poway economic development strategic plan actionable swot
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Poway Economic
Development Strategic Plan
Actionable SWOT Analysis
DRAFT
Prepared for:
The City of Poway
Prepared by:
Applied Development Economics, Inc.
255 Ygnacio Valley Road, #200, Walnut Creek, CA 94596 925.934.8712
99 Pacific Street, #200 J, Monterey, CA 93940 831.324.4896
www.adeusa.com
May 9, 2016
A p p l i e d D e v e l o p m e n t E c o n o m i c s , I n c .
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A p p l i e d D e v e l o p m e n t E c o n o m i c s , I n c .
TTAABBLLEE OOFF CCOONNTTEENNTTSS
Introduction .............................................................................................................. 1
SWOT Findings .......................................................................................................... 2
Demographic and Socioeconomic Profile ........................................................................ 3
Business and Industry Profile ....................................................................................... 7
Employment/Workforce Profile ................................................................................... 13
Community Policies and Programs .............................................................................. 19
Land Use & Development Opportunity Sites ................................................................. 24
A p p l i e d D e v e l o p m e n t E c o n o m i c s , I n c .
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INTRODUCTION The Strengths, Weaknesses, Opportunities and Threats analysis, or SWOT, is a standard provision in
strategic planning and is based on the research and analysis performed to date in the process of
preparing the EDSP. The SWOT analysis is important as it helps cull out key findings that inform
potential strategies to achieve desired economic development outcomes or objectives.
Moving beyond a standard SWOT analysis, this report utilizes what is known as an actionable SWOT
analysis: reviewing the key findings to understand how each is interrelated in potentially improving
the competitive advantage or success of Poway in reaching its economic development objectives. For
example, a Strength may be used to overcome a Weakness, minimize a Threat, or to take advantage
of an Opportunity; a Weakness may be related to a Threat, which when addressed, may eliminate or
reduce the Threat, or overcoming a Weakness may take advantage of an Opportunity.
The actionable SWOT findings will support the EDSP strategies to be developed subsequently. Use of
this enhanced model, therefore, allows an easier transition into identifying key strategies to improve
and enhance the City’s business and economic climate, and to align these strategies with the vision
and goals for economic prosperity. Through this process, the Threats and Weaknesses identified
become challenges or issues for Poway to address. The key is to turn the issues (negative value
statements) into possibilities (positive action statements) to overcome or address the issue. Similarly,
Strengths and Opportunities are resources, where the key is to utilize the resource (asset or
opportunity identified) to gain or enhance an existing advantage (advantage oriented action
statement). These action statements are essentially strategies (if general), or action items (if specific),
and will build the basis of the EDSP Action Plan.
Below, in Figure 5.1, is an illustration of where the SWOT analysis falls in the overall EDSP
preparation process. As noted, the SWOT precedes the process described above, which will lead to the
development of strategic initiatives and possibilities (i.e., strategies and actions).
A
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Demographic, Socioeconomic Analysis
Fiscal Analysis
Existing Conditions/Where the City/County is nowFuture Conditions/Where the City/County Can Be
Economic Base and Cluster Analysis
Retail Sales Analysis
Jobs/Housing Balance Analysis
Workforce Analysis
Existing Policies, Program Review
Direct and Foreign Trade Opportunity Analysis
Technological and Infrastructure Analysis
Economic Indicators, Performance Measures
Inputs
Processes
Community Outreach
Outcomes
Recommendations
Five Year Action Plan
Draft EDSP
Final EDSP
Final Vision, Goals
Preliminary Vision, Goals
SWOT Findings
Challenges
Issues/Opportunities
Possibilities/Strategic Initiatives
Alternatives
Copyright 2015
Completed
FIGURE 5.1
______________
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SWOT FINDINGS The following sections detail the key SWOT findings. These findings are categorized based on standard
economic development study areas, such as demographics and socioeconomics, business and
industry, employment/workforce, community policies and programs, and land use and development
opportunities. Supporting these findings are the background and research analyses performed in this
study: Market and Economic Analysis (Appendix B), Opportunity Site Analysis (Appendix C), Relational
Data Analysis (interviews – Exhibit D); supplemented by other information gained from recent studies
completed by organizations involved in economic development in the San Diego region, notably
SANDAG, San Diego Regional EDC, North County EDC, commercial brokerages VOIT and Cushman
Wakefield, and the information presented in the draft Poway Road Corridor Study (Complete list of
reference documents in Appendix E).
The SWOT findings identified below are reviewed utilizing the actionable SWOT model as described
previously in the Introduction. Specifically, the following questions are examined for each set of SWOT
findings in each of the general economic development topic areas:
Strengths/Weaknesses Assessment
1. What significant or moderate strengths can be leveraged or otherwise taken advantage of? How?
2. What strengths are so significant that resources should be committed to take advantage of them?
Why?
3. What significant or moderate strengths can be used to overcome significant or moderate
weaknesses? How?
4. What significant or moderate weaknesses can be minimized or eliminated? How?
5. What weaknesses are so significant that resources should be committed to overcome them? Why?
Opportunities/Threats Assessment
1. What significant or moderate opportunities can be leveraged or otherwise taken advantage of?
How?
2. What opportunities are so significant that resources should be committed to take advantage of
them? Why?
3. What significant or moderate opportunities can be taken advantage of to overcome significant or
moderate threats? How?
4. What significant or moderate threats can be minimized or eliminated? How?
5. What threats are so significant that resources should be committed to overcome them? Why?
The answers to these questions are presented in this section, first, with a summary table illustrating
the significant SWOT findings, and how they are interrelated to determine key potential actions.
Following each table, is a discussion of the key SWOT findings and the interrelationship with reference
to the analyses where appropriate. While the various analyses in this report contain many findings
regarding Poway’s strengths, weaknesses, opportunities and threats relative to its economy,
workforce, and other factors, only the most significant ones are noted in this SWOT analysis.
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DEMOGRAPHIC AND SOCIOECONOMIC PROFILE
FIGURE 5.2
ACTIONABLE SWOT ANALYSIS
DEMOGRAPHIC AND
SOCIOECONOMIC PROFILE: KEY: STRENGTHS (S) KEY: WEAKNESSES (W)
Income
Education
Ethnicity
Crime/Safety
Age
High Quality of Life
High Household Income
Quality K-12 Schools
High Educational Levels
Central Location
Safe Community
High Quality Housing
Stock/Neighborhoods
Lack of local workforce for
entry level service and
tourism jobs
KEY: OPPORTUNITIES (O)
SO ACTION OPTIONS:
(TAKE ADVANTAGE OF O USING S)
WO ACTION OPTIONS: (TAKE ADVANTAGE OF O BY
OVERCOMING W)
Attract additional
executives/mgrs
Showcase quality of life
Promote quality of life to
region
Promote quality of
live/work balance to
executives/mgrs.
Strengthen regional transit
and housing opportunities
to promote a diverse
regional workforce
KEY: THREATS (T) ST ACTION OPTIONS:
(USE S TO MINIMIZE T) WT ACTION OPTIONS: (MINIMIZE W AND T)
Concentration of jobs and
businesses in primary
employers
Promote quality of life and
centralized location to
attract additional businesses
Reduce economic risk with
expansion of business base
The primary analysis behind this category is provided in the Economic and Market Analysis in
Appendix B supplemented by the other data sources. The analysis review the general demographic
and socioeconomic characteristics of Poway, including income, ethnicity, age, education, community
characteristics (schools, crime), and other factors.
