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S.A. - Page MWL26
<br />The City Council appointed task force members who represent diverse segments of the community—
<br />residents, real estate brokers (retail and office), developers and Downtown business and property
<br />owners.' The task force met six times between May 29 and October 30, 2018.
<br />The work plan for the task force included:
<br />• Review current retail environment at the national, regional and local level
<br />• Review existing conditions in the Downtown in terms of rents, vacancy, current mix of businesses,
<br />physical infrastructure, and character
<br />• Assess the strengths and weaknesses of Downtown's retail makeup
<br />• Compare demographic and market information for five similar downtowns in the region
<br />(Burlingame, Menlo Park, Mountain View, Palo Alto and San Carlos)
<br />• Determine the type of retail (national, regional and local) that is appropriate for the Downtown
<br />based on market demand and demographics
<br />• Identify best practices used by other cities with similar challenges that can be implemented by
<br />Redwood City
<br />• Assess how current City policies (Downtown Precise Plan, zoning, etc.) affect current rental rates
<br />• Identify the type of City policies that would help retain and attract traditional retail businesses
<br />• Develop a retail vision for Redwood City's Downtown
<br />Recommendations of the task force, along with other actions that address the City's economic
<br />sustainability, will be incorporated into an economic development work plan for the City Council's
<br />consideration on March 25.
<br />ANALYSIS
<br />Change occurs in the current retail environment quickly and continuously. Product life cycles are getting
<br />shorter and shorter as consumers demand newer and better versions of products that can be purchased
<br />quickly and cheaply. Online sales continue to challenge brick -and -mortar sales in response to fast -paced
<br />lifestyles of consumers that leave little time for shopping in stores. In fact, more Americans are shopping
<br />online than ever before, and younger consumers are more frequently purchasing "experiences" rather
<br />than goods.
<br />Changing demographics and shopping patterns of the millennial generation are evident in changes to
<br />regional Bay Area malls, where expansions of those malls reflects non -conventional uses other than retail
<br />stores, including residences, hotels, restaurants, office space, luxury movie theaters, and entertainment
<br />venues. Demographic data is important to retailers in making decisions on where to locate, but shopper
<br />preferences or lifestyle factors are key drivers of retail demand.
<br />In the last few months, major national and regional chains including Orchard Supply Hardware, Cost
<br />Plus/World Market, Aaron Brothers, Toys 'R' Us, and Sears have closed stores. Even so, some large
<br />retailers are expanding, including Target, Nordstrom Rack, and Trader Joe's, as well as other business
<br />' Members included Jeff Badstubner, Liza Bizzaro, Angelica Cuscieri, Pamela Estes, Jason Galisatus, Greg Garcia,
<br />Dani Gasparini, Gina Henson, Gary Johnson, Stephanie Kolka, Volker Staudt, and Elizabeth Strumpell.
<br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org
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