HomeMy WebLinkAbout03-17-2015 B1 Economic Development Strategies Plan and Infrastructure Investment Capital FundCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Michael Codron, Assistant City Manager
Prepared By: Lee Johnson, Economic Development Manager
SUBJECT: ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE AND
ESTABLISHMENT OF THE INFRASTRUCTURE INVESTMENT CAPITAL
FUND
RECOMMENDATION:
1. Receive and file the annual Economic Development Strategic Plan update; and
2. Approve a new Budget and Fiscal Policy supporting the creation of an Infrastructure
Investment Capital Fund (IICF) to be adopted as part of the 2015-17 Financial Plan; and
3. Adopt a resolution establishing an Infrastructure Investment Capital Fund, along with
criteria for allocation of fund resources to infrastructure projects that have a community-
wide benefit; and
4. Approve a budget amendment request to reallocate $60,000 from the Economic
Development Program operating budget to the IICF.
DISCUSSION
Background
On October 16, 2012 the City Council approved the adoption of the Economic Development
Strategic Plan (“EDSP”). The EDSP focuses on creating a system that supports and sustains
industries creating head of household jobs. The EDSP is organized into four overarching
strategies:
• Break Down Barriers to Job Creation
• Actively Support Knowledge & Innovation
• Promote and Enhance the San Luis Obispo Quality of Life
• Build on Existing Efforts and Strengthen Regional Partnerships
Each strategy has an underlying list of actions, metrics and outcomes that contribute towards
achieving the goals of the strategic plan. A full summary of the actions over the last year as well
as the future direction for the next year is included as Attachment 1. Attachment 1 also includes
additional information that covers an update to the long term strategy as well as the 2013-15
Major City Goal of Economic Development.
One of the most important activities in the last year was the conclusion of a series of study
sessions regarding infrastructure financing alternatives with the City Council. These study
sessions were part of the implementation of the Economic Development Strategic Plan, which
identified the lack of infrastructure in certain areas of the City as a barrier to the creation of new
head-of-household jobs. Following the study sessions, Council directed staff to develop a
prioritized list of infrastructure projects for the City to invest in from an economic development
and quality of life perspective.
03/17/2015
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Economic Development Update and Infrastructure Investment Capital Fund Page 2
Although funding was allocated for an infrastructure prioritization project to be carried out by a
consultant, City staff carried out a portion of this work effort internally. An important outcome
of this internal process was awareness that many factors complicate the usefulness and
effectiveness of a single list of priority projects. These factors include: timing, the state of the
larger economy, overall City goals, and project benefits (e.g. job vs. housing vs. traffic
congestion relief, etc.). As a result, staff is proposing an alternative strategy to create an
Infrastructure Investment Capital Fund (IICF) to support investment in important infrastructure
projects that have community wide benefit.
In December 2014, based on staff’s initial proposal as part of the Budget Foundation Workshop,
Council directed staff to create a budget and financial policy to support the establishment of the
IICF.
Budget and Fiscal Policy
Currently, the section of the City’s Budget and Fiscal Policies titled Fund Balance and Reserves
discusses future capital project designations reads as follows:
Future Capital Project Designations. The Council may designate specific fund balance levels for future
development of capital projects that it has determined to be in the best long-term interests of the City. For
example, replacement of critical information technology infrastructure or other projects.
Staff recommends replacing the last sentence, as follows:
Future Capital Project Designations. The Council may designate specific fund balance levels for future
development of capital projects that it has determined to be in the best long-term interests of the City. For
example, replacement of critical information technology infrastructure or other projects.
funds covering the acquisition and management of open space, the investment in infrastructure for
economic development and quality of life or other high priority, capital intensive, long term expenditures.
The new language policy would allow the Council to establish the IICF.
Eligibility Criteria for Infrastructure Investment Capital Fund Projects
The draft resolution (Attachment 2) provides the framework that will allow the Council to
evaluate any proposed infrastructure investment. The proposed eligibility criteria establishes
requirements for projects such as relationship to current Major City Goals, the current economic
environment (is the timing right?), and various other factors at the time of the decision. This
approach is preferable to maintaining a static list of criteria, or listing of projects, on which to
base new investments. The fundamental guidelines that must apply in all cases is that the
investment shall not offset a private developer’s responsibility to fund the developer’s fair share
of the construction of a facility needed to serve a project. In this way, the program ensures that
the City is not simply subsidizing development through the IICF, but rather, is achieving a
project with a community-wide benefit at a point in time when the public improvement project
would not otherwise move forward.
This overall concept of establishing an investment fund is similar to the City’s Open Space
Acquisition Fund, which has always sought to expand the greenbelt by being prepared when
opportunities to acquire new open space arise. The resolution establishing the IICF gives the
Council the ability to set aside funding for future infrastructure projects that contribute to
improved economic development and enhanced quality of life in the City of San Luis Obispo.
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Economic Development Update and Infrastructure Investment Capital Fund Page 3
The use of these funds would be at the discretion of Council based the guidelines established by
the resolution approved by the City Council.
Again, consistent with the Economic Development Strategic Plan, these funds would not be used
as a direct incentive to any developer, nor be used to subsidize a developer’s fair share payment
towards infrastructure. To ensure that this is the case, any infrastructure project that is to be
considered for possible support by the Council would have to meet the minimum requirements as
specified in the resolution. The funding guidelines are the following:
1. The use of City funds shall not offset any cost that would be expected to be paid to meet
the fair share obligation of the developer requesting City investment in an infrastructure
project.
2. The use of City funds shall not offset a project specific mitigation cost identified through
the environmental review process or under existing regulations or policies.
3. The use of City funds shall support a project that would not otherwise be feasible due to
the economic environment, the timing of the project, or other constraints outside the
control of the project proponents or the City.
