HomeMy WebLinkAbout01/29/24 BUDGET FINANCE AND ECD COMMITTEE (183 BUDGET, FINANCE AND ECONOMIC DEVELOPMENT
POST-MEETING AGENDA
BAKERSFIELD REGULAR MEETING
THE SOUND QF��b�&e�,91 d;+^ ,�.
January 29, 2024, 12:00 p.m.
City Hall North Conference Room A
1600 Truxtun Avenue
1. ROLL CALL
2. PUBLIC STATEMENTS
a. Agenda Item Public Statements
b. Non Agenda Item Public Statements
3. ADOPTION OF MINUTES
a. Adoption of the November 27, 2023, agenda summary report
Adoption of minutes
4. STAFF REPORTS
a. Staff Update on the Security Grant Program
Staff recommends receive and file
*1. PowerPoint presentation Business Security Grant
5. NEW BUSINESS
a. Review of upcoming Committee Topics
Informational item only staff recommends receive and file
b. EOA Program Update
That item be referred to the full Council
*1. PowerPoint presentation Economic Opportunity Area Plan and Program
Update
6. COMMITTEE COMMENTS
7. ADJOURNMENT
BAKERSFIELD
THE SOUND OF
Staff: Committee Members:
Christian Clegg, City Manager Councilmember, Andrae Gonzales —Chair
Gary Hallen, Assistant City Manager Councilmember, Ken Weir
Mario Orosco, Budget Officer Councilmember, Eric Arias
Regular Meeting of the
Budget, Finance and Economic Development Committee
of the City Council — City of Bakersfield
Monday, November 27, 2023
12:00 p.m.
City Hall North, First Floor, Conference Room A
1600 Truxtun Avenue, Bakersfield CA 93301
AGENDA SUMMARY REPORT
Meeting called to order at 12:00 p.m.
1. ROLL CALL
Committee Members Present: Councilmember Andrae Gonzales - Chair
Councilmember Eric Arias
Councilmember Ken Weir
City Staff Present: Christian Clegg, City Manager
Josh Rudnick, Deputy City Attorney II
Scott Andrews, Assistant City Manager
Julie Drimakis, City Clerk
Mario Orosco, Budget Officer
Joe Conroy, Public Information Officer
Jenni Byers, Acting Economic Development
Director
Additional Attendees: Members of the Public and other City Staff
Page 2 of 54
2. PUBLIC STATEMENTS
a. Agenda Item Public Statements
None
b. Non-Agenda Item Public Statements
None
3. ADOPTION OF THE SEPTEMBER 25, 2023, AGENDA SUMMARY REPORT
Motion to adopt the Agenda Summary Report by Committee Member Arias.
Motion unanimously approved.
4. NEW BUSINESS
a. Discussion of Affordable Housing Development Impact Fee Deferral Program
(Staff recommends review and discussion regarding an Affordable Housing
Development Impact Fee Deferral Program and seeks direction on deferral options.)
Acting Director Byers, gave a presentation on Affordable Housing Development
Impact Fee Deferral.
City Manager, Christian Clegg discussed Affordable Housing being a high priority.
Motion by Committee Member Gonzales to move forward to Council with
allowing impact fees to be spread out over a five-year time frame, with
initial payment of ten percent, at zero percent interest, beginning with
the certificate of occupancy. Motion approved with Committee Member
Weir abstaining.
b. Economic Opportunity Areas (EOA) Program Update: Review of Downtown
Competitive EOA Awardees
(Staff recommends discussion and review of the Requests for Proposal results for the
Downtown Competitive EOA grant)
Acting Director Byers, gave a presentation on Competitive EOA Award
recommendations.
Committee Member Gonzales requested a memo from City Attorney on what
triggers prevailing wages.
Budget, Finance and Economic Development Committee
Page 3 of 54 Regular Meeting November 27, 2023,Agenda
Page 2
Motion by Committee Member Gonzales to move forward with funding
recommendations by staff, with Guild House removed. Motion
unanimously approved.
5. COMMITTEE COMMENTS
Committee Member Arias, asked for an update on the security grant program.
Committee Member Gonzales made a referral to request staff to develop a resolution to
clarify intent. Also, to determine what percentage of funding goes to the overall cost of
investment. Lastly, to look at Economic and Community Development as a whole and
how the impacts are measured.
6. ADJOURNMENT
Meeting was adjourned at 1:22 p.m.
