HomeMy WebLinkAboutReso 2008-012 - Economic Development Program
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RESOLUTION NO. 2008 - 12
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF REDDING AMENDING COUNCIL POLICY
2101 TITLED "ECONOMIC DEVELOPMENT
PROGRAM"
WHEREAS, the City of Redding established City Council Policy 2101 titled "Economic
Development Program" on December 8,1998; and,
WHEREAS, after nine years it is appropriate to amend Council Policy 21 0 I to better reflect the
current philosophy of the City with respect to economic development; and,
WHEREAS, the City of Redding' s policy with regard to economic development is intended to
provide an overall description of the "who, what, where, and how" the City either implements or
supports and participates in various economic development activities; and,
WHEREAS, the amended policy will reflect the City Council's position on this important
subject and will provide a more beneficial tool for City Council members, staff, and the community at
large.
NOW, THEREFORE, BE IT RESOL YED by the City Council of the City of Redding that
City Council Policy 210 I, Economic Development Program, is hereby amended as attached.
I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at a
regular meeting ofthe City Council on the 5th day of February, 2008, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Bosetti, Dickerson, Jones, Murray, and Stegall
None
None
None
.,.
Attest:
Form Approved:
, ity Clerk
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RICHARD A. DUVERNAY ity Attorney
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BACKGROUND
The City of Redding Economic Development Program (ED Program) Policy was originally adopted
in 1998 as a result of initial work with participants of a "Draft General Plan Workshop." The
vision outlined in the original document also took into consideration the Economic Development
Corporation of Shasta County's (EDC's) five-year strategic plan.
Since the 1998 policy was adopted, there have been a number of considerable changes, including
the adoption oftlie City's first General Plan Economic Development Element in 2000. In addition,
the City of Redding Policy on Economic Development Incentives was also revised in December
2004, and there have been other substantive changes in the programs and activities related to a
number of City and countywide economic development programs.
PURPOSE
The purpose of the ED Program is to provide a comprehensive document that outlines the City's
economic development General Plan goals. The ED Program is also meant to provide a snapshot
of the City's specific economic development activities in business development and local
development and describe how they align with a number of interrelated countywide programs. In
addition, the program provides an overview of the City's incentives and also lists information on
related economic development studies and documents.
POLICY
The ED Program is a comprehensive summary of how the City utilizes its resources to enhance
business investment and job opportunities for its residents. The ED Program also describes various
economic development strategies and tactics. Furthermore, it provides detail regarding how the
City's programs are linked to other local resources and how these resources from throughout the
County work together toward similar goals.
The basis for the ED Program is the General Plan Economic Development Element (Element).
After considerable review and extensive community and business participation, the City's General
Plan was adopted by the Redding City Council in 2000. The ED Program spells out the vision that
was shared by the authors of the Element. In addition, the ED Program chronicles economic
development resources and support organizations that are in place in Redding to implement the
various strategies that are outlined in the program.
It is widely recognized that economic development is a process and not a singular event. The ED
Program is based on this premise as it is applied to both local development and business
recruitment strategies. Redding is pleased to be recognized as the "figurative capital" of the upstate
region of California and takes seriously its regional responsibility to be a catalyst for job creation
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and capital investment. To that end, the ED Program also recognizes that quality jobs and
investment transcend political boundaries. A quality job anywhere in Shasta County is valuable
to Redding.
The ED Program is a multi-faceted approach. It recognizes the value of attracting and retaining
higher-paying, primary industry jobs in the community; but it also recognizes the baseline
importance of growth in small- and medium-sized businesses.
A key element of the ED Program is the Stillwater Business Park (Stillwater), a valuable tool to
attract new manufacturing and other primary industry jobs and ensure long-term economic stability
for the region.
Stillwater will not only provide much needed, large, "shovel ready" sites for large employers; it will
also act as a catalyst for vendors, suppliers, and support industries that will strengthen the base of
small- and medium-sized primary industries in the entire region. In addition, by adding more
primary industry employers, the overall strength of the economy will be improved, because a
primary industry employer is the only business sector that adds new revenue into an economy.
This, in turn, fuels the other sectors of a local economy.
Finally, the ED Program recognizes the importance of all segments ofthe local economy, including
retail, services, and tourism. A strong and diverse economy is one that provides a cadre of job
options for its residents. Every economic sector provides employment opportunities, some seasonal
and some cyclical; but, nonetheless, jobs that fill a need for the various ages, education, and skill
levels of all residents. Even though primary industries are specifically identified in the Element
because of their strong economic value, every job is important to the economy.
THE ELEMENT
The overall goals, as written in the Element, are to:
. Develop a strong and competitive economic base.
