Quarterly Public Policy Update

Third Quarter Issue 2024

CHAMBER OPPOSING COUNTY TRANSIENT OCCUPANCY TAX INCREASE ON NOVEMBER BALLOT

The Chamber, along with the Business Action Fund, Visit Santa Barbara and other hospitality partners strongly oppose the proposed 2% Transient Occupancy Tax (TOT) increase on the November ballot due to its potential negative impact on Chamber members, especially those in the hospitality and tourism sectors.

By raising the TOT from 12% to 14% in unincorporated areas, the measure could make Chamber members' businesses less competitive compared to neighboring regions with lower tax rates. This would deter visitors and reduce tourism-related revenue, affecting not only hotels and short-term rentals but also restaurants, shops, and other businesses dependent on tourism.

At a time when the hospitality industry is still recovering from the pandemic, higher lodging costs may lead to fewer bookings and a broader economic impact on Chamber members. The Chamber believes the proposed measure could stifle growth and hurt local jobs, and advocates for alternative solutions to address the County's budget challenges without placing additional burdens on businesses and visitor

Watch your inbox for the Chamber's Voter's Guide coming soon.

CHAMBER UNVEILS THE ROAD HOME II

Recently the Chamber released The Road Home II, an updated and comprehensive guide addressing workforce housing amid the ongoing housing supply crisis. This new edition built upon the original "Road Home" initiative, incorporating the latest data, strategies, and community feedback to provide a robust Roadmap to Recovery for our members and businesses to achieve housing stability and economic sustainability.

Key updates in "The Road Home II" include details on the Employer Sponsored Housing Consortium models, insights into common myths about housing development, the consequences of inaction, and the need for diverse housing types to meet varying income levels. An analysis of how housing shortages affect local businesses, emergency services, and overall community well-being, highlighting the economic benefits of increasing housing supply and a section on Frequently Asked Questions. Click here to download The Road Home II.

CHAMBER OPPOSES HOTEL DEVELOPMENT BAN

The recent debate over disincentivizing new hotel development in the City of Santa Barbara has raised concerns about the economics of local housing, and singling out particular industries. Some argue that the best way to ensure more housing within the city is to rezone to no longer allow hotel development in many of the currently allowed regions, making housing the most viable option. However, the Chamber opposes this idea, emphasizing that both housing and hotel development play vital roles in the local economy. The hospitality industry drives significant economic impact, attracting tourists who support local businesses and generate tax revenue through transient occupancy taxes (TOT). The Chamber favors a more balanced approach where hotel development opportunities can continue, but housing projects are incentivized. By only disallowing or disincentivizing what may be the more viable project, we are failing to address the underlying economics of local housing. By fostering housing solution while still allowing hotel development options, the community can continue to thrive while ensuring that workforce housing solutions are developed alongside our tourism economy.

The Chamber recently launched a new Workforce Development Hub, a key initiative aimed at strengthening economic development by connecting skilled workers and educational institutions with local companies. This comprehensive online resource streamlines the process for both industry and education, offering tools for workforce training, recruitment, and retention, with a particular focus on the technology and manufacturing sectors.

Developed in collaboration with industry leaders, education partners, and training providers, the Hub addresses the growing demand for skilled labor in our region. By aligning the needs of businesses with workforce development efforts, the Chamber is helping to create a more competitive and dynamic local economy, ensuring that companies can access the talent they need to succeed right here on the South Coast. We invited you to explore this new resource. CLICK HERE to learn more.

DOWNTOWN SANTA BARBARA PROPERTY OWNERS VOTE

TO FORM COMMUNITY BENEFIT IMPROVEMENT DISTRICT

Downtown Santa Barbara businesses can finally see improvement on the horizon. The Santa Barbara South Coast Chamber of Commerce is excited to announce the formation of the Downtown Santa Barbara Community Benefit Improvement District (CBID). This collaborative effort between the Chamber, the Downtown Santa Barbara Organization, and the City of Santa Barbara will enhance services like cleanliness, beautification, and security beyond what the city currently provides. With a $2 million annual budget, these additional services, starting in early 2025, are crucial to boost the downtown environment, benefiting local businesses by attracting more visitors and creating a safer, more vibrant area. The Chamber championed this initiative as it can be an effective model that can help improve other areas on the South Coast.

EMPLOYER-SPONSORED HOUSING CONSORTIUM COMMUNITY WORKSHOP

Improving the local economy depends on the workforce being able to live close to their jobs, and the Chamber is actively pursuing solutions through its housing consortium initiative. By convening key stakeholders to explore employer-sponsored housing models, the Chamber is taking a critical step toward addressing this challenge and building a sustainable future where businesses and employees can thrive together.

