Harnessing Innovation and Culture: Pasadena’s New Strategy for Economic Growth

The City of Pasadena has introduced a new Economic Development Strategic Plan to capitalize on its strengths and ensure continued prosperity over the next five years. The plan, developed through extensive collaboration with the city’s partners, focuses on fostering innovation, resilience, and economic growth.

The Economic Development Division, part of the City Manager’s Office, crafted the strategy to create opportunities and highlight Pasadena’s existing vibrancy. City officials, local businesses, and community stakeholders provided input to guide the city’s economic initiatives.

“Supporting and nurturing our local businesses is crucial for Pasadena’s fiscal health and overall prosperity,” City Manager Miguel Márquez said in a city statement. “The contributions of our business community are vital for maintaining the city’s quality of life and economic stability.”

The plan positions Pasadena to become a regional leader in Deep Tech industries, including life sciences, AI, and quantum technologies, the statement said. The city’s strong tech workforce and institutions like Caltech provide a unique environment for cutting-edge companies.

The statement cited recent developments including the relocation of Xencor Inc. to Pasadena and the upcoming expansion of Motiv Space Systems in 2024. These developments, the statement continued, underscore the city’s growing appeal in high-growth sectors.

Pasadena has made a steady recovery following pandemic disruptions, with current employment levels nearing the pre-pandemic peak of 80,000 jobs. The new plan, according to the statement, aims to accelerate this recovery by addressing the evolving economic landscape.

In 2023, Pasadena’s commercial parcels contributed over $114 million to the City’s general fund, while sales and tax revenues added nearly $70 million. The statement said the city has outperformed neighboring areas in key economic metrics, including lower office vacancy rate, lower unemployment rate, and higher median earnings.

The plan addresses Pasadena’s retail oversupply with targeted methods to reduce vacancies and enhance neighborhood commercial corridors. It aims to refine retail space requirements and expand allowable uses for a more vibrant commercial landscape.

Pasadena’s status as a regional destination for shopping and dining is highlighted, with the city supporting more collective square feet of retail and food offerings than nearby competitors. Recent mentions in Vogue and The New York Times have showcased Pasadena’s unique blend of historic charm and modern luxury, the statement said.

“We are thrilled to reach this milestone in the Division, and now the exciting work of carrying out the plan’s initiatives begins,” said Director David Klug. He emphasized the importance of collaboration with community partners to enhance Pasadena’s economy.

The new plan outlines six guiding principles for growth: building partnerships, championing life sciences, investing in neighborhoods, reinforcing Pasadena as a cultural destination, expanding workforce opportunities, and prioritizing place and accessibility investments.

To view the full plan, visit https://www.cityofpasadena.net/EconomicDevelopment/Development-News/. 

The city invites businesses, investors, and community members to participate in this new economic chapter. For more information, contact the Economic Development Division at EconomicDevelopment@CityOfPasadena.net or call (626) 744-4660.