. Increase the average earnings per worker in the community and the number of job opportunities
in the mid-to higher-wage rate areas.
. Provide adequate resources to ensure a high level of public services.
. Strike an appropriate balance between economic development efforts and maintaining the
community's natural and manmade assets.
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The Element further asserts that:
It is clear that attracting high wage jobs will have a positive impact on the retail, services,
and tourism industries. It will also lead to an increase in sales tax receipts for the City,
since workers have more discretionary income to spend. However, the City also
recognizes that additional strategies must be initiated to work in concert with industrial
expansions.
While the community must focus considerable energy and resources on attracting and
promoting higher paying industries, it must continue to attract retail, services, and tourism
. .. Further, the medical industry has expanded significantly over the past two decades and
continues to playa vital role in providing relatively high-wage, high-skilled employment
opportunities.
GOALS OF THE ELEMENT
. Attract new primary and other industries which are proven to provide higher paying jobs.
. Facilitate the retention and expansion of existing business.
. Utilize economic incentives in a cost-effective manner and ensure that the use of incentives
results in substantial benefits to the residents ofthe City.
. Preserve and enhance the community's assets and character, which make the community an
attractive area to live, work, and invest.
. Maintain and expand Redding's influence as a regional retail trade center.
. Establish the downtown area as a vibrant, healthy City core that serves as the City's social,
cultural, and speciality retail center.
BUSINESS ATTRACTION
The Element identifies a number of policies that would support the business attraction goal.
Business attraction is carried out through a Countywide effort, with the EDC being the lead agency.
The City of Redding, along with the Cities of Anderson and Shasta Lake and Shasta County, all
support the EDC's five-year business plan, which is focused on business development and
recruitment activities. In addition to public support, more than 60 local companies invest in this
Countywide effort, thus forming a true public-private partnership.
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The recruitment strategy utilizes a targeted industry approach. A detailed target industry analysis
has been completed that focuses on those industries most likely to sustain growth and expansion
and most likely to fit into the Redding region. Targets are evaluated for value based on labor force
needs, utility requirements, (especially electric), and for transportation characteristics. Targeting
does not exclude industries, but rather provides a framework so that limited resources can be used
more effectively. Primary industries, such as manufacturing, are targeted because of higher wages
and because of the value they bring to the economy by generating the flow of new dollars.
The marketing plan employed by the EDC and funded by the City of Redding focuses on contacting
those companies in California that are most likely to expand within the targeted industries. The
plan relies upon an array of techniques aimed at providing information to potential companies and
ultimately assisting them in visiting the area for site tours. The work of economic development
marketing is tedious and time consuming, in that many times decisions by companies to relocate
or expand often takes multiple years.
By utilizing the multi-agency approach, the City of Redding is able to leverage resources into one
consolidated effort, rather than compete against other local jurisdictions for new primary industry
investment dollars. The City of Redding's investment of $140,000 annually toward this effort
leverages a $500,000 total budget. In addition, by using this process, clients seeking sites anywhere
in the County can receive dedicated, one-stop service by the EDC, without having to call on each
jurisdiction separately. This process serves the client, provides a business friendly image, and still
allows City staff the access to each and every solicitation that comes into play.
In addition, the City of Redding Economic Development Team, comprising staff from key
departments, can work directly with clients as they are being served in the process. Redding's
benefit is that most of the improved industrial sites and buildings are located within the City limits.
Stillwater Business Park
One of the Element's policies for business attraction is to maintain an inventory of developable
industrial sites, including large parcels. The Stillwater Business Park is an investment that the City
of Redding has made to fulfill the documented need for large, "shovel ready" industrial sites. This
project has gained widespread community support and has been a City Council priority for the
many years that it has been going through the development process. Stillwater will now provide
the City with competitive, large sites for companies seeking a western market presence.
This investment by the City of Redding sends a clear message that Redding is "open for business"
and is more than casually interested in working to site large manufacturing, distribution, or office
projects that will generate capital investment and significant primary industry job creation.
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RETENTION AND EXPANSION
Redding's position as the business center for the upstate region of northern California has provided
area residents with consistent job growth, especially in recent years. Although there has not been
any major trend with companies leaving the region, there is still a strong interest in preserving and
enhancing the growth of the companies that are already here.
The forest products industry has been the exception in that there has been significant job loss over
the last 10-15 years due to environmental constraints placed on the logging of both federal and
private forest lands. The result has been a drop in manufacturing employment from 10 percent of
the workforce in the 1990's to only 4 percent currently. These plant closures and job losses have
been outside the control of any local intervention, but they reflect just how fragile the economy can
be.
