13 50.0% 1 3.8% 26 100%Lack of pedestrian traffic 2 7.7% 8 30.8% 14 53.8% 2 7.7% 26 100%Panhandling/Vagrancy 7 26.9% 11 42.3% 7 26.9% 1 3.8% 26 100%Other (please specify) 3 37.5% 0 0.0% 3 37.5% 2 25.0% 8 100%


Question 21: Please identify the top three STRENGTHS of Grover Beach as a business location:

Reason #1: Reason #2: Reason #3:I reside in this community Good proximity to cities Moderate climateLower real estate cost Central location for the central coast area Traffic is manageable for nowRent is reasonable Close to every thing. Diversity of businessesBy the beach Convenient location on grand Up and coming sentiment.More affordable rent options usually. Proximity to the beach. Access to businesses who support my businessClose to city offices, post office, bank People interested in my products Like the communityClose to the beach Weather Lunch optionsThese reasons do not apply to my business In between SLO and Santa Maria Proximity to the Freeway.Reasonable commercial rent Climate Businesses seem to be able to cross sell each otherTourist location Not too much competition FriendlyWeather (year-round conditions for growing microgreens) AccessibleBeach LocationCoastal Location / Beach AccessNoneLocationGrand Ave TrafficCentral location for SLO County.Close to the beach and dunesAffordable


Question 22: Please identify the top three WEAKNESSES of Grover Beach as a business location:

Reason #1: Reason #2: Reason #3:- transportation - City roads - improving - transportation - regional-only two ways north - transportation - regional-only two ways south- none - Roads are crap ( but getting Better) - Store fronts need help! - Perceived as a lower class area compared to A.G. - crime - no u-turn for customers heading east- vagrancy - Homeless population. - City Leadership- Not developed enough/rundown town. - utilities are too high - Homeless Population- I would never lease office space here and move

business to an office here because of vagrancy- Being able to help existing Grover Beach businesses

that would like to become a store front and survive their first year of business.

- Submitted paperwork to City gets lost. Must re-submit forms and pay late charges. Has happened multiple times. Unorganized.

- high cost of business licenses - Lack of working street lights. - Indifference from City to businesses- Homeless population - Road condition - poor roads- These reasons do not apply to my business - SLO County 2 lane traffic jams on 101 to Santa Maria - Core business district w/ porn shop

- Street improvements - no industry for higher paying jobs - High potential for vandalisim.- High home prices (but that's California) - Core business district w/ homeless services - Being able to attract tourists from metropolitan areas not

only from the San Joaquin valley.- Road condition - Very expensive compared to surrounding areas. - Too far from Cal Poly.- Vagrants / Vandalism - Marijuana sales will bring increased crime.- Hard for new employees to find housing - Traffic safety issues- homeless- Homeless Population- Lack of available square footage.- No new development, potential for things like a public

market, mixed use development- Transient/Addicteds present at all times.


Question 23: With your business in mind, how important are the following possible City funded improvements?

Very Important Important Don't Know Not Important All ResponsesAnswer Options Count Percent Count Percent Count Percent Count Percent Count PercentStreet resurfacing 9 34.6% 15 57.7% 0 0.0% 2 7.7% 26 100%Streetscape enhancements 3 12.0% 12 48.0% 1 4.0% 9 36.0% 25 100%Façade improvements 4 15.4% 11 42.3% 5 19.2% 6 23.1% 26 100%Exterior landscaping/flowers/trees 4 15.4% 14 53.8% 2 7.7% 6 23.1% 26 100%Public art installations 0 0.0% 7 26.9% 6 23.1% 13 50.0% 26 100%Pedestrian and automotive wayfinding/signage 3 11.5% 16 61.5% 3 11.5% 4 15.4% 26 100%Other (please specify below) 3 42.9% 3 42.9% 0 0.0% 1 14.3% 7 100%


Question 24: Please indicate how strongly you agree or disagree with the following statements:

Strongly Somewhat Somewhat StronglyAgree Agree Neutral Disagree Disagree All Responses

