Brea Municipal Code Ch. 17.01 General Provisions

A. The intent of this title is to establish standards and procedures for creating economic development programs and incentives for the purpose of promoting the health and welfare of the City's residents, businesses, and visitors by increasing retail, entertainment, and recreational opportunities; increasing the value of residential and non-residential properties; and expanding the City's tax base, which increases the City's ability to provide municipal services. The City Council finds that creating such programs and incentives is a proper use of public funds that serves an important public purpose.

B. Nothing in this title shall be construed to either require the City to provide an economic development incentive to any particular person or development project or authorize the expenditure of any City funds not previously allocated for such purpose. All economic development incentives shall comply with state and federal law, and nothing in this title shall be construed to require or authorize any action that conflicts with any state or federal law.

C. Any term used in this title that is defined in Section 20.00.070 shall have the meaning set forth in that section for purposes of this title unless a different meaning is clearly intended by the context.

(Ord. 1266, 10/21/2025)

A. The City may from time-to-time create, implement, and carry out economic development programs. Without limitation such programs may include the following:

1. Marketing programs that promote the City's natural, historic, and cultural resources; commercial and residential real estate opportunities; recreation opportunities; special events; entertainment options, tourist attractions, and other City amenities through public outreach and City events.

2. Business attraction and retention programs designed to attract and retain businesses that contribute to the overall economic development of the City.

3. Workforce development programs, including workforce and labor assessments, to attract and retain local employment opportunities and connect residents with such opportunities.

4. Economic diversification research and marketing to identify and attract new or expanded economic development opportunities.

5. Collaborations with for-profit entities and non-profit organizations to provide additional support to the business community.

6. Collaborations with other public agencies, including entering into joint powers agreements, to develop and fund mutually beneficial economic development plans and activities.

7. Site identification and business relocation assistance programs that identify and assist prospective and existing businesses seeking new locations within the City.

8. Private sponsorship and partnership initiatives for recreational, entertainment, and cultural attractions and events in the City.

9. Permitting reforms and assistance programs that expedite approval processes for economic activities that provide broad public benefits through job creation, infrastructure development, tax revenue generations, tourism or other economic benefits.

10. Grant funding opportunities, by which the City may obtain or disperse funds for promoting economic development in the City.

11. Issuance of bonds or other financial instruments for the purpose of expending the proceeds for any other purpose or program authorized under this title.

12. Infrastructure development as determined by the City Council to be necessary or useful for the economic development of the City.

13. Acquisition, sale, lease, management, or use of real or personal property including: (a) purchase, lease, option, or otherwise acquiring property by gift, grant, bequest, devise, purchase, or other means, any real or personal property or property interest and any improvements thereon, including repurchase of developed property previously owned by the City; (b) sale, lease, exchange, subdivision, transfer, assignment, pledge, or encumbrance of any real or personal property or property interest for purposes of economic development; (c) maintenance, operation, repair, or management of real property; and (d) preparation of real property for new economic development, including clearance or moving existing buildings, structures, or improvements; grading, installation of streets, utilities, parks, and other public improvements; remediation efforts, including investigations, planning and preparation, regulatory permitting assistance, and direct remediation.

14. Creation of assessment districts or other similar funding mechanisms to fund services and infrastructure.

B. Nothing in this section shall authorize the expenditure of any City funds not previously appropriated for such purpose by the City Council.

(Ord. 1266, 10/21/2025)

A. The City may from time-to-time, and only upon approval by the City Council pursuant to written agreement or other instrument, grant direct economic incentives for private development projects that provide a significant, and specific public benefit in the form of loans, grants, financing, financial concessions, property transfers, or in-kind contribution of goods or services. Such economic incentives may be implemented singly or in combination with other incentives and programs, and may include the following:

1. Public-private partnership agreements.

2. Agreements to forego, waive, or reimburse sales taxes and use taxes (as defined by Cal. Rev. & Tax. Code § 7202).

3. Grants and loans.

4. Fee abatement, discount, or deferment agreements.

5. Agreements for the purchase, sale, ground lease, license, use, financing, lease-back, of real property.

6. Agreements that provide regulatory relief from the City's land use regulations including development agreements that provide for expedited processing of entitlements, vested development rights, and procedures to quickly resolve disputes, provided that nothing in this section shall limit the availability of development agreements for any other legal purpose.

7. Any other form of financial or in-kind assistance for a private development or business operation, as determined by the City Council to be necessary or useful for the economic development of the City.

B. Any economic incentive provided by the City must be memorialized in writing by written agreement or other instrument in a form approved by the City Attorney and approved by the City Council or the City Manager if so authorized by the City Council.

(Ord. 1266, 10/21/2025)

A. The following types of businesses are eligible for an economic incentive pursuant to this title:

1. Businesses projected to both generate at least $175 million per year in taxable retail sales, employ at least 50 persons full-time, and is either:

a. Retail sales, warehouse store, provided it is 125,000 square feet or more in size and located on a minimum of 10 acres or more of land; or

b. Automotive sales and leasing (major), situated on three acres or more of land, with a service center.

2. Special programs and events of regional, state-wide, national, or international significance that create significant and unique opportunities for local tourism or economic development.

B. Any businesses seeking an economic development incentive from the City shall submit a request in writing on a form approved by the City and include the following information in addition to any other information required by the City Manager or their designee:

1. The nature, proposed location, development cost, projected financing, and development timeline for the project, and, if applicable, a five-year forecast projection of retail sales once it is in operation.

2. The form and amount of the required assistance requested, and an explanation of its necessity and how it will be used.

3. The specific public benefits that the project will provide for the City, including the number and type of jobs created, any financial return to the City, and any community improvements or amenities or other benefits.

C. No economic development incentive shall be granted in violation of state law, including Cal. Gov't. Code §§ 53083, 53084, and 53084.5.

D. Pursuant to Cal. Lab. Code § 1771, any work done under contract and paid for in whole or in part out of public funds from an economic development incentive from the City shall comply with applicable prevailing wage requirements.

E. Any agreement or written instrument conveying an economic development incentive under this title shall include covenants prohibiting discrimination because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, and age.

F. All economic development incentives shall require final approval from the City Council, which shall have the sole discretion to determine the amount and terms and conditions of the incentive. The City Council shall hold a public meeting on all contemplated agreements regarding economic development incentives, subject to notice and hearing requirements under state law.

(Ord. 1266, 10/21/2025)

The City Manager or their designee may adopt such administrative policies for implementation of this title.

(Ord. 1266, 10/21/2025)