ANDRAE GONZALES, CHAIR
BUDGET, FINANCE AND ECONOMIC DEVELOPMENT COMMITTEE
ATTEST:
JULIE DRIMAKIS, MMC
CITY CLERK and Ex Officio Clerk of
the Council of the City of Bakersfield
Budget, Finance and Economic Development Committee
Page 4 of 54 Regular Meeting November 27, 2023,Agenda
Page 3
BAKERSFIELD
THE SOUND OF,5mJdJ1iq V
Bakersfield City Council
Budget, Finance & Economic Development Committee
Business Security Improvements Grant Update
January 2024
The City Council allocated $500,000 to the Business Security Improvements Grant Program using ARPA funds,
which is eligible for small businesses in City Qualified Census Tracts. The program was launched in July 2023 in
three phases: 1) security equipment/window repairs, 2) security patrols, and 3) site hardening (fences/doors).
Allowed Improvements
Alarm systems, security Security patrols in Site hardening such as
cameras, lighting established business security gates/fencing, roll-up
improvements, and repairing district association or doors, security
damaged or destroyed organization. doors/windows/screens,
windows. removing visual
obstacles/landscaping
updates that provide more
visible and secure areas.
Application Specifics
• $275,000 budget • $100,000 budget • $125,000 budget
• $5,000 max/applicant • $50,000 max/applicant • $25,000 max/applicant
78 applications received . 1 application received; . 10 applications received
64 applications approved agreement pending, to be . 6 applications approved
All funds allocated considered by City . All projects currently in
—50% projects Council in February. progress.
complete/reimbursed
Security cameras were the
most popular request.
Business Experience Survey
Over 90% of respondents rated their satisfaction with the program and recommended the program as 5
stars (the highest rating).
100% of respondents strongly agreed the program made a difference for their business.
"We are thrilled with our extra security and grateful for the grant!"
"Thanks for giving us some much-needed support."
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• "I now have the ability to watch my store even when I am not there, which has been a huge help taking
care of it."
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BAKERSFIELD
THE SOUIND OF A a
TO: Budget, Finance, and Economic Development Committee
FROM: Jennifer Byers, Interim Director, Economic & Community Development
DATE: January 24, 2024
SUBJECT: EOA Program Update
This report includes staff recommendations to update the Economic Opportunity Area (EOA) Plan
and related incentive program, proposed changes to EOA boundaries, and future financing.
Goals. The initial purpose of EOA Plan was 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 in areas that were
selected based on their need for supplemental economic development activities. The program
currently supports 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.
Since development of the EOA Plan, the city has adopted an Economic Development Strategic
Plan, participated in the B31K Prosperity Initiative, and set aside other funding for larger
redevelopment projects and incentives, which has significantly changed the overall approach for
the EOA program. Based on Council guidance, staff recommends a new set of goals that includes
the following:
• Support Existing Development with rehabilitation and renovation of buildings, site and
landscape enhancements, and related development fees.
• Support Future Development with demolition,site preparation,and property acquisition.
PaPdjW�MY54
• Support Business Growth and Expansion with costs to start-up new businesses or
existing businesses that want to expand.
Attached is a draft updated EOA Plan in line with the revised goals and proposed changes to the
program. The incentive programs will continue to implement plan goals that include grants for
site and building improvements, demolition, site preparation and property acquisition, business
relocation and expansion, and continue to seek partnerships with financial institutions to provide
up-front loans to support EOA grant applicants.
Revising Boundary Areas. With the updated goals within the EOA plan, staff recommends
revising the existing areas based on commercial corridors and density of business licenses and
proposes to remove large vacant parcels, larger industrial parcels, and parcels where significant
private investment has already occurred. Staff also recommend the addition of parcels where
investment is still needed. In the attached maps are the recommended areas to remove and add
to each EOA area, see map attached. A key change is removing Hwy 58/Mt. Vernon EOA and
moving the Brundage Lane corridor into the Southeast EOA. Also adding a Hwy 99 Corridor EOA.
Please note that changing the boundaries of the EOA will modify the parcels included in the TIF
calculations. The TIF starting in 2024 will use the new boundaries. If removed the Hwy 58/Mt.
Vernon EOA TIF will not be included in the FY 24/25 Budget.
Financing. The creation of the EOA plan identified two sources to finance the program: the
allocation of property tax revenue through the ongoing reinvestment of tax increment and
additional funding through an annual allocation of PSVS. Since fiscal year 19-20, EOA revenues
have consisted of an annual allocation of $100,000 for each of the seven EOAs. In fiscal years 21-
22 and 22-23, additional funding was added for all EOAs as needed: PSVS ($500,000 FY21-22,
$700,000 FY22-23) and ARPA ($1,000,000 FY22-23). Due to the demand all additional funding to
date has gone to the Downtown, Old Town Kern and Southeast EOAs. In the proposed FY24-25
budget will include $100,000 for each EOA and $700,000 in all EOAs fund.
