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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 T his is the time and place for the general public to address the F ire P rotection District and C ity C ouncil on any item listed on the agenda. S tate law prohibits the F ire Protection D istrict and C ity C ouncil f rom addressing any issue not previously included on the A genda. T he F ire P rotection District and City Council may receive testimony and set the matter f or a subsequent meeting. C omments are to be limited to five minutes per individual or less, as deemed necessary by the M ayor, depending upon the number of individuals desiring to speak. All communications are to be addressed directly to the F ire Board, or C ity C ouncil not to the members of the audience. T his is a prof essional business meeting and courtesy and decorum are expected. Please refrain f rom any debate between audience and speaker, making loud noises, or engaging in any activity which might be disruptive to the decorum of the meeting. 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. Page 2 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 Page 3 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. Page 4 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.