Watsonville hires ‘matchmaker’ to spur economic development

Watsonville officials are working to attract national retailers, with the help of a consultant with the goal of growing the city’s economy and providing residents with more local shopping and dining options. 

The consulting firm Retail Strategies has been hired to market Watsonville at trade shows attended by national retailers and restaurants, said City Manager Tamara Vides. “They’re matchmakers,” she said. “They look at the community and determine what would be a good business that could thrive in that community.” 

Vides said growing Watsonville’s economy is a city council priority and attracting and retaining restaurants and retail stores is one strategy to grow its economic base. The city previously hired a consultant to develop its economic plan. 

Retail Strategies will conduct a comprehensive analysis of Watsonville’s demographics, consumer behavior and market conditions to build relationships with national chains that might be interested in opening a location in South County. 

The city had its first meeting with the new consultants last month, with city staff giving them a tour of Watsonville and showing them where there are building vacancies. “We really were able to help them better understand the retail environment and the context of where our city is right now,” Vides said. 

Vides said Retail Strategies will create a report with initial feedback from that first visit to Watsonville. She said she asked the consultants to help the city add to its “toolbox” for supporting businesses. 

This year alone, Watsonville welcomed a new Planet Fitness and dd’s Discounts along the Freedom Boulevard corridor. Vides said the owners of Vallarta Supermarkets spearheaded efforts to bring the new gym to the shopping center they own.

On average, about 100 new businesses open in the city each year, Vides said, but that number fluctuates based on the general state of the economy. 

“This is something that you have to cultivate, and over time, you see the fruits of your labor,” she said. “It’s not like a quick fix, it just takes a bit of time. But if we don’t start, we will not see it.”

It also takes time for the city, as a regulatory agency, to do everything it can to make the community business-friendly, such as streamlining the permitting process or providing support to smaller businesses, she said. 

The City of Watsonville is also working to develop a new hotel, which will go in front of the city’s planning commission in the next couple of months.

Last year, the city council began to explore tax sharing agreements and other incentives to attract more three- and four-star hotels to the area to boost tourism, jobs and hotel tax revenues. Vides said the city is considering changing certain policies and offering financial incentives as well. 

“Where the city can either remove a barrier or provide support, that is something that I’m always looking for,” Vides said. 

Additionally, the city will continue its efforts to support local businesses by showcasing them on social media platforms, a campaign started last year by Councilmember Maria Orozco during her term as mayor. Vides added that there will be a marketing campaign focused on encouraging residents to shop in the downtown area, and as part of its contract with Retail Strategies, the city will offer self-guided training aimed at supporting existing local businesses. 

If residents have to travel to Santa Cruz or Aptos to get a service or buy something, Vides said she hopes bringing new businesses will encourage people to spend their money in Watsonville. 

“I want to make sure that we have the right environment for those businesses to thrive in our community, because they’re thriving outside, because we’re going to patronize them outside,” she said. 

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