CC 2021-06-08_11c Participation in Visit SLO Cal Oceano Dunes_Economic Impact AssessmentMEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY MCDONALD, CITY MANAGER
SUBJECT: CONSIDERATION OF PARTICIPATION IN VISIT SLO CAL OCEANO
DUNES ECONOMIC IMPACT ASSESSMENT
D ATE: JUNE 8, 2021
SUMMARY OF ACTION:
Consider participation in the Oceano Dunes Economic Impact Assessment proposed by
Visit SLO CAL, including the appropriation of up to $5,000 for the study from the City
Manager’s Fiscal Year 2020-21 consultant services budget.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Visit SLO CAL is requesting a $5,000 contribution toward the proposed Oceano Dunes
Economic Impact Assessment, in addition to the support of City staff in supplying
information necessary to complete the study. The proposed $5,000 may be paid from
unexpended funds in the City Manager’s Fiscal Year 2020-21 consultant services budget.
RECOMMENDATION:
It is recommended the City Council consider participating in the Oceano Dunes Economic
Impact Assessment proposed by Visit SLO CAL, in partnership with the South County
Chambers of Commerce, and supported by the City of Grover Beach and the County of
San Luis Obispo.
BACKGROUND:
On March 18, 2021, the California Coastal Commission approved modifications to the
Coastal Development Permit issued to State Parks for operation of the Oceano Dunes
State Vehicular Recreation Area (ODSVRA) that will phase out off-highway vehicle use
at the park within the next three years. It is anticipated that this change will result in
economic impacts to the region surrounding the ODSVRA, which has supported off-
highway vehicle recreation at the ODSVRA for decades; however, these impacts are
unclear at this time.
Visit SLO CAL proposes to commission an Oceano Dunes Economic Impact Assessment
to help the local agencies and businesses surrounding the ODSVRA evaluate and plan
for the economic impacts of the upcoming changes to the ODSVRA’s operations. On May
6, 2021, the City Council received a request from Visit SLO CAL that the City of Arroyo
Grande (City) participate in the economic impact assessment. This request is provided in
Attachment 1.
Item 11.c. - Page 1
CITY COUNCIL
CONSIDERATION OF PARTICIPATION IN VISIT SLO CAL OCEANO DUNES
ECONOMIC IMPACT ASSESSMENT
JUNE 8, 2021
PAGE 2
At the regular City Council meeting held on May 25, 2021, Councilmember George asked
that Visit SLO CAL’s request to participate in the economic study be placed on a future
agenda, which was agreed to by Mayor Pro Tem Paulding. Accordingly, this item is
presented for Council’s consideration.
ANALYSIS:
Visit SLO CAL, in partnership with the South County Chambers of Commerce, proposes
to engage a professional economic consultant to prepare an Oceano Dunes Economic
Impact Assessment. The stated purpose of this study is to “assess the financial effects
and employment impacts of the Oceano Dunes District on the San Luis Obispo County
economy” and to meet the following goals (see Attachment 1):
“1. A robust and comprehensive assessment of the direct, indirect and induced
economic benefits the Oceano Dunes District brings to the surrounding
communities, San Luis Obispo County, and the California State Parks
system.
2. To provide subsequent mitigation measures in the event of partial or full
closure of the Oceano Dunes District, and identify potential opportunities for
a repurposing of the State Park, as well as identify areas of opportunity in
the surrounding area.”
According to Visit SLO CAL, the study is intended “to help our communities plan for the
future,” “provide an understanding to the real impacts of the segmented closures to the
ODSVRA, and help provide the foundation for a pathway forward to ensure economic
diversity in south county” (see Attachment 1). Visit SLO CAL has also assured that
participation in the study will not obligate any agencies to utilize or implement the results
or data presented in the study. The City of Grover Beach and the County of San Luis
Obispo have also agreed to participate in the study.