4. The project proponents shall demonstrate a significant public benefit associated with
construction of the project that would not otherwise be possible without City
participation.
5. Approved projects will have a measurable outcome that will be monitored and reported to
the Council and the public.
In order to be considered, a request for IICF funding would be made by a member of the public,
a private developer, or City staff. The infrastructure project could be stand-alone, or proposed in
combination with a specific private development proposal. Projects that meet the basic
guidelines would then be evaluated and ranked according to the following criteria:
1. Compliance and furtherance of General Plan goals, policies, and programs; and
2. Alignment with the Major City Goals and other important objectives in place at the time
of the application; and
3. Head of Household Job Creation; and
4. Housing Creation; and
5. Circulation/Connectivity Improvements; and
6. Net General Fund fiscal impact.
Monitoring and Initial Investment
Proposed projects would be evaluated by staff and brought to the City Council for final
consideration and approval. It is envisioned that the use of the funds would be loaned to the
associated fee program, or potentially to a private entity constructing the improvement. Direct
contributions without expectation of repayment could also occur consistent with identification of
public benefits. As an example, IICF investments could be used to leverage outside funding
resources or grants, which would represent a substantial return on investment
A key component of the program will be to measure results and report benefits realized through
an infrastructure investment back to the community and the City Council. Monitoring and
reporting the results of investments will help improve the quality and expected return of future
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Economic Development Update and Infrastructure Investment Capital Fund Page 4
investments. It is envisioned that the results will be measured on an ongoing bases until the
project is complete and that progress will be reported annually.
Initial investment in the IICF is recommended to be $60,000. This is the amount originally
allocated to pursuing a consultant contract to develop a prioritized list of infrastructure projects,
which is no longer required. Future investments in the IICF could be made as part of the City’s
Financial Plan process. Staff is presently evaluating the potential to bring forward an additional
funding amount for the IICF through the Five-Year Capital Improvement Plan or one-time
funding. A formal proposal will not be presented to the City Council about additional funding
until Strategic Budget Direction on April 21, 2015.
CONCURRENCES
Community Development, Finance and Information Technology all concur with this information.
FISCAL IMPACT
The establishment of a new fund for investment in new infrastructure to achieve community
wide benefits involves short term and long term fiscal effects. In the short term, the setting aside
of funding in the IICF would reduce the amount of funding available to allocate to other Capital
Improvement Plan projects. In the long term, the investment in projects with community wide
benefit should be expected to provide a return on investment that could be measured in a number
of ways. For example, an investment in the construction of Prado Road that enabled residential
development to occur in the Margarita and Orcutt Areas would provide housing and associated
social and economic benefits. An investment in broadband infrastructure might enable business
activity to occur that would not otherwise be possible, contributing to the overall economic
health of the City.
ALTERNATIVES
1. Provide different direction to staff. The City Council can provide additional or
different direction to staff than recommended in this agenda report.
2. Continue this item. Continue the discussion and provide staff direction on additional
information needed to receive and file the report.
ATTACHMENTS
1. 2015 EDSP and related attachments
2. Draft resolution
\\Chstore7\Team\Council Agenda Reports\2015\2015-03-17\B1 - Economic Development Strategic Plan Update & Infrastructure Investment Fund Policy\Council Agenda Report-
Economic Development Strategic Plan Update & Infrastructure Investment Fund Policy.docx
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ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE 2014-2015 - Attachment 1
FROM: Michael Codron, Assistant City Manager
Prepared By: Lee Johnson, Economic Development Manager
Molly Cano, Tourism Manager
SUBJECT: ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE 2014-2015
DISCUSSION
Background
On October 16, 2012 the City Council approved the adoption of the EDSP. The EDSP focuses on
creating a system that supports and sustains industries creating head of household jobs. The
EDSP continues to be organized into four overarching strategies including:
• Break Down Barriers to Job Creation
• Actively Support Knowledge & Innovation
• Promote and Enhance the San Luis Obispo Quality of Life
• Build on Existing Efforts and Strengthen Regional Partnerships
Each strategy has an underlying list of actions, metrics and outcomes that contribute to achieving
the goals of the strategic plan. Table 3 (Attachment 1A) of the EDSP includes a summary matrix
of the original strategies, including timeframe to complete. A revised Table 3 is included
(Attachment 1B) to show the revised plan for achieving the desired results, including new
strategies and updated time frames. This report also includes an updated status report on the
strategies incorporated into the Economic Development Major City Goal for the 2013-2015
Financial Plan (Attachment 1C). Any items that are not completed from the Major City Goal as
well as the medium and long term strategies from the revised Table 3 will be incorporated into
the Economic Development work program in future financial plans, and will continue to be
reported on until completed.
While the EDSP is managed by the Economic Development Program, the actions are cross-
departmental and require the support and cooperation of many people in the City organization
and partner organizations. The remainder of the update focuses on each of the overarching
strategies, the status of each strategy and the focus for the next 12 months. The EDSP and
Appendix A: Background Report can be found on-line at www.slocity.org. A copy is provided in
the Council Reading File and is available to the public at the City Clerk’s Office.
Break Down Barriers to Job Creation
The first overarching strategy is breaking down the barriers to job creation. The primary actions
are grouped into two sub-areas, (1) Processing, and (2) Infrastructure and Fees.
1. Processing (Strategies 1.1 and 1.2)
A. Update. All processing strategies are considered to be ongoing and progress has been
made in key areas. In particular, the recommendations from the Community
Development Departments (CDD) Organizational Assessment have been used to develop
a project plan to execute a permit streamlining process. A Development Review Team
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EDSP Update (2015) Page 2
Attachment 1
(DRT) is in place to ensure a consistent and expedient approach across all involved
departments. Changes to the DRT process are being implemented to provide a
mechanism to track overdue plan checks and track workflow commitments. A
Continuous Improvement Group (CIG) has been formed to ensure that there is cross-
department and cross-functional input, action and alignment with the improvement
process. The CIG is currently working to develop an automated measurement and
reporting system to improve and report on performance.
