Novato Adopts First 10-Year Economic Plan, Awards $16.8M Road Contract

Novato now has a decade-long economic roadmap. On Sept. 22, the City Council voted 5-0 to adopt its first Economic Development Strategic Plan. It also rejected a rival bidder's protest to award a $16.8M Novato Boulevard contract and voted 4-1 to end work on right-of-way relief for older subdivisions.

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• Economic Development Strategic Plan adopted 5-0; zoning changes must still return as ordinances
• Council votes 4-1 to drop right-of-way fixes for Nave Gardens and about 17 similar subdivisions
• $16,824,358 Novato Boulevard contract goes to Team Ghilotti after Argonaut protest denied 4-0
• FY 2026-27 tourism budget accepted 5-0 as hotel occupancy still trails pre-pandemic levels
• Climate report shows emissions down 34% since 2005; resident presses for more staff

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A Roadmap for Novato's Economy, Zoning Held Back

The basics: Consultants Good City Company and Strategic Economics built the plan from 843 survey responses and a community workshop. It sets six goals:

1. Open for business
2. Revitalized commercial corridors
3. Industrial reinvestment
4. A stronger downtown
5. Housing as economic infrastructure
6. Better use of city property

About 45 actions are spread over 10 years.

Why it matters: "It's our first ever economic strategic plan," said Councilmember Tim O'Connor. Year-one work includes:

1. A commercial code audit
2. A business permitting team
3. Outreach to commercial brokers

Where things stand: Consultants framed the plan as preparation, not a guarantee. "You can't control market conditions, but you can set up priorities so when market conditions allow, you could take advantage of those opportunities," said Aaron Acknin, Principal, Good City Company. Dina Belzer of Strategic Economics described the goal as making sure "the minute the market turns, the city's ready."

Broker outreach targets a reputation problem. "They have this attitude that it's difficult to work with them, Novato, which we're trying to change," said Mayor Pro Tem Kevin Jacobs.

Guardrails on zoning: Councilmember Pat Eklund asked whether adopting the plan also adopted the zoning recommendations in Appendix A. "This does not commit you to these recommendations," said the City Attorney. He confirmed that any zoning ordinances must come back to the council.

Eklund also asked how progress, including growth in higher-paying local jobs, would be measured. Staff pointed to about 10 suggested metrics in the plan.

Data centers surface: "I know data centers are extremely detrimental and we probably don't want that in Novato," said Mayor Rachel Farac. Consultants said the city's stated vision would act as a filter on which uses fit.

The other side: No speaker opposed adoption. Public commenter Sarah Turkley urged the city to preserve historic buildings and town character, favor small local businesses over chains, and adopt a written prohibition on data centers.

Decisions and stakeholder impacts: Business groups backed the plan.

• Denise Athas of the Novato Chamber of Commerce urged the city to prioritize Appendix A's commercial zoning modernization. That includes simpler permitting, more by-right uses (allowed without discretionary approval) and parking and sign updates.
• Robert Sundberg of the Downtown Novato Business Association welcomed the downtown focus and asked for clarity on a planned refresh of the association.
• Economic Development Advisory Commission members Susan Warnick and Daniel Christensen urged adoption.

Farac moved and Eklund seconded. For: 5 (Farac, Jacobs, Eklund, Karkal, O'Connor); Against: 0; Absent: 0.

What's next: Any Appendix A zoning changes would go through the Planning Commission and return to the council as ordinances.

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Council Ends Legacy Subdivision Fix, 4-1

The basics: Eklund brought the item to find a path for homeowners in pre-incorporation subdivisions such as Nave Gardens. These neighborhoods have rights-of-way of 40 to 60 feet, and residents face setback constraints. "Around 17 subdivisions were built in similar time frames and have very similar characteristics," said Public Works Director Christopher Benigni.

Where things stand: Benigni outlined three options:

1. Vacating right-of-way, at about $7,000 per parcel including a lot line adjustment
2. Variances, which take 60 to 120 days and are rarely granted
3. A city-initiated zoning amendment, with no fee and a timeline of 120-plus days

Staff flagged several risks:

• Utility conflicts
• Nonconforming structures
• Neighborhood character
• Equity
• Higher property taxes

On taxes, the City Attorney was blunt about homeowners who acquire former right-of-way: "Their property taxes will go up."

Jacobs raised fire access and ADA concerns. O'Connor asked how many permits had actually been denied. "I am not aware of any recent permit that has been denied," said Steve Marshall, Deputy Director of Community Development. He said applicants had received only plan-check comments.

The other side: Eklund wanted to meet with Nave Gardens residents before the council closed the door. "We owe it to the people that live there to let them know what we've discovered," she said.

