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HomeMy WebLinkAbout2019.02.19 Economic Development Meeting Agenda Packet This AGENDA is posted in accordance with Government Code Section 54954.2(a). If requested, pursuant to Government Code Section 54953.2, this agenda shall be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Section 12132), and the federal rules and regulations adopted in implementation thereof. To make a request for disability-related modification or accommodation, please contact the City Clerk’s Office (925) 833-6650 at least 72 hours in advance of the meeting. ECONOMIC DEVELOPMENT COMMITTEE MEETING AGENDA Tuesday, February 19, 2019 – 5:15 PM City of Dublin Civic Center City Manager’s Conference Room (2nd floor) 100 Civic Plaza, Dublin 1.Call to Order 2.Public Comment 3.Approval of the Minutes of the Special Meeting of July 17, 2018 The Committee will consider the approval of the minutes of the Economic Development Committee Special meeting of July 17, 2018. 4.Downtown Work Plan Update Staff will provide an update on the progress of the Downtown Work Plan, which was adopted by the City Council on September 18, 2018. 5.Requests to Participate in the Commercial Façade Improvement Grant Program Staff will present two requests to participate in the Program. The requests are from: 1) the property owner of Dublin Plaza retail center (Athens Burgers building); and 2) the business owner of Amakara restaurant. 6.Consideration of Amendments to Business Incentive Programs Staff will present and seek feedback on proposals to amend the Sewer Capacity Assistance and the Small Business Assistance business incentive programs. 7.Key Development Projects and Proposals Update Staff will provide an update on recent development projects and business openings and closures. 8.Economic Development Program and Events Update Staff will provide an update on planning for the Yelp 101 Workshop, 2019 Business Anniversary Recognition Program, Business Visitation Program, other programs and events. 9.Update on Regional Organizations Staff will provide an update on the City’s participation and collaboration with regional organizations. 10.Request for Future Agenda Items The Committee and/or Staff can make requests for future agenda items as an informational item only. The next regular meeting is scheduled for April 16, 2019 at 5:15 p.m. 11.Adjournment MINUTES OF THE ECONOMIC DEVELOPMENT COMMITTEE SPECIAL MEETING - July 17, 2018 A special meeting of the Economic Development Committee was held on July 17, 2018, in the City Manager’s Conference Room of the Dublin Civic Center. The meeting was called to order at 5:17 p.m. by Mayor Haubert. 1.Call to Order PRESENT:Mayor Haubert and Councilmember Gupta ABSENT:None 2.Public Comment None. 3.Approval of the Minutes of the Special Meetings of April 3, 2018 and April 18, 2018 ACTION: By consensus, the Committee approved the minutes of the Special meeting on April 3, 2018 and the Special meeting on April 18, 2018. 4.Request to Participate in the Small Business Assistance Program Staff presented the application from World of Beer to participate in the City’s incentive program. ACTION: By consensus, the Committee approved a grant not to exceed $21,000 for accessibility improvements. 5.Urban Land Institute Technical Advisory Panel (TAP) Report Update Staff provided an update on the status of the report from the Urban Land Institute’s Technical Advisory Panel. The report will be included as part of a presentation to the City Council on Downtown Dublin in the coming months. 6.Update on Business Anniversary Recognition Program Staff provided an update on the Business Anniversary Recognition Program which will be held at 7:30 AM on Tuesday, August 28. 7.Key Projects Update Staff provided an update on recent development activities including: •Amalfi Mediterranean Fusion restaurant recently opened adjacent to Rahma Mediterranean Market located on Village Parkway. •Sourdough & Co., a fast-casual restaurant, located at Fallon Gateway shopping center recently opened. Item 3 • Inc. 82, located on San Ramon Rd., opened a new taproom where patrons can do tastings. The taproom will be a nice addition to the existing brewery and restaurant. • Ashley Furniture, located along Dublin Blvd. in the former Sports Authority site, has signed a lease and plans to be opened by Labor Day. • KoJa Kitchen, a fast-casual restaurant located at the Persimmon Place shopping center, has plans to be open by