Answer Options Count Percent Count Percent Count Percent Count Percent Count Percent Count PercentLocal police protection is outstanding. 9 36.0% 10 40.0% 5 20.0% 1 4.0% 0 0.0% 25 100%Local fire protection is outstanding. 14 53.8% 5 19.2% 7 26.9% 0 0.0% 0 0.0% 26 100%Sidewalk/street maintenance is outstanding. 1 3.8% 3 11.5% 5 19.2% 13 50.0% 4 15.4% 26 100%Local municipal services are worth the level of local taxation. 1 3.8% 7 26.9% 9 34.6% 6 23.1% 3 11.5% 26 100%I feel safe on West Grand Avenue, even at night and early in the morning. 1 4.0% 3 12.0% 8 32.0% 10 40.0% 3 12.0% 25 100%I try to buy products and services my business needs in Grover Beach. 7 26.9% 12 46.2% 5 19.2% 2 7.7% 0 0.0% 26 100%I try to direct customers to other businesses in Grover Beach. 9 34.6% 12 46.2% 4 15.4% 1 3.8% 0 0.0% 26 100%I seek ways to cooperate with other businesses in Grover Beach. 9 36.0% 11 44.0% 5 20.0% 0 0.0% 0 0.0% 25 100%The existing business mix in Grover Beach helps my business. 1 3.8% 8 30.8% 13 50.0% 4 15.4% 0 0.0% 26 100%Grover Beach is an excellent place to have a business. 2 7.7% 14 53.8% 6 23.1% 3 11.5% 1 3.8% 26 100%I would be willing to pay increased taxes to fund programs and services that directly benefit businesses located within a defined Business Improvement District that is overseen by business representatives.

2 7.7% 8 30.8% 8 30.8% 5 19.2% 3 11.5% 26 100%


Question 25: Please indicate the degree to which the following programs would help your business

Very Helpful Helpful Not Helpful Don't Know Response CountAnswer Options Count Percent Count Percent Count Percent Count Percent Count PercentGroup business training (i.e., workshops, speakers) 0 0.0% 4 16.7% 17 70.8% 3 12.5% 24 100%Cooperative advertising/marketing 1 4.2% 6 25.0% 15 62.5% 2 8.3% 24 100%Building improvement grants and/or loans 4 17.4% 7 30.4% 10 43.5% 2 8.7% 23 100%Business directories, brochures, maps, and signage 0 0.0% 9 37.5% 13 54.2% 2 8.3% 24 100%Website development assistance 1 4.2% 4 16.7% 16 66.7% 3 12.5% 24 100%Internet/Social Media marketing assistance 1 4.2% 7 29.2% 13 54.2% 3 12.5% 24 100%Special event promotion and coordination 4 16.7% 3 12.5% 11 45.8% 6 25.0% 24 100%Enhanced security patrols in public spaces 4 16.7% 16 66.7% 3 12.5% 1 4.2% 24 100%Enhanced maintenance of public spaces 6 25.0% 13 54.2% 2 8.3% 3 12.5% 24 100%Other (describe below) 4 80.0% 0 0.0% 1 20.0% 0 0.0% 5 100%


Question 26: Can you think of anything not previously mentioned that the City could do to makeGrover Beach a better location for business?

Free Response- Make more information available on website. - A better relationship with the beach- Street patrol on bikes to cut down traffic speed and enhance a more beachy-pedestrian friendly feel- Slow the traffic down on Grand. It is not a pedestrian or bicycle safe place. The crosswalks need to be safer. - I can't think of anything. I've been impressed with Grover Beach's city offices and really appreciate their help. - Merge Grover Beach with Arroyo Grande close Grover city goverment- The city needs to be updated and not too expensive for local small businesses so they can thrive while the city is growing. It would

be nice to have a mix of common retail stores with local businesses. In addition, I'm a run my business at home and would like to someday turn it into a brick and mortar that can run solid for more than a year or more.