The City continues to use various proactive approaches like pre-application meetings,
quick response teams, fast track permitting and pre-determinant scheduling to ensure that
major projects can move forward as quickly as possible.
B. Moving Forward. The focus of the CIG will be will be to continue to identify
opportunities for improvement in the permitting process. Staff will continue to use the
creative proactive approaches to streamline the current process while work continues on
the long-term changes.
The CIG is making every effort to identify process improvements within the context of
the existing policy environment. Once the CIG group has implemented an array of
process changes that improve the timing and efficiency of permit processing within the
existing policy framework, the group will work to identify any policy changes that would
require Council consideration and approval that could further streamline the review
process.
The zoning update planned for the 2015-17 work program will have a major impact on
the City’s efforts to streamline the permit process and directly impact future economic
development.
Staff will also be focused on continuing to assist in moving major projects like Chevron
Tank Farm Road, Garden Street Terraces, and Chinatown through the process and to
conclusion.
2. Infrastructure and Fees (Strategies 1.3 to 1.9)
A. Update. Following the infrastructure study sessions in March of 2014, Council directed
staff to develop prioritized list of infrastructure projects for the City to invest in from an
Economic Development and Quality of Life perspective. That initiative evolved into the
Infrastructure Investment Capital Fund (IICF) and Infrastructure Investment Capital
Improvement Project (IICIP) which Council is considering separately.
B. Moving forward. The proposed review and update of the AB1600 fees during the 2015-
17 work program will have major implications for the City in the long term.
Actively Support Knowledge and Innovation
Focusing on businesses and infrastructure that rely on knowledge and innovation is a critical
aspect of the EDSP (Strategies 2.1 through 2.3). Given the unique aspects of San Luis Obispo,
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EDSP Update (2015) Page 3
Attachment 1
this strategy was split into the two subareas of Entrepreneurship and Access to Broadband.
Strategy 2.1 includes items that are short term and ongoing.
1. Entrepreneurship (Strategy 2.1)
A. Update. The Economic Development Program is actively working with our partners to
promote an environment that supports entrepreneurship and start-ups. The City continues
to support the SLO HotHouse financially and professionally. In 2014, the HotHouse
started 10 new businesses, counseled 84 new clients, created 39 jobs and had an overall
investment in the companies of more than $1.6 million. The City continues to work with
the SLO MakerSpace that acts as an incubator for “hands on” businesses that require
access to equipment such as metal working machines, wood working tools and 3-D
printers.
B. Moving forward. The City will continue to work productively with its partners in 2015.
Some key ideas to continue to explore are: how to continue to grow the City’s
entrepreneurial culture, how to develop more co-working opportunities, how to leverage
our diverse tourism marketing efforts to attract existing and potential entrepreneurs to the
City, and how to continue to build the database of local companies at the County level to
increase interaction between organizations and help attract companies and individuals to
the area.
2. Access to Broadband (Strategies 2.2- 2.3)
A. Update. The City has been working with a Tri-County consortium through the EVC to
develop a broadband road map that can be used by the various jurisdictions to develop
their own broadband roadmaps (strategy 2.3).
B. Moving forward. Once the work of the consortium has been further developed the City
will transition the Ad Hoc committee that worked with Digital West on the agreement
completed last year into a full time committee (Strategy 2.2). The new committee will
have additional support of various departments in the City - plus outside industry experts.
The primary goal of the committee will be working to expand broadband infrastructure
across the City in line with any recommendations that are developed by the Consortium.
Promote and Enhance the San Luis Obispo Quality of Life
The EDSP recognizes that the same quality of life attributes that make San Luis Obispo such a
great place to live also attract tourists, and new and expanding businesses. The Tourism
Manager, who oversees the City’s Community Promotions program, is part of the economic
development team. Community Promotions is now fully integrated into the City’s economic
development efforts to ensure a comprehensive approach to quality of life activities supported by
the City. Strategies 3.1 and 3.4 are short term and ongoing, all other actions are medium or long
term.
1. Tourism and Community Promotions (Strategies 3.1 and 3.4)
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EDSP Update (2015) Page 4
Attachment 1
A. Update. In 2013-14, the City collected just over $6 million in TOT, nearly a 9% increase
over the previous year. Continuing the trajectory into this fiscal year, during the first six
months (July-December) TOT collections are averaging about 11% growth compared to
the same period last year. The TBID also contracted with a new marketing team of
Barnett Cox & Associates and Studio Good to drive the promotion of the City of San
Luis Obispo. The TBID continues to execute its 5-year strategy. In September the TBID
launched redesign of the City’s new tourism brand and adverting campaign. In addition,
there was a complete update to the design of the City’s tourism website,
SanLuisObispoVacations.com, which included updated aesthetics, enhanced calendar
function, new #ShareSLO integration. The TBID and the City also formally supported the
formation of the County wide Tourism Marketing District (TMD).Together, the TBID
and PCC supported about 10 major events within the City and streamlined the application
and review process. Events serve a dual purpose: they are enjoyed by residents and
attract visitors to our community. In addition, the PCC funded promotional grants
through the annual grants-in-aid process for over 25 local non-profit organizations. From
a public relations perspective, San Luis Obispo topped over a dozen “Best Of” lists in
2014 including: Peter Greenberg’s best places to visit in 2014, Travel + Leisure’s Most
Romantic Towns in America, and Gallup’s Healthiest Towns in America.
B. Moving forward. The TBID will continue the implementation of the strategic clarity
document. Major areas of focus include: the continued development of the TBID
booking system; expansion of strategic partnerships to maximize promotional
opportunities, and enhancement of the SLO tourism brand to drive awareness of the area.
