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HomeMy WebLinkAbout5.9 Time Extensions for Economic Development Incentive ProgramsSTAFF REPORT CITY COUNCIL Page 1 of 3 Agenda Item 5.9 DATE:May 20, 2025 TO:Honorable Mayor and City Councilmembers FROM:Colleen Tribby, City Manager SUBJECT:Time Extensions for Economic Development Incentive Programs Prepared by: Rhonda Franklin, Management Analyst II EXECUTIVE SUMMARY: The City Council will consider extending the time period for certain Economic Development business incentive programs that are set to expire this year. STAFF RECOMMENDATION: Adopt the Resolution Approving Extending the Time Period for the Sales Tax Reimbursement Program, the Traffic Impact Fee (TIF) Deferral Program, the Transit District Multi-Family Residential Development Fee Deferral Program, and the Sewer Capacity Assistance Program. FINANCIAL IMPACT: There is no direct cost associated with extending the programs. DESCRIPTION: The City of Dublin offers several business incentives to encourage economic vitality. The programs listed below in Table 1 are used as economic development tools that help with the attraction and retention of businesses in Dublin, and they are set to expire in 2025 unless extended. 560 Page 2 of 3 Table 1: Economic Development Incentive Programs Expiring in 2025 Incentive Program Adopted Expiration Proposed Extension to Sales Tax Reimbursement Program 2009 June 30, 2025 June 30, 2030 Traffic Impact Fee Deferral Program 2009 June 30, 2025 June 30, 2030 Transit District Multi-Family Residential Development Fee Deferral Program 2011 June 30, 2025 June 30, 2030 Sewer Capacity Assistance Program 2010 June 30, 2025 June 30, 2030 Approving the extension of the programs does not award incentives but simply allows the City to continue offering these tools to support economic development. Each of these incentive programs requires a City Council-approved agreement with individual applicants prior to any benefits being granted. Sales Tax Reimbursement Program On January 6, 2009, the City Council adopted Resolution No. 9-09 which allows certain businesses to recover a portion or all of the costs of improvements (site, internal, and external) made to the property. The purpose of the Program is to improve the aesthetic nature and physical appearance of the commercial buildings and promote site improvements to commercial properties in the existing commercial, office, and industrial areas of Dublin. To date, six businesses and/or property owners have participated in the program. Non-Residential Traffic Impact Fee Deferral Program On September 1, 2009, the City Council adopted Resolution No. 127-09 approving a Traffic Impact Fee (TIF) Deferral Program which allows non-residential developers to defer Downtown and Eastern Dublin Traffic Impact Fees from being due at the time of building permit issuance to being due at the issuance of the first permanent utility meter for the project (this step is just prior to taking occupancy of the building). This allows the project developer to shift the financing of the fees from the construction loan into the fixed financing for the project. This program continues to serve as a tool for commercial development and is anticipated to be utilized for future projects in Dublin, specifically for the Downtown and eastern Dublin areas. To date, two developers have participated in the program. In addition to recommending the program be extended to June 30, 2030, Staff is also recommending that the TIF fee payment date change to June 30, 2032 (two years following the completion of the program). Transit District Multi-Family Residential Development Fee Deferral Program On December 20, 2011, the City Council adopted Resolution No. 215-11 approving a Transit District Multi-Family Residential development Fee Deferral Program which allows developers of multi-family residential projects of 20 or more units within the Transit District areas of Dublin (around both the East and West Dublin BART stations) to defer certain fees until just prior to 561 Page 3 of 3 installation of the first utility meter for development. To date, three developers have participated in the Program. Sewer Capacity Assistance Program On May 4, 2010, the City Council adopted Resolution No. 53-10 approving the creation of a Sewer Capacity Assistance Program in partnership with Dublin San Ramon Services District (DSRSD) to allow the City to transfer unused sewer capacity at City-owned properties to other private properties to encourage the recruitment, renovation, and re-use of properties in Dublin. To date, 17 businesses and/or property owners have participated in the program. Extending the City’s economic development incentive programs ensure that Dublin remains competitive in attracting and retaining businesses and new development. These programs provide essential tools that reduce upfront financial barriers, supports reinvestment in existing properties, and stimulates commercial growth. STRATEGIC PLAN INITIATIVE: Strategy 1. Economic Development, Small Business Support, and Downtown Dublin Objective D: Continue to evaluate and implement small business programs that provide financial assistance, business development, permit processing, and support services to the community. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) Resolution Approving Extending the Time Period for the Sales Tax Reimbursement Program, the Traffic Impact Fee (TIF) Deferral Program, the Transit District Multi-Family Residential Development Fee Deferral Program, and the Sewer Capacity Assistance Program 562 Attachment 1 Reso. No. XX-25, Item X.X, Adopted 05/20/2025 Page 1 of 2 RESOLUTION NO. XX – 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING EXTENDING THE TIME PERIOD FOR THE SALES TAX REIMBURSEMENT PROGRAM, THE TRAFFIC IMPACT FEE (TIF) DEFERRAL PROGRAM, THE TRANSIT DISTRICT MULTI-FAMILY RESIDENTIAL DEVELOPMENT FEE DEFERRAL PROGRAM, AND THE SEWER CAPACITY ASSISTANCE PROGRAM WHEREAS,on January 6, 2009, the City Council adopted Resolution No. 9-09 approving the Sales Tax Reimbursement Program, amended it on December 16, 2014 by Resolution No. 217-14 to extend it through January 6, 2020, and most recently amended it on December 17, 2019 by Resolution No. 133-19 to extend it through June 30, 2025; and WHEREAS,on September 1, 2009 the City Council adopted Resolution No. 1270-09 approving the Traffic Impact Fee (TIF) Deferral Program and amended it on January 20, 2015 by Resolution No. 8-15 to extend it through Fiscal Year 2019-2020, and most recently amended it on December 17, 2019 by Resolution No. 133-19 to extend it through June 30, 2025; and WHEREAS,on December 20, 2011 the City Council adopted Resolution No. 215-11 approving the Transit District Multi-Family Residential Development Fee Deferral Program and amended it on January 20, 2015 by Resolution No. 07-15 to extend it through Fiscal Year 2019- 2020, and most recently amended it on December 17, 2019 by Resolution No. 133-19 to extend it through June 30, 2025; and WHEREAS,on May 4, 2010 the City Council adopted Resolution No. 135-12 approving the creation of the Sewer Capacity Assistance Program in partnership with Dublin San Ramon Services District (DSRSD) and amended it on April 16, 2019 by Resolution No. 34-19; and WHEREAS,at the request of the City Council, on October 18, 2016 Dublin San Ramon Services District adopted Resolution No. 67-16 to extend the Sewer Capacity Assistance Program to December 31, 2020 and most recently amended it on December 17, 2019 by Resolution No. 133-19 to extend it through June 30, 2025; and WHEREAS,these four economic development business incentive programs are valuable economic development tools to attract and retain businesses in Dublin, as well as to improve commercial properties in Dublin; and WHEREAS,these four economic development business incentive programs are set to expire on June 30, 2025. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby amend Sales Tax Reimbursement Program to run through June 30, 2030. BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby amend the Traffic Impact Fee (TIF) Deferral Program to run through June 30, 2030 and changes the TIF fee payment date to June 30, 2032 (two years following the completion of the program). 563 Reso. No. XX-25, Item X.X, Adopted 05/20/2025 Page 2 of 2 BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby amend the Transit District Multi-Family Residential Development Fee deferral Program to run through June 30, 2030. BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby amend the Sewer Capacity Assistance Program to run through June 30, 2030. PASSED, APPROVED AND ADOPTED this 20th day of May 2025, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 564