HomeMy WebLinkAboutItem 4.9 - 3012 Time Extension for Economic Development Inc
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STAFF REPORT
CITY COUNCIL
DATE: December 17, 2019
TO: Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Time Extensions for Economic Development Incentive Programs
Prepared by: Suzanne Iarla, Management Analyst II
EXECUTIVE SUMMARY:
The City Council will consider extending the time period for certain Economic
Development business incentive programs that are set to expire in 2020.
STAFF RECOMMENDATION:
Adopt the Resolution to Extend the Time Period for the Sales Tax Reimbursement
Program, the Traffic Impact Fee (TIF) Deferral Program, the Sewer Capacity Assistance
Program and the Transit District Multi-Family Residential Development Fee Deferral
Program.
FINANCIAL IMPACT:
There is no cost to extend the programs.
DESCRIPTION:
The City of Dublin offers several economic development business incentives to
encourage economic vitality. A number of these programs are set to expire in 2020
unless extended. Each of the programs listed in the table below is a valuable economic
development tool to attract and retain businesses in Dublin:
Table 1: Economic Development Incentive Programs Expiring in 2020
Incentive Program Yr Adopted Expiration Date Proposed Extension to
Sales Tax Reimbursement
Program 2009 January 6, 2020
June 30, 2025
Traffic Impact Fee Deferral
Program 2009 June 30, 2020
Sewer Capacity Assistance
Program 2010 December 31, 2020
Transit District Multi-Family
Residential Development Fee
Deferral Program
2011 June 30, 2020
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Sales Tax Reimbursement Program
On January 6, 2009, the City Council adopted Resolution No. 9-09 which allows certain
businesses to recover a portion or all of the costs of improvements (site, internal and
external) made to the property. The purpose of the Program is to improve the aesthetic
nature and physical appearance of commercial buildings and promote site
improvements to commercial properties in the existing commercial, office and industrial
areas of Dublin.
To date, six businesses and/or property owners have participated in the program and
Staff believes the Program is a valuable business attraction, expansion and retention
tool.
Staff is recommending the Program be extended to June 30, 2025, consistent with the
proposed extensions of the other programs being discussed as part of this item.
Non-Residential Traffic Impact Fee Deferral Program
On September 1, 2009, the City Council adopted Resolution No. 127 -09, approving a
Traffic Impact Fee (TIF) Deferral Program which allows non-residential developers to
defer Downtown and Eastern Dublin Traffic Impact Fees from being due at the time of
building permit issuance to being due at the issuance of the first permanent utility meter
for the project (this step is just prior to taking occupancy of the building). Thi s allows the
project developer to shift the financing of the fees from the construction loan into the
fixed financing for the project.
To date, only one developer has participated in the program, however Staff believes the
Program is a valuable attraction tool for commercial developments in the Downtown and
Eastern Dublin areas.
Staff is recommending the Program be extended to June 30, 2025 and that the TIF fee
payment date change to June 30, 2027 (two years following the completion of the
program).
Sewer Capacity Assistance Program
On May 4, 2010, the City Council adopted Resolution No. 53 -10, approving the creation
of a Sewer Capacity Assistance Program in partnership with Dublin San Ramon
Services District (DSRSD) to allow the City to transfer unused sewer capacity at City-
owned properties to other private properties to encourage the recruitment, renovation ,
and re-use of properties in Dublin.
To date, 16 businesses and/or property owners have participated in the Program and
Staff believes the Program is a valuable business attraction tool, especially for
restaurants.
Additionally, on October 18, 2016, DSRSD extended the Program to December 31,
2020 at the City’s request.
Staff is recommending the City Council directs the City Manager to request that DSRSD
extend the Program for five years (through June 30, 2025).
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Transit District Multi-Family Residential Development Fee Deferral Program
On December 20, 2011, the City Council adopted Resolution No. 215 -11 approving a
Transit District Multi-Family Residential Development Fee Deferral Program which
allows developers of multi-family residential projects of 20 or more units within the
Transit District areas of Dublin (around both the East and West Dublin BART stations)
to defer certain fees until just prior to installation of the first utility meter for development.
To date, two developers have participated in the Program, and Staff believes the
Program is a valuable attraction tool to continue to offer developers.
Staff is recommending the Program be extended to June 30, 2025.
On December 6, 2019, Staff presented this recommendation to the Economic
Development Committee. The Committee was in full support and unanimously
recommended that Staff bring the item before the City Council for consideration. This
recommendation falls under the Committee's purview to provide policy guidance and
direction on economic development activities.
STRATEGIC PLAN INITIATIVE:
Strategy 4: Focus efforts on ways to strengthen the City’s economic vitality, including
the downtown, through public investment and economic development.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS:
1. Resolution to Extend the Time Period for Certain Economic Development Incentive
Programs
RESOLUTION NO. XX- 19
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********
EXTENDING THE TIME PERIOD FOR THE SALES TAX REIMBURSEMENT
PROGRAM, THE TRAFFIC IMPACT FEE (TIF) DEFERRAL PROGRAM, THE
SEWER CAPACITY ASSISTANCE PROGRAM, AND THE TRANSIT DISTRICT
MULTI-FAMILY RESIDENTIAL DEVELOPMENT FEE DEFERRAL PROGRAM
WHEREAS, on January 6, 2009, the City Council adopted Resolution No. 9-09 approving
the Sales Tax Reimbursement Program and most recently amended it on December 16, 2014
by Resolution 217-14 to extend it through January 6, 2020; and
WHEREAS, on September 1, 2009, the City Council adopted Resolution No. 127-09
approving the Traffic Impact Fee (TIF) Deferral Program and most recently amended it on
January 20, 2015 by Resolution 8-15 to extend it through Fiscal Year 2019-20; and
WHEREAS, on May 4, 2010, the City Council adopted Resolution No. 135-12 approving
the creation of the Sewer Capacity Assistance Program in partnership with Dublin San Ramon
Services District and most recently amended it on April 16, 2019 by Resolution 34-19; and
WHEREAS, on December 20, 2011, the City Council adopted Resolution No. 215-11
approving the Transit District Multi-Family Residential Development Fee Deferral Program and
most recently amended it on January 20, 2015 by Resolution 07-15 to extend it through Fiscal
Year 2019-20; and
WHEREAS, at the request of the City, on October 18, 2016, Dublin San Ramon Services
District adopted Resolution No. 67-16 to extend the Sewer Capacity Assistance Program to
December 31, 2020; and
WHEREAS, these four economic development business incentive programs are valuable
economic development tools to attract and retain businesses in Dublin, as well as to improve
commercial properties in Dublin; and
WHEREAS, these four economic development business incentive programs are each set
to expire in 2020.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby amend the Sales Tax Reimbursement Program to run through June 30, 2025; and
BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby
amend the Traffic Impact Fee Deferral Program to run through June 30, 2025 and changes the
TIF fee payment date to June 30, 2027 (two years following the completion of the program); and
BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby
amend the Sewer Capacity Assistance Program to run through June 30, 2025 and directs the
City Manager to request Dublin San Ramon Services District to extend the termination date of
the Sewer Capacity Assistance Program to June 30, 2025; and
BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby
amend the Transit District Multi-Family Residential Development Fee Deferral Program to run
through June 30, 2025.
PASSED, APPROVED AND ADOPTED this 17th day of December, 2019 by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
Mayor
ATTEST:
_______________________________________
City Clerk