With respect to retention and expansion, the Element's policies focus on establishing strong
communication lines between the City of Redding and the business community. Additionally, the
ED Program is intended to facilitate and remedy any impediments to the expansion of existing
business.
Retention & Expansion Resources and Programs
The City of Redding has a variety of programs and activities that relate to the policies in the
General Plan.
A specific Countywide retention program is in place through the EDC of Shasta County. The
City of Redding's Economic Development Director and Redding Electric Utility Key Account
Representatives work with the EDC on calls to Redding manufacturing businesses. The City's
Economic Development Director also focuses his attention on the various other business sectors,
such as healthcare, financial services, etc. In this way, more companies receive personal contact
and assistance. With all of the local organizations working together, a common survey tool has
been developed and a shared data base allows each entity to track trends and issues as they relate
to the whole and/or to each specific industry cluster.
All of these efforts are collaborative, and the purpose of the personal calls is threefold:
1. Make companies aware that their businesses are appreciated and that they have a personal
contact for existing problems or issues and for any future needs.
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2. Explain the various resources and benefits of the Shasta Metro Enterprise Zone.
3. Capture data through the survey that will assist in determining common trends or issues that
the City may be of assistance with.
It is anticipated that hundreds of Redding companies will receive personal contact annually as a
result of this effort.
Shasta Biz
The City of Redding is a partner in Shasta Biz, a collaboration of local business service
organizations. Shasta Biz is an outcome of a collaborative study that was completed in 2004 to
ascertain the effectiveness oflocal business organizations and to determine if there were any gaps
or overlaps in services.
From that study, it was recommended that local business services organizations work together to
leverage resources, especially in marketing their services to local companies. Although the study
found that there was already good communication between the groups, it also determined that there
could be improvement. Shasta Biz is the result. It is a collaboration that has been created to help
market all local services cooperatively, initially through a web portal, www.shastabiz.com. Shasta
Biz is also a communication network that was determined to be the link for promoting Shasta Metro
Enterprise Zone tax benefits to zone businesses.
The City of Redding and EDC utilize Shasta Biz as part of the retention program, referring
companies directly to the resources they require. The most important element of this networking
process is to insure to the greatest extent possible that local companies are aware ofthe business
services available to them.
Shasta Biz partners include, but are not limited to, the SMART Resource Center, Redding Electric
Utility, the Cascade Small Business Development Center, the Superior California Economic
Development District, the Economic Development Corporation of Shasta County, the Employment
Development Department, Shasta College Workforce and Economic Development, the City of
Anderson, the City of Redding, the City of Shasta Lake, and the County of Shasta.
Small Business Financing
Another important aspect of the City of Redding's expansion and retention program is access to
capital. Redding is fortunate to have a multitude of traditional bank financing resources being
represented in the market by national banks as well as numerous "community banks." These
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lenders provide a variety of small business resources, including access to various specialty lending
programs such as the u.s. Small Business Administration (SBA). In addition, the City of Redding
is a funding partner ofthe Superior California Economic Development District (SCEDD), a four-
county agency funded partly with a planning grant from the U.S. Economic Development
Administration (EDA). The City of Redding's "match" for this grant provides City businesses
access to various small business "gap" lending resources including a revolving loan fund program
and a micro enterprise loan fund program. The SCEDD also provides professional loan packaging
services for the U.S. Small Business Administration 504 Program, which can be used for the
acquisition or construction of owner-occupied commercial or industrial buildings.
Cascade Small Business Development Center (SBDC)
With offices located in downtown Redding, the SBDC provides an array of quality business
services, including "no-cost" access to consultants who help businesses with business plans,
marketing plans, and mentoring. The SBDC is under the umbrella of the Shasta College Economic
Development and Workforce Development Program, which also has the capacity for various credit
and/or non-credit training and vocational education programs.
COMMUNITY IMAGE
The Element addresses the importance of adequate infrastructure to facilitate economic
development; including educational, cultural, and recreational opportunities. Some of the more
recent examples of Redding' s investment in these amenities include the Big League Dreams Sports
Complex, the Soccer Park, the Aquatic Center, the new Redding Library, and enhanced
development of the Sacramento River Trail System. The goal is to "preserve and enhance the
community assets and character which make the community an attractive area to live, work, and
invest."
In today's competitive environment, companies will seek out communities that understand the
needs of industry, including the elements that are critical to recruiting and retaining labor supply.
A healthy and strong community is one that recognizes the importance of "place" as part of the
recruitment process.
RETAIL AND SER VICE INDUSTRIES
This category provides a broad array of business sectors; and, as delineated in the General Plan,
includes retail, tourism, and healthcare. There is no doubt that following a national trend, Redding
has seen its fair share of growth in retail and services.
