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HomeMy WebLinkAboutReso 50-21 Approving the Establishment of the Fallon East Economic Development Zone Map and Incentives Package Reso. No. 50-21, Item 7.1, Adopted 05/18/2021 Page 1 of 2 RESOLUTION NO. 50 - 21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING THE ESTABLISHMENT OF THE FALLON EAST ECONOMIC DEVELOPMENT ZONE MAP AND INCENTIVES PACKAGE WHEREAS, the City Council has made economic development a high priority and has initiated a General Plan Amendment Study for approximately 73 acres east of Fallon Road; and WHEREAS, the Study is evaluating changing existing General Plan land use designations; and WHEREAS, one of the goals in changing the existing land use is the creation and designation of an Economic Development Zone to attract job-rich and/or high-wage businesses in the targeted industries. Those targeted industry sectors prioritized by the City Council include: life sciences, advanced manufacturing, clean/green technology, automation and robotics, technology, and startups and incubators; and WHEREAS, Staff is proposing the establishment of the Fallon East Economic Development Zone (Fallon East EDZ) as depicted in the attached map; and WHEREAS, Staff has also evaluated possible incentives to assist with the attraction of job-rich and/or high-wage businesses in the above-mentioned targeted industries; and WHEREAS, the Fallon East EDZ Incentives Package is designed to encourage private investment in the development of new high-quality buildings for use by businesses in the above- mentioned targeted industries; and WHEREAS, the Package is designed to promote the following public purposes: increase the local tax base; diversify the local economy; attract, grow and advance employers that create or provide sustainable, living wage jobs in the above-mentioned targeted industries; and repair, expand and improve City infrastructure; and WHEREAS, the City Council desires to develop the Fallon East EDZ. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin approves the Establishment of the Fallon East Economic Development Zone Area as depicted in the map attached hereto as Exhibit A and the Fallon East Economic Development Zone Incentives Package attached hereto as Exhibit B. BE IT FURTHER RESOLVED that the City Council does hereby authorize the City Manager, from time to time, to amend, interpret, and implement the guidelines for the Fallon East Economic Development Zone Incentives Package as may be necessary and desirable to carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED this 18th day of May 2021, by the following vote: Reso. No. 50-21, Item 7.1, Adopted 05/18/2021 Page 2 of 2 AYES: Councilmembers Hu, Josey, Kumagai, McCorriston and Mayor Hernandez NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk Figure 1. Fallon East EDZ Area (parcels included are outlined in black GH PacVest (Chen) 481141, Alameda GH PacVest (Anderson) Righetti Branaugh Monte Vista As previously reported in the October 10, 2020 Staff Report (Attachment 4), similar initiatives can be seen throughout the state in various communities. For example, the City of Vacaville has launched a similar initiative, creating a biotech zone to attract potential biotech tenants. Another example is the City of Pleasanton with the creation of the Johnson Drive EDZ which was created to help spur investment in 40 acres of underutilized vacant land near I-680. The creation and designation of the Fallon East EDZ also includes an incentives package to further promote the City's economic development goals and objectives as outlined in the following section. Fallon East EDZ Incentives Package Proposal In an effort to attract job -rich and high -wage businesses within the City Council's targeted industries, Staff has developed an Incentives Package specific to the Fallon East EDZ. The proposed Package will help promote the following economic development goals and objectives: • Assist the City in attracting businesses in the targeted industries as prioritized by the City Council. • Increase the local tax base, including sales and use tax, transient occupancy tax and/or property tax. Page 3 of 5 801 • Diversify the local economy. • Attract, grow, and advance employers that create or provide sustainable, living wage jobs. • Repair, expand, and improve City infrastructure as needed to attract high quality private development. The following is a summary of the proposed Package that would be unique to the Fallon East EDZ and the City Council's targeted industries, followed by descriptions of the programs offered. City Programs: 1. Property Tax Sharing 2. Streamlined Development Review and Fee Deferral 3. Reimbursement of Building Permit and Inspection Fee Cost 4. Green Construction Incentive Marketing of State/Federal Financing Programs: 5. Industrial Development Bond Program and Statewide