HomeMy WebLinkAboutRES NO 109-16(1)RESOLUTION NO. 109-16(l)
A RESOLUTION OF THE COUNCIL OF THE CITY OF
BAKERSFIELD ADOPTING THE AMENDED ECONOMIC
OPPORTUNITY AREA PLAN AND CONTINUING THE
SOUTHEAST ECONOMIC OPPORTUNITY AREA.
WHEREAS, the City of Bakersfield (herein "City") is a charter city, and the
Council is vested by its Charter with the power to make polices and regulations
with respect to all municipal affairs; and
WHEREAS, economic development has
long
been a priority
of the City
working to create and maintain a vibrant
local
economy and
successful
business environment; and
WHEREAS, the use of City funds and resources for economic development
activities is proper because economic development is a municipal affair with a
clear benefit to the City's inhabitants and businesses; and
WHEREAS, economic growth within the City aids in the promotion of health
and welfare of the residents and businesses in the City, and is a general benefit
to the City by and through the provision of improved retail and commercial
success, increased commercial/industrial opportunity, increased visitation and
visitor spending, and an expanded tax base which aids the City in providing
municipal services to its local residents and business; and
WHEREAS, while the City was successful at utilizing redevelopment as an
economic development tool, the redevelopment program was dissolved by the
Dissolution Act in February 2012 and is no longer available for use by local
jurisdictions; and
WHEREAS, on November 6, 2018, City of Bakersfield voters approved the
Public Safety and Vital City Services, a sales tax increase, to address top
community priorities including bolstering economic development activities; and
WHEREAS, the City Council believes that it is in the best interests of the City
to continue economic development within the City by adopting the amended
Economic Opportunity Area Plan ("EOAP") as a locally initiated development
tool that uses tax increment financing to promote economic growth within
specific geographic areas throughout Bakersfield and more fully described in
Exhibit A, attached hereto and incorporated by reference herein; and
WHEREAS, in furtherance of its goal of economic development, the City
Council desires to continue the Southeast Economic Opportunity Area ("EOA")
as shown in the attached map as Exhibit B and incorporated by reference
herein.
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NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Bakersfield
as follows:
1. The City Council finds and declares that the forgoing recitals are true and
correct and incorporated herein by reference.
2. The City Council finds and declares that it is necessary and in the best
interests of City to adopt the amended EOAP as set forth in Exhibit A,
attached hereto and incorporated by reference herein.
3. The City Council hereby continues the Southeast EOA as shown in the
attached map as Exhibit B and incorporated by reference herein.
4. The tax increment base year for The Southeast EOA is July 1, 2014.
5. Tax increment generated from the Southeast EOA shall be accounted for
annually.
6. City Council authorizes the disbursement of funds for eligible economic
development activities consistent with the EOAP as set forth in Exhibit A.
7. The minimum and maximum amount of tax increment distribution within
the Southeast EOA per year shall be as set forth in Exhibit A.
8. The duration of the Southeast EOA shall not exceed an initial term of
fifteen years unless extended or terminated sooner by the City Council.
9. City Council shall have the ability to suspend the EOAP if the City is facing
or forecasting an economic hardship to the General Fund.
10. City Council shall direct the City Manager to implement procedures that
fairly execute this economic development policy.
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I HEREBY CERTIFY that the foregoing Resolution was passed and adopted
by the Council of the City of Bakersfield at a regular meeting thereof held on
JUL 17 1019 , by the following vote:
✓ ✓ ✓ ✓ ✓ ✓ ✓
(25> COUNCIIMEMBER RIVERA , GONZALES, WEIR, SMITH, FREEMAN, SULLIVAN, PARLIER
NOES: COUNCILMEMBER
ABSTAIN: COUNCILMEMBER
ABSENT: COUNCILMEM(ER
a z+o
JUIUE DRIMAKIS, CMC
CITY CLERK and Ex Officio Clerk of
the Council of the City of Bakersfield
APPROVED: JUL 171019
BY
KAREN GOH
MAYOR
APPROVED as to form:
VIRGINIA GENNARO
City Attorney
By —%f
SHUA H. RUDNICK
eputy City Attorney
Attachment: Exhibits A& B
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ORIGINAL
Exhibit A - Economic Opportunity Area Plan
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City of Bakersfield
Economic Opportunity Areas
July 2019
Staff Contacts:
Kevin F. Coyle, Phil Burns, Interim Cecelia Griego,
Planning Director Development Services Director Principal Planner
DevPl n @ ba kersfie Idcity. us
Table of Contends
1. Introduction...............................................................................................................................3
2. Program Financing......................................................................................................................3
2.1. Qualified Applicants......................................................................................................................3
2.2. Funding Sources............................................................................................................................4
2.3. Example.........................................................................................................................................4
3. Economic Opportunity Areas......................................................................................................5
3.1. Downtown Economic Opportunity Area.......................................................................................6
3.2. Airport Economic Opportunity Area.............................................................................................7
3.3. Highway 58/Mt. Vernon Opportunity Area..................................................................................8
3.4. 34th Street Corridor Opportunity Area.........................................................................................8
3.5. East Hills Opportunity Area...........................................................................................................9
3.6. Old Town Kern Opportunity Area...............................................................................................
