A Prosperous Economy For All

Where We Want to Be in the Future

A growing and diversified South San Francisco economy supports jobs and businesses in industries including biomedical technologies, digital technologies, manufacturing, distribution, hospitality, and household-serving retail and services.
All South San Francisco residents can achieve broadly shared prosperity through high-quality education, job training, job opportunities, and culturally relevant services for entrepreneurs.
Preservation of retail and services for residents and workers that can be conveniently accessed nearby, such as stores, restaurants, and public amenities.
South San Francisco includes a thriving mix of locally owned businesses that represent the city’s rich cultural diversity.
Robust South San Francisco tax and fee revenues allow the City to provide high quality and equitably distributed services for residents, workers, and visitors.

Performance

Metrics

01Performance Metrics:

Number of jobs and businesses

Target:

Growth rates of jobs and businesses match or exceed growth rates for San Mateo County overall during comparable periods of time

Data:

02Performance Metrics:

Share of locally owned businesses

Target:

Long-term increase in the share of locally owned businesses

Data:

City to begin tracking data and provide in the future.

03Performance Metrics:

Share of jobs filled by city residents

Target:

Year-over-year increase in the share of jobs within South San Francisco that are filled by residents

Data:

04Performance Metrics:

Race/ethnicity of workers at jobs in South San Francisco

Target:

Race/ethnicity of workers employed in South San Francisco matches the race and ethnicity of employed South San Francisco residents overall

Data:

05Performance Metrics:

Resident participation in job skills, adult education, and union apprenticeship training

Target:

Year-over-year growth in the percent of residents participating in available programs

Data:

City to begin tracking data and provide in the future.

06Performance Metrics:

South San Francisco General Fund revenue per capita, disaggregated by revenue source (property tax, sales tax, transient occupancy tax, etc.)

Target:

Year-over-year growth in inflation-adjusted General Fund revenue per capita.

Data:

City to begin tracking data and provide in the future.

07Performance Metrics:

Residents located within a fifteen-minute walk of a food store with fresh produce and a drug store, disaggregated by race and ethnicity

Target:

Year-over-year growth in number of residents meeting criteria, and reduction in disparities by race and ethnicity

Data:

How Our Plan

Gets Us There

A growing and prosperous economy in South San Francisco will create job and entrepreneurial opportunities for the city’s workforce and provide public revenues that allow the City of South San Francisco to deliver public services, public amenities, and infrastructure that support the community’s high quality of life. The “A Prosperous Economy” Element establishes goals and policies that leverage South San Francisco’s unique economic and workforce assets to ensure that growth creates equitably shared opportunities benefitting all residents.

While the General Plan’s land use policies establish a basic framework for where and how South San Francsico can grow, the City of South San Francisco also plays a unique proactive role in shaping economic activity and outcomes for the city’s workforce. South San Francisco helps determine economic and workforce outcomes through its roles as a provider of services, a funder, a facilitator, and a collaborator with other partners.

Examples include:

Investments in transportation infrastructure that impact worker commutes,
Types and locations of public facilities and services that support businesses,
City efforts that promote South San Francisco’s assets and coordinate the activities of other public, private, and non-profit partners,
Incentives and public policies that encourage or discourage different types of development activity and industry growth, and
Providing funding resources for specific programs and initiatives.

The Prosperous Economy Element establishes a policy framework for South San Francisco to undertake actions targeting the industries, workforce development needs, and overall economic environment that will together address issues and opportunities confronting the city today and in the future.

Key Issues and Opportunities

Economy and
Industry Mix Workforce Challenges and Opportunities Commute
Access Real Estate Trends and Development Fiscal
Health

Economy and
Industry Mix

Economy and Industry Mix

South San Francisco is a jobs-rich community that attracts workers from across the region to its unique business mix of biotechnology, hospitality, and industries requiring industrial land. As of 2018, there were approximately 57,000 jobs recorded in South San Francisco distributed across five major land uses. The city’s economic diversity helps to insulate the local economy from any future downturns that affect a single industry.

South San Francisco will remain a long-term competitive location for the biotechnology industry due to the large existing concentration of these businesses within the city, strong growth potential in the Bay Area generally, access to venture capital and other professional services in San Mateo County, and the city’s access to a skilled workforce from throughout the region. Fueled by significant investment in the Life Sciences industry and the rapid employment growth of companies like Genentech and that of emerging companies, the biotechnology industry accounted for nearly half of the city’s total employment growth between 2009 and 2018. Future potential may exist for South San Francisco to diversify the mix of businesses related to the biotechnology “cluster,” such as other life sciences businesses and related professional services such as attorneys and financial services.
Although South San Francisco currently lacks a large presence of computer technology and non-biotechnology professional services, continued growth of the Bay Area’s technology industry and related professional services will also increase the potential over time for the city to capture demand from businesses in these industries. The city is already becoming increasingly attractive to office users seeking a lower-cost alternative to San Francisco and southern San Mateo County. However, it is challenging for these businesses to outcompete biotechnology companies for available space and new development.

