The URL can be used to link to this page

Home My WebLink AboutAgenda Item - 2026-05-26 PMECONOMIC DEVELOPMENT STRATEGY CITY COUNCIL SUBCOMMITTEE COMMUNITY DEVELOPMENT May 26, 2026 1 Agenda Overview Approval of April 27, 2026 Meeting Minutes Economic Development Strategy Vision Prioritization Exercise Business Retention and Expansion Business Recruitment Customer Attraction & Economic Vitality Marketing Review Action Items Prioritization Exercise 2 Economic Development Strategy 2026-2029 Vision Statement Options Review 4 options Vote to approve one option 3 Customer Attraction The retail and service sectors cannot survive on resident support only Businesses interviewed for the retail analysis expressed high interest in marketing and promotion to increase foot traffic to their stores/locations …A spectrum of response options exist “The most inviting, well-maintained and smartly tenanted shopping districts need ongoing promotion to shoppers to remind them of the innovative entrepreneurs and diversity of goods and services offered in their own community.” 4 Transient Lodging Tax (TLT) Lake Oswego TLT ($1.4M this year) 6% fee on hotels & short-term rentals (Airbnb/VRBO) 77% to General Fund 23% to a Tourism Fund ($328k this year) Tourism Fund Annual Expenses: $221k Arts Council – Gallery Without Walls Program $50k Festival of the Arts $50k “Promote Lake Oswego as a destination”* $10k to Chamber ad in Travel Oregon magazine *Not available next biennium, will add to Arts Council $10k to Trolly Fund $5k Utilities for Worker’s Cottage House $10k Admin Fees Currently Tourism Fund has unencumbered $295,585 one-time carryover 2026 STATE LAW Any increase in TLT fees will require a minimum of 50% of the new fees be spent on tourism promotion Travel OR – TLT rates statewide? Increased in 2010 from 4% Created in 1993 5 Business License Fees Metro Business License (~$40k to Lake Oswego/year) Lake Oswego Business License (~$370k/year) Annual Expenses: $50k Chamber Contract $320k General Fund – Planning $290k budgeted 23-24 + $72k Metro 6 2010 Lake Oswego Strategic Marketing Plan Contracted plan to focus on customer and business attraction Extensive public outreach, market research, shopper perception survey, retail market studies, business/organization needs assessment Objectives: Support economic development Solidify an identity and image concept Develop a unified Lake Oswego marketing strategy Create business district promotion strategies 7 2010 Lake Oswego Strategic Marketing Plan Findings Strengths – strong schools, arts, recreational opportunities, sense of place, beauty, community pride and affluence Weaknesses – Lack of family-wage jobs, limited affordable housing, lack of diversity, no regional-draw retailer, perception of snobbiness from all audiences, ambivalence about visitors/tourism from internal audiences The lake is more or less missed in Lake Oswego Opportunities – business diversity, establish events, development of Foothills, Willamette River Marketek projected downtown and Lake Grove could capture an additional 10% of unmet demand, i.e. an additional 279,300 SF of retail space Threats – perception of higher taxes, traffic, lack of public transportation, lack of cohesion from Lake Grove to Lake Oswego to Kruse Way, an aging population “According to the National Restaurant Association, higher income households (>$100,000) are driving restaurant sales and expansion. Study of especially affluent households (>$200,000) suggests they dine out 5-6 times per week. Over 31% of market area households fall in this category. Undoubtedly, local residents are taking considerable restaurant spending outside the Lake Oswego trade area.