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Home My WebLink About6.1 Assembly Bill 562 2013 Final Outcome Report on Economic Development Subsidy Provided to Regency Village at Dublin, LLC-Regency Centers STAFF REPORT CITY COUNCIL Page 1 of 2 Agenda Item 6.1 DATE: July 15, 2025 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: Assembly Bill 562 (2013) Final Outcome Report on Economic Development Subsidy Provided to Regency Village at Dublin, LLC (Regency Centers) Prepared by: Rhonda Franklin, Management Analyst II EXECUTIVE SUMMARY: The City Council will hold a required public hearing to receive comments on the conclusion and final reporting period of the economic development business incentive, Sewer Capacity Assistance Program, with Regency Village at Dublin, LLC (Regency Centers). STAFF RECOMMENDATION: Conduct the public hearing, deliberate, and accept the report. FINANCIAL IMPACT: None. DESCRIPTION: Background As a result of the adoption of California Assembly Bill 562 (2013), effective January 1, 2014, Government Code Section 53083 requires cities or counties granting economic development subsidies of $100,000 or more to provide public notification and a hearing regarding the subsidy which includes: name of beneficiary, subsidy amounts, beginning and ending dates, a projection of the tax revenues generated and lost, and an estimate of the number of jobs that will be created. In addition, a report and public hearing on the outcome including amounts expended or lost, jobs created, and net new revenues is required within the first five years of the subsidy, as well as an report and hearing at the conclusion of the subsidy if granted for 10 years or more . The City of Dublin offers a number of economic development business incentives to encourage 236 Page 2 of 2 economic vitality, including business attraction and retention. In support of these efforts, in 2010, the City established the Sewer Capacity Assistance Program (SCAP) in 2010 in partnership with Dublin San Ramon Services District (DSRSD). This program provides an economic development incentive in the form of credits for Dwelling Unit Equivalents (DUEs) toward DSRSD sewer connection fees for eligible businesses or property owners. Subsidy Awarded to Regency Village at Dublin, LLC In 2014, the City utilized SCAP to assist Regency Village at Dublin, LLC (Regency Centers) with 15.02 DUEs, valued at $242,258, to support development of the Persimmon Place retail shopping center at 5130–5350 Dublin Boulevard and attract tenants such as Whole Foods, Nordstrom Rack, Urban Plates, and Pacific Catch. The City Council approved the subsidy through Resolution No. 44-14, authorizing an Agreement Permitting Re-Allocation of Regional and Local Sewer Capacity Rights, which was later amended and restated on September 12, 2016. The term of the agreement expired on June 8, 2025. Persimmon Place is now home to more than 20 successful retail and restaurant establishments and consistently ranks among the City’s top 25 sales tax generators. While sales tax revenue data must remain confidential under the Revenue and Taxation Code, the center’s overall contribution to City revenues is significant. In compliance with California Government Code Section 53083, Staff has prepared and made publicly available the “2025 Outcome Report on Economic Development Subsidy Provided to Regency Village at Dublin, LLC (Regency Centers).” This report included as Attachment 1 states the outcome of the impact of the subsidy including amounts expended or lost, jobs created, and net new revenues received. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A Public Hearing Notice was published in the East Bay Times and posted at several locations throughout the City. A copy of this Staff Report was provided to the parties to the Agreement. The outcome report was made available to the public via the City’s website at www.dublin.ca.gov/1552. The City Council Agenda was posted. ATTACHMENTS: 1) 2025 Outcome Report on Economic Development Subsidy Provided to Regency Village at Dublin, LLC (Regency Centers) 237 Attachment 1 CITY OF DUBLIN 2025 REPORT ON ECONOMIC DEVELOPMENT SUBSIDY PROVIDED TO REGENCY VILLAGE AT DUBLIN, LLC (REGENCY CENTERS) The purpose of this report is to provide the information required by California Government Code Section 53083 in regards to an economic development subsidy provided by the City pursuant to an Agreement by and between the City of Dublin and Regency Village at Dublin, LLC. Within the first five years of the term of the economic development subsidy, the City of Dublin must provide all of the following information in written form and available to the public and through the City’s website and hold a public hearing to consider any written or oral comments on the information contained in the report. This report shall remain available to the public and posted on the City’s website until the end date of the economic development subsidy on June 8, 2025. At the conclusion of the economic development subsidy (in 2025), the City of Dublin is obligated to provide another report and hold another public hearing. The public hearing to consider any comments on the information contained in this report will be held at the following time and place: Dublin City Council Meeting Tuesday, July 15, 2025 at 7:00 p.m. Peter W. Synder Council Chamber, 100 Civic Plaza, Dublin CA 94568 2025 REPORT ON ECONOMIC DEVELOPMENT SUBSIDY PROVIDED TO REGENCY VILLAGE AT DUBLIN, LLC (REGENCY CENTERS) Statement of the public purposes for the economic development subsidy: The public purposes for the economic development subsidy are to:  continue to expand and enhance economic opportunities for businesses in the City  continue to expand the City’s employment base, and  continue to generate hereinafter defined Sales Tax that the City can utilize to fund general governmental services such as police, fire, street maintenance, and parks and recreation programs. 1. The name and address of all corporations or any other business entities, except for sole proprietorships that are beneficiary of the economic development subsidy: The City provided financial assistance in the form of an economic development subsidy to Regency Village at Dublin, LLC (Regency Centers), as outlined in the Amended and Restated Agreement Permitting Re-Allocation of Regional and Local Sewer Capacity Rights (“Agreement”). Regency Village at Dublin, LLC (Regency Centers) is the owner and developer of the Persimmon Place retail shopping center. As such, the subsidy has also indirectly benefited various current and past tenants of the shopping center. The following entities are located within Persimmon Place and may be considered indirect beneficiaries of the economic development subsidy: 238 Property Address:  Persimmon Place – 5130–5350 Dublin Boulevard, Dublin, CA 94568  Regency Centers – 1777 Botelho Drive, Suite 200, Walnut Creek, CA 94596 Current Tenants (Alphabetical Order):  Chipotle  Ethan Allen  Hand & Stone  HomeGoods  Koja Kitchen  LaserAway  Monaco Hair & Nails  Nick the Greek  Nordstrom Rack  Orangetheory Fitness  Pacific Catch  Patxi’s Pizza  Persimmon Dental Care  Radiant Waxing  Sephora  Starbucks  The Habit Burger Grill  Urban Plates  Verizon Wireless  Vitality Bowls  Whole Foods Market 2. The start and end dates (term) for the economic subsidy: The start and end of the economic subsidy is as follows: April 15, 2014 through June 8, 2025. 3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy: Through the City’s Sewer Capacity Assistance Program, the City assisted Regency Village at Dublin, LLC (Regency Centers) with 15.02 Dwelling Unit Equivalents (DUEs), which had an approximate value of $242,258. There was no cost to transfer the City’s unused wastewater capacity rights to Regency Village at Dublin, LLC (Regency Centers). 4. The net tax revenue accruing to the local agency as a result of the economic 239 development subsidy: As of the end of first quarter 2025 (calendar year), the shopping center has generated more than $6 Million in net tax revenue to the City of Dublin. 5. The net number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions: At the time the subsidy was granted, Staff estimated the project would generate several hundred permanent jobs in the City, along with the construction jobs during its development. As of June 2025, Staff estimates the shopping center currently provides at least 700 jobs at this time. Full-time positions: 300 Part-time positions: 400 Total: 700 240 Assembly Bill 562 (2013) Final Outcome Report on Economic Development Subsidy (Sewer Capacity Assistance Program) for Regency Centers July 15, 2025 241 Assembly Bill 562 (2013) Background •AB 562 (2013) requires cities and counties granting economic development subsidies of $100,000 or more to provide public hearing reports on: –The initial consideration of the subsidy (4/15/2014). –Five-year outcome of the subsidy (5/21/2019). –Outcome at the conclusion of the subsidy (6/8/2025). 242 Subsidy Background •In May 2012, the City received a request from Regency Centers to participate in the Sewer Capacity Assistance Program to support development of the Persimmon Place retail shopping center. •On April 15, 2014, City Council approved an Agreement Permitting Re-Allocation of Regional and Local Sewer Capacity Rights with Regency Village at Dublin, LLC (Regency Centers). •Persimmon Place is now home to more than 20 successful retail and restaurant establishments and ranks among the City’s top 25 sales tax generators. 243 Subsidy Background, 2 •The Agreement assisted Regency Centers with 15.02 Dwelling Unit Equivalents (DUEs) valued at $242,258. •Agreement term expired June 8, 2025. •Final Outcome Report posted on City website. •Sales tax data must remain confidential. 244 Final Outcome Report •Persimmon Place has generated more than $6 million in net tax revenue to the City. •An estimated 700+ full-and part-time jobs have been retained. 245 Recommendation •Conduct the public hearing, deliberate, and accept the report. 246