Outside of manufacturing industry categories related to the biotechnology industry, manufacturing employment in South San Francisco is in a long-term decline. Non-biotechnology manufacturing employment decreased by 20 percent between 2009 and 2018, primarily due to losses of food manufacturing businesses. Loss of “legacy’ manufacturing reflects an industry-wide shift from the high-cost inner Bay Area to areas with more affordable real estate, better access to labor, and lower costs of doing businesses—such as the East Bay and other areas outside of California. However, opportunities may exist for South San Francisco to attract innovation-oriented, small-scale, and advanced manufacturing businesses seeking the workforce accessibility and availability of industrial buildings that first drew biotechnology businesses to the city.
South San Francisco is also a prime location for logistics and distribution uses, reflected in a large and growing number of transportation and warehousing jobs. These businesses are drawn to the city based on its availability of industrial land located near end-user households and businesses, and based on the city’s access to San Francisco International Airport. This proximity to end-user business and population centers will also continue to make South San Francisco a desirable location for construction, service, and repair businesses, along with food manufacturing that benefits from central access to the region’s households and convenient transportation connections to other regions.
South San Francisco is positioned to attract future demand from the hospitality industry, which constituted two percent of jobs in the city as of 2018. Hotel demand is still recovering from the impacts of the COVID-19 pandemic; the CoStar real estate data service indicates that the overall occupancy rate for hotels in the “San Francisco Airport” submarket (which includes South San Francisco) stood at 59 percent as of January 2022, down from a pre-pandemic high of 86 percent in 2019. Forecasts for recovery vary, but typically assume full recovery to near-2019 levels of occupancy and revenue per available room may not occur until 2024 or 2025. As the hotel market recovers from the effects of the COVID-19 pandemic, demand for hotel stays in South San Francisco will be sustained by the city’s major businesses, the presence of the South San Francisco Conference Center, and the city’s proximity to San Francisco International Airport.

Workforce Challenges and Opportunities

South San Francisco residents have slightly lower educational attainment than the skills requirements for workers at South San Francisco jobs overall. While resident and worker educational attainment are similar, a slightly higher share of workers at jobs in South San Francisco hold Bachelor’s degrees, advanced degrees, or have completed some college or an Associate’s degree than city residents. Mismatches between job occupations and skills requirements versus resident occupations and skills requirements can make it more difficult for South San Francisco’s residents to access local jobs and jobs that pay a livable wage.

High housing costs regionally and locally also create challenges for South San Francisco businesses to attract and retain workers—especially lower- and middle-income workers who struggle to afford housing near jobs in South San Francisco. Although South San Francisco is a relatively affordable community within the San Francisco Peninsula, increasing housing costs are still creating displacement pressures for residents who may work in the city, for workers who commute from nearby cities, and for potential employees who want to live close to where they work. Although it is not typical for cities to produce enough housing to accommodate their entire workforce, the growth in jobs in South San Francisco has vastly outpaced growth in the housing stock over recent decades.

Opportunities exist for South San Francisco to address each of these workforce challenges. Additional workforce development and education resources can enhance resident skills and create a better match with available jobs, especially if training is aligned with local industries and employers and if resources are dedicated to historically disenfranchised residents. Efforts to attract and retain businesses with a relatively high share of middle-skill, middle-wage jobs—such as manufacturing—will create more accessible opportunities. Enhanced linkages between employers and job training and education programs will create better pipelines to jobs and more opportunities for on-the-job training. And construction of more housing and more income-restricted housing will allow more residents of all incomes to live near South San Francisco’s large base of jobs.

Commute
Access

Commute Access

South San Francisco’s highway connectivity, BART and Caltrain stations, ferry service, employer-run shuttle buses, publicly-accessible free shuttle buses, and SamTrans service enable access to jobs for a large regional workforce of highly educated employees, contributing to the city’s position as a major employment center. This connectivity with the region also facilitates access to job opportunities for South San Francisco’s residents throughout Silicon Valley and San Francisco.
However, automobile traffic congestion could impact South San Francisco’s ability to attract additional residential and commercial growth.

Traffic congestion is already a barrier to growth in the East of 101 area due to the area’s growing number of workers, especially since many jobs are located far from Caltrain. South San Francisco is already addressing these challenges in partnership with Genentech and other businesses, including commitments in the Genentech master plan for transportation demand management measures, commute shuttles, and contributions toward traffic and transportation improvements, and via City efforts to implement a community facilities district to fund transportation and infrastructure improvements in the East of 101 area.

Real Estate Trends and Development

Real Estate Trends and Development

The decade spanning 2010 to just before the COVID-19 pandemic in 2020 was a period of significant economic growth nationally, regionally, and locally. South San Francisco, being one of the premier global destinations for the biotechnology industry, experienced significant growth in its “office and R&D” building inventory during this ten-year period (2.4 million square feet) as national investment in biotechnology drove demand for new Life Sciences real estate. However, as a city with few vacant land opportunities available for development, the growth in Life Science space could only occur via redevelopment of existing properties in areas with appropriate zoning. As a result, 1.3 million square feet of industrial space was redeveloped primarily for life science space in the East of 101 area, along with additional losses due to housing development.

The city’s retail inventory remained virtually unchanged between 2010 and 2020, even as the number of households in South San Francisco and nearby cities grew. While in previous decades an expansion of households may have been more likely to result in local retail space development to meet additional demand, the 2010 to 2020 years brought changes to the national retail landscape including the rise of e-commerce and a growing share of sales occurring online—reducing the need to build additional retail space to meet demand from new households. South San Francisco’s existing retail supply was also already well-located to serve areas of the city undergoing population growth.