the end of July. • CB Fit, a fitness center located at the Persimmon Place shopping center, has signed a lease. • Lucille’s Smokehouse & Bar-B-Que, located at the Dublin Place shopping center, has plans to be opened in August. • Holy Basil, a fast-casual restaurant located at Fallon Gateway, has signed a lease and is in the building permit process. • 88 Bao Boa, a fast-casual restaurant located at Fallon Gateway, has signed a lease and is in the building permit process. • Patelco’s Credit Union has purchased the 3 Park Place building located on the corner of Dublin Blvd. and Hacienda Drive. Staff also updated the committee on The Corrie Center and the status of re-development of the buildings on the corner of Amador Valley Blvd. and Amador Plaza Rd., and Dublin Blvd. and Amador Plaza Rd. ACTION: The Committee received the update. 8. Update on Regional Organizations Staff provided an update on the City’s participation in regional organizations: • StartUp Grind event (Google User Tech Group) - July 18 • Tri-Valley Rising Report Rollout event (Innovation Tri-Valley) - July 18 • State of the Tri-Valley (San Francisco Business Times) - August 2 • Tri-Valley Mayors' Summit in San Ramon - August 15 • Tri-Valley Manufacturing Day (tours & luncheon) - October 5 ACTION: The Committee received the update. 9. Consideration of Changing Regular Meeting Schedule ACTION: By consensus, the Committee approved changing the regular Committee meeting schedule to 5:15 p.m. on the third Tuesday of every other month. The next regular meeting will be on Tuesday, August 21, 2018 at 5:15 p.m. 10. Request for Future Agenda Items Staff requested to bring a future agenda item on proposed changes to the economic development incentive programs for the Committee to consider. 11. Adjournment There being no further business to come before the Committee, the meeting was adjourned at 6:11 p.m. Minutes prepared by Suzanne Iarla, Management Analyst II. ___________________________________ Mayor ATTEST: ________________________________ Assistant to the City Manager ECONOMIC DEVELOPMENT MEMORANDUM DATE: February 19, 2019 TO: Economic Development Committee Members FROM: Suzanne Iarla, Management Analyst II CC: SUBJECT: Christopher L. Foss, City Manager Linda Smith, Assistant City Manager Hazel Wetherford, Economic Development Director Commercial Façade Improvement Grant Program Applications Background The Commercial Façade Improvement Grant Program (Program) is an endeavor of the City of Dublin to leverage public funds and private investment to enhance the physical appearance and economic vitality of commercial businesses in the Downtown Dublin Specific Plan (DDSP) area and the segment of Dublin Boulevard between Village Parkway and Dougherty Road. The long-term objective is to upgrade the Downtown Dublin Specific Plan area and the segment of Dublin Boulevard between Village Parkway and Dougherty Road by improving the physical appearance of the area, encouraging the retention of existing businesses, increasing property values, tenant stability, and lease rates for the property. The Program offers two façade improvement grants for labor and materials directly related to the façade construction, as well as up to a maximum of five hours of architectural fees to help cover design costs. The Program has a “Mini-Grant” of up to Five Thousand dollars ($5,000) with no match requirement, and a “Matching Grant” of up to Seventy Thousand dollars ($70,000) with at least a one-third match of the total cost of the façade improvement. Please refer to Attachment 1 for a list of grants provided to date, and Attachment 2 for eligible improvements. The City Council has budgeted $70,000 for the Program in Fiscal Year 2018-2019; however, the Program has additional funds that were unspent in previous years that have been carried forward. The Program currently has a balance of $304,157. Applicants 1.Dublin Plaza In July 2018, Staff received an application for a matching grant from the owner of Dublin Plaza, the three- building retail center located at 6999 Dublin Blvd. The proposed façade improvements will primarily focus on the Athens Burgers building, but also include painting of the additional buildings on the parcel. The applicant is requesting a $70,000 grant to help offset improvements including, but not limited to the following: •Replace the old wooden siding •Replace old awnings with modern, metal awning •Replace signs to conform to City requirements •Addressing the public sidewalk that does not meet the Americans with Disabilities standards Item 5 ECONOMIC DEVELOPMENT MEMORANDUM • Painting the building exterior for all three buildings The applicant has submitted preliminary plans and is working with the Community Development Department through a Site Development Review process. The applicant estimates the façade improvements will cost more than $125,000. 