10
3.7. Southeast Opportunity Area.......................................................................................................
11
4. Financial Incentives..................................................................................................................12
4.1. Site Improvement/Rehabilitation Grant.....................................................................................
12
4.2. Business Relocation/Expansion Grant........................................................................................
12
4.3. Development Assistance.............................................................................................................
12
4.4. Small Business Loans...................................................................................................................
13
5. Implementation Strategy..........................................................................................................13
5.1. Resolution Approving the Economic Opportunity Areas............................................................ 13
5.2. Program Implementation............................................................................................................ 14
5.3. California Prevailing Wage.......................................................................................................... 15
5.4. Approval of Economic Development Activities........................................................................... 15
5.5. Continual Trensoarencv.............................................................................................................. 15
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ATTACHMENTS
A. Map- Overall Economic Opportunity Areas
B. Assessed Values (2012 — 2018)
C. Map- Downtown Economic Opportunity Area
0. Map- Airport Economic Opportunity Area
E. Map - Hwy 58/Mt. Vernon Economic Opportunity Area
F. Map -34th Street Corridor Economic Opportunity Area
G. Map- East Hills Economic Opportunity Area
H. Map— Old Town Kern Economic Opportunity Area
I. Map- Southeast Economic Opportunity Area
1. Introduction
The City of Bakersfield's Economic Opportunity Area Plan (EOA Plan) is a locally initiated program
that uses tax increment financing to promote economic growth within specific geographic areas of
Bakersfield. The program modeled in part, after State redevelopment concepts and structured to be
more flexible so it can meet demands of specific areas within the City. Implementation of the Plan is
anticipated to facilitate increased private sector investment that will in turn create more tax
revenue, promote businesses growth, and generate newjobs.
The Plan outlines the concept of Tax Increment Financing as a commitment to revitalize specific
areas. Next, the Plan addresses the concept of Economic Opportunity Areas (EOAs), including a
description of seven EOAs to be implemented, along with respective economic development
activities to be pursued. Finally, the Plan lays the framework for implementation and the review
process to ensure that the economic development activities align with the City Council's priorities.
In November 2018, City voters approved the Public Safety and Vital Services (PSVS) measure. The
investment priorities forthe measure align with the ECA Plan such as:
• Keeping public areas safe and clean
• Addressing the fiscal stability ofthe City
• Creating jobs through economic development, business retention/ attraction and workforce
development
• Enhancing amenities throughout the community to improve the quality of life and attract
visitors
Therefore, initial investment for PSVS funding is proposed for each designated EOA for
implementation of programs that address the investment priorities.
The Plan is subject to revisions as circumstances may warrant over time and additional EOAs added
in the future. A map of the seven areas is included as Attachment A.
2. Program Financing
When the private market does not provide sufficient capital and economic development activities to
a specific area, public actions may be necessary to stimulate growth. This action can include public
investments, capital improvements, enhanced public services, technical assistance, tax benefits, and
other types of stimuli. Tax increment and PSVS financing may serve as a mechanism to develop and
encourage new business, enable existing business retention and expansion, and provide other
economic development opportunities.
2.1. qualified Applicants
As a tax -base growth program, the financial incentives are not eligible for tax-exempt entities.
All participating businesses must be a for-profit entity. Program applicants must also be legal
businesses located or will be located within the City of Bakersfield.