Change in Total Inventory by Building Type, 2010 to 2020

Total Rentable Building Area (Sq. Ft.)

Building Type	2010	2020	Net Change	% Change
Office and R&D [1]	9,505,781	11,861,901	2,356,120	25%
Industrial	16,413,147	15,141,639	-1,271,508	-8%
Retail	2,682,911	2,712,942	30,031	1%

[1] Reflects Life Science R&D space in addition to traditional office buildings.
Source: CoStar, 2020; Strategic Economics, 2021.

Accommodating Biotechnology and Life Sciences Demand

The biotechnology and life sciences industries experienced unprecedented levels of investment globally in 2020 in response to the COVID-19 pandemic and are likely to continue long-term growth in the region. Biotechnology and life sciences businesses typically prefer to co-locate near one another to facilitate the transfer of ideas and to be close to existing concentrations of their workforce, making South San Francisco especially well-positioned to continue capturing growth of these businesses, so long as adequate land supply and transportation capacity are available. Maintaining capacity for growth will become especially important as global investment in biotechnology has led to a boom in real estate development activity for biotechnology labs in competing locations throughout the region and the country.

Attracting Office Development

Limited demand for office space currently exists in South San Francisco among office tenants such as technology and professional services businesses. These businesses more typically locate in transit-adjacent areas in higher-income communities on the Peninsula. However, in the medium- to long-term South San Francisco can potentially attract additional office-based businesses priced out of San Francisco or southern San Mateo County, as well as businesses that provide services for the biotechnology industry. However, in the short term, attracting new office development will be challenging due to uncertainty in regional office real estate markets induced by the COVID-19 recovery and intense competition with life science development activity.

Preparing for the Future of Industrial Lands

Demand for industrial properties to redevelop into housing and biotechnology uses creates the risk that businesses requiring industrial space will be displaced. Redevelopment of industrial properties would likely result in declining business diversity due to the loss of businesses engaged in production, distribution, and service and repair activities. Since these businesses are also associated with lower barriers to entry for jobs compared to the biotechnology industry, the loss of these businesses would also reduce the diversity of job opportunities in South San Francisco, especially for middle wage jobs.

Many of South San Francisco’s longstanding industrial businesses are also facing challenges related to the relatively high cost of rent and labor within the inner Bay Area. Because of the high costs of doing business in the area, it is inevitable that some traditional industrial businesses will leave South San Francisco. However, these businesses play a role in the city’s economic diversity and in some cases provide services that are needed locally by residents and other businesses; opportunities exist for South San Francisco to work with these businesses to identify and implement programs, policies, zoning, and infrastructure that would support retention of these businesses.

Although industrial space overall has declined, South San Francisco is a prime location for logistics facilities, including last-mile delivery centers. Demand and rents for industrial and logistics space is approaching high enough levels to justify the development of multi-story industrial logistics buildings in South San Francisco. Demand is growing for logistics and warehouse space more generally as companies respond to rising demand for e-commerce last-mile delivery needs, and South San Francisco’s proximity to large population centers and appropriately zoned land make it a prime location for last-mile delivery centers.

South San Francisco’s large inventory of industrial buildings represents an opportunity for future production possibilities as new, innovation-oriented businesses seek out space that can be flexibly repurposed for activities such as prototyping, small-scale production, and advanced manufacturing. This building inventory has historically been adapted for different types of users as innovation has occurred. Retaining industrial buildings and lands will allow South San Francisco to attract innovative start-up industries in the future.

Adapting to the Future of Retail

South San Francisco is well-served by retail, restaurants, and personal services businesses in the city’s existing collection of shopping centers, “big box” stores, Downtown, and standalone retail properties along major arterial streets. The city also attracts outside shoppers via convenient regional access on El Camino Real and Highway 101. Nearly all residential areas of the city are located within a twenty-minute walk of a grocery store, and the city’s retail offerings include local and chain stores and restaurants that represent and serve the city’s diverse population.

Additional retail space is most likely to be added to areas projected to accommodate future residential growth. This includes portions of Lindenville, Downtown, and East of 101 near the Caltrain station. With the exception of Downtown, these areas currently feature few retail offerings due to their existing industrial uses. While the new households and workers in the East of 101 area will create more demand for businesses in Downtown, services and support may be necessary to ensure existing local businesses are not displaced by new businesses that serve higher-income residents and can afford higher rents.

The mix of businesses in South San Francisco’s retail storefronts, shopping centers, and districts will continue to evolve in response to the growth of e-commerce and online sales. Long-term trends favoring “experiential” businesses such as dining, fitness, and entertainment are likely to continue while many “hard goods” and “soft goods” retailers will continue to suffer sales declines. However, grocery stores and general merchandise stores such as Costco have continued to perform well. Ultimately, the City of South San Francisco can anticipate that property owners will likely seek to reinvest in or redevelop underperforming and antiquated retail locations, but the City should also seek to preserve functional retail locations that play a critical role in serving the community and generates sales tax revenues for the City.

Some of South San Francisco’s older and antiquated retail buildings and shopping centers are likely to undergo redevelopment for other uses over time. This is particularly true of standalone and smaller clusters of retail buildings along El Camino Real. While redevelopment of these centers creates an opportunity to introduce new mixed-use housing and retail projects, this process creates two challenges. Redevelopment creates a displacement risk for small, local businesses that can only afford rents in these older buildings. Second, competition from online sales is driving reductions in overall needs for retail space, suggesting that new retail spaces should only be added in areas with high traffic volumes, visibility, or concentrations of surrounding residents and workers.

