HomeMy WebLinkAbout2018-12-05 - Agenda Packet - SpecialD EC EM B ER 5, 2018 - 3:00 P M
SP EC I A L M EET I N G W OR K SH OP
C I T Y C OU N C I L/F I R E P R OT EC T I ON D I ST R I C T A GEN D A
Rains Room, 10500 Civi c Center Drive, Rancho Cucamonga, C A 91730
Rancho Cucamonga, C A
A CALL TO ORDER
Pledge of Allegiance
Roll Call:M ayor M ichael
M ayor P ro Tem K ennedy
C ouncil M embers A lexander, S pagnolo and Williams
B PUBLI C COMMUNI CATI ONS
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C I TEMS FOR DI SCUSSI ON
C 1.E conomic D evelopment S trategic Workplan Discussion
D ADJOURNMENT
Page 1
C ER TIFIC AT IO N
I, Linda A. Troyan, MMC , City Clerk Services D irector of the City of Rancho C ucamonga, or my
designee, hereby certify under penalty of perjury that a true, accurate copy of the foregoing agenda
was posted on at least twenty-four (24) hours prior to the meeting per G overnment Code 54954.2 at
10500 C ivic C enter Drive, Rancho Cucamonga, California and on the C ity's website.
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D AT E : December 5, 2018
T O:Mayor and Members of the City Council
F RO M :J ohn R . Gillison, C ity Manager
INIT IAT E D B Y:Matt Burris, D eputy C ity Manager/E conomic & C ommunity Development
F lavio Nuñez, Management A nalyst I I
S UB J E C T:E C O NO M IC D E V E L O P M E NT S T RAT E G I C WO RK P L AN D I S C US S IO N
RE COMMENDAT ION:
D iscussion and I dentif ication of C ity C ouncil's E conomic D evelopment Workplan Priorities.
BACKGROUND:
I n 2015, the City retained the firm of Strategic Economics, I nc. to update the City’s previous 2003
Economic Development S trategic Plan. T he P lan was updated in 2015 and has served as the C ity’s
Economic Development P lan for business attraction, retention, and expansion f or the past three
years. T he E conomic D evelopment S trategic Plan Update included three major phases of work:
Phase 1 included core tasks that served as a baseline for the economic background of the report.
Phase 2 included additional analysis tasks that provided important insight into place-based
strategies. Place based-strategies are specif ic to geographical areas in the C ity that have
comparative advantages and needs from other areas in the C ity.
Phase 3 built upon the findings in the economic background report to create the E conomic
D evelopment S trategic Plan.
T here were two overall themes of this E conomic Development Strategic Plan Update. T he first was the
integration of economic development efforts into the all f acets of City operations, and the second was an
emphasis on the connections to Healthy R C.
ANALY S IS:
As part of the background analysis, f our topic areas were used to identif y and develop the goals and
strategies of the Plan: competitive context, population and employment trends, workforce characteristics,
and real estate market dynamics. Based on the key findings in each of the four topic areas, including the
interviews with elected of f icials, City staf f , and community stakeholders, five target industry groups were
identif ied:
1. Health C are and S ocial Assistance
2. Transportation, Warehousing, and W holesale Trade
3. Retail, A ccommodation, and F ood S ervices
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4. Manuf acturing
5. P rofessional, Scientific, and Technical S ervices
To grow the economy in these five areas, the E conomic D evelopment S trategic P lan identifies seven
areas f or the C ity to f ocus its efforts: of f ice development, retail development and revitalization, business
outreach and support, industrial development and retention, hospitality, workforce development, and
marketing and communications.
As Rancho C ucamonga’s local economy continues to change, it is important to recognize shifting f actors
to capitalize on the C ity’s strengths and provide programs and services that will have a catalytic ef f ort in job
creation, business growth and leveraging existing resources. Over the last several years staf f has worked
on several of these activities to help achieve the goals of the E conomic D evelopment S trategic P lan and
expand business opportunities in the f ive target industries listed above. C urrent activities include services
such as relocation and expansion assistance, business support services, permit streamlining assistance,
workf orce training, workforce housing, and inf rastructure development and marketing. T he City's Rancho
Advantage P rogram, a relocation assistance service, was recently awarded for its commitment to job
creation by the I nland E mpire E conomic Partnership and received the “Turning R ed Tape into R ed
C arpet” Award in 2018. T hese activities have successfully led to business expansion of companies such
as, Evolution F resh, X T Green, Tekton, and Rock N’ B rews to name a few.
