Poway Economic Development Strategic Plan Actionable SWOT

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

http://www.adeusa.com/

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 .............................................................................................................. 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


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P a g e 1 | 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

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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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 2

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.


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


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


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.


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).


BUSINESS AND INDUSTRY PROFILE

FIGURE 5.4


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:


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


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.


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).


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.


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.


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.


EMPLOYMENT/WORKFORCE PROFILE

FIGURE 5.5


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)



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



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.


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


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.


FIGURE 5.6

INFLOW/OUTFLOW PRIMARY JOBS

FOR ALL WORKERS IN 2014

Source: United States Census Bureau


Where residents in Poway work throughout the County is shown below in Figure 5.7:

FIGURE 5.7

______________


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


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.


COMMUNITY POLICIES AND PROGRAMS

FIGURE 5.8


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




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



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.


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.


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

http://www.poway.org/815/Business-Incentives

http://www.pickpoway.com/

http://www.poway.toolsforbusiness.info/


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.

http://www.connect.org/

http://www.sdentrepreneurs.org/makerplace

http://www.sdentrepreneurs.org/evonexus

http://www.sdentrepreneurs.org/fablabsd

http://www.sdentrepreneurs.org/315

http://www.sdentrepreneurs.org/herahub

http://www.sdentrepreneurs.org/heralab

http://www.sdentrepreneurs.org/jlabssandiego

http://www.sdentrepreneurs.org/labfellows

http://www.sdentrepreneurs.org/wirelesshealthhub

http://www.qualcommaccelerator.com/

http://www.westhealth.org/


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


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.


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


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?


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.)


KEY: OPPORTUNITIES (O)

SO ACTION OPTIONS:



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



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


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.


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.


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.


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


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

Documents

Poway Economic Development Strategic Plan Actionable SWOT