Although the tax increment funding (TIF) has been tracked since the base year in 2014, no TIF
funding has been allocated into the EOA budget other than a single allocation of property taxes
made in FY 2021-22 consisting of $9,594.
The EOA plan provides an example of how to assume the tax increment, but provides a conflicting
figure. In the eight years since the base year, the EOAs have averaged a total of $145,200.03 in
TIF, with the Hwy 58/Mt. Vernon as the lowest ($59,694.27) in TIF generated and the Southeast
the highest ($297,162.07) in TIF generated. The total amount in TIF generated in all seven areas is
$1,016,400.20.
Using an adjusted methodology of calculating the tax increment each year from the base year in
2014 the total EOA TIF is $3,747,215.65, a difference of $2,730,815.45. Since EOAs have only been
active since 2018 with the passage of PSVS, staff recommends a revised base year of 2019. See
all EOA TIF revenue scenarios in the table below.
Adjusted Base Estimated FY 24/25
EOA TIF Adjusted TIF Year(2019) Adjusted TIF Budget
DOWNTOWN $144,652.47 $427,634.13 $320,032.73 $48,985.28
OLD TOWN KERN $147,837.71 $593,207.25 $445,982.75 $85,549.25
SOUTHEAST $297,162.07 $1,138,303.02 $878,767.54 $181,893.21
34th ST CORRIDOR $168,731.12 $564,662.14 $404,764.46 $101,332.70
EAST HILLS $150,847.31 $721,576.71 $509,533.97 $77,756.56
AIRPORT $47,475.25 $135,186.02 $111,099.86 $31,483.07
HWY 58/MT VERNON $59,694.27 $166,646.38 $124,430.41 $28,216.68
Average $145,200.03 $535,316.52 $399,230.25 $79,316.68
Total $1,016,400.20 $3,747,215.65 $2,794,611.72 $555,216.75
Difference $2,730,815.45 $1,778,211.52
At Council's direction, for the next FY budget, staff could include TIF recommendations using the
adjusted methodology from the base year. The estimated budget is for the current EOA
boundaries.
Budget Recommendations. Due to the recommended changes to the areas, staff recommends
the following fund balance changes and budget for each EOA in fiscal year 24/25, the table below
does not include the TIF funds shown above.
EOA Budget Notes
34th Street Corridor $580,880 Includes previous fund balances
Bakersfield Airport $600,000 Includes previous fund balances
Downtown $400,000 $300,000 from all EOA fund, plus FY 23/24 fund balances
East Hills $600,000 Includes previous fund balances
Old Town Kern $200,000 $100,000 from 58/Mt.Vernon, plus FY 23/24 fund balances
Southeast $200,000 $100,000 from 58/Mt. Vernon, plus FY 23/24 fund balances
Hwy 99 Corridor $300,000 58/Mt. Vernon balance
All EOA Fund $400,000 Used in all EOAs (excluding Downtown) based on demand
All fiscal FY 23/24 fund balances for the actively used EOAs will be carried over to next fiscal year,
for Old Town Kern that is currently $227,264.66 and for Southeast it is currently $237,541.78. The
current Downtown EOA fund balance is part of the competitive process with a total budget of
$978,986.23.
Due to the additional funding sources used in the program, Staff recommends text amendments
to the EOA plan adding other sources of funding including ARPA and other federal and state
funding to support small businesses and community non-profits.
Updated Downtown Guidelines. With a successful Downtown competitive process, staff
proposes to continue a competitive process once a year to fund larger impactful projects over
$25,000. Staff proposes to request the ability to fund projects of $25,000 or less on a first come
first served basis. When funds are available, a one bonus grant for businesses on key
redevelopment corridors: 18' and 19t" Streets and Chester Avenue. The grant amounts will be
PaPdJWe'l108e54
determined during the annual budget process.
Marketing Plan. Staff worked with Finance and Technology Services to geo reference all business
licenses in the EOA areas to come up with a targeted marketing plan. Staff will work on marketing
the program to target neighborhoods/commercial corridors where we have not received
applications and in new areas added to the program. The methods for marketing will include:
• Community meetings
• Attend community/neighborhood events
• Direct mailers
• Updated website with online story-map on EOA program with success stories
Attachments:
• Updated EOA Plan
• Proposed EOA Maps
PaPdjW�ItOY54
...............................
