Chapter 16.01 — ECONOMIC INCENTIVE PROGRAMS

Section

16.01.010 Purpose 16.01.020 Incentives available 16.01.030 Economic incentive programs 16.01.040 Powers exercised

In the face of the state's decision to eliminate redevelopment, the city must design and implement a local program within the authority of its powers under the state law to accomplish the purposes previously served by redevelopment programs. It is therefore the purpose of this chapter to implement a program, within the authority of the city under the powers granted to the city by law, that will provide economic incentives to businesses and property owners to encourage commercial and industrial development on vacant land that is currently zoned for such uses in order to create an inventory of commercial and industrial sites. It is also the purpose of Chapters 16.01, 16.02 and 16.03 to encourage retention and expansion of businesses in the city that are already established, as well as to encourage other as yet unrecognized opportunities for economic development as they arise. (Ord. 2013-30, passed 8-21-2013)

To accomplish the purposes provided herein, the city and its associated and subordinated entities shall have the power to carry out policies, plans and programs, to enact measures, to enter into agreements, and to loan, grant, fund, or finance projects which will provide public benefit and protect the public health, safety and welfare of the community. These programs may be carried out singly or in combination in a manner to promote the objectives of this chapter, and may include the following general types of measures:

(A) Public-private partnerships. Agreements with private persons or entities where by the sharing of public resources by the public agency, the reduction of regulatory burdens, asset monetization, fee producing infrastructure, alternative procurement, concession agreements, leasing arrangements, securitization of obligations, or other measures, the risks to the private person or entity can be reduced to a level whereby the development entity and investors can earn a commercially reasonable return on investment and will accordingly proceed with the project;

(B) Emerging statutory opportunities. Special legislative programs exist, and are likely to be enhanced as a result of the elimination of redevelopment, the state's most important and best funded economic development strategy. Under this chapter, such programs should be exploited to the fullest extent of the law. Such programs may include design build contracts; tax credits; infrastructure finance districts; environmental sustainability programs; enterprise development zones; foreign trade zones; and similar legislation. Any legal structure existing currently, or enacted hereafter which permits the city legally to carry out these purposes is permitted hereunder;

(C) Public financing. All public financing mechanisms which offer the opportunity of lower financing costs, if permitted by law, may be utilized including lease-revenue bonds, revenue bonds relating to the EB-5 Program, industrial development bonds, private activity bonds, certificates of participation, letter of credit enhancement and similar measures;

(D) Special districts. The financing of both the development of infrastructure and services through community service districts, landscape and lighting districts, assessment districts, school facility improvement bonds, and similar special district financing mechanisms permitted by law;

(E) Public property. The use of ground leases or sale of publicly owned land, including at less than fair market value as provided herein, contractual development agreements in accordance with law, lease-lease back financing, and design-build contracts to acquire property for the foregoing purposes;

(F) Tax rebate agreements. The use of tax rebate or similar agreements permitted by law including for sales taxes, transient occupancy taxes, utility taxes or other taxes shared with the generator, and rebates or waivers of franchise fees, business license fees, development impact fees, or other revenue sources but any such tax may only be imposed in accordance with law;

(G) Regulatory relief. The modification or suspension of zoning and other land use restrictions affecting the feasibility of development, density bonuses, expedited processing of entitlements, the establishment of clear and consistent regulatory regimes, creating procedures to quickly resolve disputes, clear definition of scope of environmental review and use of scoping processes;

(H) Other agencies. Use of financial assistance provided by other local public agencies and by state and federal programs to assist projects, consistent with the requirements of such programs; and

(I) Other programs. In addition to the foregoing, the city may utilize any other program and provide any other form of direct or indirect assistance as the same may currently or in the future exist which would further permit the accomplishment of the purposes provided herein, to the full extent permitted by the law. The enumeration of certain programs herein does not preclude the use of any other program which might accomplish the purposes of this chapter. (Ord. 2013-130, passed 8-21-2013)

The city may plan and carry out an economic development incentive program for the improvement, rehabilitation, and economic development of property through public-private partnerships, or utilizing any other method provided in

§ 16.01.020. Any economic development incentive program must identify, explain and analyze:

• (A) The project to be assisted;

• (B) The location of the project;

• (C) The cost of the project;

• (D) The proposed project financing;

• (E) The assistance requested;

• (F) How the assistance will be used;

• (G) The benefits to the community or city from the project, including jobs, financial return to the city, community improvements or amenities or other benefits;

• (H) The anticipated development schedule;

• (I) Performance criteria and assurances;

• (J) The public purpose to be accomplished by the project.

• (Ord. 2013-130, passed 8-21-2013)

(A) To carry out the economic development incentive program and promote the projects developed under this chapter, the city may exercise any power or authority permitted under state law, for the public purposes provided hereunder, and may do the following:

(1) Receipt of financial assistance. The city may seek or accept financial or any other assistance from public or private sources, including from the state or federal government, for the city's activities, powers, and duties hereunder;

(2) Acquisition of property. The city may purchase, lease, obtain option upon, acquire by gift, grant, bequest, devise, or otherwise, any real or personal property, any interest in property, and any improvements on it, including repurchase of developed property previously owned by the city;

(3) Management of property. The city may rent, maintain, manage, operate, repair and clear real property and may insure or provide for the insurance of any operations of the city against risks or hazards;

(4) CC&Rs. The city may provide for the retention of controls and the establishment of any restrictions or covenants running with the land for such periods of time and under such conditions as shall be necessary to effectuate the purposes hereof;

(5) Non-discrimination. The city shall include in all deeds, leases or contracts for sale, lease, sublease or transfer of land, non-discrimination clauses;

(6) Issuance of bonds. The city may issue its bonds or other financial instruments permitted by law and expend the proceeds from their sale to carry out the purposes hereof. The bonds and obligations issued by the city also may be purchased, invested in, or used for security;

(7) Site development. The city may clear or move buildings, structures or improvements from real property; may grade any site; and may develop as a building site any property owned by it. It may cause or make provisions with other agencies for the installation of streets, utilities, parks and other public improvements;

(8) Property disposition. The city may sell, lease, exchange, subdivide, transfer, assign, pledge, encumber or otherwise dispose of any real or personal property or any interest in property acquired by it;

(9) Remediation. The city may investigate and evaluate the condition of the property, prepare remediation plans and obtain approval thereof from regulatory agencies, and undertake remediation in accordance with such plans;

• (10) Relocation. The city may provide:

• (a) Relocation assistance to persons displaced by governmental action: and

• (b) Aid and assistance to property owners in connection with rehabilitation loans and grants;

(11) Cooperation. The city shall cooperate with other public agencies in the formulating and administration of its economic development incentive programs. The planning commissions and the legislative bodies of the city and the cooperating public agencies may hold joint hearings and meetings regarding the projects assisted hereunder.

(B) Any powers exercised hereunder to carry out the purposes of this chapter must be carried out in accordance with state and federal law. Nothing herein shall permit the waiver of any applicable legal procedure or process. (Ord. 2013-130, passed 8-21-2013)

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