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HomeMy WebLinkAboutItem 6.2 Assembly Bill 562 (2013) Final Outcome Report on Economic Development Subsidy Provided to Pacific Catch Inc. Agenda Item 6.2 STAFF REPORT CITY COUNCIL Page 1 of 3 DATE: July 21, 2026 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 Pacific Catch Inc. Prepared by: Rhonda Franklin, Management Analyst II EXECUTIVE SUMMARY: The City Council will hold a public hearing on the final outcome report for the economic development subsidy provided to Pacific Catch Inc. through the City’s Sewer Capacity Assistance Program. STAFF RECOMMENDATION: Conduct the public hearing, deliberate, and accept the report . FINANCIAL IMPACT: There is no financial impact associated with accepting this report. However, the fiscal benefit to the City as a result of the economic development subsidy provided to Pacific Catch Inc. has been net positive. DESCRIPTION: Background The City of Dublin offers several economic development incentive programs to encourage business attraction, retention, and investment. As part of these efforts, the City established the Sewer Capacity Assistance Program (SCAP) with support from Dublin San Ramon Services District (DSRSD) in 2010. The program provides eligible businesses and property owners with credits for Dwelling Unit Equivalents (DUEs) toward DSRSD sewer connection fees, helping reduce development costs and encourage economic investment. California Assembly Bill 562 (2013), codified as California Government Code Section 53083, requires cities and counties that provide economic development subsidies of $100,000 or more 430 Page 2 of 3 to conduct public hearings and provide specified public disclosures. Re quired information includes the name of the subsidy recipient, the amount of the subsidy, the beginning and ending dates of the subsidy, projected tax revenues generated and forgone, and the estimated number of jobs to be created. The law also requires an outcome report and public hearing within the first five years of the subsidy, documenting the amounts expended or forgone, jobs created, and net new tax revenues. For subsidies with a term of 10 years or longer, a final outcome report and public hearing are required upon conclusion of the subsidy period. Subsidy Reporting for Pacific Catch Inc. On September 16, 2014 the City Council adopted Resolution No. 160-14 approving an agreement with Regency Village at Dublin LLC and Pacific Catch Inc. permitting re-allocation of regional and local sewer capacity rights. Through the City’s SCAP, Pacific Catch received 8.44 DUEs, valued at $140,535 at the time of approval, to offset sewer connection fees associated with the restaurant’s development. Pacific Catch is located at 5251 Martinelli Way within the Persimmon Place shopping center owned by Regency Village at Dublin LLC. The first required report at the five-year mark was presented to the City Council at a public hearing on May 21, 2019. The 2019 report projected annual tax revenue to the City between $35,000 and $55,000 and reported the creation of 15 full-time and 49 part-time jobs. The subsidy, with a term of 10 years measured from the time of occupancy rather than from the 2014 approval of the agreement, has now concluded. In accordance with Government Code Section 53083, Staff has prepared the 2026 Final Outcome Report on Economic Development Subsidy Provided to Pacific Catch (Attachment 1). The report documents the final results of the subsidy, including the value of the assistance provided, jobs created, and the overall fiscal impact on the City. While specific sales tax revenue information remains confidential pursuant to the California Revenue and Taxation Code, the report concludes that Pacific Catch has continued to generate a positive net fiscal benefit to the City, consistent with the findings reported in the 2019 outcome report. Full-time employment increased from 15 to 26 positions and part-time employment declined from 49 to 25 positions since the 2019 report. These figures reflect current employment at the time of this report. The assistance provided to Pacific Catch Inc. achieved the intended objectives of the program. The restaurant remains in operation more than a decade af ter opening, continues to generate ongoing sales tax revenue to the City, and supports local employment. The revenue generated over the life of the subsidy has exceeded the value of the original subsidy, and as a result, the City has realized a positive return on its investment while supporting the attraction and long- term success of a Dublin-based business. STRATEGIC PLAN INITIATIVE: None. 431 Page 3 of 3 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) 2026 Final Outcome Report on Economic Development Subsidy Provided to Pacific Catch Inc. 432 Attachment 1 