Contents
1. Introduction...............................................................................................................................3
2. Program Financing......................................................................................................................3
2.1. Qualified Applicants.................................................................................................................4
2.2. Funding Sources.......................................................................................................................4
2.3. Tax Increment Financing Example............................................................................................4
3. Economic Opportunity Areas......................................................................................................5
3.1. Downtown Economic Opportunity Area...................................................................................6
3.2. South Hwy 58/Airport Economic Opportunity Area................................................................74
3.3. Highway 99 Corridor Opportunity Area..................................................................................8-A
3.4. 34th Street Corridor Opportunity Area...................................................................................94
3.5. East Hills Opportunity Area..................................................................................................104
3.6. Old Town Kern Opportunity Area.........................................................................................10.
3.7. Southeast Opportunity Area.................................................................................................114
4. Financial Incentives 12-10
4.1. Site Improvement/Rehabilitation Grant.............................................................................12
4.2. Business Relocation/Expansion Grant.................................................................................13
4.3. Development Assistance....................................................................................................13
4.4. Small Business Loans..........................................................................................................13
5. Implementation Strategy......................................................................................................14
44
5.1. Resolution Approving the Economic Opportunity Areas.....................................................14
5.2. Program Guidelines............................................................................................................14
44
5.3. California Prevailing Wage..................................................................................................16
5.4. Approval of Economic Development Activities...................................................................16
5.5. Continual Transparency.....................................................................................................16
44
Page 18 of 54
...............................
ATTACHMENTS
A. Map-Overall Economic Opportunity Areas
B. Assessed Values J..
22.:p 4)
C. Map Downtown Economic Opportunity Area
D. Map k Gr,;llr 8 IM!, ,/Airport Economic Opportunity Area
ii, PAap 4 mroa 6k � +
Map 34`h Street Corridor Economic Opportunity Area
II,';';':,,,Map East Hills Economic Opportunity Area
HG,,, Map—Old Town Kern Economic Opportunity Area
W Map Southeast Economic Opportunity Area
fVlgp JJ 81„ }a tr rrirlr r�a r irr irria CbLxLx;rlGril, !,,
2
Page 19 of 54
...............................
1. Introduction
The City of Bakersfield's Economic Opportunity Area Plan(EOA Plan)is a locally initiated program that
uses local sales tax revenue sairrl(,
Urnr 12 rl jki lrrirr 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 new
jobs.
The r4.,a B. c,ammc, ....8 r.; wr j L4, ao- dal
�airriN4+W,4 t 40 ia a ar—N )(6-44a 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 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 amenities throughout the community to improve the quality of life and attract
visitors.,,
Therefore, o-44+ u, rrvs- i�uaoH- q;,F-PSVS funding sul,2.,1u11,LOA k44�
implementation of EOA programs that address the investment priorities.
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Grim oi;L holtirrni„ia rir&tn c;rn Plan Fja i r"r&t@��' ., UiiyUra„I„p,ira i alalai'.:rrvnr a frr„i,rr iir',hrainnwor k;L h aL lira rp,r„nrd
..
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irr U `p ol;,
rain frrirrrn&nt ri,rta or`;itI;in frrirr`,..i rrir�ai�aini ri�rii rEOAEOArrl.,nr��w,vn�, ra a tprr.a.arrrt i.:;rn iirr.a nurrniritaUrr..
i i;L,fi n i r l i v2...l2.E.i.6.m aid..�j...�r.�l.Mk.
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. U@o e �R-�w, awl 84W;Pul2lic financing may serve as a mechanism to develop
and encourage new business, enable existing business retention and expansion, and provide other
economic development opportunities.
3
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Page 20 of 54
...............................
2.1. Qualified Applicants
The financial incentives are eligible for both for-profit businesses and tax-exempt entities.
Program applicants must also be legal businesses or tax-exempt entities located unUriiror re-
locating iirt,rn+r•v 4ro-ra,an ion G4
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 owned by non-exempt entities above where they would have been
without such improvements. With higher values, property tax revenue naturally rises as well.
Fl,1n Lax iiraa'ninnirt il,rirrliir,„sau;rrrrunLc,,will Igo ring,ormiirnrl;;�irnu allyalrm ,lr t',I,rn L,Grrl�,nt 4.xirran�,�a
Additional funding sources from the City's general fund,per PSVS investment priorities,can also
be included.SLEH�kmj,o-o 4l xa a .ypr ao-4 5/-?4,4 .:
I9WI ....n=u 49940 eaa�o- ns. 9r a �e�a iwWo � bw exiaa<k, :NH, C46"o41,
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iart-wu, 4f go-, o-mY rc-"WIrnir a„V riIa2Ino t?;the Cityrt,>�So intendsto utiIizeand leverageoaxl,,6-+; ,State,
ems- +s.ae tra further enhance revitalization.