“ 8 2010 Lake Oswego Strategic Marketing Plan The Plan Supported by public-private implementation and funding ($150-300k) Create a Marketing Advisory Council Short term – City lead with corporate sponsors to kick-start program; outsource professional marketing services Long term – Create an Economic Improvement District (EID) Target Local employees Market area residents Greater Portland Metro residents Visitors/Tourists 9 Explore Wilsonville (dba) 2015 Tourism Development and Marketing Strategy ($100k) Conducted public engagement Plan to spend the state required TLT % Created Tourism Promotion Committee Hired firm to do social media 2025 Updated Strategy Did not do much public engagement Post COVID update How to support existing plans and market assets $300k Annual Budget (50% of total TLT) $200k Marketing contract $50-100k Related projects (ex: bike infrastructure, river access projects) 20% FTE to Manage 10 Ongoing Budget Examples Explore Wilsonville ($300,000) $200,000 Marketing Services Contract $50-100,000 Tourism Related Projects (ex: new bike infrastructure) Targeting overnight stays Visit Hood River (~$500,000) Marketing, destination management Community investment matching grant program for local businesses Visit McMinnville (Yamhill County) ($1.36 Million) Marking/communications, destination development, personnel, and overhead. Targeting day trips and overnight stays 11 Preliminary Quotes Turell Group $120k+ Strategy (one-time cost) $50k+ Annual marketing budget Lookout / Crosscurrent Collective $76k Strategy (one-time cost) TBD Annual marketing budget 12 DISCUSSION Should Lake Oswego create an updated Marketing Strategy? 13 Process Review each strategy and draft action items Discussion: Is anything missing? Is anything unnecessary? Prioritization Exercise Any suggested edits to Short, Medium, and/or Long term designations? Prioritize Short Term Prioritize Medium Term 14 Customer Attraction Is anything missing? Is anything unnecessary? 15 Customer Attraction Do you agree with “Timing”? Short term = Start in 2026 Mid-term = Start after July 2027 Long Term = Start 2028 or later 16 Economic Vitality Marketing In a competitive business environment, it is important to convey Lake Oswego as a pro-business, investor friendly city. “The City is known more as a top-quality bedroom community rather than as an economic center within the region with the exception of the Kruse Office corridor.” 17 Economic Vitality Marketing Is anything missing? Is anything unnecessary? 18 Economic Vitality Marketing Do you agree with “Timing”? Short term = Start in 2026 Mid-term = Start after July 2027 Long Term = Start 2028 or later 19 Expand/Revise the Real Estate Inventory The ability of Lake Oswego to capture unmet demand depends especially on availability of space. Retail vacancy 1.9% Office is tight where properties meet current market needs (small, flexible office space) Less than one acre of industrial land is available for development Other options to expand the local economy include: New development, including infill Building conversions/repurposing Rezoning Adding to the land base 20 Expand/Revise the Real Estate Inventory Is anything missing? Is anything unnecessary? 21 Expand the Real Estate Inventory Do you agree with “Timing”? Short term = Start in 2026 Mid-term = Start after July 2027 Long Term = Start 2028 or later 22 Next Steps Meeting 3 (Tuesday, June 9, 2026) Expand the Real Estate Inventory Finalize Prioritization and Recommendation to Council NOTE: Not covering “Initiative 6: Organizing for Success”. It all needs to be done. 23 Thank you. 24 Prioritization Business Retention/Expansion and Recruitment Short term 3 Green Dots = top priority Mid-term 2 Green Dots = top priority 25 Prioritization Customer Attraction & Economic Vitality Marketing Short term 2 Green Dots = top priority Mid-term 1 Green Dot = top priority 26 Prioritization Mid-term 3 Green Dots = top priority Long term 1 Green Dot = top priority 27 2025 TLT Rates Source: Travel Oregon https://www.travelstats.com/tlt/oregon TravelStats 28 Parking Lot Ali - Do we need more resources to do more in order to make a meaningful impact? Mayor – Business License 29 Business Retention and Expansion Do you agree with “Timing”? Short term = Start in 2026 Mid-term = Start after July 2027 Long Term = Start 2028 or later 30 Business Recruitment Do you agree with “Timing”? Short term = Start in 2026 Mid-term = Start after July 2027 Long Term = Start 2028 or later 31