HomeMy WebLinkAbout10-16-2012 proposed changes to the development strategy plan b2RECEIVE D
OCT 15201 2=council m cm (van &man CLER K
AGENDA
CORRESPONDENC E
SUBJECT :
B2 :Proposed Changes to the Economic Development Strategic Plan
Development Strategic Plan (EDSP). Staff's analysis follows the suggested changes below .
Proposed Changes to "Key Sites, Infrastructure & Fees" - pp . 17-1 9
Divide into two sections, "Key Sites" and "Infrastructure & Fees ."
Show "Infrastructure & Fees" section first .
Change order and structure of the "Infrastructure & Fees" section – some numbered items
became bullet points, some bullet points became numbered items . Add additional
wording – underlined text below . Remove some wording – crossed out text below .
No changes have been made to the "Key Sites" section .
Infrastructure &Fees
1 .3 Analyze infrastructure plans to ensure they are "right-sized" for the communit y
and reasonable .Reduce the cost of these facilities where possible, consisten t
with General Plan Land Use Element Policy 1 .13 .
The analysis should include reviewing City engineering standards, transportation plans ,
installation timing,community expectations,and other cost drivers to identify
opportunities to reduce the barriers to new development while not negatively impactin g
safety, access, or long-term City maintenance costs . This evaluation should include
implementation of low impact development (LID) standards, which could lowe r
construction and maintenance costs .
1 .4 Ensure that the fair-share structure includes appropriate percentages for eac h
party bearing a portion of the infrastructure costs .New development should no t
be expected to pay for city infrastructure which exceeds the actual impacts it
causes .
DATE :
October 15, 201 2
TO :
Mayor and City Counci l
FROM :
Katie Lichtig, City Manage r
VIA :
Michael Codron, Assistant CSty Manage r
By :
Claire Clark, Economic Development Manager
Date 1 lu'/i9item#3
The following represents a Council Member's recommended changes to the Economic
B2 : EDSP Proposed Changes Page 2
Utilize the consultant to lead a series of study sessions with the City Council on th e
City's impact fee structure guided by existing policies and options for the City t o
consider related to how impact fees are determined, calculated, and applied .
1 .5 Incentivize the creation of head-of-household lobs through use of the followin g
tools :
•Complete an infrastructure financing assessment to establish priorities for Cit y
investment in infrastructure expansion .
•Explore financing strategies for infrastructure that address timing and/or the cos t
burden of infrastructure, including development agreements, reimbursement
agreements, infrastructure financing districts, business improvement districts, th e
property-based financing mechanisms identified in the City's specific plans, and th e
City's existing program for financing fees .
•Evaluate existing infrastructure impact fees applied in the City and determine if Cit y
policy supports increased cost sharing for projects that provide City-wide benefits .
Where appropriate, conduct an economic benefit analysis as part of developmen t
review to identify potential economic benefits .
•Where appropriate, participate in the financing of environmental impact reviews an d
the development of specific plans .
•Identify one or more strategic infrastructure projects that the City could invest in t o
benefit a wide variety of residents, businesses, employees and property owners b y
providing a significant return on investment to the City in the form of increase d
economic activity, business retention and expansion, and head of household jo b
creation .
1 .6 Monitor changes in State infrastructure finance law that increase financin g
options as a way to fund new investments in infrastructure (new bills are bein g
introduced in response to the elimination of redevelopment agencies).
1_7 Seek grant funding for transportation facilities that position areas fo r
development and have the potential to reduce development impact fees .
KeySites
1 .8 Prepare and update a portfolio of `available properties' ready for developmen t
in accordance with the findings of the streamlining outcomes enumerated i n
Strategy 1 .1 .
This advanced planning tool would include information for commercial brokers ,
businesses, and developers that includes the type and scope of development suitable fo r
the site(s), zoning, available infrastructure, and (in some cases) entitlements in place .
B2 :EDSP Proposed Changes Pag e 3
Where possible, use the portfolios to develop standard conditions of approval and design
guidelines for key sites to streamline development when proposed .
1 .9 Evaluate the supply of land and space for residential and nonresidentia l
development (i .e ., general type, square footage, access to amenities ,
transportation access, environmental constraints, etc .) in the expansion areas of
the City and prioritize areas with the greatest potential for near ter m
development that supports new head-of-household jobs.
Staff Analysi s
In general, these changes reflect clarification of the action items proposed in Strategy 1 : Break
Down Barriers to Job Creation, and staff finds the changes to be consistent with past Counci l
direction and public input . Section 1 .5 reintroduces the term "incentive ." This is consistent wit h
Council direction because the incentives discussed do not include fee waivers for individua l
projects, which were proposed in the Draft EDSP . The incentives that are now proposed consis t
of action items that the Council supported in the Draft EDSP,plus two tools :
•economic benefit analysis where appropriate, an d
•City participation in financing of environmental impact reports and the development o f
specific plans, where appropriate .
Economic impact analyses are an increasingly common part of development review processes i n
other jurisdictions because they are thought to provide decision makers with a more complet e
understanding of the positive and negative impacts associated with a given project. Recently, th e
City has conducted economic and fiscal impacts analyses associated with the Prado Roa d
Reimbursement Agreement, and the Chevron SLO Tank Farm Development Agreement projects .
The provision of economic benefit analysis in development review is a feature also bein g
considered by the County, consistent with the Countywide Economic Strategy : Clusters o f
Opportunity .
The City has historically participated in the financing of EIRs and the development of specifi c
plans . For example, the LUCE Program EIR will allow projects to take advantage of an up-to -
date environmental analysis for the City, which could reduce the cost and time needed t o
complete environmental documents . Additional environmental review activities conducted by th e
City, or the preparation of new specific plans, would be evaluated on a case-by-case basis as ha s
been done in the past . For example, the City financed much of the Orcutt Area Specific Plan ,
Airport Area Specific Plan, Margarita Area Specific Plan, Mid-Higuera Enhancement Plan an d
the Broad Street Corridor Plan, including environmental review for these planning projects .
File path;file ://IT :\Council\Council%20Memos\Counc iI%20Memo%20-%20EDSP%2010-16-2012 . doc