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Redding's retail market share has historically been consistently ahead ofthe norm, with per capita
retail sales roughly twice the state average. Although this is excellent, there are important decisions
to me made that will help Redding continue this trend. The Element discusses policies that will
encourage retail development and even suggests potential incentives for developments that will
help defuse the leakage of sales outside of the area.
The Dana Drive shopping area is now almost fully developed, thus setting the stage in the future
for the Oasis Road interchange which has an approved specific plan with significant potential
development for retail, housing, and office.
As retail continues to shift in the region as outlying areas grow, the City of Redding will need to
insure that there is sufficient land available to support future needs. Because Redding has been
successful in the past does not mean that the City should not look ahead to the future for the needs
of the retail market. Retail, in fact, provides a significant part ofthe tax base that funds many of
the City's General Fund necessities, including police and fire services. The Airport Road Auto
Mall will also help continue Redding's place as a regional outlet for both new and used auto sales,
a generator of sales tax revenue that is also very important to the City's General Fund.
In addition to these large developments, there are numerous other retail centers around the City
poised for development. Redding also continues to market itself successfully as a tourism center
for the region. The Convention and Visitors Bureau, in tandem with the Shasta Cascade
Wonderland Association, provides a comprehensive marketing program to promote both Redding
and the region as a recreation paradise.
Redding also continues to develop as a service hub for the upstate region of northern California.
As such, health care is one area of the service sectors that continues to see significant growth. This
sector is valuable, not only because of the type of services that it provides, but also because of the
fact that the jobs generated pay higher than the area average. The growth in this economic sector
is largely due to market driven activity.
Also driven by market conditions is the business and professional services sector, another economic
sector that has shown strong growth in Redding. Again, due to Redding's development as a
regional hub, financial institutions, real estate agencies, and the legal profession are strong
presences in the Redding area. Most of the job growth in this sector also produces employment at
or above the area's average wages.
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DOWNTOWN REVITALIZATION
The Downtown Redding Specific Plan (Specific Plan) was adopted by the Redding City Council
in January 2001, culminating nearly two years of hard work to develop a blueprint for revitalizing
Downtown Redding. Adoption of the Specific Plan emphasizes the City's commitment to a
revitalized Downtown area. The vision for Downtown is to see it become the social, cultural, and
specialty retail center of the community.
For the past several years, the Redding Redevelopment Agency (Agency) has worked very closely
with its Downtown stakeholder partners - Viva Downtown, the Downtown Redding Business
Association, and Midtown Mall Benefit Corporation - and business and property owners to
revitalize Downtown. The Downtown area is within the boundaries of the Market Street
Redevelopment Project and, as such, has provided opportunity for the Agency to assist and invest
in projects identified in the Specific Plan to enhance the viability for Downtown as a 24-hour
district.
Some of the redevelopment projects that have enhanced Downtown revitalization include the
Market Street and Yuba Street Streetscape Projects, the Cascade Theatre renovation project,
rehabilitation of the Redding Hotel, the Downtown Mall roof removal project in concert with the
Shasta College Health Sciences & University Center, the Cascade Square Retail Project
development partnership, and the Storefront Improvement Loan Program.
In addition to these projects and others, the Agency is working hard to develop up to 300 housing
units in the Downtown area over the next three to five years. The goal is to develop Downtown as
a neighborhood with a balance of housing, shopping, jobs, and recreation. The Agency also has
plans to enhance the Downtown Mall renovation by removing the remainder of the Downtown Mall
roof by 2009. This investment will be a major step toward the ultimate revitalization of the entire
Downtown Mall landscape.
INDUSTRIAL DEVELOPMENT INCENTIVES
The City of Redding Industrial Development Incentive Policy was revised in December 2004. The
purpose of the policy is to provide economic incentives in the area of job credits, fee deferrals,
traffic impact fees, and permit processing to enable Redding to compete with other communities
for industry and jobs. The policy is also to facilitate the expansion of existing local industry by
providing the same incentives for new job creation.
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. Job Credits. Fee Deferrals and Fee Waivers
Primary industries that create not less than 10 new full time jobs which pay a wage rate that
meets or exceeds the medium wage rate for the County can qualify for this program (Council
Policy #804).
. Traffic ImDact Fee Waiver
For industrial companies meeting the criteria in the above referenced policy, traffic impact fees
will be waived.
. Economic DeveloDment Electric Incentive Rate
The Redding Electric Utility (REU) has established an electric rate incentive schedule for
industrial users.
. EXDedited Permit Processing
The City understands that time is extremely valuable for business expansions and has
developed an expedited process using an economic development planner to meet specific time
lines.