The PCC will be focusing on expanding the Community Enhancement and Beautification
program and further developing the SLO Happenings program to dive awareness of
events in the community.
Build on Existing Efforts and Strengthen Regional Partnerships
The City’s regional partnerships are critical to our economic development as a City. These
partnerships allow the City to build, retain and attract businesses. At this time, the primary
partnerships include: (in alphabetical order); Cal Poly, Chamber of Commerce, Central Coast
Economic Forecast (CCEF), Cuesta College, California Central Coast Research Partnership
(C3RP), Downtown Association, Economic Vitality Corporation (EVC), San Luis Obispo
County and the SLO HotHouse. Strategies 4.1 through 4.7 cover four topics: Business Retention,
Business Attraction, Business Support, and Support for Downtown. Strategies 4.3, 4.6, and 4.7
are identified as ongoing.
A. Update. Relationships with the primary partners (Strategy 4.1 & 4.2) continue to be
strong. Some highlights include: increased focus with the Chamber on specific business
attraction opportunities; coordination with the EVC on airport expansion and broadband
strategies; coordination with the Chamber, CCEF and SLOCOG on data development;
participation with and presentations to committees at the Chamber, the Downtown
Association and the EVC; as well as the efforts highlighted above with the SLO
HotHouse. The City has also joined in a new initiative with Cal Poly through
participation in the President's Cabinet Ad Hoc Economic Development Committee.
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EDSP Update (2015) Page 5
Attachment 1
The process of refining an economic development dashboard (Strategies 4.3 & 4.4) to
help assess the impact of our activities as well as quantify the economic health of the City
will continue.
B. Moving forward. Cooperation with the regional partners will form the basis for external
activities in the coming year. Staff will continue to focus on the core economic
development functions of business building, business retention and business attraction. In
addition to the expansion of the ongoing initiatives, staff will focus on coordinating
efforts to provide access to information for current and potential businesses through
multiple channels with particular focus on upgrading our web presence (Strategy 4.1).
We are also working to gain access to data that will provide greater clarity to the
economic situation specific to the City of San Luis Obispo (Strategy 4.3 & 4.4). Staff
continues to support the Downtown Association efforts as well as working on projects in
the downtown including Garden Street Terraces and Chinatown (Strategy 4.7).
ATTACHMENTS
Attachment 1A: Original EDSP Table 3 – Economic Development Strategy Summary Matrix
Attachment 1B: Revised EDSP Table 3 – Economic Development Strategy Summary Matrix
Attachment 1C: Economic Development Major City Goal Update as of March 2015
AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE
Economic Development Strategic Plan
d\\chstore7\team\council agenda reports\2015\2015-03-17\b1 - economic development strategic plan update & infrastructure investment fund policy\attachments\attachment 1- economic
development update 3-17-15.docx
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13
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:
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Attachment 1B
B1-25
Ci
t
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L
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O
b
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1
2
Ci
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G
E
N
D
Ti
m
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f
r
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-
Sh
o
r
t
:
20
1
5
R
e
v
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s
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o
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a
n
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16
;
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:
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0
13
16
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17
;
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:
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l
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17
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T
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I
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t
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D
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t
r
a
t
e
g
y
Attachment 1B
B1-26
:
Ec
o
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m
i
c
D
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v
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39
Ta
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Me
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s
1.
5
.
In
c
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n
t
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c
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B1-28
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B1-29
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.
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h
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p
a
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ho
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Me
d
i
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g
o
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m
i
n
,
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,
F
/
I
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,
CD
D
20
1
3
-
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0
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5
20
1
5
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0
17
Fi
n
a
n
c
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a
l
P
l
a
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Me
a
s
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r
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c
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d
in
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t
m
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t
in
b
a
c
k
b
o
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in
f
r
a
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r
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c
t
u
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,
su
c
h
a
s
r
o
a
d
w
a
y
im
p
r
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v
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m
e
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t
s
,
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n
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h
e
ex
p
a
n
s
i
o
n
a
r
e
a
s
.
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a
s
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r
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n
c
r
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a
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n
ne
t
n
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w
s
q
u
a
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co
m
m
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a
l
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a
c
e
i
n
th
e
e
x
p
a
n
s
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o
n
a
r
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a
s
.
Pr
o
v
i
d
e
c
l
e
a
r
p
r
i
o
r
i
t
i
e
s
fo
r
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f
r
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p
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n
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d
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o
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-
h
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s
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o
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b
s
.
2.
A
C
T
I
V
E
L
Y
S
U
P
P
O
R
T
K
N
O
W
L
E
D
G
E
&
I
N
N
O
V
A
T
I
O
N
En
t
r
e
p
r
e
n
e
u
r
s
h
i
p
2.
1
.
Co
n
t
i
n
u
e
t
o
w
o
r
k
w
i
t
h
C
a
l
P
o
l
y
,
C
u
e
s
t
a
,
t
h
e
C
h
a
m
b
e
r
o
f
C
o
m
m
e
r
c
e
,
t
h
e
b
u
s
i
n
e
s
s
co
m
m
u
n
i
t
y
,
a
n
d
t
h
e
E
V
C
t
o
d
e
f
i
n
e
,
d
e
v
e
l
o
p
,
a
n
d
p
r
o
m
o
t
e
a
n
e
n
v
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r
o
n
m
e
n
t
s
u
p
p
o
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t
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v
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of
e
n
t
r
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p
r
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n
e
u
r
s
a
n
d
s
t
a
r
t
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u
p
b
u
s
i
n
e
s
s
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s
.
T
h
i
s
m
a
y
i
n
c
l
u
d
e
f
a
c
i
l
i
t
a
t
i
n
g
t
h
e
c
r
e
a
t
i
o
n
o
f
:
a.