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2.2. Funding Sources
The City annually receives an allocation of property tax revenue from homeowners and
businesses appropriated to the General Fund to support a variety of municipal services. Under
this Plan, the incremental growth in property tax revenue derived from the EOAs would remain
in those areas to help fund economic development activities.
To explain, the assessed property value in a defined area is "frozen" at a specific year, which is
referred to as the base year. On an annual basis, all property tax revenue collected above the
base year (tax increment) is applied toward meeting Plan's priorities. The tax increment
allocation is set for 15 years; after the expiration of the Plan, the remaining tax increment is re-
directed back into the General Fund.
Ideally, the ongoing reinvestment of tax increment into a specific area assists in raising the
assessed property values above where they would have been without such improvements.
With higher values, property tax revenue naturally rises as well.
Additional funding sources from the CiWs general fund, per PSVS Investment priorities, can
also be included. Starting in fiscal year 19/20, for five years, each EOA area will be allocated an
annual budget of $100,000 from PSVS funds. Prior to the end of the five year period, the City
will evaluate the need to continue PSVS funding or if the property tax increment can support
the ECA incentive programs. The City also intends to utilize and leverage existing State,
Federal, and other economic development programs and further enhance revitalization.
2.3. Example
Assume that upon designation as an EOA, the area generated $500,000 in annual property tax
revenue to the City in the preceding fiscal year, which now becomes the base year. After being
designated as an EOA, the area now generates $522,000 in property tax revenue to the City.
The difference in property tax revenue between the base year ($500,000) and year 2 ($22,000)
is the tax increment. After 10 years, the EOA now generates $590,000 in property tax revenue,
which equates to $90,000 in tax increment. See Figure 1.
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Figure 1: Tax Increment Financing Example
$600,000k
$580,000k
$560,000k — —
$540,000k
$520,000k Tax Increment
$500,000k
■ Property Tax (Base Year)
$480,000k
$460,000k
$440,000k
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3. Economic Opportunity Areas
Seven EOAs are included for implementation. The areas are: (1) Downtown Bakersfield EOA, (2)
Bakersfield Airport EOA, (3) Highway 58/Mt. Vernon ECA, (4) 34th Street Corridor ECA, (5) East Hills
EOA, (6) Old Town Kern EOA, and (7) Southeast EOA. The areas selected, as depicted on Attachment
A, were based on their need for supplemental economic development activities.
The selected areas predominantly include property zoned for commercial and industrial uses, which
are uses that contain business and economic growth opportunities.
The purpose of this Plan is to develop and encourage new business, promote existing business
retention and expansion, and provide other economic development opportunities with funds
allocated toward economic development activities that include and support the following:
• Support New and Existing Development: Infill, rehabilitation and renovation of buildings,
demolition and site preparation, and property acquisition
• Infrastructure Improvements: Upgrades to storm drains, streets and alleys, curb and gutter, and
landscape enhancements
• Financial Incentives: Loans, grants, and development fee and public improvement
reimbursements
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The following sections contain a description of each of the seven ECAs and the potential investment
opportunities within each EOA.
3.1. Downtown Economic Opportunity Area
The Downtown Bakersfield ECA is looted in the heart of the city and characterized as the
central business district. The area profile includes:
Figure 2: Downtown Bakersfield EOA—Arm Profile
Area Size:
970 Acres
No. of Parcels:
1,668 Parcels
Primary Zoning:
Commercial, Manufacturing
Assessed Property Valuation (2014):
$620,840,799.00
Property Tax Revenue (2014):
$1,140,923.69
Property Tax Revenue (2015):
$1,184,932.21
Property Tax Revenue (2016):
$1,144,901.76
Property Tax Revenue (2017):
$1,144,901.78
Property Tax Revenue (2018):
$1,196,560.42
Total Tax Increment Revenue ('y2014 —Fy 2018):
$55,636.73
PSVS Fiscal year 19-20:
$100,000.00
Total Implementation Funding (FY 19/20):
$155,636.73
Investment Opportunities
Downtown Bakersfield has historically served as a center of civic and business activity, but has
suffered over time from the relocation of major retail businesses to more suburban locations.
In recent years, however, Downtown Bakersfield has begun to experience a resurgence and
becoming a focal point for the arts, entertainment, dining, and specialty retailing.
