BUDGET, FINANCE AND ECONOMIC DEVELOPMENT
POST-MEETING AGENDA
REGULAR MEETING
July 22, 2024, 12:00 p.m.
City Hall North Conference Room A
1600 Truxtun Avenue
Members
Andrae Gonzales
Eric Arias
Ken Weir
1. ROLL CALL
2. PUBLIC STATEMENTS
a. Agenda Item Public Statements
b. Non-Agenda Item Public Statements
3. STAFF REPORT
4. ADOPTION OF MINUTES
a. Adoption of the June 24, 2024 regular meeting minutes Staff recommends adoption of minutes
5. NEW BUSINESS
a. Presentation on the City of Bakersfield's Entrepreneurship Grant Program Staff recommends Committee receive and file the presentation
1. PowerPoint presentation
6. COMMITTEE COMMENTS
7. ADJOURNMENT
ADMINISTRATIVE REPORT
MEETING DATE: June 24, 2024 AGENDA CATEGORY: Minutes
TO: Budget, Finance and Economic Development Committee
FROM: Julie Drimakis, City Clerk
DATE: July 15, 2024
SUBJECT: Adoption of the June 24, 2024 Regular meeting minutes
[Document Description]
RECOMMENDATION:
Staff recommends adoption of minutes
BACKGROUND:
Minutes
FISCAL IMPACT:
None
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
June 24, 2024 Minutes
1 BUDGET, FINANCE AND ECONOMIC DEVELOPMENT
MINUTES
REGULAR MEETING
June 24, 2024, 12:00 p.m.
City Hall North Conference Room A
1600 Truxtun Avenue
Members Present: Andrae Gonzales
Eric Arias
Members Absent: Ken Weir
City Staff Present: Christian Clegg, City Manager
Josh Rudnick, Deputy City Attorney II
Jenni Byers, Economic Development Director
Julie Drimakis, City Clerk
Gary Hallen, Assistant City Manager
Joe Conroy, City Managers office
Cecilia Griego, ECD Principal Planner
Jason Cater, ECD Manager
_____________________________________________________________________
1. ROLL CALL
2 2. PUBLIC STATEMENTS
a. Agenda Item Public Statements
b. Non-Agenda Item Public Statements
3. STAFF REPORT
4. ADOPTION OF MINUTES
a. Adoption of the March 25, 2024, and April 22, 2024, regular meeting minutes
Moved by: Eric Arias
Staff recommends adoption of minutes
Approved with committee member Weir absent
5. NEW BUSINESS
a. Presentation of the Economic Development Strategic Plan Jenni Byers, Economic Development Director made staff comments and provided a PowerPoint presentation.
Christian Clegg, City Manager, made staff comments.
Jason Cater, Economic & Community Development Manager made staff comments.
Cecilia Griego, Economic & Community Development Principal Planner, made staff comments.
Moved by: Eric Arias
Staff recommends to receive and file presentation.
Approved with committee member Weir absent
6. COMMITTEE COMMENTS
None.
3 7. ADJOURNMENT
The meeting was adjourned at 1:19 p.m.
_________________________
ANDRAE GONZALES, CHAIR
BUDGET, FINANCE AND ECONOMIC DEVELOPMENT COMMITTEE
ATTEST:
_________________________
JULIE DRIMAKIS, CITY CLERK
CITY CLERK and Ex Officio Clerk of
the Council of the City of Bakersfield
ADMINISTRATIVE REPORT
MEETING DATE: July 22, 2024 AGENDA CATEGORY: New Business TO: Budget, Finance and Economic Development Committee
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: July 15, 2024
SUBJECT: Presentation on the City of Bakersfield’s Entrepreneurship Grant Program
Presentation on the City of Bakersfield’s Entrepreneurship Grant Program
RECOMMENDATION:
Staff recommends Committee receive and file the presentation
BACKGROUND: In June of 2023, the City partnered with three technical advisors: California State University Bakersfield, Extended Education and Small Business Development Center , Bakersfield College Launchpad and the Kern County Black Chamber of Commerce to support the Program and assist in fostering a more equitable entrepreneurship ecosystem through education and mentorship.
Staff and members of the technical advisory team will present the program and its accomplishments.
FISCAL IMPACT: The program was funded from the American Recue Plan Action (ARPA) in the FY 2023-24 budget and did not have an impact on the General Fund.
