Oakland Economic Recovery Advisory Council Interim Report
Oakland Economic Recovery Advisory Council Interim Report
Oakland Economic Recovery Advisory Council Interim Report
Economic Recovery
Advisory Council
Fall 2020
1
City of Oakland Interim Progress Report
Economic Recovery Advisory Council Summer 2020
Contents
1 2
INTRODUCTION ROSTER
Understanding the current need and Summary of working group structure
the Advisory Council’s core mission and Advisory Council members
4
DATA & EQUITY RECOMMENDATIONS
Disparity data to inform The Advisory Council’s recommendations for
equity goals recovery, identified within five focus areas:
6 10
Financial Support Leadership
Provide financial support for small businesses Empower the community to drive
and targeted funds for BIPOC business owners development
12 14
Health & Safety Guidance Business Capacity Building
Create and distribute consistent, culturally Build business resilience through technical
competent reopening guidance and PPE support
20
Safety Net Assistance
Guaranteed income, individual support for
workers and home-based entrepreneurs
Introduction
THOMAS HAWK/FLICKR
1
Advisory Council Roster
The Advisory Council is giving immediate recommendations to local policymakers to support Oakland
workers and help Oakland’s businesses and nonprofits reopen safely, informed by State and County
Orders to ensure public health. Members collaborate to explore solutions for how Oakland can rebuild its
economy centered on equity. We lead with race and other known biases and disparities to identify actions
that both local policymakers and private sector leaders can take to ensure Oakland’s economic recovery is
just and equitable for the long term.
2
ADVISORY COUNCIL MEMBERS
Amber Curley Jay Banfield Liz Ortega
Advisors Native American Health Center/ All Home Alameda County Labor Council
Indigenous Red Market
Business Ahmed Ali Bob | Tech/Fintech Jean Marie Durant | Visual Arts Maria Alderete | Bars & Restaurants
Sector Square Oakland Art Murmor Luka’s Tap Room
Reps
Ali Obad | Local Groceries Jim Macksood | Healthcare Mieko Hatano | Cultural Arts
ShopRite SutterHealth Oakland Symphony
Angela Tsay | Retail Ke Norman | Nail Salon & Beauty Patrick Hayes | Large Employer
Oaklandish Nailphoria Day Spa Clorox
Archie Nagraj | Performing Arts Lea Redmond | Restaurant Regina Davis | Real Estate
Destiny Arts Center Oeste Development
SUDA
Atticus Wolf | Makers Linda Grant | Small Business Stephen Baiter | Regional Economy
Moxy Restuarant Pop-up & Cannabis East Bay Economic Development
Entrepreneur Alliance
Jason Dreisbach | Transport & Lynn Vera | Manufacturing Yusef Wright | Barbers & Hairstylists
Logistics Mettler-Toledo Rainin Benny Adem Grooming Parlor
Dreisbach Enterprise
3
Data & Equity
Identifying & addressing longstanding systemic failures
While the work of Advisory Council has underscored the urgent need for short-term solutions to help
businesses reopen safely, the discussion has also raised longer-term ideas for systemic change to help
Oakland rebuild a more equitable economy and avoid returning to “business as usual.” These themes are
reflected throughout the recommendations.
Unemployment Insurance (UI) and Pandemic
Unemployment Assistance (PUA) Claims Received1*
1 Regulate Conscientiously and Thoughtfully
Between March 22 - May 9, 2020
There is an ecosystem of micro-enterprises that
regulations do not effectively reach. In the current
crisis, connecting with those businesses is more 94618
important than ever. Government should look at
the cumulative impacts of layers of regulation on 94608
94611
businesses and workers across City departments and
between levels of government (City, County, State)
94610
to align goals and outcomes. This coordination is 94607 94612
94602
essential to manage consistent health and safety
messaging and build public faith in government. 94619
94606
94613
94601
2 Empower the Community to Drive Development
Current community-led initiatives in response to 94605
the crisis have knit together smaller local efforts to Total UI & PUA Claims 94621
increase their impact – we should learn from this
≤0 94603
model and imagine what government support for such
≤ 2,500
a framework would look like.
