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HomeMy WebLinkAboutMINUTES - 08162005 - D2 TO: BOARD OF SUPERVISORS * ` Contra FROM: FINANCE COMMITTEE Costa County DATE: AUGUST 16, 2005 io t)t SUBJECT: REPORT ON ECONOMIC IMPACT ANALYSIS REQUIREMENT FOR LARGE COMMERCIAL DEVELOPMENT PROJECTS SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ACCEPT report from the Finance Committee on the Board's referral of a recommendation to establish an economic impact analysis requirement for large scale commercial projects and AUTHORIZE Community Development Department and County Counsel to develop and prepare an ordinance for Board consideration requiring an economic impact analysis for a commercial development greater than 60,000 square feet of net leasable space in which the County is a direct participant. CONTINUED ON ATTACHMENT: X YES SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDAT N OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): Supervisor John Gioia Mary NeJedly Pie ho ACTION OF BOAkb ON APPROVED AS ECOMMENDED ,OTHER 4 A-Dbak)0utAe,---- I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND VOTE OF SUPERVISORS ENTERED ON THE MINUTES OF THE BOARD OF UNANIMOUS(ABSENT E) SUPERVISORS ON THE DATE SHOWN YES: NOES: ABSENT: ABSTAIN: Contact: Patrick Roche,CDD-AP(925)335-1242 ATTESTED cc: CAO JOHN SWEETEN, CLERK OF THE BOARD OF Clerk of the Board SUPERVISORS AND COUNTY ADMINISTRATOR Community Development Department County Counsel Redevelopment Agency , DEPUTY August 16, 2005 Board of Supervisors Economic Impact of Large Commercial Projects Page 2 FISCAL IMPACT Should the Board authorize staff from Community Development and County Counsel to develop and prepare an ordinance for Board consideration requiring an economic impact analysis for a commercial development greater than 60,000 square feet of net leasable space in which the County is a direct participant,this would be an unfunded mandate and costs would be incurred to undertake this activity. The cost of this activity is estimated in the range of$20,000 to $25,000. BACKGROUND / REASONS FOR RECOMMENDATION The Board of Supervisors on September 28, 2004 referred to the Finance Committee a recommendation from Supervisors DeSaulnier and Gioia that the County establish a requirement for an economic impact analysis for any application fora commercial use of 60,000 square feet or more. Since the Board's September 2004 referral, the Finance Committee has been reviewing several iterations of an outline prepared by the Community Development Department for a proposed ordinance that would require an economic impact analysis for any development application before the County resulting in commercial uses of 60,000 square feet or more. At the Finance Committee meeting of August 1, 2005, a consensus was reached by committee members to recommend the Board authorize the Community Development Department and Office of County Counsel to develop and prepare an ordinance for a commercial development project greater than 60,000 square feet of net leasable space in which the County is a direct participant. The proposed ordinance would require an economic impact analysis for a commercial use project in excess of 60,000 square feet of net leasable space in which the County is a direct participant for the purpose of identifying and assessing the impacts of the project, including positive, negative, and indirect impacts, based on a 20-year horizon. It would assess the project's ability to create jobs, the project's costs and benefits on the public sector, project's impact on the local retail/commercial market, and the project's consistency with existing economic development and revitalization goals and objectives of the County. Under this ordinance direct County participation in a commercial project would refer to the following situations: 1) A commercial project over 60,000 square of net leasable space that is within a redevelopment project area; 2) A commercial project over 60,000 square of net leasable space involving County-owned land that is offered for sale or lease; and 3) The provision of an economic subsidy (e.g. financial participation in the form of a loan or grant, or, construction of public improvements to directly serve a site) by the County for a commercial project over 60,000 square of net leasable space. It is noted that the County has on several occasions conducted a financial or economic analysis fora commercial project in a situation where the County was to be a direct participant in a real estate transaction (e.g. sale of County surplus land or land lease). This form of analysis has been done on an ad hoc basis and the primary purpose in such situations was to determine "how good is the deal" for the County with a focus on the more immediate or near term benefits of the project. August 16, 2005 Board of Supervisors Economic Impact of Large Commercial Projects Page 3 BACKGROUND / REASONS FOR RECOMMENDATION - continued The Finance Committee believes that the County should consider formally enacting the requirement for an economic impact analysis of a commercial project over 60, 000 square feet when the County is a direct participant, and recommends that Community Development Department and Office of County Counsel be authorized to develop and prepare an ordinance for the Board's consideration. The Finance Committee has not reached a consensus as to whether the requirement for an economic impact analysis should be extended to land use applications for commercial development before the County and will continue studying the matter. ADDENDUM TO ITEM D.2 August 16, 2005 On this day,the Board of Supervisors considered accepting a report and recommendations from the Finance Committee on the Economic Impact Analysis requirement for large commercial developments projects. Supervisor Gioia presented this item,noting that an economic impact aAt(nalysis would allow the County to know the costs and benefits of a project before providing a subsidy. Chair Uilkema asked if this requirement would apply to large housing projects,or to multiple redevelopment projects that come in collectively. Dennis Barry,Director of Community Development,responded that the wording applies to a"project," singular,and that if multiple projects came in grouped as one project they would be subject to the proposed requirement. Supervisor DeSaulnier clarified that this will have a neutral fiscal impact on the County,with costs for the evaluations to be charged to the developers. Supervisor Gioia moved approval, and the motion was seconded by Supervisor Uilkema. By unanimous approval with none absent, the Board of Supervisors took the following action: ACCEPTED report and recommendations from the Finance Committee on the economic impact analysis requirement for large commercial developments projects;AUTHORIZED Community Development Department and County Counsel to develop and prepare an ordinance for Board consideration requiring an economic impact analysis for a commercial development of greater than 60,000 square feet of net leaseable space in which the County is a direct participant;DIRECTED staff to include cost-recovery to cover the costs of the development of the ordinance whereby that cost will be spread among applicants.