STRENGTHS
High household incomes and low poverty level
As noted in Figure 5.2, above, certain demographic factors are key strengths for Poway’s economy.
Income data for 2014 shows Poway with a median household income of $96,315, which is higher than
California ($61,489) and San Diego County ($63,996) as well as all of the regional comparison cities.
The distribution shows that about 48.4 percent of households in Poway earn at least $100,000
annually. This concentration of higher income households is also higher than California and San Diego
County, as well as, all of the regional comparison cities (Carlsbad, Escondido, San Diego, Santee,
Vista). (See Figure 3.13, Table 20, Market and Economic Analysis, Appendix B). The data also shows
Poway with about 5.9 percent of the population below the poverty level. This is much lower than
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 4
California (16.4) and San Diego County (14.7), as well as all of the regional comparison cities. Table
19, Figure 3.12, Market and Economic Analysis, Appendix B).
High Educational Levels
Educational attainment is another strength for Poway. For the population in Poway aged 25 years and
over, the educational attainment is generally very high with only 6.1 percent of this population without
a high school diploma (or equivalent). In addition, over 46 percent of this population has a bachelor’s
degree or higher. This is generally a much higher educational attainment than California and San
Diego County. It is also higher than all of the regional comparison cities, except for Carlsbad (over
50%). (see Table 17, Figure 3.11, Market and Economic Analysis, Appendix B).
Quality public school system
A high quality school system for K-12 is also a strength for Poway, where the Poway Unified School
District is continually one of the highest ranked public districts in the region and state.
Low crime rates
Crime statistics are also favorable for Poway, indicating a very safe, low crime community.
Regionally, the level of violent crime and property crime in Poway tends to be at the lowest or near
the lowest levels of any community San Diego County.
Centralized location
Finally, the centralized location of Poway in the San Diego region, particularly in North County, is
favorable for both residents and workers, providing access to most entertainment, recreational and
employment areas of the region in reasonable times via vehicles (outside of some delays in commute
hours on I-15 connections).
High Quality Housing Stock/Neighborhoods
Many of Poway’s residential neighborhoods are considered some of the most desirable in San Diego
County for families, particularly those of executives and managerial employees seeking high quality
schools, and community amenities such as parks and recreation. Neighborhoods on average, are well
maintained, have attractive landscaping and architectural features, and offer large floor plans and
amenities.
High Quality of Life
All of these factors above point to a high quality of life for Poway residents and workers. Many cities
strive for this level of quality for community life, and Poway is fortunate to have these strengths.
WEAKNESSES
Income Distribution
As noted in Figure 5.2, a key weakness in the demographics and socioeconomic factors in Poway may
be the income distribution (aggregated at the higher income levels), if there is a concern about having
a sufficient workforce in close proximity to fill mid and lower wage positions throughout the City. This
distribution can be an issue for some communities who have significant tourism assets, such as hotels,
golf courses, and large retail centers, where worker often have to travel far distances into the
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community to fill these types of jobs. This income distribution issue was raised in several stakeholder
interviews, and appears to be seen more in wage data than household income, but should be reviewed
further.
OPPORTUNITIES
Attraction of additional executives/managers
Given the strengths noted above regarding Poway’s demographic and socioeconomic factors, the City
has an opportunity for attraction of additional executives and managers, to sustain or enhance its
current predominance of that workforce and residential demographic. This appeal of Poway may not
only come from the high quality of life, particularly for quality neighborhoods and schools, but may
also appeal to managers and executives given the type of industry and businesses currently in Poway.
Showcase quality of life and central location in County
The high quality of life and central location of Poway in the County provide an opportunity to promote
and showcase these attributes for both residential and business attraction. A strong residential appeal
often leads to increased property values, better school participation, and stronger support for
community amenities such as park improvements. On the business development side, a high quality of
life can lead executives or managers to consider Poway for relocation of their businesses, if they plan
to live and work in Poway, or are attracted to amenities the community offers to the workforce. The
centralized location should both appeal to potential residents and business owners/employees who see
Poway as a convenient location to access the strong amenities and business climate south of Poway in
San Diego business parks, and in downtown San Diego, but equally proximate to those similar
attractions in north county.
THREATS
Concentration of jobs and businesses in primary employers
One potential key threat to the community’s quality of life and economy may be the concentration of
employment and employers in several main businesses. As shown in Figure 5.3 below, General
Atomics workforce alone is 16% of total employees; the top five companies equal 27% of total
employees. A relocation or shut down of a major employer could have an impact on the quality of life
of Poway with a sharp reduction in business to business sales, spending by employees, or even
relocation of managers/executives out of Poway.
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FIGURE 5.3
TOP 20 EMPLOYERS
EMPLOYER BUSINESS TYPE APPROX.
EMPLOYEES % OF TOTAL
% OF TOP 20
1 General Atomics Aeronautical MFG 4,947 16% 43%
2 Geico Financial/Insurance 1720 6% 15%
3 Delta Design 750 2% 6%
4 Pomerado Hospital Hospital 738 2% 6%
5 Sysco Food Distribution 385 1% 3%
6 H&M Electronics Electronic/Communication MFG 315 1% 3%
7 Walmart General Merchandise 300 1% 3%
8 Neal Electric Corp Electrical Contractor 275 1% 2%
9 Micthell Repair Information Publisher 268 1% 2%
10 Costco General Merchandise 263 1% 2%
11 Arch Health Health Care 200 1% 2%
12 Tekworks, Inc. Electrical Contractor 200 1% 2%
13 Teledyne Ryan Aeronautical MFG 186 1% 2%
14 Electronic Control Systems 175 1% 2%
15 Poway Health Care Center Nursing & Residential Care Facility 175 1% 2%
16 Villa Pomerado 165 1% 1%
17 Aldila Golf Corp Sport & Athletic Goods MFG 154 1% 1%
18 Anderson Direct Digital Direct Mail Advertising 145 0% 1%
19 Home Depot Home Center 141 0% 1%
20 Horizon Hospice Home Health Care SVC 135 0% 1%
Total 11,637 38%
Source: City Business License Records
ACTIONABLE OPTIONS
As noted in Figure 5.2, there a several interrelated options Poway can take to improve its economy
through focusing on. A few examples include the following:
Poway may be able to leverage its strengths in quality of community life and demographics
to gain the opportunity of attracting additional executive and managerial worker households
to Poway. This option will continue to ensure the base of high income, high education levels,
create demand for good schools, and provide demand and funding for more community
amenities (parks, entertainment, and restaurants).
The use of these strengths may also be used to gain an opportunity to attract empty nest
near-retirement double income or professional couple households. This option would likely be
dependent on the success of the Poway Road Corridor revitalization areas to provide mixed
use housing stock, with sufficient adjacent amenities (as an alternative to standard
subdivisions in Poway). The trend of the near retirement baby boomer to “move back to the
city” is not only for large urban areas, but often in suburban cores that provide similar
amenities without the urban density challenges (crime, traffic, noise).
An opportunity may also be to attract executives/managers in this demographic profile
whose business is in Poway but live outside the City to move close to their business to
eliminate the commute (discussed further in the next section on worker/resident commute
patterns).