Shasta Metro Enterprise Zone
The City of Redding, along with its Countywide economic development partners, has been
successful in being awarded a coveted California Enterprise Zone designation. The original Shasta
Metro Enterprise Zone was awarded on November 6, 1991, and expired 15 years later on November
6, 2006.
Knowing that the designation was expiring, the City of Redding and its partners collaborated in
putting together another successful application, which was completed in September 2006. Once
again the competition was keen, but the Shasta Metro Enterprise Zone conditional award was made
on November 3, 2006. By putting forth the resources to complete the application and by taking
advantage of excellent partnering relationships, the Cities of Redding, Anderson and Shasta Lake,
along with the County of Shasta, were again successful in this endeavor.
The outcome of the new Enterprise Zone designation is significant State tax credits and other
benefits that are available for local businesses.
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The Shasta Metro Enterprise Zone encompasses most commercial and industrial areas from
Mountain Gate in the north to Cottonwood in the south. It is one of the largest enterprise zones in
California and adds tremendous value to the businesses that are within the boundaries of the zone.
The Shasta Metro Enterprise Zone application was the highest point scoring application in the
competitive process.
Enterprise Zones in California provide significant tax benefits that can sharply reduce the amount
of State tax liability for profits generated by companies within enterprise zone boundaries. It is a
program that is easy to understand and easy to utilize. Enterprise Zone tax benefits are available
for any existing company or any new company that opens a business within the boundaries of the
zone.
Taxpayers investing or operating a business in the Shasta Metro Enterprise zone may be eligible
for the following credits and deductions:
. Hiring credit
. Sales or use tax credit
. Business expenses deduction
. Net interest deduction for lenders
. Net operating loss carryover deduction
ECONOMIC DEVELOPMENT REPORTS AND RESOURCES
Redding and Shasta County have had the benefit of numerous studies and reports that relate directly
to economic development planning. It is generally understood that before a community can
"market" itself, it needs to know what its strengths and weaknesses are, as well as what is expected
of it in the marketplace. Some of these studies and reports are specific to a project, while others
relate more to more generalized information.
The Shasta County Workforce Report
Commissioned by the EDC, this report provides documentation on the number of people in the
workforce that are "underemployed," working in positions that are below their experience and/or
education level. The importance of this kind of report is that it provides companies with some
knowledge of workforce availability, which is not often available in other data.
Stillwater Business Park Targeted Industry Study
This document analyzes the industries that are most suitable for Stillwater and discusses important
requirements as transportation, utilities, labor supply, etc. The study provides an overview of the
industries, why they are expected to be growing and why they would be a good fit for Stillwater.
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Stillwater Business Park Occupational Training Reports
This series ofthree reports prepared for Shasta College by Chabin Concepts - Target Occupation
Research, Meeting Occupational Training Requirements, and Occupational Training Models -
documents the occupational needs of the local employment base and the industries targeted for
Stillwater. It also notes the specific skills, knowledge, and educational requirements for these
occupations and the organizations in Shasta County that are currently providing occupational
training. It offers sample curricula for two-year programs, certification programs, and custom
training courses that will address the skills and knowledge requirements ofthe critical occupations.
Stillwater Business Park Economic Impact Study
In May 2006, a study was conducted by the Center for Economic Development at California State
University, Chico to estimate the economic impact ofthe Stillwater Business Park at 33 percent,
66 percent, and 100 percent build-out.
Shasta County Economic Resource Alignment Plan
This is a review of the current level of collaboration among the existing economic development
programs and services and the formalization of an interagency network to coordinate marketing and
outreach efforts - Shasta Biz.
Historical Analysis o/the Redding/Shasta County Economy
This Comparative Economic Analysis examines in great detail the composition, history, and trends
of the Redding/Shasta County Metropolitan Statistical Area. By examining the contents of this
report, the reader can gain significant insight as to what is driving the economy and how it
compares to the rest of the nation.
Attachment: General Plan Economic Development Element
Original Policy Adopted 12/08/98, by Resolntion No. 99-012
Policy Amended Febrnary 5, 2008, by Resolntion No. 2008-12
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Economic Development Element
INTRODUCTION
PURPOSE AND CONTENT
Economic development has received increasing
attention over the past several decades as the region's
natural resource-based and other industries have
declined. Between 1988 and 1997, Shasta County lost
30 percent of its manufacturing base, or about
1,400 manufacturing jobs. During this same period,
employment in the retail/service sector has increased
dramatically, resulting in an over-concentration oflow-
wage jobs. While significant gains have been made over
the years to attract additional industries to the area, it
is clear that a multifaceted approach to economic
development will bring increasing benefits. This
approach must recognize the importance of attracting
and retaining higher-paying primary industry and jobs
and other types of industry that demonstrate strong
economic benefit to the ci ty and its citizens, while
maintaining a commitment to creating 3 community
that is attractive and well-planned. Redding should
provide a rich cultural and recreational environment
and display a commitment to its historic Downtown. It
will take a sustained effort on rhese fronts to realize the
growth in the economy and job base rhat is considered
essential by the community. No single policy or
approach will be as successful as a coordinated effort
made in these areas.