The City has invested substantially in a number of new affordable housing developments in
the downtown area. The continuing revitalization of downtown has started to create new
interest in market rate housing opportunities. Despite these encouraging successes, the
downtown area continues to contain a considerable amount of vacant and underutilized
properties.
The emphasis for investment in the Downtown Bakersfield EOA is based on continuing to build
on past successes and encourage continuing revitalization by physically enhancing the public
realm and encouraging investment in upgrading and renovating existing buildings and
properties. Potential economic development activities include:
• Improve pedestrian connectivity (e.g., sidewalks, park benches)
• Enhance visual characteristics (e.g., stamped concrete, kiosks)
• Promote the arts and shopping district (e.g., street banner program)
• Beautify medians and islands (e.g., install synthetic turf or pavers)
• Implement Making Downtown Bakersfield Vision plan projects
OR
3.2. Airport Economic Opportunity Area
The Airport EOA is located in Southeast Bakersfield, and is anchored by the Bakersfield
Municipal Airport, which is a City -owned and operated 190 -acre general aviation airport. The
area profile includes:
Figure 3: Airport EOA— Area Profile
Area Size:
929 Acres
No. of Parcels:
209 Parcels
Primary Zoning:
Industrial, Manufacturing
Assessed Property Valuation (2014):
$74,128,871.00
Property Tax Revenue (2014):
$131,855.79
Property Tax Revenue (2015):
$135,710.43
Property Tax Revenue (2016):
$137,029.51
Property Tax Revenue (2017):
$137,029.51
Property Tax Revenue (2018):
$141,739.84
Total Tax Increment Revenue (FY 2014— FY 2018):
$9,884.05
PSVS Fiscal Year 19-20:
$100,000.00
Total Implementation Funding (FY 19/20):
$109,884.05
Investment Opportunities
A majority of the Airport EOA area is lightly developed and existing land use designations
support warehousing and other storage uses. The area south of White Lane consists of lightly
developed or vacant land. Additionally, significant portions of land north and south of the
airport have development constraints due to the airport's flight pattern. Acceptable uses in
the area affected by the flight pattern include warehousing, two-story offices, and single-
family homes on existing residential lots. Unacceptable uses include retail, manufacturing,
hotels and motels, and residential subdivisions.
The Airport EOA offers excellent opportunities to develop Into an industrial cluster, especially
for businesses that require sizeable amounts of land. There will be a noticeable benefit in
allocating initial tax increment toward filling vacant structures and infilling undeveloped
properties.
The potential economic development activities here include, but are not limited to:
• Incentives to Hill vacant buildings
• Incentives to develop vacant land
• Environmental remediation and site preparation
0-k
3.3. Highway 58/Mt. Vernon Opportunity Area
The Highway 58/Mt. Vernon ECA is located in Southeast Bakersfield, and allows for industrial
or commercial development. The area profile includes:
Investment Opportunities
This area benefits from close proximity to the Highway 58, with interchanges at Cottonwood
Road, Mt. Vernon Avenue, and Oswell Street. The planned Centennial Corridor Project will
connect Highway 58 to the Westside Parkway, with access to Interstate 5, thereby, enhancing
this area to businesses that rely on convenient freeway access and to trans -state and cross-
country markets. Potential economic development activities include:
• Incentives to develop vacant land
• Environmental remediation and site preparation
3.4. 34th Street Corridor Opportunity Area
The 34th Street Corridor ECA is located just north of the heart of the City with the primary
economic focus and driver of this area being Dignity Memorial Hospital. The area profile
includes:
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Figure 4: Highway 58/Mt. Vernon EOA—Area Profile
Area Size: 1,079 Acres
No. of Parcels: 175 Parcels
Primary Zoning: Manufacturing
Assessed Property Valuation (2014): $143,512,576.00
Property Tax Revenue (2014): $182,552.29
Property Tax Revenue (2015): $187,304.59
Property Tax Revenue (2016): $189,513.72
Property Tax Revenue (2017): $189,513.72
Property Tax Revenue (2018): $206,093.12
Total Tax Increment Revenue (FY 2014—FV 2018): $23,540.83
PSVS Fiscal Year
Figure 5: 34th Street corridor EOA—Area Profile
Area Size:
459 Acres
No. of Parcels:
965 Parcels
Primary Zoning:
Commercial, Manufacturing,
Residential, Recreation
Assessed Property Valuation (2014):