ALTERNATIVES:
The following alternatives are provided for Council's consideration:
1. Consider and approve the City’s participation in the Visit SLO CAL Oceano Dunes
Economic Impact Assessment and an appropriation of $5,000 from the City Manager’s
consultant services budget for Fiscal Year 2020-21 toward the study;
2. Consider and approve the City’s participation in the Visit SLO CAL Oceano Dunes
Economic Impact Assessment without the approval or appropriation of any City funds
toward the study;
3. Do not approve the City’s participation in the Visit SLO CAL Oceano Dunes Economic
Impact Assessment;
4. Provide other direction to staff.
Item 11.c. - Page 2
CITY COUNCIL
CONSIDERATION OF PARTICIPATION IN VISIT SLO CAL OCEANO DUNES
ECONOMIC IMPACT ASSESSMENT
JUNE 8, 2021
PAGE 3
ADVANTAGES:
Participation in the Oceano Dunes Economic Impact Assessment is anticipated to provide
useful data and information to the City regarding the potential economic impacts of the
upcoming closure of the ODSVRA to off-highway vehicles and may support regional and
local efforts to obtain mitigation for these impacts.
DISADVANTAGES:
Staff time and financial resources are requested to support the City’s participation in the
study, while it is unclear what results or benefits the study will yield for the City.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachments:
1. Email from Visit SLO CAL requesting the City’s participation in the Oceano Dunes
Economic Impact Assessment
Item 11.c. - Page 3
From: Annie Frew <Annie@slocal.com>
Sent: Thursday, May 6, 2021 8:38 PM
To: Caren Ray Russom <crayrussom@arroyogrande.org>; Jimmy Paulding
<jpaulding@arroyogrande.org>; Kristen Barneich <kbarneich@arroyogrande.org>; Keith Storton
<kstorton@arroyogrande.org>; Lan George <lgeorge@arroyogrande.org>
Cc: Whitney McDonald <wmcdonald@arroyogrande.org>; Jocelyn Brennan
<jocelyn@southcountychambers.com>
Subject: Oceano Dunes Economic Impact Assessment for council consideration
Good Evening Mayor and City Council Members,
I am writing today for the future consideration of the City of Arroyo Grande’s support for our
Oceano Dunes Economic Impact Assessment and a $5,000 financial contribution to hire a reputable
third-party agency to conduct the study.
We are working on a collaborative economic impact assessment, led by Visit SLO CAL and the South
County Chambers of Commerce to conduct an impartial, third-party, robust and comprehensive
assessment of the direct, indirect and induced economic benefits the Oceano Dunes District brings
to the surrounding communities, San Luis Obispo County and the California State Parks system.
Additionally, the study will provide subsequent mitigation measures to help prepare for the
segmented closures of the off-highway vehicle area, camping and beach driving limitations, and help
identify economic opportunities for communities tangential to the park. Attached is the project
scope. Please note the timeline is a bit outdated and adjustments are being made to reflect a more
current timeframe.
We intend this assessment to help our communities plan for the future. The data will provide an
understanding to the real impacts of the segmented closures to the ODSVRA, and help provide the
foundation for a pathway forward to ensure economic diversity in south county. That being said,
there is no obligation from any of the partnering cities or county to utilize the data if they choose
not to do so.
At this time, we also have confirmed partnership from the city of Grover Beach and County of San
Luis Obispo. We are asking for the council to consider partnership and support of the project in the
near future. By gaining your support, we can ensure a united front to help plan for the economic
vibrancy of our communities in both south county and throughout SLO county. Please do not
hesitate to reach out should you have any questions. Thank you for your time and consideration.
All the best,
--
Annie Frew
Director of Community Engagement & Advocacy
Visit SLO CAL
Annie@SLOCAL.com
O: 805.541.8000 ext. 103 | C: 805.550.9313
SLOCAL.com
Attachment 1
Item 11.c. - Page 4
Oceano Dunes Economic
Impact Assessment
03.01.2021
─
Annie Frew
Visit SLO CAL
1334 Marsh Street
San Luis Obispo, CA 93401
Item 11.c. - Page 5
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Overview
The purpose of this study is to assess the financial effects and employment impacts of the Oceano
Dunes District on the San Luis Obispo County economy.