A
b
u
s
i
n
e
s
s
i
n
c
u
b
a
t
o
r
(
o
f
f
i
c
e
,
l
i
g
h
t
m
a
n
u
f
a
c
t
u
r
i
n
g
,
a
g
t
e
c
h
,
l
a
b
o
r
a
t
o
r
y
,
s
t
o
r
a
g
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&
wa
r
e
h
o
u
s
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)
t
o
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s
s
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s
t
s
t
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r
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p
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d
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o
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s
p
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n
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f
f
s
f
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C
a
l
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o
l
y
.
C
o
n
s
i
d
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r
b
u
s
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s
s
li
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n
s
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t
a
x
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x
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m
p
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s
f
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b
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s
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l
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a
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d
i
n
i
n
c
u
b
a
t
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r
s
p
a
c
e
s
.
b.
An
i
n
n
o
v
a
t
i
o
n
m
a
r
k
e
t
p
l
a
c
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t
h
a
t
s
e
r
v
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s
a
s
a
f
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m
f
o
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s
h
o
w
c
a
s
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n
g
i
n
n
o
v
a
t
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n
an
d
l
o
c
a
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o
m
p
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n
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a
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d
a
s
a
p
l
a
c
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f
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d
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a
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x
c
h
a
n
g
e
f
o
r
l
o
c
a
l
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d
u
s
t
r
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s
i
n
co
n
j
u
n
c
t
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n
w
i
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x
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s
t
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g
e
f
f
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t
s
s
u
c
h
a
s
C
e
n
t
r
a
l
C
o
a
s
t
S
o
f
t
w
a
r
e
&
T
e
c
h
n
o
l
o
g
y
As
s
o
c
i
a
t
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o
n
(
S
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T
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C
)
a
n
d
C
a
l
P
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C
e
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t
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f
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n
n
o
v
a
t
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a
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d
E
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p
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p
(C
I
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)
.
c.
A
c
o
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l
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c
a
t
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n
w
o
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k
s
p
a
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e
t
o
f
o
s
t
e
r
i
d
e
a
e
x
c
h
a
n
g
e
a
n
d
s
u
p
p
o
r
t
t
h
e
g
r
o
w
t
h
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f
in
n
o
v
a
t
i
v
e
b
u
s
i
n
e
s
s
e
s
.
d.
Su
p
p
o
r
t
f
o
r
s
m
a
l
l
b
u
s
i
n
e
s
s
o
w
n
e
r
s
s
e
e
k
i
n
g
t
o
g
r
o
w
t
h
e
i
r
b
u
s
i
n
e
s
s
e
s
.
Sh
o
r
t
-
On
g
o
i
n
g
Ad
m
i
n
Re
s
o
u
r
c
e
s
pr
o
g
r
a
m
m
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d
in
c
u
r
r
e
n
t
20
1
1
-
1
3
Fi
n
a
n
c
i
a
l
P
l
a
n
to
s
u
p
p
o
r
t
en
t
r
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p
r
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n
e
u
r
s
an
d
s
t
a
r
t
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u
p
s
.
Ad
d
i
t
i
o
n
a
l
re
s
o
u
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s
–
2
0
1
3
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1
5
Fi
n
a
n
c
i
a
l
P
l
a
n
Tr
a
c
k
a
n
d
r
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p
o
r
t
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n
ef
f
o
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u
p
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en
t
r
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h
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p
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o
w
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n
c
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su
p
p
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a
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a
r
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A
m
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st
a
r
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u
p
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,
e
n
t
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p
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an
d
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c
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n
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y
-
r
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a
t
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d
fi
r
m
s
.
LE
G
E
N
D
Ti
m
e
f
r
a
m
e
s
-
Sh
o
r
t
:
20
1
5
R
e
v
i
s
i
o
n
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a
n
a
d
o
p
t
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o
n
t
h
r
o
u
g
h
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u
n
e
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0
13
16
;
Me
d
i
u
m
:
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u
l
y
2
0
13
16
t
h
r
o
u
g
h
J
u
n
e
2
0
15
17
;
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n
g
:
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u
l
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2
0
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17
t
h
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g
h
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u
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19
Ci
t
y
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e
p
a
r
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m
e
n
t
A
c
r
o
n
y
m
s
-
C
D
D
:
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o
m
m
u
n
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t
y
D
e
v
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l
o
p
m
e
n
t
,
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m
i
n
:
A
d
m
i
n
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s
t
r
a
t
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o
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,
PW
:
P
u
b
l
i
c
W
o
r
k
s
,
F
/
I
T
:
F
i
n
a
n
c
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a
n
d
I
n
f
o
r
m
a
t
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o
n
T
e
c
h
n
o
l
o
g
y
,
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I
L
:
U
t
i
l
i
t
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e
s
,
FI
R
E
:
F
i
r
e
Ec
o
n
o
m
i
c
D
e
v
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l
o
p
m
e
n
t
S
t
r
a
t
e
g
y
Attachment 1B
B1-30
Ci
t
y
o
f
S
a
n
L
u
i
s
O
b
i
s
p
o
E
c
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t
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t
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a
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c
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l
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n
|
10
.
1
6
.
1
2
:
Ec
o
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D
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v
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n
t
S
t
r
a
t
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g
y
S
u
m
m
a
r
y
M
a
t
r
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x
43
Ta
b
l
e
3
E
c
o
n
o
m
i
c
D
e
v
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l
o
p
m
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n
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a
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y
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u
m
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a
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M
a
t
r
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x
St
r
a
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g
y
Ti
m
e
f
r
a
m
e
to
Co
m
p
l
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t
e
Le
a
d
De
p
t
.
Re
s
o
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r
c
e
s
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a
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u
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s
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c
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a
d
b
a
n
d
2.
2
.
