Loading...
HomeMy WebLinkAboutRES NO 077-16(2)ff5 No RESOLUTION NO. 077-16 (2)`��� - A _ RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD ADOPTING THE AMENDED ECONOMIC OPPORTUNITY AREA PLAN AND CONTINUING THE 34TH STREET CORRIDOR 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 d 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 redevelopmentprogram 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 (PSVS), 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 and PSVS funds 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 34th Street Corridor Economic Opportunity Area - Page 1 of 3 Pages - �ORIGNALL ("EOA") -as shown in the attached map as Exhibit .B and incorporated by reference herein. 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 34th.Street Corridor EOA as shown in the attached map as Exhibit B and incorporated by reference herein. 4. The tax increment base year for.the 34-th Street Corridor-EOA is :July 1, 2014. 5. Tax increment generated from the 34th. Street Corridor 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 34th Street Corridor EOA per.year shall be as set forth -in Exhibit A. .8. The duration of the 34th Street Corridor 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 proceduresthat fairly execute this economic development policy. --------- 0000000-- - Page 2 of 3 Pages - >-' m c7 b ORIGNAL . 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. SEP -0 9 2020 ; by the following voter AYES: .. COUNCILMEMBER R VERA,.GONZALES, WEIR, SMITH, FREEMAN, SULLIVAN, PARLIER SES: COUNCILMEMBER �01�IE ABSTAIN: COUNCILMEMBER ABSENT: COUNCILMEMBER MOM , r r � J LIE DRIMAKIS, CMC CITY CLERK and Ex Officio Clerk of the Council of the City. of Bakersfield APPROVED: 'SEP 0 , 2020 By KAREN GOH MAYOR APPROVED as to form: VIRGINIA GENNARO City Attorney HUA H. RUDNICK puty City Attorney Attachment: Exhibits A& B CG S:\EDCD_Shared\ED Projects\ED Economic Opportunity Areas\City Council Meetings\CC 9.9.2020\Amended Resolution 34th Street Comdor.Docx Q�pKF9 . O N. T Page 3 of 3 Pages - m ORIG;NAL Exhibit A - Economic Opportunity Area Plan City of Bakersfield t UIM7 A%W� September 2020 I ■ s "�>a �� `3 p e Contact: Economic & Community Development 1715 Chester Avenue, Bakersfield, CA 93301 EDCD@bakersfieldcity.us 1 661-326-3765 !T—I o1 OR)G;NAL Table of Contents 1. Introduction................:..............................................................................................................3 2... Program Financing...............:..............................................................................................:.......3- 2.1..2.1. Qualified Applicants ............:.........................................................................................................3... . 2.2. Funding Sources:..............:.............................:...............................................................................4 2.3. Example ....:.........:...... 3. Economic Opportunity Areas ......................................................... :........................... :............. .:..5- 3.1. Downtown Economic Opportunity Area .............................. 3.2. Airport Economic Opportunity Area.............................................................................................7 3.3. Highway 58/Mt. Vernon Opportunity Area..:...............................................................................8 3.4. 34th Street Corridor Opportunity Area.............. 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.....................................:..............:.....................:.....:........:...................13 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 Transparency..............................................................................................................15 OR)G;NAL ,. i The City of.Bakersfield's Economic Opportunity Area Plan (EOA Plan) is a locally initiated program' . that uses tax increment financing and local sales tax revenue 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 withinthe 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 new jobs. The. Plan outlines the concept of Tax Increment Financing and the use of loco i'.