Goals
1. A robust and comprehensive assessment of the direct, indirect and induced economic benefits
the Oceano Dunes District brings to the surrounding communities, San Luis Obispo County, and
the California State Parks system.
2. To provide subsequent mitigation measures in the event of partial or full closure of the Oceano
Dunes District, and identify potential opportunities for a repurposing of the State Park, as well as
identify areas of opportunity in the surrounding area.
Background
The Oceano Dunes is a large, naturally occurring coastal dunes system located between Pismo Beach
and the unincorporated Oceano in San Luis Obispo County. Originally occupied by the Chumash, the
dunes are a rich and unique cultural and environmental asset.
Aside from the environmental attractions, the most popular component is the Oceano Dunes State
Vehicular Recreation Area (SVRA), a part of the larger Pismo Beach State Park, and operated under the
California State Parks system. Off-highway vehicles (OHV) and off-roading enthusiasts travel from all
over the world to ride along the scenic coastline.
In addition to the OHV area, street legal vehicles are allowed to drive on the Pismo State Beach along
with spaces designated for beach camping. Other recreation activities include, but are not limited to:
fishing, surfing, paragliding, horseback riding, and hiking.
Purpose
A previous economic impact report was completed in 2017 however, the study was deemed incomplete
and did not provide a full understanding or segmentation of the potential economic impacts. This study
will ensure a robust and comprehensive assessment of the data, analysis and provide subsequent
mitigation measures and areas for opportunity.
Upcoming regulatory decisions will affect how the State Park operates and the current scope of
recreational assets. Over the next five years, State Parks may be required to phase-out its off-highway
vehicle riding area (OHV). The OHV component to the State Park is unique within California and a huge
tourist attraction. People travel from all over the world to ride on the State Park all while recreating and
staying in the neighboring towns.
Item 11.c. - Page 6
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This unique piece of coastline not only attracts travelers and residents alike, but also the film industry.
The biodiversity and distinctive environmental makeup is particularly enticing to filmmakers, musicians,
adventure photographers, and other artists. When filming occurs, the artists and their crews increase
revenue for State Parks and the community in which they stay in.
However, the rare environmental features are protected under state and federal laws. For example, The
Endangered Species Act is federal legislation that protects listed species, such as the Snowy Plover, to
ensure the habitat, breeding ground and survival of the species can persist. Several environmental laws
protect the Oceano Dunes’ uniqueness but also comes with several regulatory agencies that maintain
jurisdiction over the State Parks and subsequent permitting that allow for recreational activity.
The dissonance between cultural and environmental preservation with the increased access to
recreational activities has caused tension between State Parks and other regulatory agencies. It is our
hope this economic assessment can provide the necessary data and analysis to help guide our
communities in preparing for possible future regulatory decisions and begin to plan for outlined areas of
opportunity.
Need for Economic Impact Assessment
As previously referenced, State Parks commissioned an economic impact assessment in 2017 to
measure the impact of recreational activities in the Oceano Dunes District on the San Luis Obispo
County economy. The report concluded that an estimated $243 million is generated annually to the
county’s economy and over 3,000 local jobs based on data collected between 2016-2017. The 2017
report was quickly peer reviewed by researchers from Cal Poly State University and San Francisco State
University, respectively. Researchers critiqued the report with serious regard to the report’s
methodology and conclusions, ultimately calling into question the accuracy of the estimated $243
million generated to the local economy. As a result, the California Coastal Commission, other relevant
agencies and the local community have largely discredited the 2017 analysis and its conclusions.
In February of 2021, one of the professors who peer reviewed the 2017 State Parks assessment, Dr.