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BUSINESS AND INDUSTRY PROFILE
FIGURE 5.4
ACTIONABLE SWOT ANALYSIS
BUSINESS AND INDUSTRY
PROFILE: KEY: STRENGTHS (S) KEY: WEAKNESSES (W)
Economic Drivers/Key
Industries
Top Employers
Industry Clusters
Economic Base
Direct and Foreign
Investment
Recent Job Growth in Key
Poway industry sectors
Recent Job growth in
economic base and
emerging industries
Key industry traded
clusters and growth
clusters
Export values
Lack of overall job growth
in comparison to the region
Concentration of major
employers
Recent Decline in Financial
sector industry
employment
Continuing Decline in
Manufacturing industry
employment
KEY: OPPORTUNITIES (O) SO ACTION OPTIONS:
(TAKE ADVANTAGE OF O USING S)
WO ACTION OPTIONS:
(TAKE ADVANTAGE OF O BY
OVERCOMING W)
Projected employment
growth in key industries
Projected growth in key
traded clusters
Expansion of Clean tech
cluster
Potential for Secured
defense cluster
Job growth in Professional,
Scientific and Technical
industry category could
help foster clean teach and
defense cluster growth
Partner with existing
defense contractors to
create secured aerospace
and defense facility/cluster
Partner with clean tech
companies to determine
expansion, attraction
opportunities
Promote key traded
clusters and clusters with
growth potential
Diversify economic base
with emerging growth
industries by promoting
clean tech
Promote key base industry
sectors such as
manufacturing health care,
and financial services
KEY: THREATS (T)
ST ACTION OPTIONS:
(USE S TO MINIMIZE T)
WT ACTION OPTIONS:
(MINIMIZE W AND T)
Loss of major business will
disrupt local economy
Further decline in job
growth for manufacturing
Further decline in Financial
sector industries
Promote secured aerospace
and defense facility/sector
to expand manufacturing
base
Promote clusters with
growth potential to widen
or diversify business base
Diversify economic base
with emerging growth
industries
Promote key base industry
sectors such as
manufacturing health care,
and financial services
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The primary findings in this section are based primarily on the analysis in the Economic and Market
Analysis in Appendix B, supplemented by other research data, including interviews. The business and
industry profile typically reviews the following: Economic Drivers/Key industries, Top Employers,
Industry Clusters, Economic Base, Direct and Foreign Investment. Provided above, in Figure 5.4 is a
summary of these findings.
STRENGTHS
Recent (Post-recession) job growth in key Poway industries
The top five industry categories in Poway by 2014 employment, in order, are as follows:
Government
Manufacturing
Retail Trade
Construction
Finance and Insurance
Followed in employment by:
o Health Care and Social Assistance,
o Wholesale Trade,
o Professional Scientific and Technical Services.
The key industries by employment for the County region include Government, Health Care and Social
Assistance, Accommodation and Food Services, Retail Trade, Professional Scientific and Technical
Services (Tables 1,2 Market and Economic Analysis, Appendix B). The employment growth rate in the
County for the years between 2009 and 2014 (essentially, post Great Recession) was 6.8 percent
overall. This indicates that San Diego County has had a substantial recovery, particularly in
comparison to other metropolitan areas of the country.
While the overall job growth since the recession in Poway was low, at 1.2%, there were several
industries that grew significantly during this time period from the list noted above: Construction
(6.6%), Wholesale Trade (18%), Retail Trade (8.6%), Health Care and Social Assistance (18%), and
Professional, Scientific, and Technical Services (10%). Some of this growth is evidenced in the several
significant sized employment businesses in Poway: General Atomics, GEICO, Sysco Foods, Pomerado
Hospital, Teledyne RD Instruments, Bilstein Shocks, Hoist Fitness, and Corovan.
Several Growing Economic Base and Emerging Industries
Based on the growth and employment concentration information provided for employment data, a key
strength for Poway and the region are several growing economic base industries: those sectors with
high concentration of jobs compared to the rest of California (high location quotient) and a positive
relative job growth rate (Table 1-3, Market and Economic Analysis, Appendix B; Employment by
Industry and Cluster, SANDAG, April, 2016). The industry categories meeting these criteria for the
County of San Diego are Professional, Scientific and Technical Services, Educational Services, Health
Care and Social Assistance, Arts, Entertainment and Recreation, Accommodation and Food Services.
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For Poway, the growing economic base industries are Health Care and Social Assistance, and
Government (Table 2-3, Market and Economic Analysis, Appendix B).
Emerging industries are also an important asset of an economy (those sectors with positive relative
growth but low existing job concentration). For the region, significant emerging industries in terms of
growth and employment found were Food Manufacturing, Merchant Wholesalers, Repair and
Maintenance. For Poway, significant emerging industries are Accommodation and Food Services, Arts,
Entertainment and Recreation, Professional, Scientific and Technical Services, and Management of
Companies and Enterprises. (Table 2-3, Market and Economic Analysis, Appendix B).
Key Traded Clusters and Cluster Growth
Traded industry clusters are groups of interrelated, export-oriented industries that bring new money
into the region by exporting goods and services. Traded clusters generally include industries that do
not primarily rely on local business trade and household spending. (Presentation on Employment by
Industry and Cluster, SANDAG, April, 2016) Criteria for determining key traded clusters (those
clusters with the best potential for business expansion and attraction) have been developed based on
cluster models from a joint venture of the Harvard Business School and U.S. Economic Development
Administration, known as the U.S. Cluster Mapping Project (Economic and Market Study, Appendix B).
For the San Diego region, key traded industry clusters include the following:
Aerospace vehicles and defense
Biopharmaceuticals
Education and Knowledge Creation
Medical Devices
Water Transportation
For Poway, based on these criteria, key traded clusters can be categorized as the follows:
Primary Clusters
Aerospace Vehicles and Defense
Medical Devices
Clusters with Potential Growth
Biopharmaceuticals
Insurance Services
Paper and Packaging
Recreational and Small Electric Goods
Upstream Metal Manufacturing
Clusters with Concern for Further Loss
Communications Equipment and Services
Information Technology and Analytical Instruments
Production Technology and Heavy Machinery
(Excerpted from Figure 3.7 Key Industry Traded Clusters, Market and Economic Analysis , Appendix B)
(Tables 6-10, Market and Economic Analysis, Appendix B).
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Export values
As recorded for 2013, the total value of exports (as represented by the amount received in the region
from foreign and external domestic sources) totaled $7.23 Billion. This is a significant amount for a
City the size of Poway and reflects the strength of the key industries that provide these exports,
namely, manufacturing and finance and insurance. Other primary exporter industries for Poway
include Real Estate and Rental and Leasing, Professional, Scientific, and Technical Services, and Health
Care and Social Assistance. (Table 26, Economic and Market Analysis, Appendix B).
WEAKNESSES
Lower Overall Employment Growth
As noted above, a key weakness is the slower overall economic growth in the post-recession period for
Poway, as measured by employment growth, in comparison to the County as a whole. Specifically, the
employment growth rate in the County for the years between 2009 and 2014 was 6.8 percent overall,
indicating that San Diego County has had a substantial recovery, particularly in comparison to other
metropolitan areas of the country. The overall job growth since the recession in Poway was at 1.2%
overall, though some industries did grow faster as noted in the Strength section. (Tables 1-3, Market
and Economic Analysis, Appendix B).
