Economic Development

If our experience in California is any guide, the federal government may be losing sight of one of the key lessons learned from the pandemic as it responds to the latest national economic challenges: People, and the communities that nurture people, must come first.

Buellton residents have long pushed for more arts and culture opportunities to increase their quality of life. Many have come to view the arts as a way to incentivize economic development. Like many aspects of government, this is easier said than done, especially with just 20 full-time city employees.

Located in the heart of Santa Ana’s La Artesia Pilar neighborhood is La Placita Cinco — an innovative and community-oriented urban hub. The city and developers worked closely with the community to transform the once-neglected neighborhood center, while keeping residents’ priorities top of mind.

New development projects increase demand on existing public infrastructure. To fund improvements, cities often impose development impact fees, which are governed by the Mitigation Fee Act. Recently, courts have interpreted this law in a more rigid manner, suggesting that any fees held unspent for more than five years must be refunded.

Tourism is spurring the recovery of lost jobs and revenue in many cities, particularly rural ones. However, those gains have not been felt equally, especially in large, urban communities. It is crucial that cities and other tourism stakeholders, regardless of their recovery level, have plans in place to help them navigate future uncertainties.

In March 2021, cities across the nation breathed a sigh of relief as an economic package that included $65 billion for municipalities finally made its way through Congress and was signed into law. The American Rescue Plan Act (ARPA) provided badly needed direct and flexible funds to cash-strapped cities on the front lines of the COVID-19 pandemic since March 2020.

The Institute for Local Government (ILG) launched a pilot program called BOOST, in partnership with the Strategic Growth Council, to help under-resourced communities build capacity to advance their climate, equity, and economic development goals. Through this program, ILG worked with 10 cities and two regions to develop projects and programs that promote more equitable, just, and economically-thriving communities. 

While communities across California and the country excitedly await the disbursement of badly needed relief funds from the American Rescue Plan Act and potential assistance from the president’s American Jobs Plan, one question is being asked over and over again — how do we make the most of these precious one-time investments?

The city of Glendale’s efforts to grow the tech industry including the creation of “knowledge sharing” or places where local talent could go to innovate, inspire, and meet one another, inspired the creation of its Glendale Ecosystem for Tech Startups initiative. This helped focus on attracting new businesses including high-end co-working space operators; developing a strategy to offer more mentorship, business development, and investment opportunities to local startups; and helping tech companies expand.