Mayor: The City's economic outlook shaping up

Despite the nation’s economic downturn, the financial future of The City is shaping up in a “positive way,” Mayor Gavin Newsom said Wednesday.

Businesses such as Google, MySpace and Wikipedia are moving into San Francisco because of the local talent available to companies and the growth “spirit” of The City, Newsom said at a breakfast in Oakland for Bay Area business leaders.

“None of these companies came in and complained about our payroll tax,” the mayor said.

The challenge for The City, Newsom said, was to strike a balance between the revived technology sector — which crashed in 2000 with the dot-com bust after a period of wild growth — and the support services needed to sustain companies in town, which can be hampered by the high cost of doing business in The City.

“We’ve really become a back office to Silicon Valley,” said Newsom, adding that companies are attracted to San Francisco values found in such programs as Healthy SF — The City’s affordable health care program — and its support for gay marriage.

“Those are the reasons Riverbed moved in,” he said, referring to the data service company.

San Francisco is not a cheap place to conduct business, Newsom acknowledged. However, if a company wanted to be competitive in its market then it needed to be in The City, he said.

“If you guys are looking for the best deal, go to Nevada,” Newsom said.

Along with Oakland Mayor Ron Dellums, Newsom addressed roughly 1,000 people.

Before Newsom spoke, Richard Weiss, the chief investment officer for City National Bank’s investment branch, said the average amount of time between the peak of an economic cycle and the trough was 10 months. The economy peaked in mid-2007 so the low point of the expected recession would be near the middle of 2008, Weiss said.

dsmith@examiner.com

Bay Area NewsLocal

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

San Francisco plans to reopen the Upper Great Highway, which had been closed for recreational use during the COVID pandemic. (Kevin N. Hume/S.F. Examiner)
San Francisco plans to reopen the Upper Great Highway, which had been closed for recreational use during the COVID pandemic. (Kevin N. Hume/S.F. Examiner)
San Francisco plans to reopen the Upper Great Highway, which had been closed for recreational use during the COVID pandemic. (Kevin N. Hume/S.F. Examiner)
Great Highway to reopen on weekdays, sparking renewed debate

The Upper Great Highway soon will reopen to vehicles for the first… Continue reading

Second grader Genesis Ulloa leads students in an after-school community hub in a game at the Mission YMCA on Friday, May 7, 2021. (Kevin N. Hume/S.F. Examiner)
SF parents face school year with hope, trepidation and concern

‘Honestly, I don’t know how I’m going to deal with it’

A fire lookout with the U.S. Forest Service feeds a chipmunk in the Tahoe National Forest. California officials closed some popular trails and nature areas in South Lake Tahoe for the week after a dead chipmunk tested positive for the plague. (Jim Wilson/The New York Times)
Yes, Lake Tahoe chipmunks have the plague. But don’t worry (too much)

By Johnny Diaz New York Times When California officials closed parts of… Continue reading

After nearly 15 years of being part of Google, the most successful money machine in internet history, it’s still not clear that YouTube has fulfilled its financial potential both for itself and everyone involved in its vast digital economy. (Dani Choi/The New York Times)
Is YouTube a success? It’s a serious question

By Shira Ovide New York Times This question will sound ridiculous, but… Continue reading

Most Read