COUNCIL GOAL:
Economic Opportunity for All
ATTACHMENTS:
None
Bakersfield Community Land Trust
CITY-CLT PARTNERSHIP TO CREATE WORKFORCE HOUSING
The price of the home is tied to the PAYCHECK
The land is a community ASSET with homes on it set
aside for the workforce.
The price of the home is tied to income so it remains affordable in perpetuity.
Partnership for the Community
Benefit
City Community
Land Trust
Process
CLT
approaches City with
Project
City & CLT create an MOU
outlining # of workforce
units in project
Developer puts in an
application
Regulatory Agreements
Drafted
Entitlement process/City
project approval
Buyers qualified.
Regulatory docs signed
between the partners for
workforce
Developer Builds
Workforce Units All parties prepare for COE
At the Close of Escrow: Home
and Land
If City
purchases land
City deeds land to the
CLT
CLT holds land for
community benefit
CLT leases land
to Family
Family enters into a 99-
year renewable lease
Family has exclusive
rights to the land
Developer sells
home to Family
Family has a 30-fixed
mortgage
Family agrees to sell
home at same income
level to keep home
affordable in perpetuity
Qualifying information compiled by lender and
CLT:
Date of Application
Name of Applicants
AMI %
Number of people in household
FICO Score
Annual Income
Qualifying ratios: % of housing costs to income and % of debt to income (ideally max 35%/43%)
Purchase price
Down payment
Employer
1st Time homebuyer: Yes/No
Live or work in City: Yes/No*
*Preference given to qualified applicants must be defensible; application open to all, equal housing opportunity organizationPage 12 of 20 How do we keep the home affordable
for subsequent buyers?
The price of the home is tied to the pay check, not the market.
The index tied to resale is the Area Median Income (AMI) In order to keep the homes affordable to future buyers, homeowners agree to sell their home for a limited price when they decide to move
The maximum price is calculated based on what was paid plus an annual increase based on the change in the area median income
Calculating the Resale Price
(Example)
Initial Median Income in 2019 for Family of 4 at 100% AMI:
$64,800
5 years later in 2024:
Median Income in 2024 for Family of 4 at 100% AMI:
$87,900
Change in Incomes from 2019 to 2024 = 35.65%
(AMI chart comes out annually - could be more, could be less for future changes) Source for AMI Charts: Kern County 2019 and 2024
California Department of Housing and Community Development (HCD)
Calculating the Resale Price
(Example)
Initial Purchase Price: $180,000
If:
Change in Median Income = 35.65%
Then:
Maximum Sales Price = $244,166.67
Total Appreciation from AMI = $64,166.67
Total equity = Appreciation + Debt
Reduction + Down payment
Focus in on number of
families served -
not on units
1x
investment
in
perpetuity
Is There Wealth Building in HLT Homes?
Equity = appreciation based on area median income + amount of principal paid off
• HLT has
completed 33
resales since its
inception
• Our homeowners
have on average
sold their homes
for $50,000 more
than they bought
it for
• Upon selling
their home, our
homeowners
have walked
away with an
average of
$100,000 in total
equity, which is
often used
towards the
purchase of a
market rate
home.
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
0 2 4 6 8 10 12 14 16 18
EQUITY
YEARS IN HOME
RESALES EQUITY
*
*Transfer
Why Does Subsidy Retention Matter?
Protecting the Public Investment
Eliminate the need for government & private
subsidies in future years as units are resold
Ties subsidy to the unit, not the family
Maintaining income targeted workforce
housing stock
Creating community wealth and personal
wealth while maintaining future affordability
What is the City accomplishing?
Creating community wealth by preserving land
that will benefit the community in perpetuity
Partnering with a non-profit in CLT to steward a
finite resource that serves as a permanent subsidy
to individual families generation after generation
Make homeownership a reality for the workforce
in our community
Deliver stewardship to families to ensure successful
homeownership
Strengthening the fabric of our community by
providing our workforce a secure place to live
Next Steps
Determine protype for 1st project
Recruitment for remaining Board members
Align goals with mission and vision
Webpage, design, logo (BakersfieldCLT.org)
Establish Timelines and Targets
Design community engagement marketing
plan
RFP Design/build of RDA properties
Explore funding strategies