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HomeMy WebLinkAbout2019/02/20 - Agenda Packet - SpecialFEBRUARY 20, 2019 - 3:00 PM SPECIAL MEETING WORKSHOP CITY COUNCIL/FIRE PROTECTION DISTRICT AGENDA Tri-Communities Room, 10500 Civic Center Drive, Rancho Cucamonga, CA A CALL TO ORDER Pledge of Allegiance Roll Call:Mayor Michael Mayor Pro Tem Kennedy Council Members Hutchison, Scott, Spagnolo B PUBLIC COMMUNICATIONS This is the time and place for the general public to address the Fire Protection District and City Council on any item listed on the agenda. State law prohibits the Fire Protection District and City Council from addressing any issue not previously included on the Agenda. The Fire Protection District and City Council may receive testimony and set the matter for a subsequent meeting. Comments are to be limited to five minutes per individual or less, as deemed necessary by the Mayor, depending upon the number of individuals desiring to speak. All communications are to be addressed directly to the Fire Board, or City Council not to the members of the audience. This is a professional business meeting and courtesy and decorum are expected. Please refrain from 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 ITEMS FOR DISCUSSION C1. Economic Development Strategic Work Plan Discussion. D ADJOURNMENT CERTIFICATION I, Linda A. Troyan, MMC, City Clerk Services Director of the City of Rancho Cucamonga, 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 Government Code 54954.2 at 10500 Civic Center Drive, Rancho Cucamonga, California and on the City's website. Page 1 Page 2 DATE: February 20, 2019 TO:Mayor and Members of the City Council FROM:John R. Gillison, City Manager INITIATED BY:Matt Burris, Deputy City Manager/Economic & Community Development Flavio Nuñez, Management Analyst II SUBJECT:ECONOMIC DEVELOPMENT STRATEGIC WORK PLAN DISCUSSION. RECOMMENDATION: Discussion and Identification of City Council's Economic Development Work Plan Priorities. BACKGROUND: On December 5, 2018, staff held a workshop with the City Council to discuss and identify workplan priorities for the City's economic development activities. Present at the meeting were Mayor L. Dennis Michael, Mayor Pro Tem Lynne Kennedy, Council Members Bill Alexander, and Diane Williams. Council Member Sam Spagnolo was absent. Attached for review are the approved minutes of the meeting. The following report was provided to the City Council at that time. In 2015, the City retained the firm of Strategic Economics, Inc. to update the City’s previous 2003 Economic Development Strategic Plan. The Plan was updated in 2015 and has served as the City’s Economic Development Plan for business attraction, retention, and expansion for the past three years. The Economic Development Strategic 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 specific to geographical areas in the City that have comparative advantages and needs from other areas in the City. · Phase 3 built upon the findings in the economic background report to create the Economic Development Strategic Plan. There were two overall themes of this Economic Development Strategic Plan Update. The first was the integration of economic development efforts into the all facets of City operations, and the second was an emphasis on the connections to Healthy RC. ANALYSIS: As part of the background analysis, four topic areas were used to identify and develop the goals and strategies of the Plan: competitive context, population and employment trends, workforce characteristics, and real estate market dynamics. Based Page 3 on the key findings in each of the four topic areas, including the interviews with elected officials, City staff, and community stakeholders, five target industry groups were identified: 1. Health Care and Social Assistance 2. Transportation, Warehousing, and Wholesale Trade 3. Retail, Accommodation, and Food Services 4. Manufacturing 5. Professional, Scientific, and Technical Services To grow the economy in these five areas, the Economic Development Strategic Plan identifies seven areas for the City to focus its efforts: office development, retail development and revitalization, business outreach and support, industrial development and retention, hospitality, workforce development, and marketing and communications. As Rancho Cucamonga’s local economy continues to change, it is important to recognize shifting factors to capitalize on the City’s strengths and provide programs and services that will have a catalytic effort in job creation, business growth and leveraging existing resources. Over the last several years staff has worked on several of these activities to help achieve the goals of the Economic Development Strategic Plan and expand business opportunities in the five target industries listed above. Current activities include services such as relocation and expansion assistance, business support services, permit streamlining assistance, workforce training, workforce housing, and infrastructure development and marketing. The City's Rancho Advantage Program, a relocation assistance service, was recently awarded for its commitment to job creation by the Inland Empire Economic Partnership and received the “Turning Red Tape into Red Carpet” Award in 2018. These activities have successfully led to business expansion of companies such as, Evolution Fresh, XT Green, Tekton, and Rock N’ Brews to name a few. It is also equally important to revisit the work plan activities of the Economic Development Strategic Plan and shift focus, as appropriate, to position the City in a competitive place in the regional economy. The current focus of the City’s economic development activities emphasizes leveraging resources to grow our local economy and expand our local jobs base. FISCAL IMPACT: There is no fiscal impact for this policy discussion. COUNCIL GOAL(S) ADDRESSED: The discussion and prioritization of workplan activities of the Economic Development Strategic Plan achieves the City Council's goal to enhance the City's Premier Community status. As the economic environment continues to transform, it is important to revisit the implementation activities of the Plan to position the City for success in a constantly shifting economy and marketplace. ATTACHMENTS: Description Meeting Minutes - December 5, 2018 Page 4 Page 5 Page 6 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. Opportunity Sites -10 Location: 12434 4th St. Size: 69.9 acres Zoning: General/Heavy Industrial Owner: Big Lots Inc. 4th St. 6th St.Etiwanda Ave.