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SF ED Proposal
SF ED Proposal
San Francisco
Economic Development Plan
Proposal
September 30, 2005
05-068
City of San Francisco
Mayor’s Office of Economic
and Workforce Development
San Francisco
Economic Development Plan
Proposal
September 30, 2005
Prepared for:
Mayor’s Office of Economic and Workforce Development
Attn: Jennifer Entine Matz
1 Dr. Carlton Goodlett Place
City Hall, Room 448
San Francisco, CA 94102-4653
(415) 554-6969
Prepared by:
Ted Egan, Ph.D.
ICF Consulting
60 Broadway
San Francisco, CA 94111
(415) 677-7165
05-068
Table of Contents
1. General Approach for the Plan ........................................................................................................... 2
2. Outline of Proposed Scope of Work.................................................................................................... 3
Task 1: Outreach and Mobilization ........................................................................................................3
Task 2: Economic Performance Review ................................................................................................5
Task 3: Industry Impact and Competitiveness Analysis ........................................................................6
Task 4: Policy and Strategy Development .............................................................................................9
3. Estimated Budget ............................................................................................................................... 11
4. Estimated Schedule ............................................................................................................................ 13
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Letter of Introduction
Regards
Edmund A. Egan
Director of Analysis
1. General Approach for the Plan
San Francisco is launching its economic development plan at an important time in its history. After
experiencing one of the greatest inflows of capital in American history during the dot-com boom of the
late 1990s, the City subsequently experienced the greatest drop in population of any major city in the
country since 2000. Both the boom and the bust have left the City at the mercy of forces beyond its
control, and hindered progress on its economic and social goals. The time is now right for San Francisco
to forge a new economic future that can ensure sustainable prosperity for its residents, and this plan can
be an instrumental part of that process.
The ICF Consulting team’s approach to San Francisco’s economic development plan is drawn from the
dozens of similar projects we have conducted around the world. Fundamentally, it is based on the new
reality facing global cities in a knowledge-based economy. The new economy of these cities is driven by
clusters of creative and innovative companies, not older sources of competitive advantage such as
geographic location, transportation and industrial infrastructure, and low taxes.
Creating a high performance economy today requires strength and responsiveness across a range of
economic foundations that help San Francisco’s companies to innovate. These foundations include a
highly skilled workforce, commercial research and technology, a desirable quality of life, financing for
small and start-up enterprises, appropriate industrial governance, and specialized infrastructure and
facilities.
Critically, MOEWD and other City departments do not have the primary responsibility for these
economic foundations. They are produced an array of public, private, and non-profit institutions, and in
many cases economic development may not be their only or primary mission. Nevertheless, the private
sector and the entire City relies on them to sustain competitiveness, and ultimately to create jobs and
wealth.
Hence effective collaboration between innovative clusters and economic foundations is the decisive
feature of high performance urban economies. ICF Consulting has specialized in conducting bottom-up,
collaborative strategies, built around industry working groups consisting of businesses and the economic
foundations that support him. In effect, the clusters themselves become responsible for directing their own
strategy, and in many cases self-sustaining cluster organizations are formed through the process, which
give cities an effective capacity for continual innovation in economic development. We would
recommend San Francisco ultimately pursue this approach, but we do not believe the scope and resources
of this project are ideally suited for a fully-fledged collaborative strategy at this stage.
Our perspective on this project, therefore, is to lay the foundation for a broader collaborative strategy by
creating an analysis and a policy momentum that others can build upon, and by positioning MOEWD as
the facilitator and thought leader of a truly City-wide collaborative economic development strategy after
this project concludes. Our proposed work plan, outlined on the following pages, is geared to respond to
the legislative requirements of the economic development plan, while setting the stage for something
larger.
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• Build the advisory and stewards organizations we will need to ensure the plan is approvable and
implementation-ready;
• Partner with business organizations to secure their cooperation in conducting the research in later
tasks;
• Organizing and conducting the external messaging with city leaders, the media, and the general public.
We will accomplish these goals in the following five sub-tasks:
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development priorities and reviewing and vetting the final strategy. The ICF team will next reach out to
the neighborhoods by meetings with 5-8 neighborhood associations to hear about neighborhood concerns,
needs, trends, goals. These meetings work best if the consultant is an agenda item on the neighborhood
association’s regular agenda. Possible neighborhoods include: Mission District, SOMA, Bayview,
Hunter’s Point, Richmond, Castro, North Beach, China Town, etc. The ICF team MJC will also meet with
five major community associations to gain their input into the Economic Development Plan.