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 b'e 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 for the measure align with the EOA Plan such as: • Keeping public areas safe and clean •. Addressing the fiscal stability of the City • Creating jobs through economic development, business retention/ attraction and workforce . development • Enhancing amenitiesthroughout the community toimprove 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 -The financial incentives are eligible for both for_profit businesses-and.tax-exempt (501(c)(3) entities. Program applicants must also be legal businesses or non -profits located, or re -locating within the City of Bakersfield. A 3 r v J ORIGINAL The City annually receives an allocation of. property taw revenuefrom homeowners and businesses appropriated totheGenera|Fu d to mun��a| senoes.Under this Plan, the incremental growthinpmopertytoxrevenuederivedfromtheEOAnvvou|dnemoin ` inthose areas tohelp fund economic development activities. To explain, the assessed property value in = defined area.is "frozen" at a uoecific`year, which ear,vhich is ` .referred toosthebase year. Onanannual basis, all property tax revenue co|lectedabove the . base year (tax increment)- is -applied toward -meeting Pku�spriorities.-Thetax increment. � allocation isset for 1Syears; after the expiration ofthe Plan, the remaining tax increment isne d�ectedbachintotheGenera|Fund. . Ideally, the ongoing reinvestment oftax increment into a specific area assists in raising the assessed property values owned by non-exempt entities above where they would have -been without such improvements. With higher values, property tax revenue naturally rises as well. , Additional funding sources from the City's general fund', perP6VSinvestment priorities, can ` also beincluded. Starting infiscal year 1B/2O for five years, each EOA area will beallocated an � annual budget of$1OOODOfrom PSVSfunds. Prior tothe end ofthe five year period, the City will evaluate the need to continue PSVS funding or if the property tax increment can support the EOA 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 inannual 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 S523,000 in property tax. revenue tothe City. � The difference inproperty tax revenue between the base year ($500,000) and Year 2-( is.thetax increment. /fter1Oyeans,theEOAnowBene| inproperty taxrevenue, � ' which equates to$9OOOOintax increment. See Figure 1 ` �m 4 Figure 1: Tax Increment Financing Example $600,OOOk $580,OOOk — $560,000k — $540,000k — $520,000k — Tax Increment $500,OOOk ■ Property Tax (Base Year) $480,OOOk $460,OOOk $440,OOOk �° anti o� a�b a�� � o 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 EOA, (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 5 v 6 ORIGAAL The following sections contain a description of each of the -seven EOAs and the potential investment opportunities within each EOA. 3.1. Downtown Economic Opportunity Area The Downtown Bakersfield EOA is Located inthe heart of the city and. -characterized as' the central business district. The area profile includes: Figure 2: Downtown Bakersfield EOA - Area 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 Property Tax Revenue (2019): $1,2061941.96 Total Tax Increment Revenue (FY 2014,—.FY 2019): $66,018.27 PSVS Fiscal Year 19-20: $100,000.00 PSVS Fiscal Year 20-21: $100,000.00 Total Implementation Funding (FY 20/21): $266,018.27 Investment Opportunities Downtown Bakersfield has historically, served as a center of civic and business activity, but has suffered overtime 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) 6 F9d . r � 611; A © . • Beautify medians and islands (e.g., install synthetic turf or pavers) • Implement Making Downtown Bakersfield Vision plan projects 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: -r; gure 3: Airport. E0A —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): $1311855.79 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 Property Tax Revenue (2019): $141,643.72 Total Tax Increment Revenue (FY 2014— FY 2019): $9,787.93 PSVS Fiscal Year 19-20: $100,000.00 PSVS Fiscal Year 20-21: $10000.00 Total Implementation Funding (FY 20/21): $109,787,93 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 fill vacant buildings • Incentives to develop vacant land k �AKF 7. o ORIG NAL • Environmental remediation and site preparation 3.3. Highway 58/Mt. Vernon Opportunity Area .The Highway 58/Mt. Vernon EOA is located in Southeast Bakersfield, and allows for industrial or commercial development. The area profile includes: 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): $189,51-3.72 Property Tax Revenue (2018): $206,093.12 Property Tax Revenue (2019): $198,156.36 Total Tax Increment Revenue (FY 2014.