Strengthening Downtown

Downtown South San Francisco currently features many locally owned businesses that serve nearby residents and has strong potential to serve as a community anchor. Among Downtown’s locally owned businesses are grocers and corner stores, restaurants, apparel stores, bakeries, and other businesses that collectively represent the rich diversity of South San Francisco’s population.

A significant amount of new residential development is planned for and has been approved in the Downtown and areas immediately to the east and south, which will augment demand for goods and services in the area. New households moving into residential buildings will support nearby restaurants and retail stores, including higher-end restaurants and services. Contingent on City requirements, some residential buildings will also be built with ground-floor retail and may add additional space for new or existing businesses to occupy. As new residential development occurs and demand for higher-end restaurants and services increases, the city will need to balance preserving Downtown’s existing businesses and cultural identity with new development and attracting new businesses to the area.

Visitors to South San Francisco represent a source of inadequately realized demand for restaurants and services Downtown. Downtown may be able to capitalize on the presence of hotel and South San Francisco Conference Center guests if pedestrian and transit connections are improved between Downtown and areas near the Conference Center. Conversely, better access to restaurant and retail amenities could serve to make the city’s hotels more desirable for visitors.

Supporting Hotel Reinvestment and Growth

While the COVID-19 pandemic resulted in dramatic declines in travel and hotel stays both globally and locally, the long-term prospects of hotels in South San Francisco are strong due to the city’s strategic location and ability to capture multiple sources of visitors. The city’s hotel clientele includes biotechnology business travelers, attendees of conferences at the Moscone Center and the South San Francisco Conference Center, and tourists visiting San Francisco. Improved transit connections, more attractive streetscapes, and a greater offering of local restaurants and amenities will support the city’s hotels and make them more competitive with other establishments in the market area. Additionally, supporting the city’s biotechnology industry and Conference Center will bolster long-term sources of hotel stays.

Addressing the Impacts of Climate Change

Sea level rise induced by climate change is likely to impact the area south of East Grand Avenue in East of 101, as well as areas closest to Colma Creek in Lindenville, creating uncertainties for businesses regarding additional costs and risks associated with locating in these areas. Mitigating the risk of sea level rise will require significant financial investment at the local and/or regional levels. Currently there are limited local resources available for preparing the East of 101 area and other vulnerable areas for sea level rise. Several regional agencies already have sea level rise planning initiatives underway—including the Bay Conservation and Development Commission Metropolitan Transportation Commission, and Association of Bay Area Governments—which will explore funding possibilities.

Fiscal
Health

Fiscal Health

South San Francisco’s fiscal outlook is strongly linked to investment in Life Sciences and residential real estate, as well as retail, restaurant, and hotel performance. Property tax revenues are the largest source of revenue for the City’s General Fund, followed by sales tax and transit occupancy tax (or hotel tax). The largest General Fund expenditure categories include the Fire Department, Police Department, and Parks and Recreation, whose costs will increase as new population is added. Conversely, as new development occurs and property values are reassessed, the City will be able to generate additional property tax revenue to offset these new expenditures. The success of restaurants and retail businesses, which generate sales tax revenue, and of the city’s hotels, which generate transient occupancy tax revenue, will also generate fiscal benefits for the City of South San Francisco that will allow it to provide higher quality services to residents.

policy

framework

Goal PE-1 Goal PE-2 Goal PE-3 Goal PE-4 Goal PE-5 Goal PE-6 Goal PE-7 Goal PE-8

Goal PE-1

Goal PE-1:

South San Francisco remains a premier location for biotechnology and related industries.

Intent:

To support the long-term success of the biotechnology industry in South San Francisco while also leveraging the industry’s presence in South San Francisco to attract related businesses and activities.

Policy PE-1.1: Ensure long-term viability of biotechnology.

Continue to support the long-term viability of the East of 101 area for biotechnology and related businesses.

Action PE-1.1.1: Monitor constraints to biotechnology and related businesses.
Through business, broker, and developers contacts, monitor and address potential constraints to ongoing growth of biotechnology and related businesses, including zoning, land supply, transportation, and infrastructure.

Policy PE-1.2: Diversify the biotechnology and life science cluster to include related businesses.

Attraction efforts should focus on related industries that benefit from proximity to existing biotechnology businesses and/or provide complementary services to existing biotechnology businesses. Related businesses could include medical diagnostics, digital health, medical device manufacturing, testing, lab supplies, test products, venture capital firms, and legal services, financial services, and other support services. Attraction efforts should also include understanding and tracking the shift of some life science activities and businesses to the periphery of the Bay Area.

Action PE-1.2.2: Biotechnology outreach.
Gauge and pursue opportunities to support attraction and retention of businesses in the broader biotechnology and life science cluster through participation in industry organizations and one-on-one contacts with businesses, developers, and real estate brokers.

Goal PE-2

Goal PE-2:

A resilient and diverse South San Francisco economy supports existing industries while accommodating emerging growth opportunities.

Intent:

To maintain economic diversity in South San Francisco by ensuring City actions and land use policies support existing major industries while positioning the City to capture growth in rapidly growing industries and business activities.

Policy PE-2.1: Reinvest in industrial property.

