HomeMy WebLinkAboutMinutes - City Council - 1998-12-08 325
City Council, Special Meeting
December 8, 1998 3:00 p.m.
City Hall Conference Room A
760 Parkview Avenue
Redding, California
The meeting was called to order at 4:05 p.m. by Mayor Kehoe with the following City Council
Members present: Anderson, Cibula, Kight, McGeorge, and Kehoe.
Also present were City Manager Warren, City Attorney Wingate, Development Services Director
Swanson, Deputy City Manger Starman, Battalion Chief Eckard, Economic Development Manager
Hiller, Building Official Nagel, Housing Manager Flory, Senior Planner Haddox, Senior Planner
Morgon, Associate Planner Thompson, Housing Program Supervisor Meek, Housing Program
Supervisor Buckley, Management Analyst Dent, Code Enforcement Supervisor Gerard, City Clerk
Strohmayer, and Executive Secretary Rudolph.
ECONOMIC DEVELOPMENT PROGRAM
(A-050-060-555 & E-050)
City Manager Warren provided an overview of the memorandum to City Council dated December 29,
1998, incorporated herein by reference. He explained that the Economic Development Program
before the City Council for consideration is a composite of existing policies and suggested new ones
that would, after public input, be a good candidate for inclusion in the proposed General Plan.
Mr. Warren outlined the following changes which were not previously included in a policy: (1) He
requested that the following language be added to the second sentence of Item No. 7 on Page 2 of
the proposed Program: "Some of the factors used in targeting industries for recruitment will be
companies that pay at or above wage levels for the local area . . . " He noted that while this is a
practice currently being followed, it is not referenced in any existing policy; (2) Item No. 1 on Page
1 relative to maximizing the number of developed areas free of industrial constraints; (3) Item No.
6 on Page 2 concerning the City acquiring and improving property so that it is readily available for
industry wanting to locate in the area. He indicated that one of the major road blocks encountered
by the Economic Development Corporation (EDC) in attracting new industry to the area is the lack
of readily available acreage held under one ownership; (4) He stated an evaluation chart has been
prepared which identifies those businesses or industries worthy of additional incentives. He stressed
that no matter what type of evaluation criteria was utilized, the process was still somewhat subjective;
and (5)The establishment of a nonrestrictive fund which could be utilized for economic development
purposes. As surplus property was sold or grant funds were received, these funds would go into the
designated fund for incentive purposes.
Economic Development Manager Hiller explained that he combined the draft General Plan's vision
statement with the EDC's 2001 vision statement in an effort to provide a vision for the City's future
and attain the following goals: (1) Create 1,500 new jobs over the next five years. He related that
there are currently 5,500 unemployed individuals, in the area. He stated that bringing supply and
demand for labor into balance would increase the County's average wage. He indicated that the
County's unemployment rate is currently 7.6 percent, while the State's average is 5.7 percent. He
opined that if the City could create parcels and have them available for businesses wishing to locate
in the area, the 1,500 jobs could be achieved; (2) Increase wages to at least the State level. He
related that the per capital income for Shasta County ($19,500) was currently 19 percent below the
State average ($24,000); (3) Strengthen the receptive business and investment climate for existing
and new business; (4)Maintain the quality of life and the environment in the City and region; and (5)
Increase the participation of local small and medium-sized businesses in economic development
programs and incentives. He explained that his previous background with the State of California was
working with communities in developing economic development packages. He viewed this proposed
package as one of the most complete and comprehensive he had seen and believed it could be very
effective.
Council Member Cibula stressed the importance of recognizing the City's visions. He suggested that
the language in Goal No. 4 be changed from "maintain quality of life" to "improve quality of life."
He indicated that if the City's number one goal was to create industrial jobs, increasing the minimum
wage was a means to accomplish it. He also recommended that Goal Nos. 2 and 3 should state
appropriate projects.
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In response to Mayor Kehoe, Mr. Warren explained that the goal was to lower the unemployment
rate by attracting high-quality businesses and industries to the area and provide an environment for
existing businesses to expand. Mr. Hiller interjected that when individuals were optimistic about their
economic future, it made a difference in their quality of life.
Mayor Kehoe suggested adding a goal identifying the amount the City's sales tax receipts would
increase due to higher paying jobs and increased employment and spending. Mr. Warren replied that
such a goal could be developed, as the report prepared for the City and County relative to
annexations, Striking a Balance, identified the per capita amount an individual contributed toward
sales tax.
Jim Zauher, EDC's Economic Development Manager, thanked Mr. Warren, as well as staff, for
allowing the EDC an opportunity to participate in the discussion and drafting of the proposed policy.
