Through its municipal electric and telecommunications systems, Alameda boasts more affordable and stable electricity rates and service, claiming that its businesses will gain a clear operating edge with low rates and no fear of rolling blackouts.
The city's commercial electricity rates average about 35% lower than those in surrounding areas. These rates have remained the same for the past 5 years, and officials say that no rate increase anticipated in the foreseeable future. "Businesses need locations that directly help, not hinder, their bottom line," says Alameda Mayor Ralph Appezzato, "particularly with this sluggish economy."
One company that has taken advantage of this deal is Good Guys Inc. After the struggling consumer electronics retailer moved its corporate headquarters to Alameda, its occupancy costs were cut in half. The company's still struggling, recently announcing the closing of several stores, but it's not because of corporate occupancy costs.
"Alameda offers Good Guys and our associates the best of both worlds," says Kenneth R. Weller, Good Guys president and CEO. "It has a small-town ambience, as well as easy access to services and lifestyle amenities. It has great adjacency to the Bay, and the parks and promenades along the water are very pleasant. Our associates also benefit from lower cost of living and, in many cases, shorter commute times. Our business benefits from the varied and skilled labor market, reasonable occupancy costs, predictable power supply, and access to San Francisco, Oakland, and the entire Bay Area."
Alameda is targeting more than 1,500 bio- and high-tech companies throughout the Bay Area, sending them anti-stress "light bulbs" and related materials. Additionally, over the next several months, City representatives plan to build relationships and increase awareness with commercial office brokers and the general business community, through other communication, media, and public relations initiatives.
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