$229,940,836.00
Property Tax Revenue (2014):
$419,460.44
Property Tax Revenue (2015(:
$440,872.59
19-20:
$100,000.00
Total Implementation Funding (FY 19/20)
$123,540.83
Figure 5: 34th Street corridor EOA—Area Profile
Area Size:
459 Acres
No. of Parcels:
965 Parcels
Primary Zoning:
Commercial, Manufacturing,
Residential, Recreation
Assessed Property Valuation (2014):
$229,940,836.00
Property Tax Revenue (2014):
$419,460.44
Property Tax Revenue (2015(:
$440,872.59
Property Tax Revenue (2016):
$456,770.27
Property Tax Revenue (2017):
$456,770.28
Property Tax Revenue (2018):
$483,326.32
Total Tax Increment Revenue (FY 2014 — FY 2018):
$63,865.87
PSVS Fiscal Year 19-20:
$100,000.00
Total Implementation Funding (FY 19/20):
$163,86S.87
Investment Opportunities
Memorial Hospital has experienced significant growth and expansion of its own facilities in
recent years, and in turn the hospital's growth has created a market and need for medical
offices and other uses related to the medical field. Memorial Hospital has also invested its
own resources in adding streetscape features along 34th Street from Q Street to Union
Avenue and has expressed interest in undertaking similar improvements west to Chester
Avenue. Beyond Memorial Hospital and its ancillary facilities, the remainder of the area
continues to be economically depressed. The commercial and manufacturing -zoned land
further away from the hospital includes many parcels that are vacant, abandoned, and/or
support dilapidated buildings. Some of the residentially zoned and developed land in close
proximity to the commercial/ manufacturing areas may be ripe for transition. It is anticipated,
the large majority of the residential areas that make up a good part of this area will continue
to remain. For those residential areas, there is an interest in strengthening the quality of the
housing to better support and enhance the overall image of the area as a major
medical/health care center. Potential economic development activities include:
• Improve pedestrian connectivity(e.g., sidewalks, park benches)
• Enhance security (e.g., lighting upgrades)
• Beautify medians and Islands (e.g., install synthetic turf or pavers)
3.5. East Hills Opportunity Area
The East Hills EOA is located in the east Bakersfield area and centered on the East Hills Mall.
The area profile includes:
Figure 6: East Hills EOA—Area Profile
Area Size:
438 Acres
No. of Parcels:
236 Parcels
Primary Zoning:
Commercial
Assessed Property Valuation (2014):
$267,832,267.00
Property Tax Revenue (2014):
$492,599.73
Property Tax Revenue (2015):
$503,813.16
Property Tax Revenue (2016):
$556,469.00
Property Tax Revenue (2017):
$556,469.01
Property Tax Revenue (2018):
$565,690.48
Total Tax Increment Revenue (FY 2014 — FY 2018):
$73,090.75
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PSVS Fiscal Year 19-20: $100,000.00
Total Implementation Funding (FY 19/20): $173,090.75
Investment Opportunities
From its opening in 1988, the East Hills Mall has struggled to reach full capacity, and more
recently, has suffered through foreclosure and the loss of three anchor stores. Although there
has been renewed interest by investors, it remains a low performing location. Traffic
circulation in the area can be a challenge. Potential economic development activities include:
• Incentives to fill vacant buildings
• Incentives to develop vacant land
3.6. Old Town Kern Opportunity Area
The Old Town Kern ECA is located east of Downtown. It is diverse community in a historical
center of Bakersfield and possesses great potential for revitalization. The area profile
includes:
Figure 7: Old Town Kern EOA —Area Profile
Area Size:
586 Acres
No. of Parcels:
1,820 Parcels
Primary Zoning:
Manufacturing, Commercial,
Residential
Assessed Property Valuation (2014):
$216,437,337.00
Property Tax Revenue (2014):
$397,192.46
Property Tax Revenue (2015):
$423,337.26
Property Tax Revenue (2016):
$426,588.08
Property Tax Revenue (2017):
$426,588.08
Property Tax Revenue (2018):
$459,480.92
Total Tax Increment Revenue (FY 2014 — FY 2018):
$62,288.46
PSVS Fiscal Year 19-20:
$100,000.00
Total Implementation Funding (FY 19/20):
$162,288.46
Investment Opportunities
While the area is economically distressed, it has a number of buildings and sites that reflect
the rich history of the area. Because of the Railroad and the availability of social service
providers, the area Is been known for a high concentration of transients. The lack of private
investments Into the area has deteriorated over the years; however, it is also one of the few