Community Infrastructure Program 6. Assistance with Federal and State Incentives/Tax Exemptions 1. Property Tax Sharing Offer a property tax sharing incentive on a case -by -case basis between 30% to 50% for a period of either five or 10 years. Annual reimbursement would be based on a cap of total capital investment, net new job creation, and incurred costs of eligible expenses such as: • New building construction • Purchase of new machinery and equipment • Construction or improvement of infrastructure required for new location or expansion 2. Streamlined Development Review and Fee Deferral • Offer Business Concierge Program services to provide streamlining of the approval process through a cross -departmental team available to work with the developer and their design/construction teams throughout the process. • Offer expedited review by Staff for planning entitlements (on a case -by -case basis). • Create a special Fallon East EDZ pre -application process and increase the number of hours that Staff provides at no charge to applicant (on a case -by -case basis). • Offer deferred payment of City Impact Fees to the issuance of the first utility meter (or two years, whichever is shorter). 3. Reimbursement of Building Permit and Inspection Fee Cost (case -by -case basis) Reimburse 20% of the cost of City Building Permit and Inspection Fees for new building construction or tenant improvement (the cost of Staff time would then be absorbed by the General Fund). 4. Green Construction Incentive Reimburse a portion of the cost for LEED certification if building is owned by or at least 50% leased to one or more tenant(s) in targeted industries by the time of LEED certification: Page 4 of 5 802 • LEED Gold: • LEED Platinum: Up to $15,000 Up to $20,000 5. Industrial Development Bond Program and the Statewide Community Infrastructure Program Provide marketing and information on the State's Industrial Development Bond program and the Statewide Community Infrastructure program. 6. Assistance with Federal and State Incentives/Tax Exemptions Utilize the services of the City's state and federal advocacy consultant, Townsend Public Affairs, to host educational workshops and assist new eligible businesses to apply for relevant programs, such as: o Manufacturing and Research and Development Partial Sales and Use Tax Exemption o State Sales and Use Tax Exclusion o State Research & Development Tax Credit o California Competes Tax Credit o Employment Training Panel o Federal Work Opportunity Tax Credit Attachment 3 to this report provides a detailed description of the Package's suite of incentives. On April 20, 2021, the City Council's Economic Development Committee (EDC) received a presentation on the proposed Package, and supported it as presented. This recommendation falls under the EDC's purview to provide policy guidance and direction on economic development activities. STRATEGIC PLAN INITIATIVE: Strategy 5: Large Land Tract Development and Open Space Objective A: Look to establish an Economic Development Zone to prioritize commercial and industrial development east of Fallon Road. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted, and a copy of the Staff Report was provided to all of the property owners included in the Fallon East Economic Development Zone. ATTACHMENTS: 1) Resolution Approving the Establishment of the Fallon East Economic Development Zone Map and Incentives Package 2) Exhibit A to Resolution - Fallon East Economic Development Zone Map 3) Exhibit B to Resolution - Fallon East Economic Development Zone Incentives Package 4) October 10, 2020 Staff Report Page 5 of 5 803 Attachment 1 RESOLUTION NO. XX — 21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING THE ESTABLISHMENT OF THE FALLON EAST ECONOMIC DEVELOPMENT ZONE MAP AND INCENTIVES PACKAGE WHEREAS, the City Council has made economic development a high priority and has initiated a General Plan Amendment Study for approximately 73 acres east of Fallon Road; and WHEREAS, the Study is evaluating changing existing General Plan land use designations; and WHEREAS, one of the goals in changing the existing land use is the creation and designation of an Economic Development Zone to attract job -rich and/or high -wage businesses in the targeted industries. Those targeted industry sectors prioritized by the City Council include: life sciences, advanced manufacturing, clean/green technology, automation and robotics, technology, and startups and incubators; and WHEREAS, Staff is proposing the establishment of the Fallon East Economic Development Zone (Fallon East EDZ) as depicted in the attached map; and WHEREAS, Staff has also evaluated possible incentives to assist with the attraction of job -rich and/or high -wage businesses in the above -mentioned targeted industries; and WHEREAS, the Fallon East EDZ Incentives Package is designed to encourage private investment in the development of new high -quality buildings for use by businesses in the above - mentioned targeted industries; and WHEREAS, the Package is designed to promote the following public purposes: increase the local tax base; diversify the local economy; attract, grow and advance employers that create or provide sustainable, living wage jobs in the above -mentioned targeted industries; and repair, expand and improve City infrastructure; and WHEREAS, the City Council desires to develop the Fallon East EDZ. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin approves the Establishment of the Fallon East Economic Development Zone Area as depicted in the map attached hereto as Exhibit A and the Fallon East Economic Development Zone Incentives Package attached hereto as Exhibit B. BE IT FURTHER RESOLVED that the City Council does hereby authorize the City Manager, from time to time, to amend, interpret, and implement the guidelines for the Fallon East Economic Development Zone Incentives Package as may be necessary and desirable to carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED this 18th day of May 2021, by the following vote: Reso. No. XX-21, Item X.X, Adopted XX/XX/21 Page 1 of 2 804 AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk 3753001.1 Reso. No. XX-21, Item X.X, Adopted XX/XX/21 Page 2 of 2 805 Attachment 2 Exhibit A to the Resolution Alameda Fallon East Economic Development Zone Map GH PacVest (Chen) of+1^IN�ir GH PacVest (Anderson) Righetti Future D iblin Boulevard Extension Pleasanton Ranch Investments EBJ Partners Name Acreage Alameda 1.25 Acres Branaugh 40.2 Acres EBJ Partners 1.1 Acres GH PacVest (formerly Anderson) 50.3 Acres GH PacVest (formerly Chen) 140.1 Acres Monte Vista 9.3 Acres Pleasanton Ranch Investments 0.4 Acres Righetti 49.6 Acres Total 292.25 Acres Branaugh Mont Vista Reso. No. XX-21, Item X.X, Adopted XX/XX/21 Page 1 of 1 806 Attachment 3 Exhibit B to the Resolution DUBLIN ALIFORNIA Fallon East Economic Development Zone Incentives Package PURPOSE: To establish an Incentives Package (Package) to further promote the City's economic development goals and objectives for the Fallon East Economic Development Zone (Fallon East EDZ). This Incentives Package is limited only to those targeted industries in the Fallon Road EDZ. Those targeted industry sectors prioritized by the City Council for the Fallon East EDZ include: • Life Sciences1 • Advanced Manufacturing • Clean/Green Technology • Automation and Robotics • Technology • Sartups and Incubators The Package will help promote the following economic development goals and objectives: • Assist the City in attracting businewms in the targeted industries as prioritized by the City Council. • Increase the local tax base, including sales and use tax, traisient occupancy tax and/or property tax. • Diversify the local economy. • Attract, gow, and advaice employers that create or provide sustainable, living wage jobs. • Repair, expand, and improve City infrastructure as needed to attract high quality private development. The Package includes both City specific proganns and the marketing of state aid federal finaicing proganns. City R-oga ns: 1. Property Tax Snaring 2. Sreannlined Development Review 3. Fee Reimbursement 4. Green Construction Incentive Marketing of Gate/Federal Finaicing Rogams: 5. Industrial Development Bond Rog -am aid aatewide Community Infrastructure Rogan 6. Assistance with Federal and Gate Incentives/Tax Exemptions 1 The life sciences sector includes but is not limited to companies operating in the fields of biotechnology (including genetics), pharmaceutical, medical device and diagiostics, food service/food processing, and other efforts towards the discovery, development and delivery of products to improve the lives of organisms. 807 CITY PROGRAMS 1. Property Tax Sharing The Property Tax glaring Incentive provides sharing of a portion of the City's property tax revenue received that is attributable to the parcel in the range of between 30%to 50%for a period of either five or 10 years. Annual reimbursement is based on a cap of total capital investment, net new job creation, and actual incurred costs of eligble expenses such as: • New building construction • Purchase of new machinery and equipment • Construction or improvement of infrastructure required for new location or expansion Eligibility: Offered on a case-by-c, basis. Applicant may be property owner, ground leaseholder (with a Teas. of at least 10 yeas or longer), or developer of projects exclusively or primarily for end-user(s) in targeted industries. 