Recently, over 80 attendees from various sectors including businesses, government, nonprofits, and developers attended a workshop that served as a vital forum for discussing the Chamber's housing initiatives, focusing on the future of employer-sponsored housing as a solution to the region's workforce housing crisis.

This workshop was particularly important for Chamber members and the broader community as it addressed one of the most pressing issues facing local businesses—the lack of nearby housing for employees.

The workshop not only provided valuable updates on the consortium's progress but also facilitated engaging discussions on how these housing models can meet community needs. It demonstrated the Chamber's ongoing commitment to supporting its members by creating avenues for businesses to gain access to workforce housing, ensuring that economic growth is paired with practical solutions for the housing crisis.

SANTA BARBARA HOSTS ALASKA AIRLINES

Strengthening air service at Santa Barbara Airport is vital for the region's economic development, as it enhances connectivity to larger markets, making the area more accessible for businesses and tourism. The Chamber, in collaboration with Santa Barbara Airport and Visit Santa Barbara, recently hosted team members from Alaska Airlines for an important visit focused on enhancing regional connectivity. During their time here, the Alaska Airlines team received a comprehensive overview of the local economy, including insights into key industries and companies driving growth. They also met with community stakeholders to discuss the region's air service needs and explore significant projects that could increase travel demand.

CHAMBER HOSTS TECH ROUNDTABLE WITH UMESH MISHRA

The Chamber's Technology and Manufacturing Committee hosted a highly impactful Tech Roundtable in June featuring Umesh Mishra, Ph.D., co-founder of Transphorm and Dean of Engineering at UC Santa Barbara. The event focused on driving economic development in the region, with Mishra sharing insights on the local high-tech manufacturing landscape and his experiences growing two startups in Goleta and at UC Santa Barbara. His message emphasized the importance of collaboration across industries and stakeholders, urging the community to stay aware of regional developments and invest in critical areas like workforce development, housing for the workforce, and electricity reliability to support continued success in this area we call TechTopia. The meeting provided a valuable platform for tech and manufacturing professionals to exchange ideas and work together to chart a path forward for the industry in the South Coast region.

BALANCING PROGRESS: THE CHAMBER'S HYBRID VISION FOR STATE STREET REVITALIZATION

The Chamber recognizes that the community is grappling with the differences between long-term plans for State Street's revitalization and the need for immediate solutions. While the City's 20-year master plan continues to evolve, the Chamber's vision for State Street offers a more immediate path forward, focused on a balanced approach to both pedestrian and vehicular access. Contrary to the notion that this is simply a debate about "cars or no cars," the Chamber's hybrid plan seeks to reopen certain blocks to vehicles while retaining pedestrian-focused areas. This practical, near-term solution supports local businesses by fostering foot traffic while ensuring accessibility.

The Chamber's proposal contrasts with the City’s State Street Advisory Committee's (SSAC) more pedestrian-oriented design, which focuses heavily on creating car-free zones but supports the Chamber's idea of a dedicated pedestrian space, such as the "Grand Paseo". The Chamber’s hybrid approach acknowledges the challenges the City faces with a fully pedestrianized State Street, advocating instead for strategic vehicular access on select blocks. This nuanced plan aims to address immediate economic needs, balancing urban design with the realities of local business interests and mobility...READ MORE HERE.

NEW COMMUNITY INITIATIVES SUPPORT HOUSING AND SERVICES ADDRESSING HOMELESSNESS

Though the Chamber is focused on workforce housing and economic development, the need for housing and services for the unhoused is also top of mind. Two significant new openings will provide essential services and housing to those in need, strengthening our local economy and community resilience. Both initiatives are examples of the Chamber’s commitment to addressing all issues of the housing crisis and ensuring that local businesses and communities have the resources necessary for sustainable growth.

The FARO Center (Fostering Access, Resilience, and Opportunity), a Daytime Navigation Center located in downtown Santa Barbara, serves as a critical resource for individuals experiencing homelessness. This center, a collaboration between the City of Santa Barbara and the Santa Barbara Alliance for Community Transformation (SB ACT), offers comprehensive services such as case management, job support, housing referrals, and health services—all in a central location. By eliminating the need to navigate multiple providers, the FARO Center enhances accessibility, giving individuals a stable pathway to long-term solutions.

Additionally, the Buena Tierra Permanent Supportive Housing Development in Goleta has officially opened its doors, transforming the former Super 8 Motel into 60 supportive housing units. This development, made possible through the State’s Homekey Program, offers permanent housing for formerly homeless individuals, including 15 units for youth transitioning out of foster care. Buena Tierra provides a vital opportunity for stability and community building, giving residents a place to call home while accessing supportive services that can help them rebuild their lives.

UPCOMING CHAMBER EVENTS

Goleta's Finest

Friday, December 6

Ritz-Carlton Bacara