Declining base industries
A key weakness in the economic base for Poway is shown in the declining growth in the post-recession
period in the Government (-2.5%), Manufacturing (-9%) and Finance and Insurance (-9.8%)
industries. (Table 2, Market and Economic Analysis, Appendix B). This weakness may be somewhat
mitigated, as for the San Diego region, these same industries also experienced a decline, though at
lower rates, except for Government, which was essentially flat. This decline is particularly a concern
when added to the fact that Poway’s primary employers are concentrated in number, and several
operate in these specific declining larger industry sectors. It is helpful to note these sectors are
essentially at the two and three digit NAICS code level, so further evaluation of specific business types
within each industry may reveal different trends, particularly for aerospace/defense contracting, where
the traded cluster analysis indicates strong growth in this manufacturing subset.
OPPORTUNITIES
Projected employment growth in key industries
The largest projected employment growth for 2015-2025 as predicted by the employment data are
estimated to occur in Professional, Scientific and Technical Services, Health Care and Social
Assistance, Accommodation and Food Service, Retail Trade, and Government industries. For Poway,
the largest projected job growth is estimated to occur in Professional, Scientific, and Technical, in
Construction, in Wholesale Trade, in Retail Trade, in Finance and Insurance, and in Health Care and
Social Assistance industries. (Table 4-5, Market and Economic Analysis, Appendix B). Building on the
commonality between regional and local projections, the Professional, Scientific, and Technical, the
Health Care and Social Assistance, and the Retail Trade may be the best growth industries given the
synergy between regional and local industry growth.
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Projected growth in key traded clusters
Between 2015 and 2025, the traded clusters in San Diego County show an overall projected growth of
over 47,600 jobs (see Table 9 Market and Economic Analysis, Appendix B). For Poway, this growth is
projected to be about 700 jobs through 2025. For the region, the top traded clusters to grow include
Biopharmaceuticals, Hospitality and Tourism, Communications Equipment and Services, Aerospace/
Defense, Medical Devices, and Education and Knowledge Creation. For Poway, the top three traded
clusters projected to grow in the next ten years by number of new jobs are as follows:
Base or Primary Cluster: Communications Equipment and Services (158), Aerospace Vehicles and
Defense (121), Biopharmaceuticals (31)
Non- Primary but Growth: Insurance Services (503), Upstream Metal Manufacturing (94), Hospitality
and Tourism (58)
(see Table 9-11, Market and Economic Analysis, Appendix B).
Emerging industries
Those industry sectors and traded clusters with positive relative growth but low existing job
concentration, or are not identified currently as key cluster (per the US Cluster Mapping Project) may
be good opportunities to focus on for business attraction or expansion in San Diego County and
Poway. For the region, these emerging industries include Financial Services, Distribution and
Electronic Commerce, and Business Services. For Poway, some potential rising stars and projected job
growth estimates include Business Services (358), and Distribution and Electronic Commerce (216).
It is interesting to note these traded industry clusters are estimated to have some of the highest
projected employment growth compared to other clusters in Poway.
Other key industries in the region that have experienced significant growth are Food Manufacturing
and Beverage Manufacturing (specifically, Breweries). Give their significant growth, and San Diego’s
concentration and reputation for a prominent micro craft brewery industry, these are potential
industries for attraction/expansion in Poway.
Cybersecurity could be real opportunity with General Atomics as lead with cluster of smaller
companies to support and grow
Another key industry and traded cluster area with recent growth in the region and potential target for
Poway is clean-tech. Poway may have an opportunity here given the several companies engaged in
the clean tech industry currently in Poway, such as Blue Ocean and Clean Spark. Additionally, there
could be an advanced or precision manufacturing cluster in Poway as it is less expense there than
other coastal areas of San Diego. One example in Poway is Ocean Arrow which manufactures
unmanned ocean surface vessels. Finally, one suggestion from interviews with stakeholders was to
create a global traded sector incubator, located in the South Poway Business Park to foster business
development in trade companies and partnerships to expand exports.
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THREATS
Projected decline in key industries
Similar to reviewing projected industry and traded clusters for potential employment growth, it is
important to review the data for those industry sectors and cluster predicted to decline significantly.
For the region, Manufacturing and Unclassified are the sectors projected to decline the most over the
next ten years, though they are mostly flat. For Poway, the same two categories anticipate a decline
in employment. There is particular concern about projected future decline in Manufacturing,
particularly, when this industry sector comprises a significant portion of the Cities gross Regional
Product (22%) (Table 22, Market and Economic Analysis, Appendix B).
Traded Cluster decline
For the region, industries projected to decline are Communications Equipment and Services,
Information Technology and Analytical Instruments, Recreation and Small Electric Goods, and Water
Transportation.
For Poway, the decline in key traded industry clusters is projected to be in Production Technology and
Heavy Machinery, Information Technology and Analytical Instruments, and Marketing Design and
Publishing. When comparing traded clusters relative to San Diego County, additional cluster job losses
are projected for Automotive and Downstream Chemical Products, though the employment in these
clusters is small. (Tables 9-11, Market and Economic Analysis, Appendix B).
As noted above, this potential decline is particularly a concern as several of these cluster are related
to manufacturing, and further, when added to the fact that Poway’s primary employers and
employment is concentrated in number.
ACTIONABLE OPTIONS
As noted in Figure 5.4, there are many interrelated options Poway can take to improve its economy
through focusing on target industry growth and decline. A few examples include the following:
Utilize the strengths of Poway and the region to take advantage of the opportunity of
projected job growth in the Professional, Scientific and Technical, and Health Care and Social
Assistance industries, could help foster growth in defense contractors, other technical or
component manufacturers, and health care providers.
Overcome the weakness of a concentration of employers/employees in key industries by
promoting the opportunity of emerging growth industries, such as clean tech, food or
beverage manufacturing or other emerging businesses in Poway.
Promote the strength of Poway for a potentially secured aerospace and defense facility/cluster
to overcome the threat of a regionally and locally declining manufacturing base.
Minimize the current weakness and potential threat in overall employment growth, by
promoting key base industry sectors and traded clusters with recent strong post-recession
growth, such as, health care, insurance, aerospace, wholesale trade, retail trade, and
professional, scientific and technical industries.