This element establishes the basic framework that will
guide economic growth over the coming years. Its
underlying premise is threefold: First, the element
recognizes the importance of attracting (and retaining)
high-paying, primary industry jobs to the community.
It recognizes that the growth in small- and medium-
sized businesses will represent the best potential for job
growth over the long term. This can be accomplished
by focusing efforts on attracting new industry, assisting
October 3,2000
existing local firms to grow, and ensuring that adequate
infrastructure is provided.
Second, the element places importance on quality of
life~n establishing a greater sense of community. It
strives to create a city that has ample cultural,
entertainment, and recreational opportunities. It also
emphasizes the economic benefits that can be realized
from attracting and accommodating additional
convention activity. Together with the other elements
of this Plan, the strategy also strives to create a more
visually pleasing community by establishing policies
that will result in more attractive streets and a better
harmony between different land uses. In short, creating
a community that will be sought out by business owners
who value these attributes in a community in which
they want to live as well as invest.
Third, the element recognizes the importance of
generalized economic activity such as the retail and
service industries. Service jobs, particularly for the
medical industries, provide excellent wages and
benefits. A healthy retail base provides the City with
needed sales tax revenue to fund police and fire services
as well as planning, parks, and other vital City
functions.
This General Plan element complements existing City
of Redding Council policies and establishes direction
and guidelines concerning how and where the City of
Redding's economic development efforts will be
concentrated to obtain the greatest potential long-term
returns. Guiding policies include the following topical
areas: Business Attraction, Business Retention and
Expansion, Use oflncentives for Job Creation, Quality
of Life, Retail and Downtown Development, and
Infrastructure Investments.
The overall goal of this element is to:
. Develop a strong and competitive economic base.
. Increase the average earnings per worker in the
community and number of job opportunities in
mid- to higher-wage rate areas.
Economic D""elopment Element
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Provide adequate resources to ensure a high level
of public services.
.
Strike an appropriate balance between economic
development efforts and maintaining the
community's natural and manmade assets.
While the community must focus considerable energy
and resources on attracting and promoting higher-
paying industries, it must continue to attract retail,
services, and tourist industries. It is these industries
that currently provide the primaty source of
discretionaty income for the City. Sales taxes in
particular fund public-safety services, such as police and
fire, as well as providing funds for community parks,
planning, and other important and necessaty services.
Further, the medical industry has expanded
significantly over the past two decades and continues to
playa vital role in providing relatively high-wage, high-
skill employment opportunities.
2 City of Redding 2000-2020 General Plan
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It is clear that attracting high-wage jobs will have a
positive impact on the retail, services, and tourism
industries. It will also lead to an increase in sales tax
receipts for the City, since workers have more
discretionary income to spend. However, the City also
recognizes that additional strategies must be initiated to
work in concert with industrial expansions.
AUTHORITY
In addition to the General Plan elements listed in
Government Code Section 65302, local governments
may adopt "any othet elements or address any other
subjects which. . . relate to the physical development of
the county or city" (Government Code Section 65303).
The Economic Development Element is an optional
element that provides specific guidance on industrial,
retail, and related development in the City.
October 3, 2000
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GOALS AND POLICIES
BUSINESS ATTRACTION,
EXPANSION, AND RETENTION
This section addresses efforts that rhe City will make in
bringing additional primary industries, jobs, and other
types of industry that demonstrate Strong economic
benefir to the city of Redding as well as protecting the
job base that we currently have. The principal focus of
the City's efforts should be on small- and medium-sized
businesses which demonstrate a long-term commitment
ro rhe community. Accomplishment will require a
focused effort on the part of numerous organizations,
all working toward this common goal.
It should be noted that there are circumstances where
it will be in the City's best interest to provide incentives
to srimulate the local economy beyond that which
would normally occur without public-sector
involvement. Incentives are appropriate when the
additional revenues or benefits received from a project
are greater than the cost of the incentives provided by
the City. In exceptional cases, the City may choose to
participare financially in a project in the absence of a
direct employment, revenue, or image,enhancement
benefit. Direct City financial participation in a projecr
should occur when the City's participation is key to the
success of the development and the development
directly fulfills an important community health, safety,
and well.being goal. Examples may include a project
that creates higher-paying jobs or a project that acts as
a catalyst to bring other desirable projects into the City.
