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Home My WebLink About04-20-2021 Economic Development Committee Agenda Packet ECONOMIC DEVELOPMENT COMMITTEE MEETING AGENDA Tuesday, April 20, 2021 – 5:30 p.m. Meeting Procedure During Coronavirus (COVID-19) Outbreak: In keeping with the guidelines and social distancing procedures provided by the State of California and Alameda County Department of Public Health regarding gatherings during the coronavirus (COVID-19) outbreak, the City of Dublin has adopted the following practices for this upcoming public meeting: The Economic Development Committee will hold meetings remotely via Zoom Video Communications. The meeting will be available for viewing online once the meeting starts at the below link. Join Zoom: https://dublinca.zoom.us/j/81152536661?pwd=L0huc2s5NXg5TWVKQjJySWNCRzJVQT09&fro m=addon For audio only, you can join the meeting by telephone: (669) 900-9128 Meeting ID: 811-5253-6661 / Password: 57203262 All attendees will be muted and be in listen-only mode. •Public Comment can be made by sending an email to hazel.wetherford@dublin.ca.gov either in advance of the meeting, or during the meeting; Staff will read out the comment to the Committee. 1.Call to Order 2.Public Comment 3.Approval of the Minutes of the Regular Meeting of February 16, 2021 The Committee will consider the approval of the minutes of the Economic Development Committee regular meeting of February 16, 2021. 4.Economic Development Zone Incentives Package Proposal Staff will present the proposed Economic Development Zone Incentives Package for the Committee to consider. The Incentives Package is part of the proposed designation of an Economic Development Zone to attract job-rich industry sectors under the life science umbrella to the land parcels east of Fallon Road. 5.Update on Third-Party Delivery Service Fee Caps Staff will provide an update on the City’s temporary cap of the service fees charged by third-party delivery service providers. The cap went into effect on September 15, 2021 and is still in effect. 6.Commercial Façade Improvement Grant Program Withdrawal Staff will provide information to the Committee on the application withdrawal by Brooks Motor Cars. 7.American Rescue Plan Act Funding and Small Business Support Programs Staff will solicit feedback on small business support programs using federal funding from the American Rescue Plan Act. 8. Request for Future Agenda Items (Next Meeting – Tuesday, June 15, 2021 at 5:30 p.m.) The Committee and/or Staff can make requests for future agenda items as an Informational Item only. 9. Adjournment DRAFT SUMMARY MINUTES OF THE ECONOMIC DEVELOPMENT COMMITTEE REGULAR MEETING AGENDA Tuesday, February 16, 2021 – 5:30 p.m. A remote regular meeting of the Economic Development Committee was held on February 16, 2021 via Zoom Video Communications. The meeting was called to order at 5:30 p.m. by Mayor Melissa Hernandez. 1. Call to Order PRESENT: Mayor Melissa Hernandez and Vice Mayor Shawn Kumagai ABSENT: None 2. Public Comment None. 3. Approval of the Minutes of the Special Meeting of December 9, 2020 ACTION: By consensus, the Committee approved the minutes of the Economic Development Committee special meeting of December 9, 2020. 4. Dublin Chamber of Commerce Memorandum of Understanding Deal Terms Economic Development Director Hazel Wetherford provided a summary of deal terms as part of a Memorandum of Understanding between the City and the Dublin Chamber of Commerce for an annual sponsorship, with the goal of enhancing communications and events that benefit the Dublin business community. ACTION: By consensus, the Committee was in support of the deal terms for the Memorandum of Understanding and bringing the item forward to the City Council at a future meeting. 5. Visit Tri-Valley Local Recovery Proposal Economic Development Director Hazel Wetherford provided information on the proposal from Visit Tri-Valley Convention & Visitors Bureau on a Tri-Valley local recovery campaign and the City’s partnership opportunity. The City would partner at the $25,000 Gold level through an in-kind contribution of $5,000 from the City’s use of the Hyundai electronic reader board in Dublin plus $20,000 from the General Fund. 6. ACTION: By consensus, the Committee was in support of partnering with Visit Tri-Valley and other Tri-Valley cities, and bringing the item forward to the City Council at a future meeting. 