| To Our Investors, Colleagues and Friends: GOOD THINGS COME IN THREES: We are looking forward to the advent of Fall with some exciting milestones before us: 1. First, all eyes are on Westfield San Francisco Centre for the opening of this exciting new retail hub on September 28. Anchored by the new Bloomingdale's, Century Theatres, the existing Nordstrom, and more than 170 other retailers (almost 50% of them new to San Francisco, and generating 1,950 jobs) Westfield is destined to solidify downtown San Francisco as one of the world's greatest retail districts. In addition to renowned retail, restaurants and entertainment, San Francisco State University will open its new downtown campus at Westfield, locating its MBA, Executive MBA, and extended learning programs on-site. With workforce development one of the SFCED's and the City's major selling points, the addition of SF State's new downtown campus can only augment our ability to compete for quality employers and jobs. 2. Second, this month the City submits its Olympic Bid to the USOC for the 2016 Summer Games. San Francisco is vying with Los Angeles and Chicago for the U.S. bid - a competition slated to be decided by March 2007. Although the bid has engendered political debate, we're heartened by the City's willingness to assemble an enviable package that markets San Francisco and environs as one of the world's most desirable locales for visitors, business and sports. 3. Third, with thanks to the Chamber and its Public Policy committee, California and San Francisco are solidifying their preeminence in Clean Green technology and environmentally responsible practices. Slated to be signed by Governor Schwarzenegger in the next few weeks, AB32 is landmark legislation to combat global warming and greenhouse gas emissions, while taking into account market-based realities to preserve economic vitality and jobs. With the SFCED's focus on "clean green technology" as one of its five primary areas for job attraction, this "win-win" legislation keeps San Francisco front-and-center with domestic and international companies seeking to expand their operations in this growing and important sector. Please let us know if you have market intelligence, leads or suggestions as we work to realize our mission of attracting and retaining jobs in San Francisco. If you have information or data you would find valuable, or believe we should share with other business and community leaders, please don't hesitate to let us know. (dconaghan@sfced.org) Dennis J. Conaghan Executive Director In This Issue --SFCED Update --Economic Indicators --San Francisco News & Rankings --SFO SFCED UPDATE Economic Summit - Join the SFCED, the Chamber, SF Works and the Mayor's Office of Economic and Workforce Development on Tuesday, September 26, for this important conference on the City's economic future. Sponsored by Bank of America, the conference will feature a major address by Mayor Gavin Newsom, along with keynote speaker Tom King, president and CEO of PG&E, on the opportunities presented by California's and the City's leadership in environmentally responsible growth policies. For information visit: www.sfchamber.com. Legislative Forum - AT&T and the SFCED are pleased to present the second annual legislative forum, honoring San Francisco's local, state and federal officials for their economic development advocacy. The event will be held on November 13, from 5:30 to 7:30 p.m., at the World Trade Club. This will be a great opportunity to hear from our elected and newly elected officials about their policies and platforms to advance sound economic growth. Environmental Technology Convention - Olivia Jenq, Senior Director of Development and Global Partnerships, recently represented the SFCED at the Japan Analytical Instruments Manufacturers Association (JAIMA) annual conference in Japan. More than 900 global firms showcased innovative environmental and analytical technology opportunities. Olivia met with 100-plus targeted representatives with an interest in San Francisco. Hong Kong Film Industry - The SFCED is partnering with United States Commercial Services in presenting a program for Hong Kong film executives. The visiting executives' primary focus will be collaboration and purchasing of entertainment technology. This workshop is scheduled for October 28-29. More details to follow with the final agenda. ECONOMIC INDICATORS Tourism/Travel - San Francisco's occupancy rates continue to rise. Hotel occupancy is up 2.6% to an average of 78.7%, with a 9.1% increase in room rates compared to the same period in 2005.
Unemployment - San Francisco's unemployment rate has been steadily declining, after peaking at 7.7% in 2003. The City's current unemployment rate of 4.6% (through June) compares to California's overall unemployment rate of 4.9%.
Venture Capital Transactions - The number of venture capital transactions and funding in San Francisco/Berkeley are second in the nation only to Silicon Valley. There were 233 venture capital deals made in 2005, up from 229 in 2004. So far, the number of transactions in 2006 outpaces last year's deal rate by approximately 28%.
SAN FRANCISCO NEWS & RANKINGS Mission Bay: Full Speed Ahead Development activity is brisk, as Alexandria's first 153,000-square-foot biotech building on Owens Street will open in November 2007, with its first tenant, Sirna Therapeutics…Shorenstein has begun development of a 450,000-square-foot biotech building and has their first tenant -- FibroGen - scheduled for occupancy in late 2008… Lowe Enterprises will complete construction of 300,000-square-feet of office space in early 2008…Immediately adjacent to Mission Bay, the China Basin project will complete their major expansion in late 2008. Conservatory of Music Opens at Civic Center The world-renowned San Francisco Conservatory of Music opens its doors this month, completing the last major milestone in the renaissance of the Civic Center as the City's arts and cultural hub. The new landmark building, designed by SMWM and built by Swinerton, a major SFCED investor, "will definitely stimulate economic activity in the area," according to Conservatory President Colin Murdoch. Job Growth and Retail Sales Solid growth in tourism, along with the opening of Westfield San Francisco Centre, will add some 14,000 new jobs this year. Retail sales are estimated to increase by 5.5% in 2006. San Francisco Top Ten in Expansion Magazine's Latest Rankings According to Expansion magazine's recent 12-month analysis, San Francisco ranked among the top10 cities in the following categories: #1 Metro for University R&D Spending #8 Knowledge Workers #8 Logistics Infrastructure Wall Street Journal Poll Names San Francisco "City of Invention" A recent Wall Street Journal poll named San Francisco one of the top 15 most inventive cities. Combining patents from large companies and individuals, San Francisco outpaces second-place contender New York City, with 1,022 patents versus 614. SFO United Airlines has announced three additional weekly flights from San Francisco to Hong Kong beginning April 7, 2007. Alaska Airlines will offer daily non-stop service to San Diego and two more weekly flights from San Francisco to Mexico, including direct flights to Cancun starting October 29, 2006. SFO's recently posted a third year of overall passenger growth, with international travel up 4.3%. The Australia/Oceania and Mexico/Caribbean/Central America markets continued to be the fastest growing routes, increasing 22.9% and 12.5%, respectively, in fiscal year 2005, 2006. Any questions or comments, please contact us at www.sfced.org or (415) 352-8853. |