≤ 4,333
≤ 5,398
≤7,433 1
Source:Employment Development
Department, State of California
2
Source:Health Care Services Agency, County
of Alameda Public Health Department
*Zip codes highlighted in red are areas with the highest unemployment rates.
4
Percentage Change in Monthly Total BART Station Entries
County
Name the June 2019 vs June 2020
3 Disparities and Alameda Contra Costa
Gather Quantitative % CHANGE IN STATION ENTRIES San Mateo San Francisco
and Qualitative
Data to Understand
Root Causes
Recognize that
4 Government
Cannot Solve these
Problems Alone
We must all understand
the role of the private
sector and philanthropy in
this recovery and work to
provide culturally competent
financial and legal pro bono
work to build the capacity of
smaller organizations within
the community.
% BLACK AND LATINX POPULATIONS RESIDING IN ZIP CODE WHERE STATION IS LOCATED
Chart excerpt from Racial Disparities in BART Usage During COVID-19 Pandemic , (Bay Area Council Economic Institute)
Oakland’s Workforce by Sector:
Racial & Ethnic Breakdown3
18.9%
Latinx
16%
Black /
African American
35.7%
43.8% Latinx
Black /
African American Accomodation & Food
Service Workers
3
Source:Bay Area Council Economic Institute
5
1
6
Financial
Support
Provide financial support for small businesses and
targeted funds for BIPOC business owners
1.1 SUPPORT THE URGENT NEED FOR
COMMERCIAL LEASE NEGOTIATIONS
D
Small businesses that have been closed or partially closed since March cannot
keep to the terms of pre-pandemic leases. Many Oakland emerging small
businesses that were not yet profitable have already gone out of business due Sustaining:
Profitable + Positive Cash Flow
to the crisis and inability to pay commercial rent. While some small businesses
A
have worked with their landlords to
create flexible arrangements to continue
Starting: D
C
operations, many others have not, or
Unprofitable + Negative Cash Flow
their landlords are unwilling or unable to
make modifications. Growing:
C Porfitable + Negative Cash Flow
ACTIONS COMPLETED A
B
COMMERCIAL EVICTION
MORATORIUM EXTENSION B
On March 27, 2020, the
Oakland City Council passed a
Proving:
Unprofitable + Positive Cash Flow
moratorium on commercial and
Chart excerpt from Presentation to Advisory Council by Michael C. Bush , (CEO, Great Place to Work)
residential evictions, which was
extended on July 21, 2020. The
commercial eviction provision COMMERCIAL RENT CONVENING
will align with the Governor’s
The Advisory Council has convened small business owners, property owners,
Executive Order (currently set to
and investors on restructuring leases. The Advisory Council recommends that
expire on September 30, 2020) or
landlords work with businesses to develop terms that include a combination
any extensions.
of forgiveness, deferral, and elimination of fixed monthly payments, replaced
by percent of sales. Some members of the group have already successfully
negotiated these arrangements for 2020. In some cases, the lease term has
been extended to accommodate the deferrals with quarterly review to allow
NEXT STEPS for real time adjustments.
° Disburse CARES Act funding for small businesses, with a focus on businesses in low-
income census tracts, to help with fixed costs, such as rent
CITY ° Partner with a nonprofit organization to provide tenant-landlord workshops and
GOVERNMENT subsidized representation for small businesses who need support negotiating
commercial lease terms
° Work with the ethnic Chambers of Commerce and community organizations to
ensure that these resources reach BIPOC-owned businesses throughout Oakland
STATE & ° Negotiate and create forbearance policies and tax guidance with banks and lenders
REGIONAL ° Change bankruptcy rules for small businesses to remove the threat of lawsuit for
GOVERNMENT unpaid rent
° Consider allowing property owners to finance unpaid rent through a property tax
credit similar to the PACE program
7
1.2 TARGET FUNDS FOR BIPOC
BUSINESS RECOVERY
The City, Advisory Council members and many volunteers conducted multilingual phone outreach to assist
hundreds of Oakland’s small businesses in applying for stimulus funds, however, the City's recovery survey
data shows that many did not apply or were unsuccessful. According to a recent national report, as of April
2020, 441,000 black-owned businesses (41%) had closed permanently; 658,000 Latino-owned businesses
(32%), and 1.3 million woman-owned businesses (25%) had also closed4.