7. Request for Future Agenda Items There were no requests for future agenda items. The Committee’s next regular meeting is scheduled for April 20, 2021 at 5:30 p.m. 8. Adjournment The meeting adjourned at 5:54 p.m. Minutes prepared by Suzanne Iarla, Management Analyst II. ___________________________________ Mayor ATTEST: ________________________________ Economic Development Director ECONOMIC DEVELOPMENT MEMORANDUM DATE: April 20, 2021 TO: Economic Development Committee Members FROM: Suzanne Iarla, Management Analyst II CC: SUBJECT: Linda Smith, City Manager Hazel Wetherford, Economic Development Director Economic Development Zone Incentives Package Proposal Background The City of Dublin has initiated a General Plan Amendment Study for approximately 73 acres east of Fallon Road. The study is evaluating changing the existing General Plan land use designation from General Commercial to General Commercial/Campus Office. One of the goals in changing the existing land use is the designation of an Economic Development Zone (EDZ) to attract job-rich industry sectors under the life sciences umbrella. The EDZ will include an Incentives Package (Package) to assist with the attraction of the following industries: • Life Sciences • Advanced Manufacturing • Clean/Green Technology • Automation & Robotics • Technology • Startups & Incubators Proposal Staff has developed a proposed Package that offers a suite of incentives: City Programs: 1. Capital Investment Incentive (Property Tax Sharing) 2. Streamlined Development Review 3. Fee Reimbursement 4. LEED Certification Incentive Marketing of State/Federal Financing Programs: 5. Industrial Development Bond (IDB) financing 6. Assistance with Federal and State Incentives/Tax Exemptions ECONOMIC DEVELOPMENT MEMORANDUM CITY PROGRAMS: 1. Capital Investment Incentive (offered on a case-by-case basis) Offer Property Tax Sharing Incentive for projects related to targeted industries of 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 Streamlining of Approval Process: • Cross-Departmental Team to work with developer and their design/construction teams throughout the process (all projects related to targeted industries). • Offer “expedited review” to allow priority review by Staff for planning entitlements for projects related to targeted industries (on a case-by-case basis). • Create special EDZ pre-application process and increase the number of hours that staff provides at no charge to applicant for projects related to targeted industries (on a case-by-case basis). Offer City Impact Fee Deferral: • Defer payment of City Impact Fees for projects related to targeted industries to 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 cost of City Building Permit and Inspection Fees for new building construction or tenant improvement projects related to targeted industries. (Cost of Staff time would then be absorbed by the General Fund). • For project with known end-user tenant (i.e. Build to Suit), reimbursement to be issued 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 issued after Certificate of Occupancy has been issued and tenancy requirement (50% leased to tenants in targeted industries within eight months of completion) has been met. • For company undertaking tenant improvements, company must have lease of three or more years and at least five full-time equivalent employees to be eligible for incentive; Reimbursement to be issued after Certificate of Occupancy has been received. ECONOMIC DEVELOPMENT MEMORANDUM 4. LEED Certification Incentive Reimburse a portion of the cost for LEED certification if building is at least 50% leased to tenants in targeted industries by the time of LEED certification: • LEED Silver: Up to $10,000 • LEED Gold: Up to $15,000 • LEED Platinum: Up to $20,000 MARKETING OF STATE/FEDERAL FINANCING PROGRAMS: 5. Market and Promote State’s Industrial Development Bonds Program and the Statewide Community Infrastructure Program 6. Hire Consultant to Help Promote Federal and State Incentives/Tax Exemptions Hire a consultant to assist new eligible businesses within EDZ to apply for the following State programs, and relevant Federal programs as applicable. Also, require consultant to hold an annual educational workshop on these State programs: • Manufacturing and Research and Development (R&D) Partial Sales and Use Tax Exemption • State Sales and Use Tax Exclusion • State Research & Development Tax Credit This could be achieved using services from the City’s state and federal advocacy consultant, Townsend Public Affairs. Staff Recommendation Staff recommends the Economic Development Committee consider the EDZ Incentives Package Proposal and provide feedback to Staff. If the Committee is in support and recommends the proposal, Staff will present the Proposal to the full City Council for their consideration along with the designation of the EDZ boundary. ECONOMIC DEVELOPMENT MEMORANDUM ATTACHMENT 1 – Matrix of EDZ Incentives Program Eligibility Applicant/Awardee All EDZ Targeted Industries Case-by-Case basis for EDZ Targeted Industries Developer Incentive End-User Business Incentive Property Tax Sharing Incentive X Reimbursement of up to 50% of City Property Tax for five to 10 years; based on actual eligible expenses and job creation Streamlined Development Review Support X X Yes Fee Deferral of City Impact Fees X Yes Reimbursement of 20% of Building Permit and Inspection Fee Cost X Yes Yes, if Company has at least three-year lease and a minimum of five employees LEED Certification Incentive X Up to $30,000 Promote State's Industrial Development Bond Financing X Yes