Co
n
v
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n
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a
c
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a
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t
m
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m
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t
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,
w
i
t
h
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n
p
u
t
f
r
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m
l
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d
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r
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p
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t
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c
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l
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x
p
a
n
s
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f
b
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o
a
d
b
a
n
d
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n
f
r
a
s
t
r
u
c
t
u
r
e
,
i
n
c
l
u
d
i
n
g
:
a.
A
s
y
s
t
e
m
f
o
r
p
u
b
l
i
c
-
p
r
i
v
a
t
e
p
a
r
t
n
e
r
s
h
i
p
s
.
b.
Ex
p
l
o
r
a
t
i
o
n
o
f
o
p
p
o
r
t
u
n
i
t
i
e
s
w
i
t
h
t
h
e
C
o
r
p
o
r
a
t
i
o
n
f
o
r
E
d
u
c
a
t
i
o
n
N
e
t
w
o
r
k
In
i
t
i
a
t
i
v
e
s
i
n
C
a
l
i
f
o
r
n
i
a
(
C
E
N
I
C
)
,
t
h
e
C
o
u
n
t
y
,
a
n
d
C
a
l
P
o
l
y
.
c.
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o
p
t
i
o
n
o
f
a
p
o
l
i
c
y
t
h
a
t
r
e
q
u
i
r
e
s
i
n
s
t
a
l
l
a
t
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o
n
o
f
v
a
c
a
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t
c
o
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d
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t
w
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n
t
r
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n
c
h
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n
g
oc
c
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s
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n
t
h
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p
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b
l
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r
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h
t
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o
f
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w
a
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f
o
r
u
n
r
e
l
a
t
e
d
w
o
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k
.
d.
Ex
p
e
d
i
t
e
d
p
e
r
m
i
t
t
i
n
g
o
f
n
e
w
i
n
s
t
a
l
l
a
t
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o
n
s
.
e.
Ad
o
p
t
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o
n
o
f
a
p
o
l
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c
y
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h
a
t
g
u
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d
e
s
C
i
t
y
d
e
c
i
s
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o
n
s
r
e
g
a
r
d
i
n
g
u
s
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o
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t
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f
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b
e
r
op
t
i
c
i
n
f
r
a
s
t
r
u
c
t
u
r
e
,
i
n
c
l
u
d
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n
g
v
a
c
a
n
t
c
o
n
d
u
i
t
.
Me
d
i
u
m
Ad
m
i
n
,
F/
I
T
An
i
n
t
e
r
n
a
l
te
a
m
h
a
s
b
e
e
n
fo
r
m
e
d
b
a
s
e
d
on
p
r
e
v
i
o
u
s
wo
r
k
.
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d
i
t
i
o
n
a
l
re
s
o
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r
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e
s
w
i
l
l
be
r
e
q
u
e
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t
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d
,
if
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Attachment 1B
B1-31
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B1-32
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B1-33
Ci
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s
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4.
1
.
Pu
r
s
u
e
c
o
l
l
a
b
o
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a
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f
f
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w
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g
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a
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d
pr
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v
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t
o
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m
p
l
o
y
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s
i
n
t
h
e
C
i
t
y
,
i
n
c
l
u
d
i
n
g
:
a.
Pa
r
t
n
e
r
s
h
i
p
s
f
o
r
b
u
s
i
n
e
s
s
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n
t
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n
a
c
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i
v
i
t
i
e
s
.
b.
We
l
c
o
m
i
n
g
b
u
s
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n
e
s
s
e
s
t
o
t
h
e
a
r
e
a
.
c.
Bu
i
l
d
i
n
g
o
n
t
h
e
“
S
L
O
O
p
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n
f
o
r
B
u
s
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w
e
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w
w
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.
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)
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5
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0
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y
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in
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on
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w
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u
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4.
2
.
Wo
r
k
w
i
t
h
r
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g
i
o
n
a
l
p
a
r
t
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e
r
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a
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h
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o
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C
o
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c
e
a
n
d
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V
C
t
o
b
r
i
n
g
at
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n
t
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o
n
t
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x
i
s
t
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n
g
b
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e
s
s
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s
.
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d
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m
On
g
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n
g
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m
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n
20
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3
-
2
0
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5
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a
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a
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m
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f
r
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s
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t
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20
1
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t
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g
y
Attachment 1B
B1-34
Ci
t
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n
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1
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3
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:
a.
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(
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h
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to
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p
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k
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d
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ne
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d
s
.
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a
c
t
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p
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n
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.
4.
4
.
Lo
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B1-35
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B1-36
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Attachment 1B
B1-37
STATUS OF MAJOR CIP PROJECTS – INTERIM UPDATE 2013-15
Attachment 1C
ECONOMIC DEVELOPMENT
Objective: Implement the adopted Economic Development Strategic Plan (EDSP) – which includes an emphasis on
head-of-household jobs, collaboration, and measureable outcomes.
Action Plan:
Task Current Revised
Break Down Barriers to Job Creation: Permit Processing Improvements
1. Strategy 1.1: Identify opportunities for permit streamlining with the goal of reducing permit
processing times, seeking opportunities to increase internal coordination, and improving
cross department focus on development review.
7/13 – 12/14 Ongoing
Break Down Barriers to Job Creation: Infrastructure and Fees
1. Strategy 1.5(a): Complete an infrastructure financing assessment to establish priorities for
City investment in infrastructure expansion.
08/14-06/15 IICIP
2. Strategy 1.5(e): Identify one or more strategic infrastructure projects that the City could
invest in to benefit residents, businesses, employees, and property owners by providing a
significant return on investment to the City in the form of increased economic activity.
Pending
Outcome of
LUCE Update
IICIP
Break Down Barriers to Job Creation: Key Sites
1. Strategy 1.8: Prepare and update a portfolio of “available properties” ready for development
in accordance with the findings of the permit process streamlining outcomes.