P a g e 13 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
EMPLOYMENT/WORKFORCE PROFILE
FIGURE 5.5
ACTIONABLE SWOT ANALYSIS
EMPLOYMENT/WORKFORCE
PROFILE: KEY: STRENGTHS (S) KEY: WEAKNESSES (W)
Occupational Trends and
Patterns
Workforce skills and
characteristics
Strong growth trends in
several occupations
management, business
science and arts workforce
is comparatively strong
Low unemployment
Strong live/work balance
for some residents
Slow occupational growth
overall
Declines in Occupations
related to several key
industries - Manufacturing
(Production, Engineering)
KEY: OPPORTUNITIES (O) SO ACTION OPTIONS:
(TAKE ADVANTAGE OF O USING S)
WO ACTION OPTIONS:
(TAKE ADVANTAGE OF O BY
OVERCOMING W)
Projected growth in
occupations overall in
State, County and Poway
and in Poway for several
key areas supporting key
base industries and
potential growth industries
Continued high quality of
life and strong household
income
Strong wage growth
projected for region and in
high wage earners
Promote high quality of life
and live/work opportunity
in Poway with housing
/employment opportunities
Potential occupational
growth pattern may
provide strong workforce
for Poway Rd commercial
uses and for South Poway
Business park businesses
Projected growth in specific
occupations that support
key industries may
overcome previous declines
Regional wage growth may
benefit Poway more
compared to other
jurisdictions
KEY: THREATS (T) ST ACTION OPTIONS:
(USE S TO MINIMIZE T) WT ACTION OPTIONS: (MINIMIZE W AND T)
Continued decline in
occupations related to key
industries
Continued commute
pattern out of and into
Poway
Promote strong live/work
balance to Reduce
commute pattern
Monitor occupational
growth or decline in
occupations related to key
base and emerging
industries
The SWOT summary in Figure 5.5, above, is based primarily on the analysis in the Economic and
Market Analysis in Appendix B, for occupational trends, supplemented by other research data,
including interviews. The workforce analysis covers occupational trends and patterns, workforce
skills and characteristics, and wage trends.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 14
STRENGTHS
Growth trends in several occupations
While Poway’s occupational growth trend for 2001-2014 only showed growth at 2.8%, there has been
greater growth over this time period primarily in the following occupations:
Health care related, including practitioner and technical positions
Personal and service
Food preparation and service
Sales and related
Office and administrative support
Business and financial operations
Transportation and moving materials
Recent, post-recession growth has also occurred most significantly in the following occupations:
Construction and extraction
Installation, maintenance and repair
Some lesser growth by number of jobs, but key to growing industries, is the following occupations:
Life, physical, and social sciences
Management
(Table 13, Economic and Market Analysis, Appendix B)
Management, business science and arts workforce is comparatively strong
Overall, and in comparison to neighboring communities, Poway has a higher percentage of its
workforce in management, business science and arts occupations (49.8% of total workforce) than the
county region, state or comparison cities, with the exception of the City of Carlsbad. (Table 21, Market
and Economic Analysis, Appendix B)
WEAKNESSES
Slow overall occupational growth trend
While the San Diego region grew over the 2001-2014 period at 9.3%, and somewhat less in the in the
post-recession period (6.8%), Poway, had slower overall growth in occupations from 2001-2014
(2.7%) and during 2009-2014 (1.1%). (Table 12, Economic and Market Analysis, Appendix B)
Decline in occupations that support target industries or traded clusters.
As important as slow occupational growth, is the decline in occupations that serve key target or
emerging industries. The recent occupational declines for Poway occurred most significantly in
production occupations, engineering and architectural occupations, and personal care and service
occupations. Other key occupation for Poway experiencing a decline or flat growth is management,
and business and financial operations. These categories relate to several of Poway’s key industries
including, professional, scientific and technical, and manufacturing. Key traded clusters, such as
P a g e 15 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
aerospace vehicles and defense may also be affected by these reductions in occupational workforce.
(Table 13, Economic and Market Analysis, Appendix B)
OPPORTUNITIES
Projected growth in occupations overall and in several key areas
For the future in San Diego County region, projected occupational growth is estimated to be highest in
healthcare practitioners and technical, healthcare support, and personal care and related occupations.
There are strong increases, however, in all categories and strong growth overall at 15%, with the
exception of a decline in fishing, farming, and forestry occupations. This trend is mirrored at the state
level. Projected occupational growth in Poway is estimated to be similar to these same occupations,
and for those shown above for Poway, but notably, also in other key occupations of management,
business and financial operations, and computer and mathematical occupations which correspond with
several of Poway’s base and emerging industries. Overall, occupational growth is estimated to be
relatively strong at 12.2% over this ten year period.
THREATS
Projected declines in occupations that related to key industries
A potential threat to Poway’s economy is if the recent declines in the occupations of production, and
architectural and engineering related professions continue, as estimated. As noted previously,
declines in these areas could impact key industries such as manufacturing, and key traded clusters
such as aerospace vehicles and defense.
Continued commute pattern out of and into Poway
Reviewing the commute pattern for residents leaving Poway for work, and workers coming into Poway
businesses, reveals the following patterns as shown in Figure 5.6 on the following page.
This figure illustrates that a significant amount of Poway residents who are in the workforce commute
out of Poway to their jobs in other locations of the County (88.6%), and a significant amount of
workers in Poway live outside and commute in (91.8%). Only a small percentage of employees or
residents both live and work in Poway. This movement in and out of the City creates a burden on
regional infrastructure and access points on local roads coming into and out of the City. The commute
also places a burden on the workforce of Poway by having to spend time in traffic at these access
point bottlenecks, particularly, I-15 interchanges. Further, given the significant size of this
outflow/inflow relative to workforce and employment, the City is essentially “turning over” every work
day with incoming workers replacing outgoing residents as the predominant population.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 16
FIGURE 5.6
INFLOW/OUTFLOW PRIMARY JOBS
FOR ALL WORKERS IN 2014
Source: United States Census Bureau
P a g e 17 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
Where residents in Poway work throughout the County is shown below in Figure 5.7:
FIGURE 5.7
______________
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 18
This heat map shown above, illustrates that while employment for Poway workers is spread
throughout the County, the highest concentrations are within close proximity to Poway. There may be
some difficulty in promoting the advantage of living and working in Poway by lessening the commute,
if a significant portion of workers commute short distances out of Poway.
ACTION OPTIONS
As noted in Figure 5.5, there are many interrelated options Poway can take to improve its economy
through focusing on employment and occupations relating to the target industry growth. A few
examples include the following:
The opportunity from regional wage growth and it higher proportional benefit to the highest
wage earners, may benefit Poway more than other communities given Poway’s higher income
households and strengthen incomes for Poway’s households as (SANDAG, 2016 San Diego
Employment by Industry and Cluster)
The strength of the City as a community with a strong potential live/work balance and quality
of life, could be promoted to overcome the threat of a reduction in that quality of life from the
existing commute pattern out of the City.
Projected growth in specific occupations that support key industries may be an opportunity to
overcome a weakness in previous declines.
P a g e 19 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
COMMUNITY POLICIES AND PROGRAMS
FIGURE 5.8
ACTIONABLE SWOT ANALYSIS
COMMUNITY POLICIES AND PROGRAMS: KEY: STRENGTHS (S) KEY: WEAKNESSES (W)
Community vision/identity
incentives
fees
public investment
development services
business development
workforce development
Leadership in Council and
staff in economic and
community development
Poway Rd Corridor
revitalization initiative
Administrative level land
use development approvals
Lack of clear strategy and
action plan for business
attraction, retention and
expansion
Ambivalence on community
identity and vision
Inventory of tools and
incentives may be
incomplete
KEY: OPPORTUNITIES (O) SO ACTION OPTIONS:
(TAKE ADVANTAGE OF O USING S)
WO ACTION OPTIONS: (TAKE ADVANTAGE OF O BY
OVERCOMING W)
Poway Road Corridor
Revitalization
Strong regional economic
development eco-system
Implement Poway Rd
Corridor Study
recommendations to
realize revitalization
objectives
Partner with agencies,
organizations, and private
industry in economic
development actions
Adoption and
implementation of
Strategic documents
(EDSP, Poway Rd Corridor
Study)
Improve and define
identity with Poway Rd
revitalization
KEY: THREATS (T) ST ACTION OPTIONS:
(USE S TO MINIMIZE T) WT ACTION OPTIONS: (MINIMIZE W AND T)
Complacency in city policy
or action
Integrate strategic
documents/fund action
plans in annual budget
Clearly define vision and
image for Poway
Implement economic and
community development
strategies including the
addition of new tools and
incentives
The SWOT summary in Figure 5.7, above, is based primarily on interviews and research with city
documents and policies. A review of community policies and programs is important to understand
how the City as an organization is formally and informally addressing community and economic
development objectives.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 20
STRENGTHS
Leadership by Council and staff in economic and community development
In interviews with stakeholders, City elected officials and staff were seen as proactive and willing to sit
down and talk with new businesses about moving to Poway or expanded in Poway. This interactive
approach makes a significant difference to tenants and businesses who are considering investing in a
location in Poway. Additionally, in March of 2015, the City Council adopted a 2015-2020 Strategic Plan
which specifically set a goal to “Promote Economic Development” and included 30 strategies and
tactics to achieve this goal.2 Similarly, the City Council set a goals for Supporting Public Safety and
Maintaining Quality of Life which are also critical for community and economic development. These
strategies are evidence of a proactive effort and leadership in setting a vision and goals for Poway in
community and economic development.