— FY 2019): $151604.76 PSVS Fiscal Year 19-20: $100,000.00 PSVS Fiscal Year 20-21: $100,000.00 Total Implementation Funding (FY 20/21): $215,604.07 Investment Opportunities This.area benefits from close.proximity to. the Highway 58, with interchanges at Cottonwood Road, Mt. Vernon Avenue, and Oswell Street. The planned Centennial -Corridor- Project will connect Highway 58 to the Westside Parkway, with access to Interstate 5, thereby,'enhancing this area to businesses that rely on convenient freeway access and to trans -state and cross- country markets. Potential economic development activities include: • Incentives to develop vacant land • Environmental remediation and site preparation 3.4. 34th Street Corridor Opportunity Area The 34th Street Corridor EOA is located just north of the heart of the City with the primary economic focus and driver of this area being Dignity Health Memorial Hospital..The area profile includes: Figure 5 34th Street Corridor EOA - Area Profile Area Size: 459 Acres No. of Parcels: 965 Parcels 8 -$AK M O: OR) -;;NAL Primary Zoning: Commercial, Manufacturing, Residential, Recreation Assessed Property Valuation (2014):- $229,940,836.00 Property Tax Revenue (2014): $419;46.0.44 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): $4831326.32 Property Tax Revenue .(2019): $4791793.77 Total Tax Increment Revenue (FY 2014— FY 2019): $60,333.33 PSVS Fiscal Year 19-20: $100,000.00 PSVS Fiscal Year 20-21:- $i00,000.00 Total Implementation Funding (FY 20/21): $260,333.33 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 . officesandother uses related to the medical field. Memorial Hospital hasalso 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. 9 m r OA G NAL PSVS Fiscal Year 20-21: $100,000.00 Total Implementation Funding (FY 20/21): $2831180.39 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. areadjacent to commercial businesses making for a great community atmosphere. 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) 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): $337,2171804.00 Property Tax Revenue (2014): $579,900.26 Property Tax Revenue (2015): $596,699.55 Property Tax Revenue (2016): $643,633.92 Property Tax Revenue (2017): $643,633.93 Property Tax Revenue (2018): $695,169.12 Property Tax Revenue (2019): $731;315:70 Total Tax Increment Revenue (FY 2014 — FY 20.19): $151,415.44 PSVS Fiscal Year 19-20: $100,000.00 PSVS Fiscal Year 20-21: $1001000.00 Total Implementation Funding (FY 20/21):. $351,415.44 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 nA m OR G;NAL 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., fighting upgrades) • Beautify medians and islands (e.g., install synthetic turf or pavers) 4. Financial Incentives For the purposes of this Plan, financial incentives may include the following: 4.1.. Site Improvement/Rehabilitation Grant The site improvement and rehabilitation grants can provide financial assistancefor: 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. 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. 12 ORI&NAL 4.3. Development Assistance • Reimburse Development Fees. Reimburse development fees fora business to relocate to an EOA area, or expand or change use of the existing building. Fee categories that may qualify includetransportation 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 within each EOA 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. • 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, incrementalproperty 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. S. 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,.asfollows: . • 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 EOA. SPK 13 R r� 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 inc rement: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. . • 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. 