Within areas targeted for retention of industrial uses, support industrial property owners seeking to reinvest in and modernize their properties and come into compliance with environmental regulations, current building codes, and use/production of green energy.

Action 2.1.1: Conduct outreach to industrial property owners.

Conduct outreach to property owners seeking relevant permits to determine opportunities for the City to facilitate reinvestment.
Action 2.1.2: Support infrastructure improvements.

Pursue infrastructure and placemaking improvements that enhance the functionality of industrial districts.

Policy PE-2.2: Facilitate redevelopment of industrial property.

Facilitate redevelopment of industrial properties in portions of Lindenville and East of 101 targeted for redevelopment for other commercial or residential uses.

Action 2.2.1: Identify obstacles to redevelopment.

Conduct outreach to property owners to identify specific obstacles to redevelopment to inform strategies for supporting property owners through the redevelopment process.
Action 2.2.2: Support infrastructure improvements.

Pursue infrastructure and placemaking improvements in locations targeted for redevelopment of industrial properties for other commercial and residential uses.

Policy PE-2.3: Encourage multi-level logistics/distribution buildings.

As appropriate based on site and location conditions, encourage developers of new logistics/distribution projects to consider proposing multi-level buildings as a means of maximizing efficient use of remaining industrial land.

Policy PE-2.4: Encourage construction and occupancy of office space.

Action 2.4.1: Attract small professional services to ground floor spaces.

Explore opportunities, forecast demand, and identify barriers to attracting small professional services office-based businesses to ground floor spaces outside of the city’s best-located retail nodes (such as on blocks of Downtown away from Grand Avenue).
Action 2.4.2: Reduce cost barriers.

Impose lower community benefits contribution requirements for office development projects to receive density “bonuses” relative to life science projects in East of 101; revisit these requirements if office development activity accelerates significantly relative to life science development activity.

Policy PE-2.5: Target industry diversification opportunities.

Prioritize business attraction and retention activities for targeted industry sectors that represent significant growth and economic diversification opportunities.

Action 2.5.1: Monitor regional business and employment trends.

Monitor regional business and employment trends to explore emerging and/or growing economic development opportunities, with a focus on professional services, research and development, technology, biomedical and life sciences, and advanced manufacturing.
Action 2.5.2: Focus efforts on emerging technology industries.

Focus attraction and retention efforts on emerging technology businesses, such as those in artificial intelligence, “Big Data,” financial technology, health technology, and other software services.
Action 2.5.3: Focus efforts on emerging industrial technologies.

Focus attraction and retention efforts on emerging industrial technologies, such as those in industrial design services, transportation engineering, robotics, autonomous vehicles and drones, instrumentation, mechanical engineering, and related fields.
Action 2.5.4: Focus efforts on advanced food industries.

Focus attraction and retention efforts on advanced food production and food technology businesses, such as specialty food manufacturers, businesses developing new food products, and businesses implementing higher efficiency agricultural technologies.

Policy PE-2.6: Maintain a strong hotel Transient Occupancy Tax base by supporting the city’s hospitality industry.

Action 2.6.1: Facilitate hotel investment and development.

Provide supportive City services to facilitate hotel owner/developer efforts to expand and upgrade local hotels, with a focus on upper upscale brands with higher daily rates.
Action 2.6.2: Promote the city as a hotel destination.

Support hotel stays through promotion of South San Francisco as a lodging destination via the South San Francisco and partnerships with hotel operators and the San Mateo County/Silicon Valley Convention and Visitors Bureau.
Action 2.6.3: Engage in marketing efforts to attract events to the South San Francisco Conference Center.
Action 2.6.4: Implement public realm improvements along South Airport Blvd.

Implement infrastructure, placemaking, and safety investments to improve the pedestrian experience along South Airport Boulevard for visitors traveling between the South San Francisco Conference Center, hotels, and nearby businesses in East of 101 and Downtown South San Francisco.

Goal PE-3

Goal PE-3:

The City of South San Francisco’s economic development efforts sustain a healthy business climate through public-private collaborations, data tracking, and promotional activities.

Intent:

To create an attractive business environment by ensuring that the City of South San Francisco’s economic development efforts leverage the knowledge of private sector partners, incorporate data-driven decision-making, and promote the city’s assets, advantages, and opportunities.

Policy PE-3.1: Collaborate with the local business community to identify and implement improvements in business districts.

Action 3.1.1: Establish business districts.

Conduct outreach to businesses to encourage local district-based efforts to establish business organizations and form business improvement districts that can raise funding to provide enhanced district services; potential locations include Downtown South San Francisco, Lindenville, segments of El Camino Real, the BART station area, and portions of East of 101.
Action 3.1.2: Conduct regular outreach with the business community.

Conduct regular outreach and meetings with business and organizations such as the South San Francisco Chamber of Commerce and district-based organizations (or groups of businesses) to share information and to identify challenges and opportunities. Work through promotores, community navigators, and the Community Resource Center to ensure businesses owned by people of color and historically disenfranchised community members are reached.

Policy PE-3.2: Monitor economic conditions.

Enhance data collection and monitoring of economic conditions in South San Francisco to quickly identify emerging opportunities and challenges.

Action 3.2.1: Monitor business license data.

Modify business license monitoring system to permit analysis of business license data.
Action 3.2.2: Monitor sales tax data.

