City Hall this week released a draft of its long-in-the-works Economic Blueprint, a document compiled with the help of Morgan Hill’s private businesses and residents that outlines how the city can grow its economy in the coming years.
“From a thriving economy and highly inclusive community to a healthy environment, the community’s long-term sustainability is the foundation for all policies, projects, programs, and initiatives,” reads a portion of the Blueprint draft. “The Economic Blueprint is a significant opportunity to advance this vision and all the benefits of a sustainable community.”
In summary, the Economic Blueprint draft lists four key industries that planners expect to drive the economy and create jobs, revenues and a “fiscally sustainable future,” according to the press release:
• Innovation and advanced manufacturing;
• Retail;
• Tourism, including leisure, agriculture, wine production and recreation;
• Healthcare, particularly the medical service and diagnostics industries.
“By articulating clear intentions with these industries, and developing implementation strategies, the city, the business community, businesses, developers, investors and other economic development partners will be better positioned to realize the dividends of a focused and collaborative effort,” the Blueprint adds. “From the city’s perspective, a primary responsibility is to make land use and policy decisions that will attract investment, remove unnecessary barriers, achieve economic sustainability and in return enhance the community’s quality of life.”
The City Council will discuss and likely approve a final version of the Economic Blueprint at the April 19 meeting, starting at 5:30 p.m. at council meeting chambers, 1575 Peak Ave.
The 59-page draft is full of financial and demographic data that illustrates the need for an ongoing focus on the four categories listed above. For example, residential properties in Morgan Hill generate about 67 percent of the city’s general fund revenue, but account for about 75 percent of general fund costs. By contrast, commercial properties contribute about 28 percent of general fund revenues, but only about 21 percent of the costs, page 16 of the Blueprint draft states.
Manufacturing continues to make up the largest share (21 percent) of the roughly 16,000 jobs in Morgan Hill, followed by education and healthcare (14 percent of all employment), professional and scientific services (12 percent) and retail (12 percent).
In addition to the four key industry sectors listed above, the Blueprint also establishes “four pillars” that align with the city’s General Plan 2035 priorities: maintain the quality of life, fiscal sustainability, job growth and tourism.
The Blueprint establishes “benchmarks” that city planners and developers will be encouraged to meet along the way toward these goals. These include policies that facilitate zoning and General Plan allowances for certain types of new development, additional marketing for sports-related and lodging projects, potential new funding sources for property improvements, among many others.
The Blueprint includes detailed “work programs” that gives a timeline of when these benchmarks should be completed, and which city department will take the lead on each strategy.
Another key measurement for the success of the Economic Blueprint will be the frequent evaluation of “economic indicators” in Morgan Hill. These include:
• The city’s unemployment rate (currently 4.1 percent)
• Jobs/housing ratio (1.42 in 2010)
• The number of retail businesses in town (112 in 2015)
• Annual sales tax revenue ($8.8 million projected this year), property tax revenue ($6.3 million), transient occupancy (hotel) tax ($2.6 million)
• Commercial vacancy rate (5.24 percent in 2016)
• Total jobs in Morgan Hill (15,700 at the end of 2015)
• Business to business revenue ($1.18 million in 2016)
• Number of hotel rooms available in town (912 as of October 2016), and the vacancy rate of these rooms (now about 70 percent).
The process of drafting the Economic Blueprint began in 2015, and has been led by city staff members Edith Ramirez and John Lang. It has also included input from the council and planning commission, as well as “thought leaders” and “pathfinders” from the private sector and neighboring public agencies.
The Economic Blueprint draft can be viewed on the city’s website, morganhill.ca.gov.