- We have a pretty great climate, and if this drought ends soon, I think a long-term improvement would be to plant more trees, shrubs and green spaces; and make the business district more "comfortable", more inviting. When visiting other local towns, notice how attracting it is to have seating areas, like mini-parks, interspersed in the shopping/business areas. Trees and plants enhance our seaside environment and draw local and touring visitors to businesses where shopping is pleasant and can be mixed with relaxation. Look at some of the old---and new---tourist areas in Europe; sidewalk tables, benches, enclosures are nestled right in with stores and cafes. We have a few places like this here, but the Valley Traffic to the beach for "duning" is really a deterrent along Grand Ave. I know the dune people will never leave unless the State or County closes that venue. However, as long as Grand Ave. is a truck route to the beach, it's fairly unlikely that businesses along that street will create areas where people can mingle and relax while shopping. This would take a real master plan, and lots of commitment to accomplish, not to mention money. But I often think of the Village in AG...it had to start somewhere. Can't that same atmosphere start here in Grover Beach? While lots of people like an exciting vacation with activities loaded in, there are some folks who are tired and/or stressed; these enjoy the peace and grounding that is provided by being near the sea. So businesses that want to draw people who are here for downtime and relaxation could benefit if there were little spots for respite sprinkled in and around their entrances, or better yet, behind or between buildings, where the noise of traffic on Grand is muted somewhat. Anyway, when I drive around Grover I often try to visualize what would make it a nicer and greener city; where a little enclave set back from the street would make a calm and really attractive space to meet and have coffee with a friend, or sit and read while waiting for an appointment, or just enjoy the sunshine and ocean breeze. My husband and I moved here 30 years ago. There have been many improvements for sure. I just hope Grover Beach doesn't turn out like my hometown, Rialto, CA turned out! Growing up there in the 50's until we left for here in 1986, it all started going downhill in the mid-seventies. Now it's a ghetto. One of the most noticeable things up here when we arrived was how many trees there were, and the clean air. The air is still great, but I keep seeing trees being cut, and not always replaced and protected. Ahem...we need trees and shrubs for air that we breathe. (No, I am not a member of the Sierra Club) Since the onetime suggestion of diverting the route to the beach, for all those dune thrashers, was defeated some years back, I guess the only other suggestion might be to slow down traffic with berms all the way to the parking lot by Finn's; maybe widen sidewalks and bike lanes in some areas so pedestrians feel safer and stores are more accessible with foot traffic; noise reduction ordinances would be marvelous! aka...no motorcycles with spine-chilling mufflers! If Brooklyn can ban them, why not us? OK, I think I have overstayed my welcome on this site. Thank you for being open with this business survey, and for inviting those of us with businesses to be open as well. It will be interesting to see in the future what advancements are implemented..not just for businesses, but for all of us residents here.


BUSINESS WORLD MAGAZINE

Grover Beach, CA

SPREADYOUR WINGS

Attachment 5

Grover Beach, CA

SPREADYOUR WINGS

Grover Beach is a community-oriented beach city with a lot to offer, and it starts with their ideal location. Situated halfway between Los Angeles and San Francisco and 20 minutes south of San Luis Obispo on California’s Central Coast, the city offers over 300 days of sun-shine a year, as well as easy transportation access to both business and recreational opportunities. That convenience – when combined with affordable housing, affordable commercial and industrial spaces, and a pro-business culture – makes Grover Beach “a great place to spread your wings,” as the city motto goesYOUR WINGS

At the same time, Grover Beach is also a city with ambitions led by a visionary City Council. Offi-cials aim to bring a youthful, vi-brant culture to the community. They want to get the word out on what Grover Beach has to offer to residents, tourists, and new business. They want to cre-ate a new image for the city.

Enter Matthew Bronson, City Manager. He was hired in May 2016 to help carry out that vi-sion.

“I was drawn to Grover Beach for the opportunity to work in a beautiful and charming coastal community, but one that had aspirations to become even more vibrant,” he says. “I was

excited by the city, and excited by the challenge.”

At the time he came on board, Matthew says he saw a com-munity of over of 14,000 that was “poised for greatness.” He viewed it as a prime location for tourism, business, and devel-opment. He thought that with some improved infrastructure, businesses would see the city as an economically vibrant loca-tion.

Matthew was correct in his as-sessment. In the last few years, Grover Beach has undergone myriad improvements, and in-dustry has taken notice – in particular, the cannabis indus-try. Several significant cannabis

GROVER BEACH, CA

We’re a small com-munity, so folks can walk right into city hall and be able to talk to planners, to the Com-munity Development Director, or to myself if they have any issues or questions.

facilities have been developed in the community, including manufacturing and distributing facilities, as well as retail store fronts. Grover Beach is now poised to become the commer-cial cannabis centre of the Cen-tral Coast. Matthew credits the commu-nity’s recent success, in part, to the commitment the City Council made into building a public-private broadband fi-ber-optic network. Around the time Matthew came on board, the Grover Beach City Council had approved the first phase of a 10-year agreement with Digi-tal West Networks Inc. to bring high-speed fiber-optic internet connectivity to the community’s

commercial-industrial areas. That rollout has since made the city a more appealing destina-tion.

“We know that high-speed in-ternet is essential for mod-ern business,” Matthew says. “That’s why we embarked on a public-private partnership to bring in the fastest internet ser-vice available in our area. We want to support future busi-nesses, to help them meet their business needs more effective-ly.”

He also credits the city’s land opportunity – Grover Beach has the largest industrial acreage anywhere within their part of the county, for example, and

their land is not as expensive as the land in other communities around the area.