Modify sales tax monitoring system to permit enhanced analysis of sales tax data.
Action 3.2.3: Engage businesses.

Use active mechanisms to stay informed of business needs through such tools as business surveys, customer surveys, personal contact, and business functions.
Action 3.2.4: Ensure City staff have access to appropriate data sources.

Ensure that key City staff have access to data sources required to track business conditions and opportunities (e.g. ensure that GIS analysts have access to sales tax and business license data, to the extent allowed by law).
Action 3.2.5: Identify vulnerable businesses.

Use sales tax data, employment data, and qualitative information to identify declining businesses and businesses likely to close or relocate.

Policy PE-3.3: Publicize and periodically review economic development strategies based on economic conditions.

Action 3.3.1: Maintain an accessible public database of economic development projects, goals, and city demographics.
Action 3.3.2: Prepare/update economic development strategic plans.

Regularly prepare/update a multiyear economic development strategic plan to provide a comprehensive understanding of current economic and market conditions and to guide City staff economic development activities.

Policy PE-3.4: Engage in promotional and support activities for the citywide business community.

Action 3.4.1: Communicate trends and news to the business community.

Communicate economic development trends and news to the business community, including multilingual communications and communication channels focused on businesses owned by people of color and historically disenfranchised community members.
Action 3.4.2: Conduct business recognition programs.

Continue business recognition programs such as business visits and appreciation dinners.
Action 3.4.3: Conduct regular outreach.

Conduct outreach to businesses found to be likely to close or relocate to share available resources and identify needs.
Action 3.4.4: Provide siting assistance.

In partnership with real estate brokers, provide site location information to prospective businesses.
Action 3.4.5: Establish local business network.

Encourage city businesses to purchase from other local businesses, with a focus on businesses owned by people of color and historically disenfranchised community members.
Action 3.4.6: Promote the city’s “business friendly” reputation in all promotional materials.
Action 3.4.7: Increase and improve communication with the public about new business developments.

Policy PE-3.5: Engage in promotional activities of citywide shopping and recreational opportunities.

Action 3.5.1: Create a Downtown marketing program.

Create a marketing program for Downtown that can be subsequently expanded to promote the entire city.
Action 3.5.2: Develop and implement a “shop local” program.
Action 3.5.3: Promote recreational opportunities.

Promote recreational activities available in South San Francisco as an attractive amenity for workers.

Goal PE-4

Goal PE-4:

Infrastructure investments support job access, job growth, and address climate hazards impacting South San Francisco businesses.

Intent:

To ensure that transportation and other infrastructure investments support South San Francisco’s workforce and major employment destinations by expanding accessibility and reducing the impacts of sea level rise and other hazards on industrial and commercial lands.

Policy PE-4.1: Improve regional access to quality jobs.

Support improvements to the transit and transportation network that increase access by South San Francisco residents to middle- and high-wage jobs within the city and region. Refer to the Mobility Element of the General Plan for related policies and actions.

Policy PE-4.2: Encourage growth near transit.

Encourage job and housing growth near the BART and Caltrain stations. Refer to the Mobility Element and Land Use Element of the General Plan for related actions.

Policy PE-4.3: Provide enhanced multimodal commute options.

Continue collaborating with other City departments and regional transportation agencies to provide enhanced multimodal commute options.

Action 4.3.1: Expand transit and active transportation alternatives.

Maintain efforts to coordinate across departments and agencies to share business concerns about the need for expanded alternatives to automobile access to businesses, including improved bicycle and pedestrian infrastructure and support for regional public transportation improvements.

Policy PE-4.4: Mitigate the risk of sea level rise.

Explore funding mechanisms to make investments to mitigate the risk of sea level rise.

Action 4.4.1: Partner with impacted property owners.

Partner with impacted property owners to explore potential mitigations and funding mechanisms for mitigating the risk of sea level rise; communicate property owner responsibilities to protect their own properties.
Action 4.4.2: Regional collaboration.

Monitor and join (as appropriate) regional/state efforts to fund and address mitigations for the impacts of climate change and sea level rise.

Goal PE-5

Goal PE-5:

The city has vibrant and healthy commercial districts and shopping centers that include amenities serving residents and outside shoppers.

Intent:

To ensure the long-term success of South San Francisco’s retail districts and shopping centers by facilitating reinvestment or redevelopment, enhancing the attractiveness of retail destinations, adapting to e-commerce, supporting the needs of small businesses, and ensuring businesses and districts reflect South San Francisco’s racial, ethnic, and socioeconomic diversity.

Policy PE-5.1: Provide functional retail space.

Encourage property owners to provide storefront spaces that meet the functional needs of modern tenants.

Action 5.1.1: Create design and building standards for ground-floor space.

Create design and building standards for ground-floor commercial space in new mixed-use development projects that promote spaces which are sufficiently flexible to meet the needs of multiple kinds of tenants, including consideration of restaurant needs.
Action 5.1.2: Identify reinvestment opportunities in retail properties.

Work with retail property owners to identify and encourage opportunities for reinvestment in and modernization of their properties.

Policy PE-5.2: Encourage retail concentration.

Require or encourage retail concentrations in prime retail locations while allowing a greater diversity of ground-floor uses outside these areas.

Action 5.2.1: Create ground floor requirements.

