HomeMy WebLinkAbout10-16-2012 ac Item B2 ClarkRECEIVED
OCT 15 2012
aftaicouncit MC 1 O RA n o j CITY CLERK
City of San LUIS OBISpo, administaation 6epaRtment
DATE: October 15, 2012 AGENDA
CORRESPONDENCE
TO: Mayor and City Council Date 1 ° 1 �- Item# L��' --
FROM: Katie Lichtig, City Manager
VIA: Michael Codron, Assistant C ty anager
By: Claire Clark, Economic Development Manager
SUBJECT: 132: Proposed Changes to the Economic Development Strategic Plan
The following represents a Council Member's recommended changes to the Economic
Development Strategic Plan (EDSP). Staff's analysis follows the suggested changes below.
Proposed Changes to "Key Sites, Infrastructure & Fees" — pp. 17 -19
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 community
and reasonable. Reduce the cost of these facilities where possible, consistent
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 impacting
safety, access, or long -term City maintenance costs. This evaluation should include
implementation of low impact development (LID) standards, which could lower
construction and maintenance costs.
1.4 Ensure that the fair -share structure includes appropriate percentages for each
party bearing a portion of the infrastructure costs. New development should not
be expected to pay for city infrastructure which exceeds the actual impacts it
causes.
B2: EDSP Proposed Changes Page 2
Utilize the consultant to lead a series of study sessions with the City Council on the
City's impact fee structure guided by existing policies and options for the City to
consider related to how impact fees are determined, calculated, and applied.
1.5 Incentivize the creation of head -of- household jobs throu 'ah use of the following
tools:
• Complete an infrastructure financing assessment to establish priorities for City
investment in infrastructure expansion. t►,m inelu s the r,.'a.-....:, .
Explore financing strategies for infrastructure that address timing and /or the cost
burden of infrastructure, including development agreements, reimbursement
agreements, infrastructure financing districts, business improvement districts, the
property -based financing mechanisms identified in the City's specific plans, and the
City's existing program for financing fees.
• Evaluate existing infrastructure impact fees applied in the City and determine if City
policy supports increased cost sharing for projects that provide City -wide benefits.
Where qppropriate, conduct an economic benefit analysis as part of development
review to identify potential economic benefits.
• Where appropriate, participate in the financing of environmental impact reviews and
the development of specific plans.
Identify one or more strategic infrastructure projects that the City could invest in to
benefit a wide variety of residents, businesses, employees and property owners by
providing a significant return on investment to the City in the form of increased
economic activity, business retention and expansion, and head of household job
creation.
1_6 Monitor changes in State infrastructure finance law that increase financing
options as a way to fund new investments in infrastructure (new bills are being
introduced in response to the elimination of redevelopment agencies).
1.7 Seek grant funding for transportation facilities that position areas for
development and have the potential to reduce development impact fees.
Key Sites
1_8 Prepare and update a portfolio of `available properties' ready for development
in accordance with the findings of the streamlining outcomes enumerated in
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 for
the site(s), zoning, available infrastructure, and (in some cases) entitlements in place.
B2: EDSP Proposed Cha
Page 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 nonresidential
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 term
development that supports new head -of- household jobs.
Staff Analysis
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 Council
direction and public input. Section 1.5 reintroduces the term "incentive." This is consistent with
Council direction because the incentives discussed do not include fee waivers for individual
projects, which were proposed in the Draft EDSP. The incentives that are now proposed consist
of action items that the Council supported in the Draft EDSP, plus two tools:
• economic benefit analysis where appropriate, and
• City participation in financing of environmental impact reports and the development of
specific plans, where appropriate.
Economic impact analyses are an increasingly common part of development review processes in
other jurisdictions because they are thought to provide decision makers with a more complete
understanding of the positive and negative impacts associated with a given project. Recently, the
City has conducted economic and fiscal impacts analyses associated with the Prado Road
Reimbursement Agreement, and the Chevron SLO Tank Farm Development Agreement projects.
The provision of economic benefit analysis in development review is a feature also being
considered by the County, consistent with the Countywide Economic Strategy: Clusters of
Opportunity.
The City has historically participated in the financing of EIRs and the development of specific
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 to
complete environmental documents. Additional environmental review activities conducted by the
City, or the preparation of new specific plans, would be evaluated on a case -by -case basis as has
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 and
the Broad Street Corridor Plan, including environmental review for these planning projects.
File path;file:1111':1CQtiiiciRCoa iilcil°fo2OM£iiioA Council %20Memo %20 %20EDSP %2010- 16- 2012.doe