The City will distribute CARES Act funding for small businesses to provide immediate relief across Oakland,
with a focus on businesses in Oakland’s Opportunity Zones and other low-income census tracts. Additional
funding through private partners should be directly targeted to Black, Indigenous, and people of color owned
businesses to reduce the disparities in stimulus access. These communities are impacted by the same
systems that keep structural racism in place and we need to support the collective recovery.
4
Source: The impact of COVID-19 on Small Business Owners: Evidence of Early-Stage Losses from the April 2020
Current Population Survey; National Bureau of Economic Research; Working Paper 27309, June 2020
ACTIONS COMPLETED
OAKLAND SMALL BUSINESS EMERGENCY GRANT PROGRAM
With input from the City, issued $5,000 grants to 275 low-income small business
NEXT STEPS
owners with philanthropic funds from the Oakland COVID-19 Relief Fund. 80% of
the grants went to businesses owned by people of color.
CITY
PRIVATE FUNDS Oakland Chinatown Chamber
GOVERNMENT
Advisory Council members have of Commerce
sponsored multiple funds for BIPOC- Recovery and relief fund targeting
° Distribute emergency CARES Act owned small businesses: Oakland's Chinatown business
funding to small businesses, with community
a focus on Oakland�s low-income Keep it Caring, Keep it Oakland Fund
census tracts The Oakland Indie Alliance's OAACCF Resiliency Relief Fund
COVID recovery fund that A $1 million relief grant fund created
provides up to $10,000 grants by the Oakland African American
NON-PROFIT for small businesses, prioritizing Chamber of Commerce Foundation
ORGANIZATIONS BIPOC-owned businesses
Unity Council Business Relief Fund
° Oakland's Ethnic Chambers, OCCUR, The Unity Council's emergency cash
the POC Small Business Network, Black Cultural Zone, East Oakland assistance and relief for Fruitvale
Entrepreneurship Forum, the Unity Council, and others are working to District businesses
connect small businesses to recovery resources
Oakland Black Business Fund
"
ways of reaching audiences,
the delayed reopening of
concerts, performances and
other large gatherings to
Phase IV—the latest stage
of reopening—presents a
unique challenge for the
arts and culture sector.
Cultural organizations must
develop innovative ways to
sustain their existence while "
maintaining safe practices.
In addition, this sector may
need to raise significant funds Dr. Mieko Hatano
to reopen in modified safely distanced Executive Director, Oakland Symphony
formats when allowed under State and
County guidance.
ACTIONS COMPLETED
EAST BAY/OAKLAND RELIEF FUND FOR
INDIVIDUALS IN THE ARTS
The Center for Cultural Innovation, with City input,
issued $2,000 grants to individual artists and culture
workers, with $300,000 earmarked for Oakland
residents, using a combination of philanthropic
funds from the Oakland COVID-19 Relief Fund and
funding from the Economic Workforce Development
Department (EWDD)'s Cultural Affairs Division.
NEXT STEPS
ELVIN WONG/FLICKR
CITY
GOVERNMENT ° Provide technical assistance and fee-less fiscal
NON-PROFIT agency/sponsorship to arts organizations
° Explore flexibility in permit and ORGANIZATIONS ° Provide guidance on digital and distanced cultural
public safety fees for cultural gatherings
organizations to reopen using
outdoor space safely
BUSINESS ° Corporate stakeholders and institutional lenders
° Distribute CARES Act funding
COMMUNITY can sponsor or donate to recovery activities
to support artists and nonprofit
arts organizations and provide
technical assistance to help
STATE & ° Ensure that Workers Compensation Insurance
organizations adapt to new
REGIONAL companies do not cancel or increase policy prices
models for revenue and space
GOVERNMENT due to State mandates
9
PEG HUNTER/FLICKR
2
10
Local
Leadership
Empower the community to drive development
2.1
PARTNER ON RECOVERY INVESTMENTS
WITH COMMUNITY-LED AND SERVING
ORGANIZATIONS
Grassroots organizations delivering both health services and entrepreneurship support in Oakland’s most
impacted neighborhoods are a crucial recovery resource. Often under-funded, these groups are best positioned to
understand community needs and distribute resources. With the right coordination and support, they can bolster
the responses of government and of larger, more established non-profits. Recovery investments should support
their ongoing collaboration with each other and build long-term capacity to continue to partner with the City and
County and lead recovery work over the coming years.