Administrative level development approvals for development review
services
Currently, staff has the authority for administrative review for site plan and development entitlements
within the South Poway Business Park. This streamlined development review processes, including
environmental review covered through a negative declaration or mitigated negative declaration is a
significant advantage to developers and businesses relative to the timeframe for development and
occupancy of property.
WEAKNESSES
Lack of clear strategy and action plan for business attraction, retention and
expansion
While the City of Poway does have dedicated staff and has developed some vision and focus on
economic development, there is a lack of a clear defined strategy and action plan. The EDSP in
conjunction with the Poway Rd Corridor Study recommendations, however, are intended to provide the
basis for this strategy and action.
Ambivalence on community identity and vision
Poway’s image over the years has oscillated between a country feel and a city/semi-urban destination,
reflected in the disparity of land use patterns, architecture, and overall image. This ambivalence is
expressed in the City’s official tagline: “city in the country”, which some stakeholders interviewed liked
and saw as a viable description, and others felt was dated and not accurate or desirable. The
community has enjoyed a status of a premier live/work destination for management, executives and
families, as is reflected in the quality of schools, workforce, income levels, quality of housing and
neighborhoods, recreational amenities, quality of large business park, and other factors. It was often
stated by stakeholders that it is not clear what the real image or vision of Poway is or should be, and
how that image should be projected to the larger region in order to strengthen and enhance Poway’s
quality of life and the vitality of its business districts. Further, some stakeholders noted the City was in
a transition period between modern, vibrant community, and some contemporary with older country
2 City of Poway Strategic Plan 2015-2020, Adopted March, 2015.
P a g e 21 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
feel. Finally, it was expressed by stakeholders interviewed that Poway’s image and vision as a
business center is not well defined or known in the region, particularly in comparison to cities such as
Carlsbad or areas of San Diego as Sorrento Valley or Torrey Pines.
Inventory of tools and incentives may be incomplete
Currently, the City of Poway utilizes a variety of tools and incentives to help in business retention,
expansion and attraction, and in workforce development. The following is a list of the programs or
specific incentives:
Programs offered and promoted on the City’s Economic Development Web site:
http://www.poway.org/815/Business-Incentives . This includes websites created by the City for
business site selection and market analysis (www.PickPoway.com), and small business
assistance (www.poway.toolsforbusiness.info).
The City partners with the North San Diego Small Business Development Center to host
monthly business assistance workshops held at Poway City Hall, and annual “Meet the Buyers”
workshops held at Poway City Hall.
Programs offered by the city or in partnership with other agencies for workforce development in
Poway primarily include those led by the San Diego Workforce Investment Board / San Diego
Workforce Partnership as these organization provides the majority of the workforce training in
the San Diego Region in conjunction with two and four year colleges and universities.
The San Diego North Business Chamber has also developed a soft skills training program
(Strategies for Success) to address lack of “soft skills” among newer employees. The lack of
soft skills was ranked as the top training need by the Chamber’s members.
Incentives for property development or redevelopment currently offered do not include allocation of
direct resources by the City, but the City does promotes available low cost financing programs, tax
exemption programs, and tax credit programs.
The list above is good foundation for tools and incentives for economic development, particularly for a
City the size of Poway with limited resources. There may be additional tools to consider, however,
particularly as it relates to property development. Primary tools utilized include Enhanced
Infrastructure Financing Districts (EIFDs), Community Benefit Districts (CBDs or property based
improvement districts), land write downs, and sales tax rebate agreements. As these incentives and
programs require use of City funds, careful policy consideration has to be given as to these type of
incentive programs.
OPPORTUNITIES
Strong regional economic development eco-system
The San Diego region has a strong economic development environment or eco-system, both in public
agencies, including regional and sub-regional EDOs, SANDAG, universities, municipal departments,
and non-profit industry trade groups, but also in private sector activities and initiatives. The City of
Poway staff and elected officials could tap into additional resources for business and workforce
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 22
development for Poway through strengthening relationships with these agencies, organizations, and
private companies. Some specific entrepreneurship, start up and acceleration programs in the region
include:
Connect - Founded in 1986 by UC San Diego as an internal department in partnership with the
San Diego Regional EDC and private sector businesses, Connect was established as an
organization to transform San Diego’s growing research capabilities into an economic driver to
increase the prosperity of the region.
MakerPlace - MakerPlace is a San Diego based accelerator that provides workspace for
entrepreneur inventors including metal, wood and electronics shop equipment.
EvoNexus - EvoNexus strives to be the world’s best technology incubator with locations in San
Diego and Irvine.
FabLab - FabLab is a design and fabrication laboratory for entrepreneurs and inventors.
Provides access to manufacturing equipment, including 3-D printers and laser cutters; low-cost
advanced manufacturing training and STEM/STEAM educational programs.
Foundry Medical Innovations - An incubator space for diagnostic and medical device start-
ups offering shared workspace and access to prototyping & engineering services.
Felena Hera Hub - Hera Hub is a shared, flexible work and meeting space where
entrepreneurial women can create and collaborate in a professional, productive, spa-like
environment.
Hera Labs - Hera LABS is a unique business accelerator for aspiring entrepreneurial women.
The program provides female start-ups, in all industries, a safe place to test ideas and grow
their business.
Jlabs-San Diego - Established by Johnson & Johnson to provide research lab space including
wet labs, shared equipment, shared cell culture labs and operations management services to
local start-up companies.
Lab Fellows - San Diego co-lab and equipment sharing network making infrastructure
accessible to academic, entrepreneur, and industry scientists.
Wireless Health Hub - An entrepreneurial accelerator program hosted, facilitated and
managed by SoCal EED a 501 (c) (3) nonprofit. Wireless Health Hub provides an industry-
specific, mentorship-driven Seed Accelerator program to guide companies through early stages
of launch.
Qualcomm Robotics Accelerator - The Qualcomm Robotics Accelerator, powered by
Techstars, is helping robotics startups take their ideas to the next level and transform the
world, one robot at a time.
West Health Incubator - The West Health Incubator is a medical technology incubator.