Federal,an other economicdevelopment f Grir,
All frrirrlc Will Lrn tallr,n„
aatnd tas{l.rtart rrf tli,n annual bud„Lt
L�r r2512r21rd trr t rn in„raUvn iirrl.rtaaAs rrf;t rn Crrvig; NJ Lrta�nirric,n;8,,,Ht& funds Will .rn usod trr tan{Fis.L
.,sinall busillossoc, ir..r,;#rrrifint..,,tnir Gr,'C�riaat o son...�ttaa rirrfirtl fV1ql�.i2r2f�rr�..;,ifint Cni,nrr fi aaL,;`t...
2.3. II',gx Increment rr;m,ent II ui npi me l i ngExample
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.
4
Page 21 of 54
...............................
Figure 1:Tax Increment Financing Example
$600,000k
$580,000k
$560,000k
$540,000k
$520,000k Tax Increment
$500,000k
uum Property Tax(Base Year)
$480,000k
$460,000k
$440,000k
3. Economic Opportunity Areas
Seven EOAs are included for implementation. The areas are: (1) Downtown Bakersfield EOA, (2)
ft.alsp 4444-skauffi 8lanrta !p�/Airport EOA, (3) Po-way !; L464,4rw fmB,,lwy JJ C(Lrldoi EOA, (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,£aGrl.al.arart,i,rrair Larrafu,t`?..and provide other economic development opportunities
with funds allocated toward economic development activities that include and support the following:
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Page 22 of 54
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?i °:well ...d.im �rr;s: Irawsan -E",aao-�a:�o-a�-k� ;kc,ww�e�l�a;.xo-�me��ra f` _sa
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 4isl in the 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: &tn�dp,inUal,Commercial,
Manufacturing, MV xpd Usan
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a,h.im wdm
Investment Opportunities
Downtown Bakersfield has historically served as a center of civic and business activity swirrkw-d.,a 6
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 wa H...r�+� pa°ai;,4„I„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.
6
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...............................
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
y, Proi x„(rtnlrik„Ir;. nir iiaro idinirtiaYdinvnlrrlx;l,;rrni1:('.
3.2. South I iwy�gjAirport Economic Opportunity Area
The SrrGrtll; I lWy 15LAirport EOA o-,4 a—6 v44ilsI, i!;,,r„Southey.;A .,;H4R 1I<0,1 f iOld ,11Id is
anchored by the Bakersfield Municipal Airport and Urf hisLoria; Union !"jvoi up Cry i ld or.,: Flip„
F(li'12 rEL sw k4+4s a City-owned and operated 190-acre general aviation airport.The area profile
includes:
Figure 3:Airport EGA-Area Profile
Area Size: 929 Acres
No.of Parcels: 209 Parcels
Primary Zoning: Industrial,Manufacturing
f����r�r r:�14aaT.pala .1)•. .I�. w00
(20( k4)� c,uk,447w�"w`44:
.p°4'=f3.3 e�F=C�qu"$:,.:;Iv Bee�ru�6�4-Nrk6r(20�4— O.A4
q:t.w°al.n sty i:aa¢ (N 01 k `i4447,44 4�a94
Pwra1.04}di:aav8tpv�H'(40N
PS VS a a - p�C 4 Y0
�`t`adt;b a �ar�a��4�Wit- Kt.d4�C�(tC4C4
Investment Opportunities
A majority of the (;rrGrUr 81v y 15S/Airport EOA area is lightly developed, and existing land use
designations support a ��uaa�r,;: " , ln,r,ucLrlal sairdl cominni-cial uses. flip in alit
k,,rnrnrrnITi„a (`rlrrld r„ii +rain lli nrnr ftvnir„Gin,,,rrGrillr flrnsinE ftvnirGrn t��irdl fVltaEtui,r 8 Grilrni ll<iir Jr.FiV,vdl,,,
The 40A area prl`l r l Union Avni up-rx;k44'-"tents- .H-P-consists of lightly developed or vacant
a.,
land.i s: �significant portions of land north and south of the airport have development
7
Page 24 of 54
...............................
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 4;(mffi 58 1lwy/Airport EOA offers excellent opportunities to develop into an industrial
cluster, especially for businesses that require sizeable amounts of land. flrni`ra i£a also Lho
4.a4.arartariri,t4a tra �aaa„4al,arart L,aa�aiirn�,�, nx„I.asair�airairpairs4 Urn Ur„i,nn ina�ircoirnrnni4Ja4,
con-kini-,. There will be a noticeable benefit in allocating IG„p„i„rrl,s
toward filling vacant structures and infilling undeveloped properties.
The potential economic development activities here include,but are not limited to:
• Incentives to fill vacant
• Incentives to develop vacant a441and.