Pending
Outcome of
LUCE Update
Pending
Zoning
update
2. Strategy 1.9: Evaluate the supply of land and space for residential and non-residential
development in the expansion areas of the City and prioritize areas with the greatest potential
for near term development that supports new head of household jobs. (This effort will follow
the LUCE Update and EIR).
7/14 – 6/15 Pending
Zoning
update
Actively Support Knowledge and Innovation: Entrepreneurship/Access to Broadband
1. Strategy 2.2: Convene a cross-department team at the City with input from the local industry
experts, to facilitate expansion of broadband infrastructure including the policy for public-
private partnerships and related endeavors.
In Process
Promote and Enhance the San Luis Obispo Quality of Life
1. Strategy 3.3: Prepare a City of San Luis Obispo “view book” to facilitate business location
services and use the view book as a tool for business attraction. (This effort is coordinated
Strategy 1.8 above).
In Process
Pending City
Website project
Complete
2. Strategy 3.6: Explore opportunities to market the City as a place to do business via the
airport and train depots.
Ongoing
Build on Existing Efforts and Strengthen Regional Partnerships
1. Strategy 4.2: Work with regional partners such as the Chamber of Commerce and EVC to Ongoing
B1-38
STATUS OF MAJOR CIP PROJECTS – INTERIM UPDATE 2013-15
Attachment 1C
Task Current Revised
bring attention to existing businesses.
2. Strategy 4.3 (b): Through policy changes, enhance data collection using the business
licensing program (HdL) in order to facilitate collection of employment and other data about
local companies.
9/14 – 6/15 Modified to
use EDD data
6/15 still
deadline
3. Strategy 4.3(c): Identify all businesses with ten or fewer employees within the City by
conducting a survey of business owners and developing an action plan that helps businesses
of this size grow.
7/14 – 6/15 Will use EDD
data. Part of
ongoing ED
outreach
Status: 80% Complete.
B1-39
THIS PAGE IS INTENTIONALLY LEFT BLANK
R XXXX
Attachment 2
RESOLUTION NO. XXXX (2015 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING THE INFRASTRUCTURE INVESTMENT CAPITAL FUND AND
THE CRITERIA FOR EVALUATING USE OF THE FUNDS
WHEREAS, the City Council adopted the Economic Development Strategic Plan to create
head of household jobs and breakdown barriers to job creation; and
WHEREAS, on March 17, 2015, the City Council of the City of San Luis Obispo held a
public hearing to consider the creation of the Infrastructure Investment Capital Fund; and
WHEREAS, the City of San Luis Obispo has planned for significant development in the
Southern portion of the City to meet General Plan objectives for housing and new job centers close to
housing; and
WHEREAS, there are many potential development sites that exist in locations that currently
have no infrastructure, including roads, utilities, storm drains, and other key facilities to support
planned growth; and
WHEREAS, the intent of the Infrastructure Investment Capital Fund is to help the City
realize the benefits of growth that is well-planned, and that would not occur without City
participation in the financing of supporting infrastructure; and
WHEREAS, there are a number of potential uses of an Infrastructure Investment Capital
Fund throughout the City, including as may be needed to support the City’s infill development
objectives, to expand community access to broadband, or other projects that have a demonstrated
community-wide benefit and positive economic impact on the City’s economy.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Infrastructure Investment Fund Award Guidelines: The City Council
establishes that all of the following guidelines shall be met for use of the Infrastructure Investment
Fund:
1. The use of City funds shall not offset any cost that would be expected to be paid to meet the
fair share obligation of the developer requesting City investment in an infrastructure project.
2. The use of City funds shall not offset a project specific mitigation cost identified through the
environmental review process or under existing regulations or policies.
3. The use of City funds shall support a project that would not otherwise be feasible due to the
economic environment, the timing of the project, or other constraints outside the control of
the project proponents or the City.
4. The project proponents shall demonstrate a significant public benefit associated with
construction of the project that would not otherwise be possible without City participation.
5. Approved projects will have a measurable outcome that will be monitored and reported to the
Council and the public.
B1-40
Resolution No. XXXX (2015 Series)
Page 2
Attachment 2
SECTION 2. Evaluation Criteria: The application submitted by any member of the
public, a private developer or City staff shall be evaluated and ranked by City staff based on each of
the following criteria:
1. Compliance and furtherance of General Plan goals, policies, and programs; and
2. Alignment with the Major City Goals and other important objectives in place at the time
of the application; and
3. Head of Household Job Creation; and
4. Housing Creation; and
5. Circulation/Connectivity Improvements; and
6. Net General Fund fiscal impact.
SECTION 3. Review Process and Ongoing Monitoring: All proposed uses of the Fund
shall be presented to City Council for final approval. Once approved, investments will be monitored
and the results reported to the Council and the Public.
Upon motion of _______________________, seconded by _______________________, and on
the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 17th day of March 2015.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Anthony Mejia
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
B1-41
THIS PAGE IS INTENTIONALLY LEFT BLANK
City of San Luis Obispo
Economic Development Update &
Infrastructure Investment Capital Fund
March 17th, 2015
Recommendation
1.Receive and file the annual Economic Development
Strategic Plan update; and
2.Approve a new Budget and Fiscal Policy supporting
the creation of an Infrastructure Investment Capital
Fund (IICF) to be adopted as part of the 2015-17
Financial Plan; and
3.Adopt a resolution establishing an Infrastructure
Investment Capital Fund, along with criteria for
allocation of fund resources to infrastructure projects
that have a community-wide benefit; and
4.Approve a budget amendment request to reallocate
$60,000 from the Economic Development Program
operating budget to the IICF.