2. Amakara Restaurant In February 2019, Staff received an application for a matching grant from the owner of Amakara restaurant, to help offset the costs of the construction of an outdoor dining patio at their new home at the Aster project. The cost of the tenant improvements has exceeded their original estimates, so the applicant is requesting a $70,000 grant to help offset the cost of the outdoor dining patio and signage. The construction of the outdoor dining patio includes, but is not limited to: • Awnings • Mechanical, Electrical & Plumbing for Outdoor Heaters • Lights (hardwired) • Speakers • Bench Seating and service counters • Wall and guardrail • Concrete paving • Relocating landscaping irrigation • Installing a new window • Signage The applicant estimates the façade improvements listed above will cost more than $170,000. Staff Recommendation Staff recommends the Economic Development Committee review the applications and consider approving grants for the facade improvements, not to exceed $70,000 for eligible improvements. If the Committee is in support, Staff will present the recommendation of funding to the full City Council for their consideration. ECONOMIC DEVELOPMENT MEMORANDUM Attachment 1 Grants Awarded to Date Business Name Address Year Amount Requested Amount Awarded Status SF Rents 7114 Village Parkway 2013 $70,000 $70,000 Completed Rahma Mediterranean Market 7111 Village Parkway 2013 $70,000 $70,000 Completed B&B Borden LLC 7032 Village Parkway 2014 $70,000 $70,000 Completed B&B Borden LLC 7032 Village Parkway 2014 $28,000 $27,843 Completed Mirchi Café 7083 Village Parkway 2014 $18,000 $18,000 Completed Amador Valley Medical Center 7667 Amador Valley Blvd. 2014 $22,000 ($22,000) Applicant withdrew Athens Burgers (tenant) 6999 Dublin Blvd. 2015 $70,000 ($70,000) Applicant withdrew ECONOMIC DEVELOPMENT MEMORANDUM ATTACHMENT 2 Commercial Façade Improvement Eligible Improvements Eligible improvements include, but are not limited to: • Removal of old signs, awnings and other exterior clutter • Exterior cleaning and painting • Repair or replacement of exterior siding (including the construction of new façade elements and architectural details) • Installation of new entry doors that meet ADA accessibility requirements • Installation of display windows • Installation of new canvas awnings over windows and entries • Installation of new signs • Installation of new exterior lighting • Installation of permanent landscaping • Exterior mandatory Title 24 upgrades ECONOMIC DEVELOPMENT MEMORANDUM DATE: February 19, 2019 TO: City Council Economic Development Committee FROM: Suzanne Iarla, Management Analyst II CC: SUBJECT: Christopher L. Foss, City Manager Linda Smith, Assistant City Manager Hazel Wetherford, Economic Development Director Proposal to Amend the Sewer Capacity Assistance Program On September 18, 2018, the City Council received a presentation on Staff’s Downtown Dublin work plan, which identified a number of actions for the City to undertake to achieve the City Council’s vision for Downtown Dublin as a vibrant and dynamic commercial and mixed-use center. One of the actions identified by Staff in the Downtown Dublin work plan is to bring forth changes to the Sewer Capacity Assistance Program (Program) for the City Council’s consideration. Staff is requesting the Committee consider supporting the following changes to the Program in order to realign the focus of the Program on the Downtown Dublin Specific Plan (DDSP) area: •Allocate additional dwelling unit equivalents (DUEs) to the Program •Set-aside DUEs for the DDSP or a specific district within the Plan The proposed amendments will provide more timely assistance to businesses who apply to the Program. If the Committee is in support of Staff’s proposal, it would be presented to the full City Council for their consideration. Background In 2009, the City requested that Dublin San Ramon Services District (DSRSD) allow the City to transfer unused sewer capacity at City-owned properties to other private properties to encourage the recruitment, renovation