neighborhoods in Bakersfield, where residential neighborhoods are adjacent to commercial
businesses making for a great community atmosphere. Potential economic development
activities include:
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• Improve pedestrian connectivity (e.g., sidewalks, park benches)
• Enhance visual characteristics(e.g., stamped concrete, kiosks)
• Enhance security (e.g., lighting upgrades)
• Beautify medians and islands (e.g., install synthetic turf or pavers)
3.7. Southeast Opportunity Area
The Southeast EOA is located south of Downtown. It is an area developed with residential and
commercial corridors. The area profile includes:
Figure 8: Southeast EOA—Area Profile
Area Size:
1,409 Acres
No. of Parcels:
5,774 Parcels
Primary Zoning:
Residential, Commercial
Assessed Property valuation (2014):
$337,237,804.00
Property Tax Revenue (2014):
$579,900.26
Property lax Revenue (2015):
$596,699.55
Property lax Revenue (2016):
$643,633.92
Property lax Revenue (2017):
$643,633.93
Property Tax Revenue (2038):
5695,169.12
Total Tax Increment Revenue (FY 2014 — FY 2018):
$115,268.86
PSVS Fiscal Year 19-20:
$100,000.00
Total Implementation Funding (FY 19/20):
$215,268.86
Investment Opportunities
The area is historically residential neighborhoods with two north -south
commercial corridors
down Chester and Union Avenues, and California Avenue along the northern edge. There has
been limited economic growth in the area and future growth would require redevelopment
and infill of vacant parcels. The arterial streets in the area carry high vehicle speeds with a
limited number of controlled intersections and pedestrian amenities
(i.e. trees, benches,
streetlights, etc.) However, the mix of residential neighborhoods, commercial uses, and
existing street network create opportunities for improved business activity by investing into
amenities and facilities that create a more pedestrian -friendly environment.
In turn, these
investments can stimulate economic opportunity in the area.
Potential economic
development activities include:
Potential economic development activities include:
• Improve pedestrian connectivity (e.g., sidewalks, park benches)
• Enhance visual characteristics (e.g., stamped concrete, kiosks)
• Enhance security (e.g., lighting upgrades)
• Beautify medians and Islands (e.g., install synthetic turf or pavers)
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4. Financial Incentives
Forthe purposes of this Plan, financial incentives may include the following:
4.1. Site Improvement/Rehabilitation Grant
The site improvement and rehabilitation grams can provide financial assistance for the following
activities. Priority will be given to existing vacant or underutilized structures to new uses or to
revitalize previous uses:
• Facade Improvements: Investments in exterior building improvements (e.g., paint,
awnings, doors, windows, lighting)
• Site Enhancements: Investments in non-structural improvements (e.g., sidewalk, parking
lots, landscaping)
• Tenant Improvements: Construct interior building improvements
4.2. Business Relocation/Expansion Grant
The rehabilitation grant can provide financial assistance for business expansion and relocation
activities:
• Relocation and Expansion: Financial assistance for companies to relocate to an ECA area
and fund eligible relocation expenses up to $25,000. Note: this is an incentive and is
separate from the requirements of the Uniform Relocation Assistance and Real Properties
Acquisition Policies Act or the California Relocation Act.
• Rent/Lease Reimbursement: Financial assistance for new businesses to relocate to an EOA
area. Assistance includes a rent reimbursement to assist businesses during the critical first
year of operation.
4.3. Development Assistance
• Reimburse Development Fres. Reimburse development fees for a business to relocate to
an ECA area, or expand or change use of the existing building. Fee categories that may
qualify include transportation impact fee, building permit fee, water and sewer
connection fee, and planning/land use fee.
• Infrastructure Reimbursement. To help incentivize economic development the City will
reimburse the costs of capital and public improvement projects up to $25,000 within each
EDA area. The reimbursements will be for making public infrastructure improvements
while developing new residential, commercial, or mixed use projects. Eligible public
infrastructure improvements can include sewer, water, storm drain, street improvements,
including sidewalks, crosswalks, bike lanes, striping, medians, traffic signals, streetlights,
and landscaping.