Economic Development Strategic
Plan (EDSP) Background
Based on:
Meaningful public engagement
Comprehensive data gathering & analysis
Focuses on:
Creating a system that supports and sustains industries that
create Head of Household jobs
Head of Household job
Income level > $50,000
Career ladder
Education level and technical skill
Employer sponsored benefits
Stability
Approved October 2012
EDSP Four Overarching Strategies
1)Break Down Barriers to Job Creation
2)Actively Support Knowledge & Innovation
3)Promote and Enhance the San Luis Obispo
Quality of Life
4)Build on Existing Efforts and Strengthen
Regional Partnerships
Break Down Barriers to Job
Creation
Processing (Strategies 1.1 and 1.2)
Update
Permit streamlining process
Development review team (DRT )
Continuous improvement group (CIG)
Proactive approach (Pre- application, Quick
response, Fast track, Pre-determinant schedule)
New IT system
Moving forward
Continued process improvement
Intake/Definitions/Process/Measurements
Zoning regulations update
Break Down Barriers to Job
Creation (continued)
Infrastructure and Fees (Strategies 1.3 to 1.9)
Update
Infrastructure financing assessment
Moving forward
Infrastructure Investment Fund
AB 1600 Fee Review
Actively Support Knowledge and
Innovation
Entrepreneurship (Strategy 2.1)
Update
HotHouse in 2014
10 New businesses
84 Clients
39 Jobs
$1.6 Million Capital raised
887 Hours of Consulting
Moving forward
New HotHouse Facility
Leveraging tourism
County wide company data base
Actively Support Knowledge and
Innovation (continued)
Access to Broadband (Strategies 2.2- 2.3)
Update
Broadband Consortium,
Pacific Coast (BCPC)
Moving forward
Implement Consortium
City Cross Functional team
Promote and Enhance the San
Luis Obispo Quality of Life
Tourism and Community Promotions (Strategies 3.1
and 3.4)
Update
$6 M in TOT (2013-2014)
Last 5 months all record breaking
TBID/PCC support of 10 major events
PCC grants-in-aid to 25 local non-profits
Over a dozen “Best of” lists
Approved participation in Countywide TMD
Moving forward
TBID Booking engine
Focus on community enhancement/beautification
program
Build on Existing Efforts &
Strengthen Regional Partnerships
Business Retention, Business Attraction, Business
Support, and Support for Downtown (4.1-4.7)
Update
Business attraction
Website/Viewbook
Sponsoring Insight Studio
Moving forward
Employment Data solution
Recommendation
1.Receive and file the annual Economic Development
Strategic Plan update.
Infrastructure Investment Capital
Fund: Background
Goal of EDSP and recommendation by EPS to
prioritize infrastructure projects for investment
Many factors complicate a single list of projects
Staff proposed creating a fund (similar to open space)
Council agreed and will review tonight
If accepted, a proposal for additional funding can be
presented at Strategic Budget Direction, April 21,
2015
Budget and Fiscal Policy
Currently, the section of the City’s Budget and
Fiscal Policies titled Fund Balance and Reserves
discusses future capital project designations and
reads as follows:
Future Capital Project Designations. The
Council may designate specific fund balance
levels for future development of capital projects
that it has determined to be in the best long-term
interests of the City. For example, replacement of
critical information technology infrastructure or
other projects.
Budget and Fiscal Policy (continued)
Staff recommends replacing the last sentence, as
follows:
Future Capital Project Designations. The Council
may designate specific fund balance levels for future
development of capital projects that it has determined
to be in the best long-term interests of the City. For
example, replacement of critical information
technology infrastructure or other projects.
funds covering the acquisition and management of
open space, the investment in infrastructure for
economic development and quality of life or other
high priority, capital intensive, long term expenditures.
Advantages of IICF
1.City Council and Public set general guidelines and
criteria
2.The list of projects is not limited to projects already
identified by the City
3.The City can target specific goals with specific projects
4.Resources can be proactively set aside for use at the
appropriate time
5.The appetite for investment and time horizon can be
aligned with already existing processes
6.The opportunity to leverage other funding sources
7.The impact of the use of the fund can be measured and
reported on to the Council and the Public
The Guidelines
1.The use of City funds shall not offset any cost that would be expected to be paid to meet the fair share obligation of the developer requesting City investment in an infrastructure project.
2.The use of City funds shall not offset a project specific mitigation cost identified through the environmental review process or under existing regulations or policies.
3.The use of City funds shall support a project that would not otherwise be feasible due to the economic environment, the timing of the project, or other constraints outside the control of the project proponents or the City.
4.The project proponents shall demonstrate a significant public benefit associated with construction of the project that would not otherwise be possible without City participation.
5.Approved projects will have a measurable outcome that will be monitored and reported to the Council and the public.
Projects and Criteria
Request for IICF funding would be made by a member of the public, a private developer, or City staff
The project could be stand-alone, or proposed in combination with a specific private development proposal
Evaluated and ranked according to the following criteria:
1.Compliance and furtherance of General Plan goals, policies, and programs; and
2.Alignment with the Major City Goals and other important objectives in place at the time of the application; and
3.Head of Household Job Creation; and
4.Housing Creation; and
5.Circulation/Connectivity Improvements; and
6.Net General Fund fiscal impact.
Projects measured and reported against baseline benefits established w/ approval of the funding
Next steps
If approved: additional funding discussed on April 21
Recommendation
1.Receive and file the annual Economic Development
Strategic Plan update; and
2.Approve a new Budget and Fiscal Policy supporting
the creation of an Infrastructure Investment Capital
Fund (IICF) to be adopted as part of the 2015-17
Financial Plan; and
3.Adopt a resolution establishing an Infrastructure
Investment Capital Fund, along with criteria for
allocation of fund resources to infrastructure projects
that have a community-wide benefit; and
4.Approve a budget amendment request to reallocate
$60,000 from the Economic Development Program
operating budget to the IICF.
Possible additional resolution
language
Insert as the next to last WHEREAS
WHEREAS, these funds could be used to leverage
additional grant funding, as loans or for direct City
participation in priority infrastructure that will enhance the
quality of life and improve economic development; and