Create requirements to provide ground-floor retail in mixed-use development projects only in the strongest retail locations, including at street intersections, near existing high-performing shopping centers, and in areas with high visibility, vehicle or pedestrian traffic, and easy access.

Policy PE-5.3: Encourage redevelopment of underperforming centers.

Pursue the redevelopment of shopping centers and districts that experience disinvestment and are not well-positioned for future success.

Action 5.3.1: Ensure appropriate zoning.

Ensure that appropriate zoning and land use regulations are in place to allow for the redevelopment of shopping centers as mixed-use centers.
Action 5.3.2: Monitor sales tax performance.

Identify underperforming shopping centers and retail properties by monitoring reductions in sales tax revenue generated at each center.
Action 5.3.3: Conduct outreach and enforcement for underperforming shopping centers.

Encourage redevelopment of antiquated and underperforming shopping centers and retail locations through a combination of ongoing owner outreach and appropriate code enforcement actions.

Policy PE-5.4: Enhance retail district environment.

Enhance the public environment in retail districts such as Downtown South San Francisco and retail nodes along El Camino Real.

Action 5.4.1: Provide public investment for streetscapes and façades.

Enhance the public realm of retail districts through public investments in the streetscape and mobility, potential façade improvement loans or grants, and collaboration with merchants or business organizations to create wayfinding and branding signage.

Policy PE-5.5: Foster a vibrant Downtown South San Francisco.

Foster a vibrant Downtown with events, restaurants, retail, and arts amenities that serve the needs and reflect the culture of South San Francisco residents.

Action 5.5.1: Target growth of arts and culture uses to Downtown and Lindenville.

Target growth of arts and culture uses in Downtown and Lindenville, with particular focus on attracting uses that are culturally relevant to city residents.
Action 5.5.2: Collaborate with Downtown community to support events.

Collaborate with merchants and merchant organizations to support cultural festivals and events that draw customers to Downtown businesses.
Action 5.5.3: Ensure zoning accommodates arts and culture uses.

Ensure zoning and other city regulations accommodate arts and culture uses such as artist studios, performance spaces, and offices of related non-profit organizations to support local artists and arts organizations.
Action 5.5.4: Support retention and attraction of resident-serving businesses.

Provide services and outreach that support retention and attraction of businesses in Downtown that provide affordable goods and services and goods and services representing South San Francisco’s diverse population.
Action 5.5.5: Expand use of public properties.

Explore expanded use of public properties in Downtown for arts and culture event programming that highlights the city’s existing cultural diversity.

Policy PE-5.6: Support development of complete neighborhoods.

Support the development of complete neighborhoods—with day-to-day goods and services located within a 20 minute walk of residents—throughout South San Francisco.

Action 5.6.1: Maintain goods and services inventory.

Identify the goods and services missing in each city neighborhood that would contribute toward meeting a more complete set of needs in “20-minute neighborhoods.”
Action 5.6.2: Coordinate with real estate community on space needs of goods and services businesses.

Coordinate with real estate brokers to develop an understanding of what types of spaces are required by businesses providing goods and services needed in 20-minute neighborhoods.
Action 5.6.3: Identify existing shopping destinations and services

Identify existing shopping centers and retail nodes that are critical for supporting individual complete neighborhoods and prioritize retention of retail uses at these locations.
Action 5.6.4: Attract retail and services to emerging residential areas.

Work with developers, brokers, and site locators to attract retail and services to areas targeted for significant residential growth where little housing previously existed—including near the Caltrain Station, portions of East of 101, and the northern portion of Lindenville.

Policy PE-5.7: Support retail businesses and restaurants in adapting to e-commerce needs.

Action 5.7.1: Provide resources and training in online marketing.

Work with technical assistance partners to provide resources and training to assist retail and restaurant businesses in online marketing and integration of e-commerce operations.

Policy PE-5.8: Engage in business recruitment and retention.

Engage in retail business attraction targeted towards filling unmet needs and supporting small, local businesses.

Action 5.8.1: Develop a neighborhood retail business attraction and retention program.
Action 5.8.2: Prioritize recruitment and retention of anchor businesses.

As needed, prioritize recruitment and retention of “anchor” businesses in retail districts and shopping centers; anchors should draw visitors either from a larger geographic area or on a regular basis, and can potentially include large retail stores, gyms, entertainment and games, and even medical offices.

Policy PE-5.9: Encourage housing and job growth near shopping districts.

Encourage housing and job growth in and near Downtown and other shopping districts to create additional demand for retail, restaurants, and services. Refer to the Land Use Element of the General Plan for related actions.

Goal PE-6

Goal PE-6:

South San Francisco residents achieve upward mobility and equitably shared prosperity.

Intent:

To support equitable access to high-quality job opportunities and positive outcomes for South San Francisco residents through education and job training partnerships with businesses, schools, and workforce development organizations, and through availability of affordable workforce housing.

Policy PE-6.1: Collaborate on workforce development programs.

Work with job training agencies and local employers and unions to implement programs to improve workforce skills, including targeting of resources to residents of color, residents with disabilities, and low-income residents.

Action PE-6.1.1: Determine skills needs of South San Francisco residents.

Regularly reassess the skills needs of businesses and industries in South San Francisco, San Mateo County, and San Francisco to determine what kinds of training programs may be most beneficial for South San Francisco residents, including residents with a high school degree or partial college completion.
Action PE-6.1.2: Seek funding and partnerships for workforce development programs.