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case will be: to what extent the jobs directly and indirectly created by software address the city’s priority
needs for jobs, business opportunities, and overall prosperity?
Once industries, or clusters of related industries, have been selected using this logic, the next requirement
is a competitiveness analysis of these industries, to determine what inhibits and what could stimulate their
growth in the city. Although there are many “canned” approaches to competitiveness analysis, such as
Michael Porter’s “diamond” methodology, in our experience there is no substitute to 1:1 interviews with
companies to understand how they compete globally, and confirming those findings with broader
surveying in the same industry. And as we said in the introductory section, innovation-driven clusters rely
upon strong and responsive economic foundations, so the public and non-profit institutions that provide
these foundations need to be part of the competitiveness analysis and interviewing as well.
On the basis of this industrial targeting and competitiveness analysis, the task will conclude with a
statement of strategic goals for the target industries, which will accomplish the priority needs identified in
the previous task. As in Task 2, this task will conclude with review and comment by the Advisory Group,
the Stewards, and the public.
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statistics, and third-party projections, to assign a likelihood of High, Medium, and Low for expected
growth rates in the future. In addition, the ICF team will benchmark cluster competitive performance
against competing/similar cities, such as Seattle, Portland, Los Angeles, San Diego, Boston, and Chicago.
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association partners (also mobilized in Task 1.4) to distribute the survey URL directly to their members
via e-mail, and also assist with follow-ups. It has been our experience that this approach provides the
most effective way to put the survey in as many hands as possible.
The Barriers survey will be targeted to all businesses in the city, of every size, in every industry. The
SurveyMonkey technology will allow us to separately analyze the results of respondents by cluster, and
also allows logical “branching” of the survey to permit asking cluster-specific questions for companies
that indicate they are in a particular cluster. Thus it makes sense to combine our cluster competitiveness
anlaysis, and the Barriers survey, in a single task.
• Economic development strategies and practices that have proved most successful in the past;
• Strategies and practices that could be improved and specific improvements to achieve success;
• Strategies or practices that are missing from the City’s current economic development efforts; and
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• Workforce development, including but not limited to: cluster-specific training and placement
programs; youth mentoring and internship programs; self-employment and entrepreneurship programs;
cluster-specific work-based training; dual work/degree programs; etc.
• Quality of life issues, including but not limited to: environmental policies and programs, arts, culture
and recreation projects and programs;
• Technology understanding and use, including community technology facilities, telecommunications
infrastructure.
• Business climate including but not limited to: business tax policy; building permitting process and
fees; attraction and retention policies
• Land-use policies for cluster-based strategies and other best practices in land use policy; etc.
• Strategies to support small and start-up businesses, including marketing and export promotion,
technology and capital equipment procurement assistance, Cluster networking activities, small
business loan programs, access to and development of venture capital funding, angel networks, etc.,
and general business and technical assistance
MJC will evaluate each best practice with an eye to how to best apply it to San Francisco’s unique
political and economic environment, including: potential obstacles to adoption, potential for a successful
application in San Francisco, and cost/difficulty of implementation.
Task 4.4 Advisory Group and Public Meetings, and Final Report
This project will conclude with a final Advisory Group meeting and Stewards review, followed by a final
public meeting. The final report will incorporate all comments, providing an implementation-ready guide
for San Francisco’s future sustainable prosperity.
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3. Estimated Budget
A detailed project budget, by task, sub-task, and team member, is provided below. Totals for each task are
shown in the right-most column of the following page.