• Environmental remediation and site preparation
3.3. Highway°,81M%,VOrROn 99.,.C2v1j1a4aaa,Opportunity Area
, EOA is located in Conti al `or 4.4�Bakersfield, and
The Highway ;S'���� t�w'ea'�rt��u�JJ aurarri,r4rai
allows for vaiI:.lei„Ik41.uwJH4wwap,-or-commercial development.The area profile includes:
Figure4:Highway58/Mt.Vernon EOA—Area Profile
Area Size: 1,079 Acres
No.of Parcels: 175 Parcels
Primary Zoning: Mar�w k"g4w, �ainin�xraa<aM
°P+R=IgpFty kpv�H,(?O(;k4—:
°P°R'190F=C,qu"$:.:;Iv kpv�H'(?OO —,r�—`. s-
q:r.r°al.aoFty Pia44owH.H+-+?946�.r .44.:7.
°P°R'190F=t,qu" kpv�H'(?OO1
q:r.r°al.ao Fty.4ax 84o,Wm,",mm (,70 kR�
E°Fra1904,ar 4 ax 8tpv�H'(?(1 N 4
PSVS
Iol. a44 ffieR:W_!!,R..�:him adn*l . .,':. ° t �
Investment Opportunities
This area benefits from a4or,o, to the Highway with Lho in aiir saa`a;,oss
2 2 Ls tra,,;tlrn CiLy g4 �n,r2i`�4..interchanges a> G Ak4 my vow-Wa.a<k
S P J `, Highway��,to-c�w!'..The tanned Centennial Corridor Project will nirlrsaira`�connectirair tra Hi hwa 58 aairrl,
Lho 6o ty�w Westside Parkway, with access to Interstate 5, thereby, enhancing this area to
8
Page 25 of 54
...............................
businesses that rely on convenient freeway access and to trans-state and cross-country
markets.Potential economic development activities include:
y, Incentives to develop vacant land
• ..L.1.i.:.n.!::is�.l.v.o.`r...L.eb..!:�..L..y:?.c.aa.1.isL..IIb.lk!..L.�.fl.LLr�gi.�`r
• 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
Primary Zoning: Commercial,Manufacturing,
Residential,Recreation
a;.xok r ae` aN a f `,229 940783�,0
y'
-44
at..RovpNKl p.,.(.2 N
ikP�N
P545r (P,aF-4�4 20 wnu:.449+ '
P545; `ve:,a.u-�.,{.
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 QStreet 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 a ` '"wr k4r4 2sl,l',,the
commercial/manufacturing areas may be ripe for transition. It is` rN a�p°4-��ir�wa`i x��nrl�2,y
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
9
Page 26 of 54
...............................
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 ry ry
kH4111„++X44)....
PR3"gpFty$:b.Dd..kpv5�4-NH,,..(201 k4)`, 14
rF4 .i�bnn o�ru�s�4-Mkm'r,..(w„0l
8 'aigo„wty ..8�o W� �n�;;n.�(N kR�m
:b.y�..kPrOP4-N,kv!p,..(2014
i SVS a - C44 C Y4
�44d4.y,a �ar�a4��4� F- K„u.dC�(4C4C4
II& pmen:W. .!!on 14:hi d4 i n*l . Xi °
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 EOA 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:
10
Page 27 of 54
...............................
Figure 7:Old Town Kern EOA—Area Profile
Area Size: 586 Acres
No.of Parcels: 1,820 Parcels
Primary Zoning: Manufacturing,Commercial,
Residential
PR= jgpF=C}u" kpruw5�4-NH,,..(20�;k4).
PR 1904}u" :b.Dd..kpruw5�4-N.kv!p,..(?O1
Ku
PF;a'I'.apFtara
PR 1904Y kpruw�km!p,..(201!
8 F4'ih�oFttm.iwbbR..d t Wa am;�;,,..( o� k'i m �
PR3 904Y$.b.y,..kpruw�kvlp,..(20 14,
P31"7b V'`f 2049_ iuv`"w.Fuw "
PS VS
PSVS
I . "I �. pllaa~a'az'ra:�urara'' � ��� "''���"I m
Investment Opportunities
While the area is economically distressed,it has a Hipyfl,)Po-4sa low buildings and sites that reflect
the rich history of the area. Because of the Railroad and the availability of social service
providers,the area i,,Lbpo4I;,r,sas bonir,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:
• Improve pedestrian connectivity(e.g.,sidewalks,park benches)
• Enhance visual characteristics(e.g.,stamped concrete,kiosks)
• Enhance security(e.g.,lighting upgrades)
ZBeautify medians and islands(e.g.,install synthetic turf or pavers)
• Proirr atn hi,Ir r,JLir tta rpss dpnUra4,,,rin nlral,au;rrnirt„•„
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
A'.. rra emltsar ta...Wt,ala a ia's" �).a' ;.A: 4 F",,994 0
PRaj pF-ty�:a.y,..kpruw�H,,..(201 k4)`,
11
Page 28 of 54
...............................