The City has also designated CARES Act funding to support non-profits
that provide services to low-income residents in the following areas:
ACTIONS COMPLETED
Economic &
Food
CARES ACT FUNDING TO Workforce Housing
Security
COMMUNITY-SERVING Development
ORGANIZATIONS
Health & Legal Education
The Oak land Cit y Council Human Services Support
aut hor ized CAR ES Act f unding
t o communit y -ser v ing
or ganizat ions in East and
West Oak land, including t o
t he Oak land Communit y
Fr ont line Healer s, an alliance
of 20+ or ganizat ions t hat ar e
pr ov iding a holist ic suit e of
ser v ices t o Black and br ow n
communit ies dur ing t he
pandemic.
"
or ganizat ions.
NEXT STEPS
"
CITY
GOVERNMENT Oakland Frontline Healers
11
INTERNATIONAL LABOUR ORGANIZATION/FLICKR
3 Health &
Safety Guidance
Create and distribute consistent, culturally
competent business reopening guidance and PPE
3.1 ENSURE UNIFORM SAFETY GUIDANCE AND
PPE USE IN BUSINESSES ACROSS OAKLAND
Safety practices and PPE availability are not evenly implemented across the city. Every publicly accessible
Oakland business should have a safety plan for their operations, consistent, culturally-competent and multi-
lingual public signage on mask usage, PPE for their workers and other management practices
OAKLAND to eliminate
ReOpening Guide
workplace-based COVID transmission. Oakland is the most ethnically diverse city in the U.S. with more than 125
different languages spoken in the city.
ReOpening Guide
AND ASSISTANCE
The City is purchasing 350
PPE kits for East and West
Oakland businesses through TOS症狀 DOLOR ESCALOFRÍOS
the Opportunity Zone MUSCULAR
program. 當你有任何一項新冠病毒症狀時,請勿進入此場所:
ReOpening Guide 症狀
6 PIES
當你有任何一項新冠病毒症狀時,請勿進入此場所:
CUBRIRSE
Mantener una distancia
咳嗽 肌肉酸痛 發抖
M
servilleta de
發燒 喪失味覺 喉嚨痛
nariz a
或嗅覺 以呼吸
6ft.
六呎
NEXT STEPS
遮蔽
和他人保持至少 口罩
papel. 時以手帕或面
紙遮掩
鼻的口罩
6ft.
肢體接觸
沖洗
不要握手或任何不
常洗手
觸摸臉部 必要的肢體接觸
避免触摸眼睛,鼻子和嘴巴。
在進入本場所時,你已自願承擔感染風險,否則請勿進入。
以呼吸
# OA K P RO U D
GOVERNMENT 或嗅覺
阿拉米達縣公共衛生局聯絡方法 510-268-2101 N COV @ ACG OV. ORG
若有特殊防護計畫疑問,聯絡:
姓名 電話 電子信箱
六呎
° Continue to fund and distribute PPE
遮蔽
° The City is working to produce up to 1,000 more PPE kits and 和他人保持至少 口罩
CONT
打噴嚏或咳嗽 LAVA R S E
should explore bulk purchasing and working with local suppliers 六呎距離 佩戴能夠遮掩口 No se
時以手帕或面 Lávese las manos 鼻的口罩 ningún
紙遮掩
TO C A R S E LA C A R A
frecuente mente
físico i
6ft.
BUSINESS
COMMUNITY
NON-PROFIT
ORGANIZATIONS
13
THOMAS HAWK/FLICKR
4 Capacity
Building
Build business resilience through
technical support
ROOZBEH ROKNI/FLICKR
250
City permits have been Streets. As an extension of this flexibility, and to reach
filed for parklets and larger audiences, public radio and television should carry
outdoor retail/ service
spaces local arts performances.
