200 S. Anaheim Blvd.
Suite #733
Anaheim, CA 92805
Tel: (714) 765-5162
Fax: (714) 765-5164
www.anaheim.net
CITY COUNCIL STAFF REPORT
City of Anaheim
ECONOMIC DEVELOPMENT DEPARTMENT
DATE: MAY 16, 2023
FROM: ECONOMIC DEVELOPMENT DEPARTMENT
SUBJECT: ECONOMIC DEVELOPMENT DEPARTMENT OVERVIEW AND
UPDATE
ATTACHMENT (Y/N): YES ITEM # 21
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
Receive an informational item regarding the Economic Development Department.
Background:
At the March 7, 2023, City Council Meeting, Mayor Pro Tem Rubalcava requested an overview of the Economic Development Department including the mission of the department, its size, objectives, goals, and successes.
On April 13, 2021, the Anaheim City Council approved the creation of the Economic Development Department. Previously, economic development functions were part of the Community and Economic Development Department. The Community and Economic Development Department was originally created to oversee a wide range of responsibilities, including administration of the former redevelopment agency, workforce development, affordable housing development, oversight of the housing authority, commercial corridor revitalization, redevelopment of tired retail centers, as well as business retention and attraction, and overall economic development. The creation of the new Economic Development Department, aimed to further prioritize clear and attainable economic development objectives, focused in attracting new business and development opportunities.
Prior to the dissolution of Redevelopment in 2012, 70% of Redevelopment funding was allocated to the Redevelopment Agency for economic development, and 30% was allocated for affordable housing development, resulting in Approximately $40 Million was allocated to economic development activities.
The Department
The mission of the Economic Development Department is to identify and support goals, initiatives, and targeted strategies that attract investment, generate revenue, and propel the City of Anaheim forward as a leading hub of business innovation, model of economic vitality, world-class destination, and vibrant community for people to live, work, play, prosper and thrive. The Economic Development Department is structured into three divisions, Administration, Property Development, and Business Development.
Economic Development Overview and Update
May 16, 2023
Core services:
Create business opportunities through coordinated, interdepartmental outreach and support,
Reduce risk and increase certainty in the entitlement and permitting process, Support neighborhood quality while promoting economic development, Manage, negotiate, and implement real estate transactions on behalf of the City, Support and expand investment in the City’s various economic engines, Assist with revitalization of the City’s tired commercial corridors, in the absence of redevelopment,
Administration of the Successor Agency to the former Anaheim Redevelopment Agency,
Assist the City Manager’s Office on special projects and other duties as assigned.
Property Development Division
The Property Development Division is responsible for increasing the level of private investment throughout the City, facilitating development entitlements through coordination with the Planning and Building Department and Public Works Department, strategic economic planning and research, promotion of the City and its many development opportunities, and fostering a high level of partnership with the private sector to encourage new investment and creating a business-friendly development environment.
Key services and functions, include:
Facilitate real estate transactions,
Help streamline the development process,
Encourage private investment in the City of Anaheim,
Identify development opportunity sites,
Promote and market the City of Anaheim,
Strategic planning and research,
Reduce citywide vacant properties,
Encourage repurposing of obsolete properties.
Business Development Division
The Business Development Division provides coordinated support, information, and guidance to help steer businesses through the city processes and business license requirements. The division also supports City efforts focused on commercial corridors and special districts such as the Anaheim Resort, Anaheim Canyon, Center City Anaheim, Beach Boulevard and the recently designated Little Arabia District. The division is responsible for marketing and promotion of the City of Anaheim as a destination for business opportunities.
Key Services and functions:
Business assistance
Marketing and promotion
Facilitate leasing transactions of retail, commercial and industrial property Small business support.
Economic Development Overview and Update
May 16, 2023
Fiscal Year 22-23 Adopted Budget
For Fiscal Year 2022-23, the Economic Development Department has an adopted budget of approximately $35.0 Million. Approximately, $24.8 Million of the total department budget is comprised of funding allocated from the California State Department of Finance (DOF), for debt service obligations of the former Redevelopment Agency and proceeds of the former redevelopment agency. Approximately $1.3M is allocated for administration, $5.1M is allocated towards Property Development, $2.2M for Business Development, and $1.5M for Capital Improvements (Attachment No .1).
Staff
For Fiscal Year 2022-23, the Economic Development Department was allocated seven (7) Full Time Employees (FTEs). Currently, the department has six (6) FTEs, as there is currently a vacancy for a fiscal management position in the Administrative Division. Attachment No. 2, provides the Organization Chart for the department, providing a listing of the positions within the department.
Accomplishments to Date
Key accomplishments of the department include:
o Continued redevelopment of the 39 Commons Site,
o OC Vibe – signage revenue negotiations,
o Analysis leading to the City Council’s designation of the Little Arabia District o RFP of the Brookhurst Corridor Study,
o Disposition of 1314 S. Sanderson Avenue (Rancho Del Rio Stables Property), o Entitlements for the property at Anaheim Boulevard and Ball Road, o Refresh of the Center City Anaheim Directional Signage, o Anaheim Canyon Innovation District Branding and Banner Program, o Attraction and assistance with Porto’s Bakery to Downtown Disney, o and the attraction of a new Tesla Dealership.
Since July 2022, the Business Development Division has assisted over 145 individuals, businesses, or property owners with business expansion, business attraction, property locator, and permit processing services. Additionally, the division established the Storefront Improvement Program this past fiscal year. Over 190 applications were received from business owners and commercial property owners. Currently, the staff is working on deploying funding that will go towards the renovation of storefronts and properties.
The Property Development Division has been working to prepare various former Successor Agency sites for disposition and development. Preparation of sites for disposition includes compliance with the Surplus Land Act, processing entitlements, clearing title issues, environmental remediation, and negotiations. A continued focus of the Property Development Division has been the development of 39 Commons. The former landfill site will be repositioned into a regional retail center. In December funding was allocated for continued remediation clean up and a ground lease agreement was negotiated with 39 Commons Partners, for a grocery store pad on the site. The division has also played a key role in the City’s Rebuild Beach team.
Economic Development Overview and Update
May 16, 2023
Administration of the Successor Agency of the former Anaheim Redevelopment Agency is a key function of the department. The department is responsible for bi-annual reporting of activities to continue dissolution efforts of the former redevelopment agency and year-round on-going accounting. The staff is responsible for property management, as successor agency properties are prepared for disposition. A total of 31 successor agency properties remains and will be disposed of in the coming 24 months. Debt service obligations of the former redevelopment agency will continue until the year 2043.
IMPACT ON BUDGET:
There is no budgetary impact.
Respectfully submitted,
Sergio M. Ramirez
Economic Development Director
Attachments:
1. Economic Development Department Budget Overview
2. Department Organization Chart