CUPERTINO’S DECISION TO draw in new businesses and support longtime merchants has the commerce community cheering.
The Cupertino City Council voted 3-2 last month to prioritize economic development and small business support for the next two fiscal years as part of a citywide work program. Councilmembers J.R. Fruen and Sheila Mohan supported the effort, but voted no because of separate, unrelated items listed in the work program. Cupertino’s goals include streamlining the small business permitting process, supporting legacy businesses, attracting new businesses and creating a small business council. The city plans to explore filling vacant storefronts and themed events such as a restaurant week.
The City Council also reestablished the Economic Development Committee, disbanded in 2023, in a 3-2 vote. Fruen and Mohan voted no, citing a desire to take direction from experts in the field rather than committee members who may be less qualified. Councilmembers will appoint the five-person committee this spring.
Mayor Liang Chao said while the city has an economic development team, it doesn’t have the authority to influence policy decisions like the council or the reformed committee.
“I found that (other mayors) are actively working to build up an ecosystem for a target industry they wish to grow (like) biotech,” she told San José Spotlight. “It is important to retain and recruit small businesses, but it is more important to retain and recruit mid-sized businesses (which) would generate more significant revenue for the city.”
The new priorities come at an advantageous time with the city anticipating a budget surplus for the next decade. It’s a stark switch from the unprecedented multimillion-dollar deficits the city faced for the last year and a half. The shortfalls were largely due to the loss of Apple sales tax revenue. Cupertino is still feeling that loss, with costs expected to outpace revenue as the city spends the surplus. Revenue from new businesses could help.
Connecting with small businesses
Cupertino Chamber of Commerce CEO Deborah Feng said she’s encouraged by the city’s efforts because she wants Cupertino businesses to feel connected to their community.
Thaovy Nguyen, owner of Zarin Sewing & Alterations, said her business has been in Cupertino’s Portal Plaza since 2008. She hasn’t felt supported by the city and is glad Cupertino plans to shift its focus toward retaining small businesses. She wants the city to help out with small business costs, such as rent and license fees.
“A lot of small businesses move because the rent’s so high so (there’s) a lot of empty space now,” Nguyen told San José Spotlight.
Last year, the city prioritized goals regarding public safety, transportation and housing rather than economic development.
Debbie Hou, manager of Horizon Bakery, said the renewed priorities are important to the small business community. She said city help with costly renovations and burglaries would be appreciated, adding small businesses bring vibrancy to Cupertino.
“They make the neighborhood have more diversity and different (cultures),” Hou told San José Spotlight. “It’s not like everything is a chain store.”
Contact Annalise Freimarck at annalise@sanjosespotlight.com or follow @annalise_ellen on X.
This story originally appeared in San Jose Spotlight.