5.2. Program Implementation Figure,8 includes action items for implementation of development assistance, -:grants, and. business loan programs. EOA Program Timeline :Figure9: Implementation Timeline ®I = 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 o, 14 } n -:NAL November 2018 Passage of PSVS Measure and activation of EOAs July 2019 City Council adoption of revised EOA Plan Completed Finalize program guidelines & grant agreement template Summer 2021 Coordinate with community or non-profit partners for small business loan services Completed Send out Notice for Funding Availability (Grants/Development Assistance) Winter 2021 Approve agreement with small business loan community partner On-going a. Grants/Assistance awarded on per project basis ®I = 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 o, 14 } n -:NAL with proposed grant and threshold amounts based on approved funds allocated during each annual. budget cycle. To be eligible for EOA program grants and -loans you must be an existing. legal business or non-profit located or re -locating Within the City of Bakersfield. 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.) 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. Ateration, 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.. 5.5. 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. 15 �gAIC 0 m (31 ORIGINAL EXHIBIT A - ECONOMIC OPPORTUNITY AREAS O►fIu IVAL EXHIBIT B - ASSESSED VALUES (2012-2019) Property,Year Total DOWNTOWN . 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 $ 61230,117.74 $. 1,144,901.76 $ (40,030.45) 2011 $ 6;230,117.74 $ 1,144,901.18 $ 0.02 2018 $ 6,511,206.47 $ 1,196,560.42 $ 51,658.64 20191 $ 6,568,101.75 $ .1,206,941.96 $ . .10,381.54. $ 660018.27 EAST HILLS 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 2019 $ 3,229,556.68 $ 593,983.38 $ 28,292.90 $ 101,383.65 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 20161 $ 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 2019$ 2,631,057.30 $ 479,793.77 $ (3,532.55) $ 60,333.33 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 2019 $ $ 793,675.18 792,872.35 $ $ 141,739.84 1411643.72 $ $ 4,710.33 (96.12) $ 9,787.93 SOUTHEAST 2012 2013 $ $ 2,934,868.11 3,063,589.86 .$ $. 507,743.80 526,255.28 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 $ 461934.37 � - f ORIGAAL EXHIBIT B - ASSESSED VALUES (2012-2019) Year 2017 2017 Total Property $ ..-Tax 3,741,864.10 City Allocation $ 643,633.93 TIF $ 0.01 2018 $ 4,049,090.97 $ 695,169.12 $ 51535.19 2019 $ 4,267,722.70 $ 731,315.70 $ 36,146:58' $ 1510415.44 OLD TOWN KERN 2012 $ 2,033,148.63 $ 375,377.17 2013 $ 2,091,901.22 $ 383,524.76 2014 $ 2,164,373.37 $ 397,192.46 Base Year 2015 $ 2,306,619.69 $ 423,337.26 $ - 26,144:80 2016 $ 2,323,451.55 $ 426,588.08 $ 31250.81 2017 $ 2,323,451.55 $ 426,588:08 $ 0.01 2018' $ 2,502,453.50 $ 459,480.92 $ 32,892.84 2019 $ 2,616,127.66 $ 480,372.85 $ 20,891.93 $ 83,180.39 .HWY 58 / MT 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_ 2019 $ 1,558,289.51 $ 198,156.36 $ (7936.76) $ 15,604.07 Exhibit B - Economic Opportunity Area Map �gAkF9 v v ORIGAAL ��? 44THST zm 34th St Corridor .� 43 J W HI: 1 y 43RD $7� m m� 9� EOA 2 . ._.._..�. _ CROWN -VE � ANDS=g 3 S "' n _ c - - - a�VV UOLUMBUS ST' ••�..� JgROINCJ �P M 1 1 Legend , 1 PU.D R-2 F.�r Zoning e .3 =...._�.....,....i.. 1 :0TH $TCommercial MINER ST _ \ �� Designations Zone 1 C-0 Comn•ra•I.nd IWR- JEFFREY ST PnMsbna OlddeR-2 P.U.D. C -O C-0 ®01 Lrne•dR•iPC38TH ST �5 - 3FTH ST { - D.v.b wnn•d comn.ral ELEM. c R_t - T. -O- Pn»ne $CH ._, 1R-1 �.-�----; 1 Industrial Zone Designations W THELM4 DR CMM 1 U9. M.nuhcturnp yti R-2 R-2 R-2 R2 PU.D. R-2 C-O-M-2Q.—M.nvl.elunnp W R 3 -CH I LA MESA DR Resource Zone Designations R-1-HOSP SOS own SPaw R•2 R-3 C -O Residential Zone R-2 LU Designations C -O ";9�, a1 Q� =R, on. F.m�y ow•enp _ IRENE ST R-1 HOSP Ow F—y —� -i�• '� H al Z (� 34TH ST - "-" R-2 L.nd•d M.e F•mlt 5� M-1 M-1 M-1 M 1 M-1 Z Q Pv.l np zon. 1 —.500 w r, • ROS' - - °"O R-3 L mwa M." F.ml, R-3 R-3 R-3 R-3 - D.•i by Z.. 1 .nu1.8D CN �� M-1 33RD STR�CH a $T h~ R-3 R-3 R-3 R•3 R-3 ® Fr* Zo IupW 3zND sr - 1-1 _ u so ].R n.-cn.Rn 32NT, ST !LINCOLN ST a.r.r by 9 ,s R-3 R-3 RJ R-3 R4 M-1 W RJ P IJmX•d MuepM Famsy $T i ©D..ane Z•w -1 unfit 3•A $7� IM -1 R-3 R•3 n R4 R-3 R4 a- FLOWER ST w m-P.rgrp W.hy RM 1P D.." �Mus.b'F1e.DDm' p R-3 R-3 R-3 -a R4 0 R yA, C 30TH ST Z OUINCY ST RD.o. PMnn•d un. Go • - - sGTH O awbgwnt 44' F �Q •� R3 R4 l R-3 "' R-3 Sr Otnar/PuWk Zone 0~ N 29TH ST F�sT - R-3 -_ R-3 PACIFIC ST Designations R-3R-3 =RE R.—a ® ; d.n 281 H$T M -i ,Y 281H $7 W 28TH ST �`` • �4 R-3 R4 1 OREGON ST _ �'�f R R4 OS 27TH ST H H;NILES ST Y J 26TH ST j NTH STN28TH ST u) ` . M•1. 1 4 -id c� U o O t:1 /.AI(fSJ W�E U H 25TH ST ro 25TH ST p c S z 2A�sT Feet 24TH ST q 24TH sT 0 390 780 O w y N H RO �- 'TtLfi-"'u� I I I I c H m 23RD ST23RD S23RD SS S a 23RD STS 23RD ST HARRIER Db MMS T H) y WAY EOA µAPeoolcn o�gAK, 9� ORIGINAL