The Redding City Council has adopted numerous
policies intended to facilitate economic growth. The
following goals and policies are intended to
complement and expand upon existing and future
Council policies regarding economic development.
October 3,2000
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ATrnACT NEW PRIMARY AND
OTHER INDUSTRIES WlfiCH ARE
PROVEN TO PROVIDE IllGHER-
PAYING JOBS AND MULTIPUERS
THAT WILL CREATE A MORE
BALANCED AND STABLE ECONOMY.
GOAL
ED!
Policies to achieve this goal are to:
EDIA. Maintain an inventory of developable
industrial land free of significant development
constraints in order to accommodate
projected industrial growth over a 20-year
time frame.
EDlB. Establish an economic development fund
using a portion of proceeds from the sale of
surplus property or other appropriare revenue
sources to acquire/improve industrial sites,
provide financial incentives, or to underrake
orher initiatives to accomplish the goals of
this element.
ED Ie. Facilitate the acquisition and development of
one or more large industrial sites as a means of
attracting appropriate industrial or
distribution facilities.
EDID. Continue to utilize the Shasta Metro
Enterprise Zone, rhe job credir incentive
program, and other economic incentives to
attract primary and other industries to
Redding.
EDIE. Work with the Economic Development
Corporarion, Shasta County, rhe Cities of
Shasta Lake and Anderson, and other
appropriate entities to market rhe area's
opportunities to those industries with the
highest potential of meeting economic and
fIScal goals.
EDIF. Facilirate appropriate trarmng for both
existing jobs and in preparation for the needs
of new employers by:
. Supporting practical job trammg and
vocational programs geared to specific
industries and occupational needs within
the community.
Economic O"".lopment Element 3
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~;
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Continuing to
development of a
within the region.
encourage the
fouf;year university
. Attracting technical and business schools
to the City.
EDIG. Pursue environmental mitigation strategies
designed to temove impediments to industrial
growth, including mitigation banks, habitat
consetvation plans, tegional stotm"water
detention, and air quality programs.
EDIH. Facilitate establishment of air cargo and
similar transportation- and aviation-oriented
businesses at the Redding Municipal Airport
through appropriate facility planning and
expansions.
ED II. Encourage and facilitate the establishment of
a rail-side facility for freight-container
loading/unloading in cooperation of the
Union Pacific Railroad to augment rail
transportation opportunities.
EDI). Streamline the development and economic
development process through code revisions
and internal policies and project review
efficiencies.
EDIK. Support public and private efforts to create
viable incubator projects and other
appropriate programs.
EDIL. Explore opportunities to leverage eXIstIng
utility infrastructure to provide high-
bandwidth telecommunication connections to
properties in industrial areas.
GOAL
FACILITATE TIiE RETENTION AND
EXPANSION OF EXISTING
BUSINESSES.
ED2
Policies to achieve this goal are to:
ED2A. Identify and remedy any City impediments to
the retention/expansion of existing businesses
in Redding.
4 City of Redding 2000-2020 General Plan
.
ED2B.
Foster a better business climate by enhancing
communication among the business
community and City administration.
EDZC. Develop a Business Retention and Expansion
Incentive Program for existing primary
industries and other industries that provide
higher-paying jobs and multipliers within the
local economy.
UTILIZE ECONOMIC INCENTlVESIN A
COST-EFFECTIVE MANNER; ENSURE
THAT TIiE USE OF INCENTIVE
RESULTS IN SUBSTANTIAL BENEFITS
TO TIiE RESIDENTS OF THE CITY.
GOAL
ED3
Policies to achieve this goal are to:
ED3A. Utilize Ciry-sponsored incentives for those
businesses that demonstrate a long-term
commitment to the communi ty.
ED3B. Ensure that City-sponsored incentives
provided will result in a net economic benefit
for the City and its residents.
ED3C. Utilize incentives in a manner that maintains
community standards and a sound financial
base for infrastructure.
ED3D. Analyze proposed incentives from both fiscal
and economic perspectives, including using a
return on investment methodology.
ED3E. Leverage funds for Ciry-sponsored incentives
from a combination of sources such as
redevelopment, Community Development
Block Grant, and other programs where
feasible.
COMMUNITY IMAGE
The image a community portrays is a vital component
of economic development. Redding must continue to
mature into a city that looks beyond providing basic
needs for its citizens. It must also strive to become a
community where excellence in civic, cultural,
educational, and the natural environment are the
norm.