Pratish Patel who is an associate professor of finance at Cal Poly, released a report assessing the six-
month period when camping and off-roading were closed due to the COVID-19 pandemic and the
subsequent economic impacts during the closure. Dr. Patel concluded the closure had “no significant
impact” on the county’s local economy. However, Dr. Patel’s study was also severely flawed in its
methodology and conclusions. The methodology was contingent on assessing the unincorporated
Oceano bed-tax generated where the number of hotel rooms and vacation rentals is limited and does
not provide an accurate representation of the lodging accommodations travelers utilize when accessing
the park. Additionally, the data for this analysis was collected during the COVID-19 pandemic and is not
reflective of typical travel seasons or circumstances. These factors, among others, compromised the
data analysis and conclusions, and the report has recently been discredited by peer researchers and
community members as well.
Because previous studies do not provide definitive or unbiased data analysis and conclusions about the
real economic impacts of the Oceano Dunes District, it is challenging for decision-makers to utilize
Item 11.c. - Page 7
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research to make informed decisions in the best interest of the community. The purpose of this study,
as conducted by a third-party, will ensure an impartial, accurate and comprehensive assessment to
provide the necessary information for regulatory agencies, local elected officials and other decision-
making bodies.
Milestones
I. Gain purpose, understanding and financial buy-in from surrounding cities
and county
Meet with the cities of Grover Beach, Arroyo Grande and Pismo Beach in addition to the County
of San Luis Obispo. Completion date: Friday March 5, 2021
II. Meet with potential agencies (Tourism Economics, Destinations Analysts,
etc.)
Initial meeting to discuss data collection and analysis and expected outcomes of the economic
impact assessment. Completion date: Friday March 12, 2021
III. Proposal from agencies
Receive proposal and select agency. Completion date: Friday, March 26, 2021
IV. Begin data collection and analysis
Agency to begin data collection and analysis. Estimated completion date: Friday June 11, 2021
V. Draft findings presented for review
Estimated completion date: Friday June 18, 2021
VI. Final report completed and presented to the Board
Completion date: Wednesday July 21, 2021
Recommended Inputs
Item 11.c. - Page 8
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Type of Input Input Reasoning
Direct OVH/SVRA Closure Pending Coastal Commission to
phase-out over five years
Direct Overnight camping Assess the dollars spent from
camping patrons
Direct Day use visitors without vehicles Determine number of visitors
without vehicles from both
locals and out of town visitors
Direct Day use permits/users without
OHV
Value of those using the park in
a limited capacity
Direct Day use permit permits/users
with OHV
Value of those using the park in
a limited capacity
Direct Day use permits/users with
street legal vehicles
Value of those using the park in
a limited capacity
Direct Day use permits/users renting
from OHV concessionaires
Value of those using the park in
a limited capacity
Direct Employment and income of
State Parks
Determining the residential
income generated directly by
ODD
Direct Other identified activities
(hiking, surfing, paragliding)
Value of those using the park in
an isolated capacity
Direct International Visitors Value of travelers from outside
of the U.S.
Direct Out-of-State Visitors Value of travelers from within
the U.S.
Direct In-State Visitors Value of travelers from
California
Direct Full State Parks Closure Understanding the value the
entire park brings to the County
Direct/Indirect Events Assessing State Parks events
and the dollars spent by those
attending the events
Direct/indirect Film Understanding the dollars spent
in our local communities from
film/entertainment productions
Item 11.c. - Page 9
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Indirect Impacts in neighboring
communities
Gauge the financial impacts to
surrounding local businesses
and communities
Indirect Domestic and International
Press Recognition
Understand the value of press
recognition
Indirect Employment dollars Employee dollars spent in our
local communities
Mitigation measure Events Identify potential events for
State Parks
Mitigation measure Boardwalk Understand the potential to
generate income from a
boardwalk
Mitigation measure Other activities Identify other activities to help
generate income
Item 11.c. - Page 10