Hourly Rate $235 $187 $162 $122 $94 $90 $59 $57 $38
Core Tasks
Task 1.1 0 0 4 0 0 4 0 0 0 $ - $ 121
Task 1.2 4 0 8 8 0 0 0 0 0 $ - $ 27
Task 1.3 0 0 8 8 0 0 0 0 0 $ - $ -
Task 1.4 0 0 32 32 0 0 0 0 0 $ 50 $ 115
Task 2.1 0 0 16 0 0 0 0 40 0 $ - $ -
Task 2.2 0 0 16 0 0 0 0 40 0 $ - $ -
Task 2.3 0 0 2 0 0 0 0 0 0 $ - $ 150
Task 2.4 0 0 16 0 0 0 0 20 20 $ - $ -
Task 2.5 0 0 16 0 4 0 0 16 0 $ 100 $ 72
Task 3.1 0 0 8 0 0 0 20 40 0 $ - $ -
Task 3.2 0 0 8 0 0 0 20 0 20 $ - $ -
Task 3.3 0 0 4 0 0 0 0 0 0 $ - $ 249
Task 3.4 0 0 8 0 0 0 0 0 0 $ - $ -
Task 3.5 0 0 32 32 0 0 0 0 0 $ 500 $ 946
Task 3.6 0 0 32 32 0 0 30 0 10 $ 100 $ 610
Task 3.7 0 0 24 24 4 2 0 0 0 $ 100 $ 68
Task 4.1 0 12 4 0 0 0 0 0 0 $ - $ 166
Task 4.2 0 12 4 0 0 0 0 0 0 $ - $ 443
Task 4.3 4 0 16 8 0 0 0 0 0 $ - $ 238
Task 4.4 0 0 24 8 8 2 32 0 0 $ 100 $ 99
Sub-Total Budget $ 1,880 $ 4,488 $ 45,684 $ 18,544 $ 1,504 $ 720 $ 6,018 $ 8,892 $ 1,900 $ 950 $ 3,304
Optional Tasks
Task 1.4b 16 0 8 16 0 0 0 0 0 $ 100 $ 609
Task 3.1b 0 0 24 40 0 0 40 40 40 $ - $ -
Task 3.3b 0 0 24 24 0 0 24 0 0 $ - $ 464
Task 3.5b 0 0 16 0 0 0 16 16 0 $ - $ 513
Sub-Total Budget $3,760 $0 $11,664 $9,760 $0 $0 $4,720 $3,192 $1,520 $100 $1,586
Grand Total Budget $5,640 $4,488 $57,348 $28,304 $1,504 $720 $10,738 $12,084 $3,420 $1,050 $4,890
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4 4 0 0 0 $ 150 4 0 0 0 4 24 $4,079
0 4 0 0 0 $ - 0 0 0 0 0 24 $3,899
0 0 0 0 0 $ - 0 0 0 0 0 16 $2,272
0 0 0 0 0 $ - 12 5 0 0 0 81 $12,053
0 0 0 0 0 $ - 0 0 0 0 0 56 $4,872
0 0 0 0 0 $ - 0 0 0 0 0 56 $4,872
2 8 8 8 1 $ 250 0 0 0 0 0 29 $4,124
0 0 0 0 0 $ - 0 0 0 0 0 56 $4,492
4 2 4 0 0 $ - 0 0 0 0 0 46 $5,802
0 0 0 0 0 $ - 0 0 0 0 0 68 $4,756
0 0 0 0 0 $ - 0 0 0 0 0 48 $3,236
4 12 16 16 1 $ - 0 0 0 0 0 53 $6,977
0 0 0 0 0 $ - 0 0 0 0 0 8 $1,296
6 12 16 8 1 $ 50 36 0 90 26 0 259 $33,604
18 20 40 32 2 $ 50 0 0 0 0 0 216 $26,838
4 4 0 0 0 $ - 0 0 0 0 0 62 $9,200
0 0 0 0 0 $ - 0 0 0 0 30 46 $7,108
0 0 0 0 0 $ - 0 0 0 0 80 96 $14,135
4 2 4 0 0 $ - 0 0 0 0 30 68 $10,546
4 2 4 0 0 $ - 0 0 0 0 5 89 $10,308
$ 12,500 $ 11,550 $ 9,660 $ 5,440 $ 300 $ 500 $ 7,800 $ 1,000 $ 9,900 $ 1,820 $ 20,115 1,401 $174,469
$14,500 $14,190 $13,860 $8,840 $420 $650 $12,600 $2,000 $14,300 $2,940 $34,965 2,054 $249,451
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4. Estimated Schedule
The following schedule details, by month and task, the planned progress of the project. Red dots indicate
an important meeting, deliverable, or public meeting.
11/05 12/05 1/06 2/06 3/06 4/06 5/06 6/06 7/06 8/06 9/06 10/06
Task 1: Outreach and Mobilization
Task 1.1: Kick-off Meeting
Task 1.2: Plan Outreach and Mobilization
Task 1.3: Prepare Project Messaging Materials
Task 1.4: Conduct Mobilization Briefings
Task 1.4b (Optional) Additional community
mobilization
Task 2: Economic performance Review
Task 2.1. Economic overview
Task 2.2. Workforce Analysis
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