or re-use of properties in Dublin. The Program allows the City to market its excess sewer capacity as an economic development incentive program to help stimulate economic growth in the community. DSRSD agreed and in May 2010, the City established a Sewer Capacity Assistance Program with 66.2 DUEs. In 2013, the City Council amended the Program by establishing criteria for the allocation of a higher percentage based on user type and location, and specifically set-aside 30 DUEs for the DDSP area. In 2014, the City Council removed the set-aside allocation of DUEs for the DDSP area and expanded the Program to allow projects in all Priority Development Areas to be eligible to receive a higher percentage of sewer capacity allocation based on user type and location. However, in September 2014, the City Council simplified the Program by removing the different percentages for specific geographic areas and adopted citywide rates. Item 6 ECONOMIC DEVELOPMENT MEMORANDUM In 2016, the City and DSRSD agreed to extend the Program through December 31, 2020. Available DUEs Currently, there are only 3.5 DUEs remaining in the Program. In 2014, Staff reviewed water usage at City facilities including parks and buildings and found an overage (63 DUE) of sewer capacity. DSRSD agreed to maintain these DUE “credits” in an account for future City facility use. Some of these credits were allocated towards development of The Wave (40 DUE) and Fallon Sports Park Phase 2 (4.55 DUE). After the transfers to City facilities, approximately 18.69 DUE remain unallocated. Proposed Changes In an effort to incentivize the recruitment, renovation or re-use of properties downtown, Staff proposes to recommend that the City Council adopt a resolution revising the Program to allocate and set-aside approximately 18.69 additional DUEs for either the Downtown Dublin Specific Plan area, the Retail District within the DDSP, or Citywide. By transferring the credit of approximately 18.69 unallocated DUEs into the Program and setting it aside for the DDSP area, the credits would become a valuable economic development tool to incentivize private commercial development of restaurants in Downtown Dublin. Staff Recommendation Staff recommends amending the Program to include approximately 18.69 additional DUEs and to set aside the DUEs for the Retail District within the DDSP. Staff is seeking input from the Economic Development Committee regarding the proposed changes; if the Committee is in support, Staff will present the changes to the full City Council for their consideration. ECONOMIC DEVELOPMENT MEMORANDUM ATTACHMENT 1 CURRENT SEWER CAPACITY CREDIT ELIGIBILITY BY USER TYPE AND SQUARE FOOTAGE Use Type* Greater than 5,000 sf Between 3,500 and 5,000 sf Less than 3,500 sf Casual Dining (excluding fast food) Up to 25% Up to 50% Up to 75% Fine Dining Specialty Food (Coffee, Deli, Bakery, etc.) Entertainment/Nightlife (Wine Bars/Taprooms, etc.) Up to 50% Up to 75% Up to 100% PROGRAM PARTICIPANTS The Sewer Capacity Assistance Program provides assistance ranging from 25% to 100% of the DSRSD local and regional sewer connection fees by user type and square footage. To date, 62.6 DUE credits have been used to support 16 businesses: Applicant DUEs Received Year BJ’s Restaurant & Brewhouse 6 2011 Habit Burger & Free Birds 4.26 2012 Fresh Millions 0.75 2013 Little Sheep Mongolian Hot Pot 2.174 2013 Mayflower Restaurant 3.495 2013 Persimmon Place Shopping Center 15.02 2014 Tous Les Jours Bakery 0.56 2014 Three Sheets Craft Beer 2.86 2014 Patxi’s Pizza 4.18 2014 Great Harvest Bread Company1 1.87 2014 Urban Plates 5.095 2014 Pacific Catch Restaurant 8.4375 2014 Chaat Café 3.75 2014 GoGoong Korean BBQ Restaurant 2.06 2015 Firehouse Subs1 0.83 2015 Inc. 82 Brewing 4 2016 1Firehouse Subs and Great Harvest Bread Company have closed their businesses. Per the terms of the Program, the City has revoked the DUE credits and returned them to the Program’s pool. ECONOMIC DEVELOPMENT MEMORANDUM Most of the businesses in the Program are located outside of the Downtown, with only 22% in the DDSP area. The following chart shows the location of current Program participants: Downtown Dublin 22% Fallon Gateway 16% Grafton Station 9% Persimmon Place 52% Tralee 1% Location Distribution of Allocated DUE Credits ECONOMIC DEVELOPMENT MEMORANDUM DATE: February 19, 2019 TO: Economic Development Committee Members FROM: Suzanne Iarla, Management Analyst II CC: SUBJECT: Christopher L. Foss, City Manager Linda Smith, Assistant City Manager Hazel Wetherford, Economic Deveopment Director Proposal to Amend the Small Business Assistance Program Background In 2013, the City created the Small Business Assistance Program (Program). The Program is funded by an annual $100,000 contribution from Amador Valley Industries (AVI) with no General Fund contribution. The Program supports local businesses in two ways: 1. Provides grants to assist Dublin-based businesses cost of complying with federal, state and local laws relating to disability access requirements, trash enclosures, sewer connections, and other such obligations imposed on small businesses. 