Decisions and stakeholder impacts: O'Connor moved to discontinue the work, citing its complexity, and Jacobs seconded. For: 4 (Farac, Jacobs, Karkal, O'Connor); Against: 1 (Eklund); Absent: 0. Homeowners in Nave Gardens and similar neighborhoods will not get a city-led process for right-of-way or setback relief.

What's next: Eklund said she would brief the neighborhood.

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Bid Protest Rejected, $16.8M Boulevard Contract Awarded

Why it matters: The vote clears the way for the roughly $16.8M Novato Boulevard Improvements Project. Team Ghilotti, Inc. won the contract at $16,824,358.

Where things stand: Bids opened Aug. 19. Argonaut Constructors protested on Aug. 25, arguing the low bid was unbalanced. An unbalanced bid prices some line items high and others low, which can shift costs if quantities change.

Staff reviewed the protest with the city attorney and an outside construction manager. "We found no errors, no omissions, and no material irregularities," said the city's Senior Civil Engineer.

Jacobs asked about disputed flagger costs. Staff said those costs were bundled into line items for undefined subsurface concrete removal. Farac asked whether the city tracks contractor performance and change orders after a job ends. Staff said there is no written tracking.

The other side: Stephen Copeland, representative, Argonaut Constructors, pointed to roadway removal and hot-mix asphalt unit prices. He argued "the Team Ghilotti bid is unbalanced, that the overall price, while it may be inviting, could risk the city huge overruns in changes." The City Attorney replied, "We disagree that a further investigation is needed."

Decisions and stakeholder impacts: Councilmember Sandeep Karkal recused himself because the project includes improvements at his employer, Novato Sanitary District.

• Protest denial: Eklund moved and Jacobs seconded, with the bid advertisement date corrected to July 21. For: 4 (Farac, Jacobs, Eklund, O'Connor); Against: 0; Recused: Karkal.
• Contract award: Passed by the same 4-0 vote, with Karkal recused.

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Tourism Marketing Bets on Hotel Clicks

Where things stand: Garrett Guerrillo, Chair, Novato Chamber of Commerce Tourism Committee, reported:

• 52,000 hotel referral clicks, up about 5%
• 153,000 total engagements
• Instagram and TikTok growth driven by influencer campaigns

Plans include short-form video, group bookings and trade shows such as Meetings West. "It's really our principal focus is driving traffic to hotel websites," he said.

Eklund questioned a large negative ad-click figure. It reflected a deliberate shift from Google search ads to social media. Jacobs praised branding Novato as "the gateway to the wine country."

O'Connor asked about visitor-center traffic and occupancy. Guerrillo acknowledged that "occupancy is still not where it was pre-pandemic."

Farac pressed for KPIs, or key performance indicators. Guerrillo said hotel clicks remain the main KPI, supplemented by Smith Travel data.

Decisions and stakeholder impacts: Jacobs moved to accept the report and the FY 2026-27 tourism budget. For: 5; Against: 0; Absent: 0. The marketing supports hotel bookings and transient occupancy tax revenue.

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Climate Plan Progress Meets a Staffing Question

Where things stand: "Community-wide emissions in Novato have decreased by 34% since 2005, which is equivalent to 22% below 1990 levels," said Sustainability Coordinator II Gretchen Schubeck. Transportation and building gas account for 93% of emissions.

The plan has 161 actions. Recent work includes school route maps, a repair fair, a compost giveaway, municipal lighting retrofits and the Clean Energy Expo. Schubeck cited setbacks from federal tax-credit changes and AB 130, a state building-code pause.

Eklund asked why many measures show as not started. "Part of it is bandwidth, but I think also it's about prioritization," Schubeck said. She added that funding is also a factor. O'Connor asked about EV charging; staff cited PG&E outreach and public-private partnerships.

The other side: Public commenter Bob Brown said implementation is under-resourced and cannot be a one-person job. He noted that 19 of 161 actions had work underway and asked the council to make the plan a priority across departments.

What's next: No vote was taken. Eklund said resourcing could be taken up when the strategic plan work plan returns next month.

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Minor Items

• Proclamation: Council honored Make It Home Bay Area, a furniture bank that has served more than 8,300 people since 2020.
• Consent calendar passed 5-0, including Ordinances 1734 and 1735, investment policies and a Prop 1 endorsement.
• Streetlight contract delayed: Staff pulled G.8, a $413,760 DC Electric Group pole replacement award, to return later.
• Chamber thanks: CEO Christina Mendez praised the Corp Yard, police and staff for supporting the Art and Wine Festival and other events.
• Regional housing: Eklund reported that ABAG is weighing a regional housing strategy and "a possible ballot measure that we put on the ballot for 2028."

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Looking Ahead

Jeremy, a Reuse Alliance board member, invited the council to the Oct. 10 Repair Fair. The council's next regular meeting is Oct. 13. The meeting adjourned in memory of Virginia Miller and Anna Holyoke.