P a g e 23 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
Poway Rd Corridor Study/Revitalization effort
One of Poway’s greatest opportunities is to maintain and enhance its potential competitive advantage
in the region as a premier live/work destination for management, executives and families. A vibrant
Poway Rd Corridor, as the center commercial district of the city would help solidify that advantage and
potentially create greater demand for residence or employment in Poway. While many jurisdictions in
San Diego County have seen benefit of planning for and developing a downtown, many stakeholders
felt the City of Poway has not. One trend to support economic development, particularly in smaller
communities where larger business parks or industrial or office park land is not available, is to start
with their downtown, and utilize incentivizes, promotions, rezoning, and other means to attract
investment, workers and residents to create a vibrant place and space. Such revitalization can have a
positive spiral affect by creating a residential density but also a driver for future economic
development with long term cultural and economic changes. Some examples in the county could be
San Marcos, downtown SD, Escondido, Carlsbad, El Cajon, Vista, and even in Lemon Grove, with new
Transit Oriented Demand housing developments.
THREATS
Complacency in city policy or action
As local communities are consistently challenged for resources and face many service and
infrastructure demands, often strategic policies or actions get pushed aside or lowered in priority.
Cities that succeed in economic development efforts will prioritize these expenditures toward key
actions and strategies, understanding the return than comes from enhancing the industry base or
workforce skill level, as well as that from commercial revitalization or recreational/entertainment
amenities. Often, these action items require longer timeframes to realize the results (such as industry
attraction or rezoning and property development) which can push down their priority in the face of
increasing service demands for public safety, recreation, or other core municipal services. The
resulting revenues and economic impact, however, of economic development and commercial
revitalization strategies, often provide significant returns beyond the annual appropriations to
implement the action items required.
ACTIONABLE OPTIONS
As noted in Figure 5.8, there are many interrelated options Poway can take to improve its economy
through focusing the communities’ policies and programs relating to economic and community
development. A few examples include the following:
Adopt the forthcoming Poway Rd Corridor Study recommendations as a strong policy direction
to realize the opportunity for Poway Rd revitalization.
Continue and expand the strong partnerships with agencies, organizations, and private industry
involved in economic development to take advantage of the opportunity to leverage resources
to implement action items for business retention, expansion and attraction, and workforce
development.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 24
Integrate the forthcoming EDSP and Poway Rd Corridor Study into the annual budget process
as to fund priority action plans to minimize the threat of complacency in implementing
economic and community development strategies.
Clearly define a vision and image for Poway to remove a perception of weakness in an
outdated or ambivalent community identity, and to provide focus for community and economic
development objectives.
LAND USE & DEVELOPMENT OPPORTUNITY SITES
FIGURE 5.9
ACTIONABLE SWOT ANALYSIS
LAND USE AND DEVELOPMENT SITES: KEY: STRENGTHS (S) KEY: WEAKNESSES (W)
Opportunity sites
(Employment, Revenue,
Commercial,
Recreation/Entertainment)
Key business districts, i.e.,
Poway Rd Corridor, South
Poway Business Park,
North Poway
Infrastructure Capacity
A variety of viable
opportunities sites for
employment generation,
revenue generation,
commercial revitalization
and recreational/
entertainment amenities.
Strong regional
employment and business
center with the South
Poway Business Park
Poway has one central
business district/ primary
commercial corridor in a
centralized location
Substantial medical/health
center including Pomerado
Hospital
Significant recreational
amenities
Several significant retailers
serving community and
region
Primary infrastructure in
place and serving
properties and opportunity
sites
Underutilization of several
areas along Poway Rd
Access between business
districts and residents and
districts potentially
constrained with
infrastructure limitations
Some Market dynamics
and forces for
Industrial/Flex R&D and
commercial development?
Lack of substantial long
term land inventory for
industrial and flex R&D?
P a g e 25 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
The primary findings in this section are based on the analysis in the Opportunity Site Analysis in
Appendix C, supplemented by other research data, including interviews. The Land Use and
Development Opportunity profile typically reviews the following: Opportunity sites (by land use and
economic development objective), key business districts, and infrastructure capacity. Provided above,
in Figure 5.9 is a summary of these findings.
STRENGTHS
Poway has a variety of viable opportunities sites for employment generation,
revenue generation, commercial revitalization and recreational/entertainment
amenities.
As detailed in the Opportunity Sites Analysis in Appendix C, there are a variety of available sites for
development of industrial, commercial and recreational/entertainment uses to meet economic
development objectives for job generation, revenue enhancement and creation or expansion of
FIGURE 5.9 (CONT.)
ACTIONABLE SWOT ANALYSIS
KEY: OPPORTUNITIES (O)
SO ACTION OPTIONS:
(TAKE ADVANTAGE OF O USING S)
WO ACTION OPTIONS: (TAKE ADVANTAGE OF O BY
OVERCOMING W)
Creation of Secured
business park campus
Poway Rd Revitalization
Capture of additional
revenues and commercial
opportunities
Employment generation
and additional economic
activity through
development of potential
sites in the South Poway
Business Park
Partner with key
manufactures to explore
the potential for a secured
business campus within the
South Poway Business Park
Continue to recruit
businesses by promoting
the South Poway Business
park as a premier business
destination in the county
Continue to promote
Poway to employers and
potential workforce as a
community with a clear
quality of life with
significant recreational
amenities
Implement the Poway Rd
Corridor Study
recommendations
Improve access between
business districts to assist
in development of
opportunity sites and
strengthen district viability
KEY: THREATS (T) ST ACTION OPTIONS:
(USE S TO MINIMIZE T) WT ACTION OPTIONS: (MINIMIZE W AND T)
Further decline of Poway
Rd distressed sites
Compatibility of Uses
within the South Poway
Business Park
Develop opportunity sites
within the Poway Rd
Corridor
Prioritize opportunity sites
and implement strategies
for their near term
development
Resolve compatibility
issues within the South
Poway Business Park
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 26
amenities. This analysis identified 12 sites in the South Poway Business Park for industrial and flex
R&D type use, four additional sites in south or north Poway for commercial uses, and three additional
sites for recreational use. Additionally, this analysis refers to Opportunity Area 4 from the draft Poway
Rd Corridor Study, which identifies the primary area for commercial revitalization, and illustrates a
variety of parcels within that area for potential development.
The sites most readily available for development are those in the South Poway Business Park, and C-
26, the site near Pomerado Hospital, based on site readiness, market demand, location, and site
configuration. There are also sites in the Poway Rd corridor that are ready for development,
particularly those with City ownership where the City could utilize the land as an incentive for
development. This SWOT and Opportunity Site analysis, however, defers to the analysis forthcoming
in the Poway Rd Corridor study for recommendations on prioritization of those commercial sites.
Strong Regional employment and business center with the South Poway Business
Park
The City’s South Poway Business Park is a key asset for the City as a strong employment and regional
business center. Many of the business park’s buildings have an advantage regionally with well -
designed space with more dock high truck doors than most business parks and 28ft clear heights
which are essentially for many manufacturing and distribution businesses. Major businesses have
located and expanded there, such as General Atomics, Geico, Corrovan, and others. The architecture
and site layout is attractive, presenting a quality environment that is clean and well maintained.
Circulation in and out of the business park is good comparatively to other parks in the region, and
includes ready access to I-15, though not adjacent.