CITY OF DUBLIN 2026 FINAL OUTCOME REPORT ON ECONOMIC DEVELOPMENT SUBSIDY PROVIDED TO PACIFIC CATCH INC. The purpose of this report is to provide the information required by California Government Code Section 53083 in regard to an economic development subsidy provided by the City pursuant to an Agreement by and between the City of Dublin , Pacific Catch Inc., and Regency Village at Dublin LLC (Regency Centers). California Government Code Section 53083 requires that, within the first five years of an economic development subsidy, the City provide a public report containing specified information, make the report available on the City's website, and hold a public hearing to rec eive written and oral comments. The report was required to remain publicly available through the end of the subsidy term, which concluded on June 21, 2026. Upon expiration of the subsidy, the City is also required to prepare a final report and conduct a public hearing. This report fulfills that final reporting requirement. 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 21, 2026 at 7:00 p.m. Peter W. Snyder Council Chamber, 100 Civic Plaza, Dublin, CA 94568 2026 FINAL OUTCOME REPORT ON ECONOMIC DEVELOPMENT SUBSIDY PROVIDED TO PACIFIC CATCH INC. 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 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 a 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), the property owner, and Pacific Catch Inc., the Applicant, and as described in the Agreement Permitting Re-Allocation of Regional and Local Sewer Capacity (“Agreement”). Pacific Catch Inc. Doing business at 5251 Martinelli Way Dublin, CA 94568 Regency Village at Dublin LLC (Regency Centers) 433 1777 Botelho Drive, Suite 200 Walnut Creek, CA 94596 2. The start and end dates (term) for the economic subsidy: The start and end of the economic development subsidy are as follows: Agreement approved September 16, 2014; subsidy term ran 10 years from occupancy, concluding June 21, 2026. 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 Pacific Catch Inc. with 8.44 Dwelling Unit Equivalents (DUEs), which had an approximate value of $140,535. There was no cost to transfer the City’s unused wastewater capacity rights to Pacific Catch, Inc. 4. The net tax revenue accruing to the local agency as a result of the economic development subsidy: The City has received the projected annual tax revenue of between $35,000 and $55,000 as estimated in the Agreement. Note: Revenue and Taxation Code Section 7056 requires that sales tax data be kept confidential since that information would reveal the business affairs or operations of a business. Thus, it is unlawful for the City to disclose specific amounts of tax revenue received from a single business or property. 5. The net number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions: Full-time positions: 26 Part-time positions: 25 Temporary positions: 0 Total: 51 434 Assembly Bill 562 (2013) Final Outcome Report on Economic Development Subsidy (Sewer Capacity Assistance Program) for Pacific Catch Inc. July 21, 2026 435 Sewer Capacity Assistance Program Overview •Established in 2010 through a partnership between the City of Dublin and the Dublin San Ramon Services District (DSRSD). •Provides Dwelling Unit Equivalent (DUE) credits to eligible businesses and property owners to offset DSRSD sewer connection fees. •Designed to reduce development costs, encourage business investment, and support economic development. 436 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. •Five-year outcome of the subsidy. •Outcome at the conclusion of the subsidy. 437 Subsidy Background •In 2014, the City received a request from Pacific Catch Inc. to participate in the Sewer Capacity Assistance Program to support the opening of a new restaurant at the Persimmon Place retail shopping center. •On September 16, 2014, the City Council approved an Agreement with Pacific Catch Inc. and Regency Village at Dublin, LLC (Regency Centers). •Pacific Catch is one of the popular destinations at Persimmon Place, which is home to more than 20 successful retail and restaurant establishments. 438 Subsidy Background, 2 •The Agreement assisted Pacific Catch Inc. with 8.44 Dwelling Unit Equivalents (DUEs) valued at $140,535. •Subsidy Timeline and Reporting •September 16, 2014 –Initial consideration of the subsidy. •May 21, 2019 –Five-year outcome report. •June 21, 2026 –End of subsidy agreement term. •July 21, 2026 –Final outcome report. 439 Final Outcome Report •Pacific Catch Inc. has generated between $35,000 -$55,000 annually in net tax revenue to the City. •An estimated 51 full-and part-time jobs have been retained. •The subsidy has resulted in a net positive benefit to the City. 440 Recommendation •Conduct the public hearing, deliberate, and accept the report. 441