8rw4a19oµty.iaaa (N04+
PRw 1904sr a makcy..(2(1 C}
qa. trsr.I a.;4 P,pw5 H a —P44,:: r ;
P4=r3°I904Y i.;. ..8 rub Nk6y..(201N
PF4.190 wty.iwb:a (N0�
io6aai c,:k,4,4 ! 4
ir�;`ad�;Fa �saa=—Ism Ku.,lC1 �1CY!wi�(YC
F �
�'.:. oIT"w I raaend�uraaa�'a�✓a��irsd.in
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.,.a:�:y.,.€,.,c,., 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)
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 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)
12
Page 29 of 54
...............................
• 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 ` a++ n,£a£a £a„to relocate to an
EOA 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.
4.3. Development Assistance
Reimburse Development Fees.Reimburse development fees for lr Ls,
rar IrrK;kl`n €kanr2l4,l,11k„ Grlrlik;,i`taa`rn� talr„€k +-a`rrlrrrrrnl`a`IaI I;,w€knvnlrrl,>„irrnlri rrr..!`n€rsn rrf..ta v"ra`aIr'..,,o!.
€rlr€k Ullr r„„1„xo-"a bra`arr 10A.;rpc 7 rmm Pa€;.x`arrrk gal+4;i4g�t- existing
building.Fee categories that may qualify include transportation impact fee,building permit
fee,water and sewer connection fee,and planning/land use fee.
`tst;tb+` Fre� M;"�ehYE Commented[CG1]:Recommending removing because
infrastructure costs are too high.
w4l:';--{a':3° �e44-}" -}.;bd}4+4=: FI-}-FF;���N`a nrr�+ aka `Irrlr€yakao-w"Ol.ko-H k+4o-a` `
44�-Yus, at?"
am�c<ka:;o-�s,N'.aaffsaFrr.:a4ila�t;4aFlmtra4-4,ao-a�ksa:.al.aae
•
o ^� ®-ra4-}4.4d i €� f€ IHk-4 Pew:; -4. w.€,,, y.y Commented[CG2]:Consulting with financial institutions to
* [provide small business loans.
�5w°tiww4e'4 LDI ttrm 4'+'l d44-3 IRw3�". �wwy... ��
laowq..a;l 41d ,Il ll::oip a F'eq)M y1144 ..I'"H4
4.4. Small Business Loans
Establish a Irualrprogram with a ww— a 4 partnerrk„1`lair€kliik,IiisULuUrllk,to offer small business loans
Hart„ ,4,A;aH(4-in EOA areas tra sascnaval wnln o±2u .,llltsaUralr 4„I` lrt sal.al.alla` lr,twa.o-
d.,ao- rr-aa Illrrl -1 taa: aal.as,.rat+rr�;-a=a;.aa�l�a=�o-€4wmk, 4aa`a�o-�se� :;��r`Irri�ke�c��,�; f�;a�rml�ao-l� -41r€�a+w�;-aao-+a-r
<{aso-l.ao-�rm� `ar<f a wo-a`No- e a;.ao-mm . P06+14a,
l�u�ww�a�4rp�+r�rr, ', r ' r.. mRw`: 4w�raao-+a.war fiawsle�:�a �rta-wmt�r`2", I:r
13
Page 30 of 54
...............................
5. Implementation Strategy
5.1. Resolution Approving the Economic Opportunity Areas
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 rove,=aorlbase year for the EOAs will be July 1,20194.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 ypv v ,n i„i 01 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.
• 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.
TEconomic 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.
* AIIII II OA II uaimal�; hn s,rurrn1i ca l k,nkarza, Urn iGp,irrfing i`x...G„rntatnr,;t'Irnrnirrrn.san
PSVall..l and vn4,1 L,n PsLa,J,hshnd for all ECb r ilcpntivn is, i11„Igo
Ft�a. �rrairC',ra rairrk rrUn tawardod b asod on dnirr„and 11-2irrnhi„iI,L saj,x12licaUra„i;rs.
•
5.2. Program l4Fv4 ., ., lam. .,F^: g oua~a Guidelines
1.9A..PFogFam44; .,
14
Page 31 of 54
...............................