He viewed the policy as a compilation of existing programs and represented an opportunity for the
City to provide some creative alternatives for future transactions. He stressed that there was a void
when it came to large, ready-to-go, commercial sites being available for businesses seeking to
relocate. While the policy deals with potentially larger projects, it still maintained a focus on small
and medium manufacturing companies. He pointed out that being successful in gaining quality of life
started with a quality job. He believed the policy represented a good starting point for allowing the
City to be more competitive in attracting industry to the area.
Fran Jenkins, 2652 Sharon Street, asked whether the City would avoid using its power of eminent
domain when trying to assemble parcels. Mr. Warren confirmed that the City would attempt to
maintain this policy and avoid the use of eminent domain whenever possible.
Larry Russell, a resident of Happy Valley, related that one of the things he has seen through his work
with organized labor over the years was that incentives offered to bring industry to an area could end
up being a detriment on government. He indicated that businesses cannot be subsidized to the point
where they end up leaning on government for assistance. He related that businesses and cities are
going to have to start considering an area's "living wage," which is obviously not minimum wage.
He pointed out that 13 cities in the State of California, including Oakland and Los Angeles, have a
"living wage." He stressed the need to find a balance between businesses which draw minimum wage
workers and the higher paying industries. As part of labor, he applauded the City's efforts and
believed it was a start in the right direction.
Dave Rutledge, Shasta Housing Development Corporation, viewed the proposal as a real strong step
in the right direction. He added that he attended a conference last week and spoke with a
representative from Hewlett Packard who indicated that a company their size would look for an area
that provided enough space to allow 100 percent expansion. This individual also recommended that
cities have sites which were ready to go and did not require a long permitting process. He
emphasized that large companies were not only looking at sites, but were also considering the overall
total product, including plans for the area surrounding the proposed site and the quality of available
employees.
Bill Yanni opined that there was still one major component missing from the policy and that was a
four-year university, which he viewed as central to obtaining better jobs.
Frank Strazzarino applauded staff for compiling all the existing policies into one document and
encouraged the City Council to move ahead in the adoption process.
In response to Mr. Russell, Mr. Warren stated that the average wage would be dependent on the type
of businesses locating to the area.
City Council Member Cibula assured Mr. Yanni that the City Council recognized the importance of
education. City Council Member Anderson interjected that locations for four-year universities are
typically selected based on population density. Mr. Anderson favored proceeding with the adoption
of the policy and providing it to the General Plan Committee for revisions over the next year.
City Council Member Kight concurred with City Council Member Anderson regarding the urgency
to proceed with the adoption of this policy for inclusion in the General Plan. He stressed the
importance of doing the right things first and reiterated that the policy was necessary in order to
compete with other cities for industries seeking to relocate.
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Vi Klaseen opined that it would be valuable for the General Plan Task Force to compare the policy
to the work it has completed to date prior to its formal adoption.
City Council Member Anderson reiterated that most of the document represented policies already in
place. He indicated that the General Plan Task Force would review the policy as part of its process
and could recommend changes to it.
City Council Member McGeorge viewed this as a document which was always in a state of flux, with
the market driving changes. He believed the existing incentives were good and favored proceeding
with the policy's adoption, thereby allowing the City to continue its work to entice industry and jobs
to the area.
Mayor Kehoe applauded staff for their effort to consolidate all the existing policies into one
document. He had hoped, however, that a more regional approach would have been taken to include
the Cities of Anderson and Shasta Lake and the County of Shasta, as all the governmental entities
comprise one economic unit. He indicated that the City's current economic development platform
was lacking one element and that was the involvement of the business community. He indicated that
businesses could be the best ambassadors for attracting businesses to the area. He, therefore,
recommended the formation of an Economic Improvement Commission. He envisioned this
Commission concentrating both on business retention and expansion. He also suggested developing
a financial incentive program to reward businesses/individuals who, on their own, bring business to
the area. He believed the City Council was in concurrence that the policy should move forward,
however, he expressed concern about being able to quantify results. While it was a step in the right
direction, he believed the policy was a status quo document, and he did not want the policy to stifle
innovation.
MOTION: Made by Council Member Kight, seconded by Council Member Anderson, to adopt the
Economic Development Policy as presented with the following modification: Where appropriate, i.e.,
Goal No. 4, statements should reflect that the stated vision and goals are intended to improve the
City's quality of life, and refer said Policy to the General Plan Task Force for comment. The Vote:
Unanimous Ayes
ADJOURNMENT
There being no further business, at the hour of 4:58 p.m., Mayor Kehoe declared the meeting
adjourned.
David A. K, oe, Mayor
ATTEST:
i
Connie Strohmayer, City 94 rk
U/08/98