April 28, 2004     Sunnyvale, California Since 1994
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City looks at ways to help local business stay healthy
By Jason Goldman-Hall
Auto dealers in Sunnyvale say bigger, brighter signs would help them improve their sales. The trouble is, a city ordinance limits the size and number of business signs. But in these difficult economic times, the city is considering the idea of changing the ordinance if it will help business. In fact, the city is willing to look at everything affecting business these days.

Taxes generated by real estate, car sales, visitors to the city and other outlets contribute almost $67 million to the city's coffers each year, almost a third of the city's total revenue. Sales tax alone, an estimated $24,239,000—generated by local businesses—accounts for almost 12 percent of the city's total yearly revenue. Hotels and motels alone make up almost 3 percent of the city's annual revenue of just over $212 million.

"It's those revenues that allow us to support the services and quality of life the residents and businesses in Sunnyvale enjoy," Karen Davis, director of economic development, said.

Without that revenue, the city may have to make more cuts to city programs such as street-sweeping and public safety, as it did last year.

To help Sunnyvale's business community survive until the economy turns around, Mayor John Howe has held round-table discussions with various factions of the Sunnyvale business community to discuss ways the city can help businesses succeed and, in turn, keep tax revenue flowing. The first of those meetings was with 11 of the 12 new car dealers on El Camino Real.

Howe followed up his meetings by creating a mayor's committee to meet with each owner individually. Committee members Laura Babcock, chairwoman of the planning commission, and council members Julia Miller and Ron Swegles—chairman of the committee—reported to the council on April 20 with a list of possible items for the city and car dealers to consider—among them tent sales with local credit unions, a new-car-dealers association, which had actually formed on March 10—and ideas about signage, the problem most discussed by dealers.

"People have to see the product, and if they don't see the sign, they're going to drive right past," Mickey Ollis, general manager of Sunnyvale Acura, said. "We want [shoppers] to know this is a place where they can get professional, quality service."

Several ideas for signs and displays came out of the meetings, including changing sign code and landscape requirements to allow for balloons on weekdays and more signs on dealership lots. The committee even had the city staff check up on the idea of putting "Sunnyvale Auto Row" signs on Highways 85, 280 and Lawrence Expressway, only to find out that both Santa Clara County and Caltrans do not allow private advertising on a county or state right of way. These signs could only be allowed if the official name of that section of El Camino Real became "Sunnyvale Auto Row." And such a change would need the council to pass a resolution.

Ollis said that, in the past, attempts by the dealers to get help from the city fell on deaf ears, but that changed when the new council took office this year.

But auto dealers are not the only vital part of Sunnyvale's business community that needs help.

Connie Verceles, business development manager for the economic development department, said the hospitality industry—members of which Howe met with on April 16—has also suffered from the economic downturn because many companies, in an attempt to cut costs, have slashed travel expenses for employees. Some hotels report close to a 50 percent decline in business.

"Obviously with a downturn in the economy and businesses cutting back in travel for employees, it's not just Sunnyvale suffering, it's all of Silicon Valley," Verceles said.

Howe also met with representatives from the real estate community on March 15 to discuss ways Sunnyvale can attract new businesses to the area. During the dot-com boom, Sunnyvale buildings sold or rented quickly as technology firms brought their operations into the heart of Silicon Valley. But when the boom went bust, smaller companies disappeared and larger companies ceased expanding, leaving a void in development. The Mozart buildings on Matilda Avenue have also suffered from the dot-com bust and are having difficulty finding tenants.

But as Sunnyvale gears up for an eventual economic upswing, positioning local developers to handle the influx of business is also a top priority for the city. "As we look to identify what the next step for technology is, it's those developers and builders that will bring those companies and people in," said John Pilger, communications officer for Sunnyvale.

"The fact is, this city—any city—can't survive without its businesses," Pilger said. "It's an absolute responsibility that we always try to help our business community grow and thrive."

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