AgdaPkt 2017-01-09 Closed and Joint

Browse Search

6.1.D. - Page 16 FACTORS AFFECTING FINANCIAL CONDITION Local Economy The local economy is recovering from the "Great Recession" more robustly than the national economy with the unemployment rate in San Mateo County remaining at 3.3% as of June 2016, which was the same as of June 2015, and which is slightly higher than Redwood City's unemployment rate of 3%. Both San Mateo County and Redwood City unemployment rates are consistently lower than the State's unemployment rate of 5.7% and the national rate of 4.9%. The number of employed residents in the County increased slightly from 426,600 in June 2015 to 430,900 in June 2016. The Redwood City commercial real estate market continues to exhibit signs of high demand with the citywide vacancy rate stable at 3.3% as of the second quarter 2016. Vacancy rates as of June 2016 in Redwood City's downtown area are notably lower, with retail vacancy down to 1.2% from 2.5% last year. The office space vacancy rate has increased slightly to 4.4% as of June 2016 compared to 3.2% as of June 2015. We believe these indicators paint a positive picture of the local economy and provide a solid underpinning for steady economic growth continuing into the near future. Recognizing that local and regional growth have exacerbated long-term mobility and affordable housing challenges, the City Council has taken numerous steps to address these issues, including adoption of a housing impact fee, authorization of using City land on Bradford Street for affordable housing, and asking the City's Housing and Human Concerns Committee to assess new strategies for addressing housing challenges. The City Council has also directed staff to complete a citywide transportation study and will undertake several related planning projects, including the EI Camino Real Corridor Plan and the Downtown Transit Center and Broadway Streetcar/Urban Circulator Study. Economic Development Initiatives In 2011, the City Council adopted the Downtown Precise Plan, to establish development standards for new development within the Downtown area and create a review process that would remove some of the uncertainty associated with the development approval process. The adoption of this document as well as approving several public/private partnerships to get the first few developments in the downtown moving forward has started the creation of a vibrant downtown district where Redwood City residents enjoy working, living, and playing. The opening of the Crossing 900 Building, brought the first major office development to downtown Redwood City since the development of the City and County offices. This 306,000 square foot building, home to five new businesses and over 1,500 employees, has helped to bolster the daytime population of downtown which is necessary to support the many locally owned restaurants and service businesses in the downtown. In addition to this new development, three other office buildings are currently under construction, which will add an additional 250,000 square feet of new leasable space in the downtown area. Most of the new structures under construction are fully leased with new companies looking to bring their businesses into Downtown Redwood City. In addition to the new office developments locating in the Downtown, Redwood City is also seeing a growth in housing production. As part of the Downtown Precise Plan, 2,500 new housing units could be built in the Downtown area. As of November 2016, approximately 1,000 of those units are now built and occupied with tenants and the remainder of the 1,500 allocated units are either under construction or completing their entitlements to be built. These new housing units have started to bring a much-needed evening population to the Downtown area, thus creating the critical mass necessary to support new retail establishments. The remaining residential units are expected to be completed near the end of 2018. Outside of the Downtown area, the City continues to see interest in developing additional housing for the community. Two new residential housing developments are underway along the east side of Veteran's Boulevard, providing an additional 225 units. 131 units are proposed near the terminus of Redwood Creek at the Bay, and an additional 400 units along with 400,000 square feet of office space are proposed at Broadway Plaza