2. Provides one-on-one business advising and support for special events. Currently, all applications are reviewed and considered by the Economic Development Committee. If the Committee recommends awarding a grant, Staff presents the grant request to the City Council for their consideration. In 2013, when the Program was created, the City partnered with the Alameda County Small Business Development Center (ACSBDC) to administer the funds which were held in a trust account. Effective November 3, 2017, the City terminated the MOU and requested that the remaining funds be transferred to the City for ease of managing the Program. City Manager’s Spending Authority The City Manager’s spending authority is up to $45,000 for general services, supplies, equipment, and professional or consulting services and up to $99,999 for public projects. These amounts are set by the City Council. Since the Small Business Assistance Program was established, 10 grants have been award and accepted. Two grants were awarded but the applicant later declined the award. Of the 10 grants, 9 grants fall within the City Manager’s spending authority of up to $45,000 (see Attachment 1 for a list of recipients). Proposed Changes With the Program now being run by the City, Staff has evaluated the administration of the Program. Staff believes the Program would be more responsive and efficient if the Economic Development Committee approved Program grants and allowed the City Manager to enter into agreements for up to $45,000 because it would reduce the processing time. Currently, Program grants need to be considered by the Economic Development Committee, and then approved by the City Council. The new process would eliminate the need to go to the City Council for approval. Staff Recommendation Staff recommends amending the Program to give the Economic Development Committee the authority to approve grants and enter into agreements for up to $45,000. The proposed amendments will provide more timely assistance to businesses who apply to the Program. Staff is seeking input from the Economic Development Committee regarding the proposed changes; if the Committee is in support, Staff will present the changes to the full City Council for their consideration. ECONOMIC DEVELOPMENT MEMORANDUM ATTACHMENT 1 Small Business Assistance Program Grants Awarded and Accepted Company Application Received Project Grant Request Amount Approved Status Dublin Station Partners 2013 To be used for the construction of a new, larger trash enclosure. $100,000 $40,000 completed Parkway Investors 2013 To be used for outdoor improvements listed on the application $72,000 $10,000 completed Karpenko Family Partners 2014 To be used for the construction of a trash enclosure. $20,000 $20,000 completed Pastime Brew LLC (Three Sheets Craft Beer Bar) 2014 To be used for Title 24 and accessibility upgrades. $37,643.83 $37,643.83 completed 7410 Amador Valley Blvd., LLC 2015 To be used for larger gates for the existing trash enclosure. $4,350 $4,350 completed Chiu Family Trust (Lamps Plus Plaza) 2015 To be used for the construction of a trash enclosure. $28,000 $14,000 completed Mirchi Café 2015 To be used for ADA bathrooms. $15,000 $7,500 completed CAMP 2015 To be used to add a bathroom, upgrade fire alarm system, and upgrade/replace doors and panic hardware; awaiting request for the balance of awarded funds ($6,175). $69,577 $69,575 completed Stanforth Holding Company (Grafton Station) 2017 To be used to build a larger trash enclosure. $75,000 $37,500 completed ASHG Capital, Inc (dba World of Beer) & BIT Holdings Sixty-Three, Inc. 2018 Grant to be used for improving the accessibility of the main entrance, rear door and restrooms as well as install permanently-affixed accessible doors to the walk-in cooler/freezer. $75,000 $21,000 reimbursement in process