I t is also equally important to revisit the workplan activities of the Economic D evelopment S trategic P lan
and shif t focus, as appropriate, to position the City in a competitive place in the regional economy. T he
current f ocus of the City’s economic development activities emphasizes leveraging resources to grow our
local economy and expand our local jobs base.
FISCAL IMPACT:
T here is no f iscal impact f or this policy discussion.
COUNCIL GOAL(S) ADDRE S S E D:
T he discussion and prioritization of workplan activities of the E conomic Development Strategic P lan
achieves the City Council’s G oal to enhance the City’s P remier Community status. As the economic
environment continues to transform, it is important to revisit the implementation activities of the P lan to
position the C ity for success in a constantly shif ting economy and marketplace.
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Economic Development
Study Session
Revisiting the Economic Development Strategic Plan and Priorities
City’s Vision:
RC is a World Class Community
Connecting Vision and Economic
Development
This Photo by Unknown Author is licensed under CC BY-SA
Our vision is and has long
been our best economic
development tool
Applying the Vision to Economic
Development
•Mission: Create a World
Class Economy
•Staff’s working definition:
•Diverse
•Resilient
•Ongoing Investment
and Activity
•Opportunity
•What does it mean to you?
How might we measure success?
Typical Economic Development Outcomes and Examples
•Increase revenue
•TOT from hotels, sales tax,
property tax
•Increased employment within
City
•Increased professional
employment
•Increased commercial activity
•More tourism, more
shopping, more
manufacturing
•Increased workforce skill set
•Better trained workers
•Increased investment in the city
•Factory upgrades, new
buildings
•Increased diversity
•Of market sectors, of
revenue streams
•Stronger identity
•L.A. and film industry
•Improved quality of life
•Reduce commute times,
reduce housing costs
Common Economic Development Practices
•Business Improvement Districts
•Riverside Downtown Partnership,
•Ontario Tourism Marketing District (OTMD)
•Business recruitment
•Amazon Headquarters
•Business support
•Small Business Development Center, LACI
•Granting incentives
•Sales tax programs
•Housing programs
•Home Improvement Program, down payment
assistance
•Infrastructure development
•Rancho Cucamonga Municipal Utility Fiber
•Market and demographics information
•Annual demographics and market reports
•Land development partnerships
•Empire Yards
•Permit assistance and streamlining
•Rancho Advantage
•Placemaking
•Victoria Gardens
•Quality of life
•Healthy Rancho Cucamonga
•Relocation assistance
•Property selection support
•Workforce training
•San Bernardino County Workforce
Development Board
Typical Economic Development Outcomes and Examples
Past Economic Development Strategies
First Economic Development Strategy was created in 1996.
•Develop a marketing approach for the Rancho Cucamonga “Brand”
•Advertising
•Promote City Strengths (i.e. transportation network, labor force,
available land for development)
•Develop Partnerships (i.e. State, Chamber of Commerce, Chaffey
College)
Past Economic Development Strategies
Economic Development Strategy Update in 2003
•Building on Public Relation and Marketing.
•Business Sector Targeting (i.e. Research &Development,
Corporate Head Quarters.)
•Business Retention
•Continue Infrastructure improvements
•West Foothill Blvd. Strategies
2015 Economic Development
Strategic Plan
Why Was An Updated Economic
Development Strategy Needed In 2015
•Changing economic environment
•Legislation impacts
•To ensure continued success in today’s marketplace
•Strategic Economics is a national leader in economic analysis.
•Firm is based in Berkeley, California.
•Strategic Economics has done work in the Inland Empire Including the City
of Rancho Cucamonga.
•Client list include local governments, federal and state agencies, regional
organizations, and foundations and non-profits.