Grover Beach is also committed to helping local business suc-ceed, and to making it simple to set up shop. Matthew believes that attitude has gone a long way in recent years.

“We have taken steps to expe-dite our business development review process,” he explains. “We realize the importance that businesses play in supporting our economy, and we know that time is money, so we are helping businesses get through the process as quickly and effi-ciently as they can.”

GROVER BEACH, CA

In recent years, Grover Beach has worked to attract a variety of businesses to their beach-front. Hotel developments, for example, are one of their prior-ities.

The city has approximately 400 new hotel rooms in the devel-opment pipeline given the city’s prime coastal location. One of those projects is the long-in-de-velopment Grover Beach Lodge project, which is a unique part-nership between the City andCalifornia State Parks to trans-

form a dirt beachfront lot at the end of the city’s main street into a 144-room, four star hotel with meeting space for business.

There’s also the aforemen-tioned cannabis industry, which the progressive Grover Beach City Council has been excited to work with. Roughly 10 can-nabis-related businesses have commenced operations with another 14 permitted business-es working through the devel-opment process. Though four of those are retailers, Matthew


Where business can flourish

The Council approaches their policies based on an appreciation of what businesses do in the community.

sees Grover Beach not just as a future hub of retail activity, but of manufacturing, processing and distributing for the local in-dustry.

“We’re also trying to attract tech-nology companies,” he adds. “We’d like to bring some start-ups that would are interested in working an incubation space next to the beach. We believe our high-speed internet service will help with that.”

In addition, Matthew also hopes to see more restaurants, cafes and breweries in the area. The goal is to create a “hip and vi-brant” culture around the city, he says, and they will welcome any business that helps them build that culture.

Grover Beach will also work with those businesses when they need assistance. As a commu-nity with mostly smaller to mid-sized businesses – exceptions

GROVER BEACH, CA

We are literally rebuilding the city from the ground up.

include a large grocery store and a large manufacturer of bi-cycle apparel – the City practic-es a “down-to-earth” approach to customer service.

“We’re a small community, so folks can walk right into city hall and be able to talk to plan-ners, to the Community De-velopment Director, or to my-self if they have any issues or questions,” Matthew says. “We pride ourselves on providing a customized, personal service to our business customers.”

“We also work very effectively with the South County Cham-ber of Commerce,” he adds. “We work closely with them to make sure we’re aware of busi-

ness needs, that we’re consid-ering their input, and that we’re making policy decisions based that will help local business be successful.”

“Our City Council is very pro-business,” he says. “They are pro-development in the right places and the right ways. The Council approaches their policies based on an appreci-ation of what businesses do in the community. We recognize that they’re the backbone to our economy, and we do what we can in city government to provide an environment where they can flourish.”

In order to provide that kind of environment, city government

has turned their attention to im-proving local infrastructure, in-cluding city streets. In the past, the condition of city streets was often “neglected,” Matthew says, with maintenance being deferred over a long time given limited funding. Recently, how-ever, voters approved nearly $50 million in funding to help improve local streets – which is a very significant investment for a city of Grover Beach’s size. In response, over the last few years, the city has been busy upgrading their streets – repav-ing neglected streets, adding sidewalks, adding curb ramps, and more. By 2020, they will have repaired 50 per cent of all local streets.

GROVER BEACH, CA

At the same time, the city has also been hard at work upgrad-ing 50-year old water and sew-age infrastructure. Related to that effort, they have engaged in a regional recycled water partnership called the Central Coast Blue project. That project involves designing and building a new advanced water purifi-cation facility, which will treat wastewater and then inject it back into their groundwater ba-sin. It is projected to increase the city’s water supply by 30 per cent.

Finally, Grover Beach is also home to an AmTrak train sta-tion, which is currently in the midst of a significant expan-sion and enhancement. Park-

ing, landscaping, safety, and bus and train connections are all being improved – as is the “overall customer experience,” Matthew says, with the goal be-ing to create a “premier region-al multi-modal transportation facility.”

“We are literally rebuilding the city from the ground up,” he explains. “And by making those investments and carrying out the City Council’s vision, we are signalling to the business com-munity that we are committed to making this a place where they can be successful.” “We want to send the message that Grover Beach is open for business,” he concludes. “We

value our business community – we want to attract new ones, retain the ones we have, and create a more thriving city as a result.”


For more on Grover Beach – including tourism informa-tion, as well as business resources – visit http://www.grover.org/in-dex.aspx?NID=120

http://www.grover.org/in-

SPREADYOUR WINGS

GROVER BEACH CITY COUNCIL MONDAY, OCTOBER 7 ...

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