�mgi�r��4���mtnl�mmw1�uTm�•f�im �mw�
dW a lrrl.bc,� 4 kx,s 54 o- — +va4o44 LOA,,
aa4y-X�4,x G4 G4ww el a4iop4 amd+ovr-,ri PWA Br.a
5;4+ aw 202:
�w,o- vtaa'E k 8 r<kav ,aka � 8)c,v l alb+mac
" `aaa-to�.�„ ;m�;.b�raW�s � Iri�u�tua�la� wa�44 d.bao-�v;ao�,r.�4rsa�-w�o-aa+tk�l.b��r�t�a�,�rw
Comprehensive program guidelines will include a description of financial incentive options and
well as detailed guidelines that will establish program criteria, v4u@ adba4a V„€„lxllbllrt,k and
application guidelines. The grants and aka Wmrddaap.baamP w offinE linal cialassistance will require
agreement tom+ .6s,s, 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.To be eligible for EOA program grants and loans you
must be an existing legal business or non-profit located vntlrllpor re-locating L2 la r122(,luatnd
Irn S,' &t vallal.bin Lo s, =a,and Imil 4.b rrbfll�a Ural, al-2 rb4.bnrtbUlrl�„ Ill,
,. l Grlrr�, utrl b Irrsa ar£allrn£a£an
tJ} llllnd t;ollsul,tr;;acl,s tbink,Worn rkl�al;>f"rbLbrbrClrbl;;rFllnl F Ilrr,l,;uba'tnrk Lb;,al,Urn 4.btblrt�nlrrla;,..
Por CA Govnrlrlrnnlrl Coda 53083, Lho EOA 1lrrbl„rsblrrwill Iollow Urn I-L(JGrlrnlrnnllLs for ciLin`a,
2 f LbGrl.bllc f,,
,Grlrrkllr'k all'na�rblrrbl,rrla'rknvnl,rb4.blrrnlri,�aGrl.b�alrk�a," vrlrla�lr I1xtblraa nxhbr,�,IrrkliGrrn r,i Grlrrk�a or 4,rbsk,,
of rnvnlluL U2a local sbl,nlra'aailr Urn airmulrlrbf olin IrGrlrrkl xrk Lhousavlrrk dollnl;,,a(,ai(t(t(1(t(1(rbr Irrrbrn,
f'rbE Urn hbGr,rl.brb�an rbf.., n�blrrblrrlc rkpvd(bl.blrrnlrt,yltlrin Uror jGrElsdlcl,,lolr rbf a local sbl„nlla`�a,.
4„ rb Ibrbll. l„I alvi£ Irbalr „ Irbalr BIU2 alrinn,,;,r. I'r,! n rrblry r,br I;ra Grr Ilra�g„� bGri Irra�� Ilrrllnt„... ,
,a lalrrklpElc�2 saGall2si klns,, lrraLdrllrl;, fGrlrrk�a ,Ltb rtlrr4.brbvrnrprrnlri rrll;rn Ilra'nlaUvn�, Ion vrnlvr4,l , ...
aalbbtnlrrnl,lt ,ibx nx,nlrrlbtlolx.,=a,and Lax„aInrklt.s..
p,:c,arckllaU,awl ; :o-��a�Ira.:aa+s,aa�4-a:as ,
Nac,a.;l.aa�al arr<k 0-a;ma�rra ll- ;-4rv;.d.brwsl�:a wa��Ur.a�t amae�c, 4a 9aa44
yv. ..
44, o34l"647 , .
(xl U(p wvs -I.b:a x°k as wa
.�Hiy4nl;a��
w1,Vk-44lo°a--,4O4,RH-t°4Yap4= r+p+..
15
Page 32 of 54
...............................
5.3. California Prevailing Wage
Lin Li112'mw'2 irk,Gr t L I">,2 kk trk all wo kni 2ir112lr Y2an ,,,,2U IL!2.R.k; knrrki 1<�i,k!rklnk t,,22 kkniiirn(i I2.Y
LIrn Gflhfr„kiiria 8al.arkr Crkkkn„• &rkr cr�k„ircairGrciirki , alinrtk.iioir, dnirrrkhUoir, and 1-212„ghi I.xirklnki�r
12 n a 1 112'EU'22 211 U2 nM I nkk lK:k...b(I lx 2ikk:irki 121'2lLL 2 ':�k:T.(1(1(1 2L 1222,21 ` 1..1000 rki Y.Oss
k t ncp rkI I<Gr��iii � rk e �k t... Irnir tlrn..l.xi'rk nt`t a„5a irrt�iirtnir
a...b
<kn.urrr- wto-r- k...�a
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 iH— r44-w 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.
16
Page 33 of 54
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RD '96� %%%%� G� ■J %%%%%/%!���� /O, �asf"H i I Ia
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CALIFORNIA J w
AVE Nl J 1 `cSONfywr W ai� PIONEER DR J
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