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• TIF Financing. Using the anticipated increase in property value resulting from
redevelopment of a site and estimated property tax increase, the developer can borrow
against the future, incremental property value of a project for up to 15 years to help fund
part of the project's cost. The developer must secure a loan from a bank or other private
lender in an amount up to the approved TIF amount. With the project site TIF funds, the
City will pay the annual debt service on the loan.
4.4. Small Business Loans
Establish a program with a non-profit partner to offer small business loans and assistance in EOA
areas including but not limited to: operating capital (including license and permit fees); furniture,
fixtures and equipment; and Infrastructure development. Potential partners can include SCORE,
Small Business Development Centers, Women's Business Centers, Minority Business Development
Centers, Local Initiatives Support Corporation, Kiva and other potential lending organizations.
5. Implementation Strategy
5.1. Resolution Approving the Economic Opportunity Areas
In order to provide City Council flexibility to amend the EOAs in the future, a separate
resolution establishes each EOA. The resolution describes the concepts related to establishing
the EOAs, as follows:
• Boundary: The boundary includes whole parcels as they appear on the assessment roll.
• Creation Date: The base year for the EOAs will be July 1, 2014. The duration of the EOAs
will not exceed an Initial term of 15 years; at which time, City Council may extend the
duration the program for a specified number of years, or dissolve the EOA.
• Name: The EOAs named to reflect the general locations and provide a branded Identify.
• List of Economic Development Activities: Provide a general list of authorized economic
development activities for each EGA.
• Tax Increment Designation: Designate future tax increment received from property tax
revenue in the prescribed boundary toward economic development activities.
• Minimum and Maximum Tax Increment: Establish minimum and maximum amounts of
tax increment designated annually toward economic development activities. To ensure
viability of the program, a minimum of $100,000 and a maximum of $250,000 dedicated
to each EOA in a fiscal year, regardless of the actual amount of increment that accrued
during the same year.
• Tax Increment Financing Funds: Property tax revenue above the amount derived to the
City in the established base year will be identified and accounted for annually and will be
budgeted specifically for programs identified in the Plan.
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• Economic Hardship: The City may suspend dedicating funds to an EOA if the City is facing
or forecasting an economic hardship to the General Fund. This action is subject to City
Council approval.
S.Z. Program Implementation
Figure 8 includes action items for implementation of development assistance, grants, and
business loan programs.
ECA Program Timeline
Figure 9: Implementation Timeline
July 2019
City Council Adoption of Revised EOA Plan
August 2019
Finalize program guidelines & grant agreement template
September 2019
Coordinate with community or non-profit partners for small business
loan services
October 2019
Send out Notice for Funding Availability (Grants/Development
Assistance)
November 2019
Approve agreement with small business loan community partner
December 2019 —
June 2020
Grants/Assistance awarded on a per project basis
EOA Program Guidelines
Comprehensive program guidelines will include a description of financial incentive options and
well as detailed guidelines that will establish program criteria, eligibility and application
guidelines. The grants and development assistance will require agreement templates,
reporting for monitoring projects and an established annual funding cycle for each fiscal year
with proposed grant and threshold amounts based on approved funds allocated during each
annual budget cycle. For grants and loans you must be:
• Existing legal businesses located orto be located within the City of Bakersfield
• Business must be a for-profit entity.
For the Small Business Loan Program, the City will coordinate with a community or non-profit
lending institution to provide small business loans and assistance. These partners would
provide the capital and financing for business loans that meet the following criteria:
• The existing business must create one or more new permanent full time equivalent
(FTE) jobs, based on loan amount.
• Funds can be used to finance any legitimate business expense (equipment, fixtures
and furniture, working capital, construction, tenant improvements, etc.) �Q 9N
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14 ORIGNAL
5.3. California Prevailing Wage
Prevailing wages must be paid to all workers employed on public works projects, as defined by
California Labor Code. For construction projects, prevailing wages are not required to be paid
for projects of $25,000 or less, or $15,000 or less when the project is for alteration,
demolition, repair, or maintenance work.
5.4. Approval of Economic Development Activities
For any request for a disbursement of City funds related to this plan that exceeds $25,000
(cumulative for each project), will be brought to the City Council for review and action. For
requests of $25,000 or less, the proposal will be reviewed and acted upon administratively
based on consistency with stated priorities for the EOA area.