2. Streamlined Development Review and Fee Deferral In addition to the Business Concierge Program services offered citywide, developers and end -user busine'rc's are offered: • Sreamlined Approval Process through a cross -departmental team available to work with developer and their desigi/construction teams throughout the process. • Expedited Review with priority review by aaff for planning entitlements (on a case-by-c"we basis). • qpecial EDZ pre -application process, including increased number of hours that staff provides at no charge to applicant (on a case -by -clasp basis). • Deferred payment of City Impact Fees to first utility meter (or two yeas, whichever is shorter). Eligibility: As noted above. Applicant may be property owner, ground leaseholder (with a lease of at least 10 yeas or longer), developer or end -user business. For end -user business undertaking tenant improvements, business must have lease of three or more yeas and at least five full-time equivalent employees to be eligble for incentive. 3. Reimbursement of Building Permit and Inspection Fee Cost This incentive provides a reimbursement of 20%of the cost of City Building Permit and Inspection Fees for new building construction or tenant improvement projects (on a race -by -rye basis). • For project with known end -user tenant (i.e. build to suit), reimbursement to be isqled after certificate of occupancy has been received. • For project with unknown end -user tenant(s) at time of application (i.e. spec development), reimbursement to be isled after certificate of occupancy has been hied and tenancy requirement (50%leased to tenants in targeted industries within eight months of completion) has been met. • For end -user business undertaking tenant improvements, business must have lease of three or more yeas and at least five full-time equivalent employees to be eligble for incentive; reimbursement to be issued after certificate of occupancy has been received. 808 Bigbility: Applicant may be property owner, gound leaseholder (with a lease of at least 10 yeas or longer), developer or end -user business. 4. Green Construction Incentive This incentive reimburses a portion of the cost for LEER certification if building is owned by or at least 50%leased to one or more tenant(s) in targeted industries by the time of LI-F1) certification: • ) Gold: Up to $15,000 • LI+1) Ratinum: Up to $20,000 LF�i) certification is handled by Green Business Certification Inc., not the City of Dublin. Amount of reimbursement would not exceed 50%of the actual application cost paid by developer to GBCI and will only be reimbursed after successful certification. Bigbility: All projects that ae certified as LFF-I) Gold or Ratinum. Applicant may be property owner, gound leaseholder (with a lease of at least 10 yeas or longer), or developer of projects exclusively or primarily for end-user(s) in targeted industries. MARKETING OF STATE/FEDERAL FINANCING PROGRAMS 5. Industrial Development Bond Program and Statewide Community Infrastructure Program aft will market and provide information on the Sate's Industrial Development Bond Program and the Satewide Community Infrastructure Frog -an. Bigbility: This incentive is offered to all projects. 6. Assistance with Federal and State Incentives/Tax Exemptions Safi can provide information on various Sate and Federal incentive programs and tax exemptions, or utilize the services of the City's state and federal advocacy consultant to host educational workshops and assist new end -user businesses to apply for certain Sate and Federal programs, such as: • Manufacturing and Research and Development Partial ales and Use Tax Exemption • Sate ailes and Use Tax Exclusion • Sate Research & Development Tax Credit • California Competes Tax Credit • Employment Training Panel • Federal Work Opportunity Tax Credit Bigbility: This incentive is offered on acase-by-caso basis for projects and end -user busine'ms. APPLICATION PROCESS As pat of the application process, applicants shall be required to a yee that, as required by California Labor Code Section 1720 et seq., if project is determined to be a "public work" as that term is used in Section 1720 of the California Labor Code, then the project shall include prevailing wages and otherwise comply with the all -other applicable Taws and regulations with respect to prevailing wage. Participants in any of the incentive programs will be responsible for ensuring that the improvements ae in compliance with the Frevaling Wage Law. 809 Applicants will also be required to agree that, if required by Axombly Bill 562 (2013), applicant will follow all procedures including prevailing wage, public hearings and reporting requirements. Furthermore, applicants will be required to demonstrate that, but for the respective incentive, the development or improvement would not occur. Upon receipt of a complete application for one or more of the package incentives, the request will be presented to the Economic Development Committee for review and recommendation. Requests approved by the Economic Development Committee will then be presented to City Council for final approval when applicable. 810