Seek out new funding streams and partnerships for workforce development programs, such as funding from federal sources and partnerships with companies located in South San Francisco and with trade unions.
Action PE-6.1.3: Coordinate with workforce development agencies.

Continue working with local workforce development agencies that provide rapid re-employment services, training services, and other workforce development services as needed.
Action PE-6.1.4: Provide customized local workforce training.

Coordinate with local job training providers to ensure that programs are aligned with middle- and high-wage industries located in South San Francisco. If mismatches exist between the focus areas of countywide or regional workforce development agencies versus unique skill needs in South San Francisco, continue to pursue the creation of local customized workforce development services.
Action PE-6.1.5: Expand partnerships with major local employers.

Expand partnerships with major local employers that create pathways for job training and placement for residents and students, such as Genentech’s Gene Academy, Futurelab, and other STEM initiatives.
Action PE-6.1.6: Support community wide efforts to provide English as a Second Language education.

Policy PE-6.2: Coordinate South San Francisco’s employment and job training efforts with local youth educational institutions.

Action PE-6.2.1: Develop shared work program with SSFUSD.

Develop and maintain a shared work program and agreement with the South San Francisco Unified School District to coordinate education, employer skill needs, and on-the-job internship/training opportunities.
Action PE-6.2.2: Establish youth job training with local employers.

Establish agreements with major city employers to provide job training for local youth.
Action PE-6.2.3: Continue City practice of providing internships and mentoring.

Policy PE-6.3: Encourage affordable housing and access to jobs.

Encourage development of income-restricted affordable housing with easy access to major employment districts in and near South San Francisco (see the Housing Element and Land Use Element).

Goal PE-7

Goal PE-7:

South San Francisco provides a business climate that supports the success of local entrepreneurs and existing small, local, minority-owned, and culturally diverse businesses.

Intent:

To ensure South San Francisco’s small, local, minority-owned, and culturally diverse businesses can achieve success by removing barriers to opportunity and providing culturally appropriate technical resources and training for entrepreneurs.

Policy PE-7.1: Provide technical assistance information to small businesses.

Provide information to small businesses about technical assistance programs available through the City and partners such as the San Mateo Small Business Development Center.

Action PE-7.1.1: Disseminate resources.

Introduce available resources through all contacts with businesses. Examine additional opportunities to broaden access to information about these resources, such as providing materials to all establishments receiving City business licenses.
Action PE-7.1.2: Provide targeted resources to home-based businesses.

Explore providing targeted resources to home-based businesses regarding opportunities for support and for expansion into commercial and industrial spaces.

Policy PE-7.2: Explore opportunities to enhance access to capital.

Explore opportunities for developing programs that enhance access to capital for small businesses and entrepreneurs.

Action PE-7.2.1: Pursue creation of a program that provides low-cost business loans.

Explore the creation of a low-cost business loan program for local small businesses and entrepreneurs, administered and/or funded by the City of South San Francisco or outside partners.

Policy PE-7.3: Augment channels of communication with the business community.

Action PE-7.3.1: Increase coordination with business organizations.

Increase cooperation and coordinate with the South San Francisco Chamber of Commerce, the regional ethnic chambers of commerce, and other local business groups.
Action PE-7.3.2: Ensure informational materials for businesses are published in multiple languages.

Policy PE-7.4: Support the retention and formation of local businesses owned by people of color and historically disenfranchised community members.

Action PE-7.4.1: Conduct targeted engagement.

Conduct outreach to and share technical and other resources with these entrepreneurs through partnerships with culturally relevant organizations and via the promoters, community navigators, and the Community Resource Center.

Goal PE-8

Goal PE-8:

South San Francisco provides a business climate that supports the success of local entrepreneurs and existing small, local, minority-owned, and culturally diverse businesses.

Intent:

Policy PE-8.1: Maintain and implement new funding mechanisms to address the impacts of development and support infrastructure needs.

Action PE-8.1.1: Periodically update impact fees.

Periodically update the City’s impact fee schedule to reflect changing development conditions and supportable fee levels.
Action PE-8.1.2: Establish district-based financing tools.

Explore establishing community facilities districts and other district-based financing mechanisms East of 101 and in other rapidly growing areas to ensure that new development adequately covers the costs of new infrastructure and facilities needs.

Policy PE-8.2: Explore equitable services spending.

As operating revenues increase in response to citywide growth, explore how these revenues can be equitably deployed to meet the needs of residents.

Policy PE-8.3: Establish community benefits contributions.

Establish and maintain mechanisms for businesses seeking adjustments to base zoning and density standards to provide voluntary community benefits.

Action PE-8.3.1: Maintain and expand density bonus incentive program.

As appropriate, maintain and expand the City’s existing density bonus incentive program for commercial properties.

A Prosperous Economy For All

Where We Want to Be in the Future

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How Our Plan

Gets Us There

Key Issues and Opportunities

Economy and Industry Mix

policy

framework

Goal PE-1:

South San Francisco remains a premier location for biotechnology and related industries.

Intent:

Policy PE-1.1: Ensure long-term viability of biotechnology.

Action PE-1.1.1: Monitor constraints to biotechnology and related businesses.

Policy PE-1.2: Diversify the biotechnology and life science cluster to include related businesses.

Action PE-1.2.2: Biotechnology outreach.