Poway has one central business district/primary commercial corridor in a
centralized location
Many cities have fractured commercial districts or multiple “downtowns” that often compete for retail
demand, and private and public investment for revitalization. Poway has one centralized commercial
corridor that serves as the primary commercial backbone for the community. Given the size of the
community and its geography, this corridor is centrally located in the community, and could serve the
entire community assuming ease of access, particularly from North Poway.
Several significant retailers serving the community and region
For a City the size of Poway and with a significant residential land use component, the City does have
several significant retailers serving the community and region, such as Lowes, Home Depot, Costco,
Steinmart, Toyota, Honda, Ford, Walmart. There is competition adjacent to Poway, particularly to the
north in San Diego, but also to the south and east. There may be opportunities, however, for
attraction of additional large format retailers in Poway to assist in meeting revenue generating goals of
the City.
Substantial medical/health center including Pomerado Hospital
There are many medical offices for dentists, doctors and other medical uses within the district area
including Pomerado Hospital. Additionally, there are many dentists and doctors throughout Poway
outside this medical cluster area.
P a g e 27 | A p p l i e d D e v e l o p m e n t E c o n o m i c s
Significant Recreational Amenities
The City of Poway has a significant variety of recreational site and amenities which help support its
strong quality of life for its residents and visiting employees. Overall, there are approximately 60 miles
of scenic trails, more than 300 acres of improved park, and 4,000 acres of open space.3 Some of the
key amenities include Lake Poway, Mount Woodson Wilderness Area, the Community Park, Clyde
Rexrode Wilderness area, Arbolitos Park, and many others. For a city with the population of Poway, its
central location within San Diego County, and its significant residential land use, such parks and open
space are a key asset for the community and region.
WEAKNESSES
Underutilization of several areas along Poway Rd
The Poway Rd Corridor Study documents this underutilization and provides a detailed discussion
regarding SWOT items related to the revitalization of this corridor. Overall, the underutilization of this
commercial district in several areas is detracting from the overall image and success of Poway as a
premier location in the San Diego region to live as well as work. In discussion with retail brokers and
commercial developers, one particular challenge for Poway Rd may be too much shop space is in small
plate formats available for lease for the market to absorb. Another challenge is that small retail is
potentially changing: mom and pop type tenants leasing today have multiple locations (with credit
and resources to back them) versus traditional small single location businesses that traditionally
occupy such space in the past, and as such, prefer larger and more specialized formats. Additionally,
as noted in the Opportunity Analysis, there may be little incentive for a small commercial center owner
to investment in upgrades to the center, if holding costs and lease rates are such that they still
produce a decent cash flow. (Commercial Sites, Opportunity Analysis, Appendix C).
Potentially constrained access between business districts and residents and
districts.
Access between population and business districts, and between districts themselves, is potentially
constrained given the following infrastructure limitations:
1. Distance to I-15: the distance from the City’s jurisdiction or even the first commercial use on
Poway Rd is a little far from I-15 interchange in comparison to many commercial districts that
rely on freeway traffic to frequent their businesses;
2. A major north south road (Espola) is constrained and impedes flow north and south in Poway
which could help Poway Rd. businesses and commuters to the South Poway Business Park. In
discussion with stakeholders and those knowledgeable about traffic flows in Poway, much of the
North Poway may be going to S Ranch and areas in San Diego close by versus driving down to
the Poway Rd district on Espola, which is constrained for much of its length as an arterial;
3. There currently is a lack of easterly access from Scripps Poway Parkway to Poway Rd, which
would connect the back side of the Business Park (which is the largest growth area) to Poway
Rd. Such connection may
3 City of Poway General Plan. Trails and Open Space Brochure, Recreational Trails Subcommittee.
A p p l i e d D e v e l o p m e n t E c o n o m i c s | P a g e 28
4. It is understood that the traffic signal lights on Scripps Poway parkway are not currently timed
or interconnected together, including those in the City of San Diego. If interconnection via fiber
or other mode, or signals were timed, this could improve efficiency for large trucks that could
run to and from the South Poway Business Park without stopping as frequently. Distribution and
manufacturing businesses are particularly sensitive to time delays with traffic and signalization.
OPPORTUNITY
Revitalization of the Poway Rd Corridor
In discussion with commercial real estate brokers and developers, as global capital focuses more on
Southern California, institutional retail capital is looking at the Poway trade area as a possible
investment area. This can be a significant opportunity and benefit for the Poway Rd Corridor for
redevelopment of challenging sites that require larger infusions of investment to overcome market and
site issues to achieve desired returns. Some examples include Creekside Plaza, the Steinmart Center,
and Twin Peaks where, after 20 years, these centers went from individual owner to institutional owner
with improvements in tenant mix, rent increases, reinvestment, and facility improvements. This could
be model for other centers on Poway Rd.
Creation of Secured Business Park
Given the concentration of defense manufacturing, the professional and technical workforce, and
available land, the City of Poway has an opportunity to create a secured business park with remaining
vacant land in the South Poway Business Park to attract defense contractors in cybersecurity and
manufacturing. Such a facility would create a competitive business park advantage in SD County, and
possibly in Southern California. Discussions with business and real estate professionals support the
viability of this opportunity.
Capture of additional revenues and commercial opportunities
As noted in the Opportunity Site Analysis for sites C-26 and C-37-39, there are a variety of sites to
create additional revenue generation for the city through development of a hotel or other retail and
commercial use. While the hotel market is apparently not as robust as other areas in the region, there
may still be key locations where demand may warrant investigating the potential for this use, given
the scarcity of hotels in Poway, particularly for business travelers and those utilizing medical facilities.
Employment generation and additional economic activity through development of
potential sites in the South Poway Business Park
As noted in the Opportunity Site Analysis for site E1-E16, there are a number of sites available for
potential development that could add significant potential jobs for Poway. These sites are detailed in
that site analysis. While an estimate has not been made of the overall job generation potential from
each of these site due to the need for additional information and review, a quick calculation for an
example site, E-13, the site planned for development by owner HCP with a 330,000 to 450,000 sf
multi-building facility, could yield 330-450 jobs, assuming a conservative job generation ratio for
industrial uses.
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THREATS
Compatibility of Uses within the South Poway Business Park
There has been much discussion in the community over the last several years about the compatibility
of land uses within the South Poway Business Park. Discussions with a variety of stakeholders reveal a
divergence of opinions on whether recreational or other commercial type uses have an positive or
negative impact on the Business Park as an employment and business center. One side of the
discussion applauds the expansion of uses for recreation and commercial and cite the current indoor
recreation uses as a key to supporting the business park workforce. The other side of the discussion is
concerned such commercial uses currently, and more so if expanded, create parking, circulation, and
safety issues for industrial business park uses. This land use compatibility question if not addressed
and resolved, could create uncertainty for current and future users which may hindrance to business
attraction and retention efforts of the city.
ACTIONABLE OPTIONS
As noted in Figure 5.9, there are many interrelated options Poway can take to improve its economy
through focusing on land use and development opportunity sites. A few examples include the
following:
Utilize the strength of the base industry by partnering with key manufactures to explore the
opportunity for a secured business campus within the South Poway Business Park
Improving currently weaker or constrained access between business districts may assist in
development of opportunity sites and strengthen business district viability.
Overcome the threat further decline in the Poway Rd Corridor through identifying the
strongest key opportunity areas and sites and implement strategies for their redevelopment.
Minimize the potential threat of incompatibility issues within the South Poway Business Park
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