S.S. Continual Transparency
The City Council will review the Plan's accomplishments during the annual budgetary process.
Administrative guidelines will be developed to establish more detailed procedures for day-to-
day implementation of the Plan. Through this process, the City Council may set additional
policy and direction related to the Plan. The economic development activities shall be
presented in broad categories in order to have the flexibility in meeting business demands. In
addition, the City Council may request revisions to the Plan's priorities anytime through the
referral process. A change to the Plan's priorities will require Council approval.
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15 uORIGNAl
EXHIBITA- ECONOMIC OPPORTUNITY AREAS
EXHIBIT B -ASSESSED VALUES (2012-2018)
Year Total Property
DOWNTOWN
Tax
City
Allocation
TIF
2012
$
5,881,165.00
$
1,088,439.67
2013
$
6,110,026.53
$
1,122,842.45
2014
$
6,208,407.99
$
1,140,923.69
Base Year
2015
$
6,447,911.80
$
1,184,932.21
$
44,008.52
2016
$
6,230,117.74
$
1,144,901.76
$
(40,030.45)
2017
$
6,230,117.74
$
1,144,901.78
$
0.02
2018
$
6,511,206.47
$
1,196,560.42
$
51,658.64
$
55,636.73
EAST RILLS
2012
$
2,676,775.29
$
495,804.52
2013
$
2,654,683.24
$
488,251.88
2014
$
2,678,322.67
$
492,599.73
Base Year
2015
$
2,739,291.05
$
503,813.16
$
11,213.43
2016
$
3,025,587.21
$
556,469.00
$
52,655.84
2017
$
3,025,587.21
$
556,469.01
$
0.01
2018
$
3,075,725.00
$
565,690.48
$
9,221.47
$
73,090.75
34th ST CORRIDOR
2012
$
2,170,709.25
$
398,653.36
2013
$
2,197,382.74
$
400,690.78
2014
$
2,299,408.36
$
419,460.44
Base Year
2015
$
2,416,997.12
$
440,872.59
$
21,412.15
2016
$
2,504,557.91
$
456,770.27
$
15,897.68
2017
$
2,504,557.91
$
456,770.28
$
0.01
2018
$
2,650,402.10
$
483,326.32
$
26,556.04
$
63,865.87
BAKERSFIELD AIRPORT
2012
$
570,724.14
$
101,316.11
2013
$
609,725.01
$
107,776.08
2014
$
741,288.71
$
131,855.79
Base Year
2015
$
759,058.43
$
135,710.43
$
3,854.65
2016
$
766,581.59
$
137,029.51
$
1,319.08
2017
$
766,581.59
$
137,029.51
$
0.00
2018
$
793,675.18
$
141,739.84
$
4,710.33
$
9,884.05
SOUTHEAST
20121
$
2,934,868.11
$
507,743.80
2013
$
3,063,589.86
$
526,255.28
2014
$
3,372,178.04
$
579,900.26
Base Year
2015
$
3,468,891.03
$
596,699.55
$
16,799.29
2016
$
3,741,864.10
$
643,633.92
$
46,934.37
2017
$
3,741,864.10
$
643,633.93
$
0.01
2018
$
4,049,090.97
$
695,169.12
$
51,535.19
$
115,268.86
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ORIGINAL
EXHIBIT B -ASSESSED VALUES (2012-2018)
OLD TOWN
KERN
$
2,033,148.63
$
375,377.17
$
2,091,901.22
$
383,524.76
$
2,164,373.37
$
397,192.46
Base Year
$
2,306,619.69
$
423,337.26
$
26,144.80
N2012
$
2,323,451.55
$
426,588.08
$
3,250.81
$
2,323,451.55
$
426,588.08
$
0.01
$
2,502,453.50
$
459,480.92
$
32,892.84
$
62,288.46
HWY 58 / WT VERNON
2012
$
1,433,209.98
$
183,581.36
2013
$
1,418,295.80
$
180,584.29
2014
$
1,435,125.76
$
182,552.29
Base Year
2015
$
1,475,873.63
$
187,304.59
$
4,752.30
2016
$
1,483,965.98
$
189,513.72
$
2,209.13
2017
$
1,483,965.98
$
189,513.72
$
0.00
2018
$
1,624,252.88
$
206,093.12
$
16,579.40
$
23,540.83
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