Novato plans to hire a new full-time economic development manager.

The City Council voted unanimously Tuesday to create position, which would pay up to $208,345 a year. The city has not had a dedicated economic development manager since fiscal year 2019-20.

Budget cuts resulted in assigning economic development and homelessness prevention initiatives to a principal analyst, “making it challenging for either area to receive the attention needed to keep pace with interest, demand and need,” City Manager Amy Cunningham said.

“The addition of a dedicated economic development manager would provide dedicated staff support to focus on attracting, maintaining and growing local businesses,” she said.

The official will help the city move forward on economic initiatives listed in its strategic plan and further the work of the Economic Development Advisory Commission. Efforts would include exploring potential uses for the historic train depot and parking area, looking at cannabis storefront licenses and studying new revenue streams for the city.

A budget-related survey conducted in April identified economic development as one of the top three areas of interest to residents. In past years, it has consistently ranked in the top five community priorities, according to a staff report.

Cunningham said the position is critical to the economic development program’s success. “We simply don’t have time to do more than we’re already doing,” she said.

Councilmember Rachel Farac, who initiated the discussion, supported the position and said she’s noticed a gap between communication and “knowledge sharing” between city staff and the business community.

“I think having a dedicated economic development manager would definitely spark economic development and offer a proactive approach,” Farac said. “I think this person could really enhance that relationship and make sure clear communication and city priorities and the business community are being considered.”

Cunningham said a new manager would improve staff’s ability to apply, secure and manage grant funding. The city has run a deficit for years, reducing staffing to save costs, and has fallen behind on yearly audits, according to the staff report. This has challenged the city’s ability to qualify for some grants.

Farac said she felt the city has missed grant opportunities and hasn’t prioritized them. She wasn’t sure if an economic development manager could do both, and felt another solution should be explored to make progress in securing grants.Councilmember Pat Eklund wondered if staff had considered contracting with a third party for a combined manager and grant writer. Cunningham said they are separate skill sets, and the position needs to be long-term in order to have consistency and foster an immersive relationship with the business community.

“So bringing in the right person who can go out and connect with the businesses and really understand the big picture,” Cunningham said. “I don’t know that you get that same personal touch with a consultant or contractor.”

Eklund suggested developing a way to measure the position’s success. Mayor Tim O’Connor agreed, and said the manager should connect with landlords to see if vacant properties could get turned over. He said he felt the grant program aspect was “everyone’s responsibility.”

“I would really like to see a meaningful metric system established so that we can evaluate how effective the actions we’re taking today are,” O’Connor said.