STRATEGIC ECONOMICS
Background Report Summary
Competitive Context
•Land availability
•Port activity
•Transportation access
•Quality of life
•Educational resources
•Built Environment
Background Report Summary
Population and Employment
Background Report Summary
Office Development
Advantages
•Rental rates are on the rise
•Proximity to freeways and
airport
•High-quality office buildings
•Metrolink station is an
amenity for commuters
•Quality of life, schools,
neighborhoods
•Highly educated residents
Real Estate Market
Vacancy Rates, 2001-2013
Background Report Summary
Retail Development Advantages
•Retail sales will increasewithpopulationgrowth
•I-210 corridor (access)andVictoriaGardensarepreferredlocationsforretail
•City out-performs InlandEmpireinretailrentsandvacancies
Real Estate Market
Retail Rental Rates 2006-2013
Background Report Summary
Hotel Development
Advantages
•City has healthy occupancy
rates
•Average Daily Rates are rising
•Proximity to airport,freeways,
and entertainment/recreation
attract business and leisure
travelers
Real Estate Market
Rancho Cucamonga Transient Occupancy
Taxes, FY 2008/09-2013/2014
2015 Economic Development Strategic
Plan
Priority Areas:
1.Office Development
2.Retail Development and Revitalization
3.Business Outreach and Support
4.Industrial Development and Retention
5.Hospitality
6.Workforce Development
7.Marketing and Communications
Purpose:
•(Jobs, activity)
•(Revenue, quality of life)
•(Jobs, activity)
•(Jobs, activity)
•(Revenue)
•(Workforce skillset)
•(Activity, investment)
Current and Past Economic
Development Activities
•Permit assistance and
streamlining
•Placemaking
•Business recruitment
•Quality of life
•Incentives
•Infrastructure development
•Land development partnerships
•Business Improvement Districts
•Relocation assistance
•Market and demographics info.
•Workforce training
•Business support
•Housing
Economic Development Activities
Pre-Redevelopment vs. Post Redevelopment Elimination
21%16.7%
13%
13.8%
9.2%8%
Pre-Redevelopment Elimination
•Budget $2.3 million
•Staff of 7 dedicated to economic
development and workforce housing
•Traditional and proactive approach
to Economic Development
Post -Redevelopment Elimination
•Budget $373,780
•Staff of 2 dedicated to economic
development and workforce housing
•Team Approach; Cross Departmental
Support
Current Focus
Leverage our resources to grow our local economy and expand jobs base
by:
1.Expanding the start-up ecosystem
2.Help small-and middle-market firms scale
3.Deepen industry specializations
4.Expand access to resources that improve competitiveness
5.Advertising and marketing
Outcomes: Expand economy, quality of life, jobs
Outcomes and Practices
•What outcomes would you like to see prioritized? Which are less
important to you?
•Which practices should be employed? Which should not?
Key Opportunity Sites
Key Opportunity Site -1
Location: NEC of Foothill
Blvd and Grove Ave.
Size: 8.31 acres
Zoning: Mixed Use
Owner: San Antonio
Regional Hospital
Key Opportunity Site -2
Location: SWC of Foothill
Blvd and Vineyard Ave.
Size: 4.46 acres
Zoning: Community
Commercial
Owner: Vineyard Hill LLC
Foothill Blvd.
Key Opportunity Site -3
Location: SWC of Foothill
Blvd and Hermosa Ave.
Size: 17.98 acres
Zoning: Community
Commercial fronting
Foothill Blvd. and Medium
(8-14DU/AC) on back half
Owner: Anderson, John
Family Trust
Foothill Blvd.
Key Opportunity Site -4
Location: NWC of Civic
Center Dr. and Haven Ave.
Size: 7.05 acres
Zoning: Mixed Use
Owner: City of Rancho
Cucamonga
Civic Center Dr.
Key Opportunity Site -5
Location: NWC of Arrow
Rt. and Haven Ave.
Size: 9.02 acres
Zoning: Industrial Park;
Haven Avenue Overlay
Owner: SA Refka LLC
Civic Center Dr.
Arrow Rt.
Key Opportunity Site -6
Location: SEC of Foothill
Blvd. and Elm Ave.
Size: 8.40 acres
Zoning: Industrial Park
Owner: Tsai, Kuo-Hsi
Civic Center Dr.
Foothill Blvd. Elm Ave.
Key Opportunity Site -7
Location: NEC of Foothill
Blvd. and Mayten Ave.
Size: 28.68 acres
Zoning: Community
Commercial
Owner: Wal-Mart Stores
Foothill Blvd.
Key Opportunity Site -8
Location: SWC of Rail line
and Etiwanda Ave.
Size: 65.71 acres
Zoning: Heavy Industrial
Owner: Reliant Energy
Etiwanda Inc.
Opportunity Sites -9
Location: SEC of Wilson
Ave. and I-15 Fwy.
Size: 36.0 acres
Zoning: Community
Commercial
Owner: Intex Properties
Wilson Ave.