ACTIONS COMPLETED
Just as the 2008 recession fell heavily on homeowners of color, thousands of whom lost their chance to build
wealth through homeownership in the foreclosure crisis, the pandemic threatens to eliminate recent Black and
Latinx gains in business ownership through mass business closures.
Oakland has an innovative Equity Permit Program designed to minimize barriers to opening a cannabis
business for those who have been the most victimized by the war on drugs. Cannabis Equity Permit holders
receive real estate incubation space, technical assistance, and access to a loan fund. Data on unequal access to
stimulus funding, loan capital and business assistance support replicating this model in other industries in a
post-COVID economy, with a focus on closing racial disparities.
ACTIONS COMPLETED
HIGHLIGHTING DISPARITIES
WITHIN INDUSTRIES
NEXT STEPS
° Gather data and conduct ° Consider joining ROC United/ ° Prevent predatory
racial impact analysis to name One Fair Wage's Safe and Just operations that exploit
disparities in industry sectors Reopening program to improve financially vulnerable
° Determine the City's role and workplace safety and close business operators and
create targeted assistance with racial wage gaps property owners
industry partners
16
4.3
17 CLOSE THE DIGITAL DIVIDE FOR
BUSINESSES AND WORKERS
Oakland’s workers and small businesses need resources, training, and technical assistance to succeed online.
From March to June, City staff, business technical assistance providers and community members worked to
help hundreds of business owners who do not use computers apply for stimulus funds online, especially senior
business owners. We found that training and digital support were even more important than internet access.
Workers and individuals also need online support for job searches, to access safer remote work opportunities,
benefits, supportive services, and telehealth. Opportunity youth, ages 18-24, should also be priority.
5
Source: "A Case for Digital Inclusion: Systematically Bridging the Digital Divide", City of Oakland, 2020.
ACTIONS COMPLETED
~94,000
Oakland residents have
no internet connectivity
or computing device
OAK WIFI
The City is using CARES Act funding OAKLAND STARTUP NETWORK
to implement Oak WIFI, a public In partnership with the City of Oakland, Kapor Center,
broadband access plan. ICA/Fund Good Jobs and The Town Experience hosted
Oakland’s first Digital Small Business Week in June, with
resources to help businesses sell online and scale using
digital tools.
NEXT STEPS
CITY ° Build on the successes of #OaklandUndivided, which raised over $15M to provide
GOVERNMENT Oakland students with computers and internet access, by raising funds to close the
digital divide for workers and small businesses
NON-PROFIT ° Identify business owners and workers who lack an online presence/ internet access
ORGANIZATIONS and connect to resources
17
4.4 BUY LOCAL CAMPAIGN AND ONLINE
MARKETPLACE/ B2B PLATFORM
ACTIONS COMPLETED
NEXT STEPS
PROMOTE LOCAL Fruitvale is Open
CITY BUSINESSES The Unity Council
GOVERNMENT Online directories
for local Oakland’s Open
° Foster an ongoing B2B platform businesses have Oakland Metropolitan
to go beyond one-time contracts been initiated: Chamber of Commerce
° Forge consensus on a single,
customer-facing platform and
Keep it Oakland Spend.Stay.Love.
support local business efforts to
Oakland Indie Alliance Visit Oakland
develop their listings
° Provide funding and support efforts to create a comprehensive, connected single platform
for B2B connection that enables large businesses to procure supplies from local and
BUSINESSES & BIPOC-led companies
PHILANTHROPY
18
4.5
SUPPORT ONGOING PARTICIPATORY
RESEARCH ON THE NEEEDS OF BLACK
BUSINESSES
One well-documented means of addressing wealth disparities in Black communities is by creating new economic
opportunities through employment, specifically business ownership within these communities (Bates et al.,
2007). Historical and persistent structural, systemic, and institutional biases, however, undermine prosperity for
small, disadvantaged businesses in Black communities. These biases lead to, and compound, three frequently
452
cited key obstacles to the economic mobility of Black-owned businesses: (1) lack
of access to capital, (2) lack of access to leadership education, and (3) a lack of
access to market.