October 3, 2000
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The Community Development and Design Element
addresses a number of actions and policies to
accomplish this end. These include strong code
enforcement efforts; provision of adequate
infrastructure; and supplementation of plans for
educational, cultural, and recreational opportunities, as
well as other measures.
PREsERVE AND ENHANCE THE
COMMUNITY ASSETS AND
CHARACTER WInCH MAKE THE
COMMUNITY AN ATTRACTIVE AREA
TO UVE, WORK, AND INVEST.
GOAL
ED4
Policies to achieve this goal are to:
ED4A. Develop and implement plans for
enhancement of educational, cultural, and
recreational facilities for the City that attract
visitors and improve the quality of life for
residents, such as:
. Developing a sports complex.
. Completing the Turtle Bay Museum
Complex and Sacramento River
pedestrian bridge.
. Developing the Park Marina riverfront
area.
. Adding to the existing and proposed trails
network
. Expanding existing and adding new
community parks.
. Integrating public art into the life of the
community.
. Providing a full-service library.
. Facilitating community events, such as
MarketFest, Kool April Nites, Redding
Jazz Festival, and similar events.
ED4B. Develop multiuse, public-assembly facilities in
support of the conventions and hospitality
industry and as a means of enhancing the
October 3, 2000
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cultural level of the community and the
quality oflife.
RETAIL AND SERVICE INDUSTRIES
A large portion of the City's revenue is derived from the
retail industry. It is this revenue which enables the City
to provide a variety of necessary public services such as
police and fire protection, parks, and other services.
The regional nature of Redding's retail market
(approximately 27,000 square miles) significantly
enhances the ability of the City to provide public
services at a level that surpasses many similarly sized
cities because of the considerable sales tax that is
captured.
The community need not rely solely on the trade area
noted above for the health of the retail and service'
sectors. A tremendous opportunity exists for attracting
conventions that bring additional dollars to the
community from outside this area. The natural
recreational amenities offered by this region, together
with an impressive variety of lodging and eating
establishments, clearly suggest that the potential for an
increase in convention activity is untapped.
GOAL
MAiNTAIN ANDEXPAND REDDING'S
INFLUENCE AS A REGIONAL RETAIL
TRADE CENTER.
ED5
Policies to achieve this goal are to:
EDSA. Pursue development of a new convention
center and conference facilities in order to
remain competitive in the convention
industry.
EDSB. Encourage proposals for major shopping,
specialty retai\' cultural, entertainment,
tourism, and convention facilities that are
regional in scope and which will strengthen
Redding's position as the North State hub for
these activities.
EDSC. Consider providing financial incentives for
regional retail developments where retail sales
leakage will be reduced. Establish retum-on-
investment criteria for public funds.
Economic Development Element 5
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ED5D. Support efforts to increase the number of
businesses operating in Redding to generate
more sales taXI transient occupancy tax, and
business and personal property taxes.
ED5E. Aggressively promote the City to the visitor
and convention markets.
ED5F. Support efforts directed at capturing sales
taxes from Internet and catalog sales.
ED5G. . Support efforts to expand medical facilities
and services in the community.
DOWNTOWN REVITALIZATION
A vibrant downtown says much about a community. It
is a place where businesses thrive and cultural events
and entertainment opportunities abound It is a setting
that provides a true heart to a community and
expresses the community's basic values. A strong
downtown conveys a positive message to prospective
businesses about the community's pride and concern.
EsTABliSH TIiE DoWNTOWN AREA
ASA VIBRANT,HEALTHYClTYCORE
TIfA T SERVES AS TIiE CITY'S SOCIAL,
CULTIJRAL, AND SPECIALTY RETAIL
CENTER.
GOAL
ED6
Policies to achieve this goal are to:
ED6A. Facilitate the revitalization and
redevelopment of the Downtown Redding
core.
6 City of Redding 2000.2020 O......al Plan
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ED6B. Preserve and enhance historic structures that
contribute to the unique character of
Downtown and add to the Downtown
pedestrian retail attraction.
ED6C. Explore the feasibility of assuming
responsibility for portions of the State highway
system in Downtown.
ED6D. Facilitate additional attractions and amenities
that bring people Downtown, including
restaurants, local shopping, festivals/special
events, and entertainment.
ED6E. Encourage retail diversity, including the
establishment of small specialty retail shops in
the Downtown and Park Marina Drive areas.
ED6F. Facilitate and promote the expansion of
cultural and entertainment opportunities
Downtown that will attract retail customers
during nonpeak hours.
ED6G. Encourage Shasta Q,llege, Simpson College,
Chico State University, and other institutions
to conduct evening classes Downtown to
expand retailing opportunities into the
evening hours.
October 3,2000