Black-owned If recovery efforts mean to remove these barriers, we need focused, ongoing and
3,172
participatory research to assess the immediate
businesses
survival needs of businesses, their post-crisis
stabilization, and the impact of new programs on
their revenues.
Oakland Jobs
6
Source:American Economic Survey, 2007
generated in 20176
THOMAS HAWK/FLICKR
ACTIONS COMPLETED
Unemployment assistance may not cover local rents, especially after the lapse in the $600 pandemic
unemployment supplementary payment. In the years prior to the pandemic, 40% of Oakland residents did not
have enough liquid assets or readily available savings to survive three months without income.
For Latinx and Black residents, that percentage is much higher at 61% and 57%. Black and Latinx workers are
also disproportionately represented in low-wage work and in jobs still on pause or unlikely to resume in recovery.
Many Black-, Latinx- and Indigenous-owned businesses are home-based, and may not pay commercial rent, so
residential rent relief also sustains these businesses. A guaranteed income has been advocated to end poverty
since the Civil Rights era. The pandemic has shown that the current social safety net has been expensive and
overwhelming to administer without providing enough protection.
Income Poverty Rate 14.5% 2.9% 19.7% 21.0% 20.8% 16.2% 17.1% 20.4%
Liquid Asset Poverty Rate 40.6% 18.7% 53.7% 56.8% - 41.7% - 60.6%
Households with Zero Net Worth 22.2% 16.5% 25.7% 31.3% - 12.9% - 29.1%
7
Source:Prosperity Now Sourcecard
ACTIONS COMPLETED
NEXT STEPS
COVID-19 The Oakland COVID Relief Fund directed $2.9
RELIEF million directly to households through Centro
FUND Legal de La Raza, Keep Oakland Housed, CITY
HeadStart, One Fair Wage, Oakland Public GOVERNMENT
Education Fund, Oakland REACH and others.
° Continue to advocate for a Guaranteed Income
and work locally to set up the infrastructure to
RENT & The City Council allocated $5M in COVID Relief distribute cash assistance
MORTGAGE funds for Residential Rent and Mortgage Relief. ° Rent relief can be combined with landlord-tenant
RELIEF Keep Oakland Housed and other rent relief mediation and access to City housing services to
programs help both workers and home-based leverage assistance into longer-term stability
businesses, many of which are Black-, Latinx- and
Indigenous-owned.
21
DEVELOP AND SUPPORT POLICIES FOR
5.2 HEALTHCARE, CHILDCARE, AND ELDERCARE
FOR LONG-TERM UNEMPLOYED
22
MARCO SANCHEZ/FLICKR
There is an urgent need for retraining and job placement for laid-off, low-wage workers in retail, hospitality
and tourism, industries that employ more than 25,000 Oakland workers. The City applied for and received
funding from the State Employment Development Department (EDD), but this will only serve approximately 350
workers. Training programs can connect clients to other asset building areas such as banking, credit building and
homeownership. In the longer term, industries such as manufacturing may see growth post-pandemic, and along
with remote work possibilities, may provide opportunities for stable and higher wage work. Each industry should
address the racial disparities in its THOMAS HAWK/FLICKR
workforce and work with the City to
remedy, rehire and train workers to
equal employment.
Finally, Oakland’s youth are at
protests making a clear call for
justice and equitable investment
in their communities and futures.
Economic recovery and rebuilding
"
efforts must engage and include "
Oakland youth to share their survival
stories and hopes for the future.
CITY
GOVERNMENT BUSINESS ° Analyze and report on wage and hiring disparities
COMMUNITY ° Take action to close training and wage gaps
° Engage Oakland youth in the
economic recovery
° Identify sectors with growing hiring
° Analyze and project how Bay Area employment in
needs
the recovery will change from pre-COVID times
° Target workforce services to STATE &
° Consistent with both regional and local Economic
Oakland Zip codes with the highest REGIONAL
GOVERNMENT Development Plans, coordinate with cities on
unemployment
recovery planning that names disparities and
° Invest in gathering racial disparity
focuses on increases mobility, security and wealth
data by sector
for low-wage workers
23