BAKERSFIELD CITY COUNCIL
POST-MEETING AGENDA
REGULAR MEETING
April 9, 2025, 3:30 p.m.
Council Chambers, City Hall, 1501 Truxtun Avenue
1. ROLL CALL
2. PUBLIC STATEMENTS
a. Non-Agenda Item Public Statements
*1. Written material provided by Eddy Laine
*2. Written material provided by Michael Turnipseed
*3. Written material provided by Keri Guillen
b. Agenda Item Public Statements
3. REPORTS
a. Rosedale Ranch Mega Site Overview
(Ward 4)
Staff recommend the final report and presentation from Newmark, Inc. (Newmark) regarding the Rosedale Ranch Asset Positioning and Investment Readiness Program be received and filed.
*1. PowerPoint presentation
4. CLOSED SESSION
5. CLOSED SESSION ACTION
6. ADJOURNMENT
ADMINISTRATIVE REPORT
MEETING DATE: April 9, 2025 AGENDA CATEGORY: Reports
TO: Honorable Mayor and City Council
FROM: Christian Clegg, City Manager
DATE: March 28, 2025
SUBJECT: Rosedale Ranch Mega Site Overview. Ward 4.
[Document Description]
RECOMMENDATION:
Staff recommend the final report and presentation from Newmark, Inc. (Newmark) regarding the Rosedale Ranch Asset Positioning and Investment Readiness Program be received and filed.
BACKGROUND:
In November 2023, the City Council authorized Newmark, a specialist in the field of real estate economics and site selection, to serve as a consultant to the City’s Rosedale Ranch Asset Positioning and Investment Readiness Program. Newmark has engaged in a multi-step process involving site analyses, benchmarking, information gathering, asset mapping, SWOT analyses, stakeholder engagement, and comprehensive reporting.
Through a phased approach, Newmark conducted a detailed site-specific analysis of the Rosedale Ranch mega site , asse ssed regional competitiveness, identified infrastructure gaps, and benchmarked comparable mega sites. Their work included a review of local and regional economic conditions, workforce assets, and existing and emerging industry trends. They also evaluated t he feasibility of positioning the property as a manufacturing or transportation hub and provided high -level infrastructure and cost analyses. The resulting findings and recommendations are intended to enhance the investment readiness of the Rosedale Ranch property and position it as a competitive location for future industrial development.
In addition, the analysis significantly informs the overall citywide strategy for site readiness and pursuing projects in the advanced manufacturing and industrial target industries.
FISCAL IMPACT:
The contract was entered into with Newmark in November of 2023 and fully funded by the General Fund.
COUNCIL GOAL:
Economic Opportunity for All
Reliable Infrastructure
Community Character & Quality of Life
Innovative and Efficient City Government
ATTACHMENTS:
N/A
NMRK.COM
NEWMARK GLOBAL STRATEGY
Rosedale Ranch &
City of Bakersfield
Council Workshop Presentation
April 9, 2025
Economic Development &
Property Positioning Strategy
Executive Summary
ECONOMIC DEVELOPMENT & PROPERTY POSITIONING STRATEGY
3 PROJECT TEAM AND BACKGROUND
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with
its subsidiaries (“Newmark”), is a world leader in
commercial real estate, seamlessly powering every phase of the property life cycle.
Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum.
For the twelve months ended December 31, 2024, Newmark generated revenues of over $2.7 billion. As of December 31, 2024, Newmark and our business partners together operated from approximately 170 offices with over 8,000 professionals across four continents.
To learn more, visit nmrk.com
or follow @newmark.
NEWMARK 4
EXECUTIVE SUMMARY
Newmark Global Strategy
What We Do: We are management consultants who help companies determine what facilities they need, where they are needed, and how those facilities’ operating conditions should be organized geographically, functionally, and socially while optimizing costs to the business. • Corporate location strategy and
site selection
• Relocation, expansion and
consolidation feasibility
• Community and site due diligence
• Workforce and labor analytics
• Supply chain optimization
• Land and asset development
strategies
• Political risk tracking
and reporting
• Business location and
operational assessment
• Risk strategy and management
• Regulatory assessment strategy
• Economic development strategy
• Competitiveness benchmarking
• Asset-based community
development
• Target industry analyses
• Stakeholder engagement
• Workforce and talent
development
• International development and
FDI attraction
• Industrial site identification
and assessment
• Footprint assessment
• Location benchmarking and
enterprise cost assessment
• Stay vs. go analysis
• M&A due diligence and
facility integration
• Geographic implications for
ESG, energy, and sustainability
• Market entry / exit feasibility
• Program research and feasibility
• Negotiation and
optimization strategy
• Compliance management
• Portfolio-wide incentives
evaluation
Footprint Optimization Geopolitical StrategyLocation Strategy and Site Selection
Economic Incentives
Advisory
Economic Development
Consulting
800+
CLIENTS ACROSS
MULTIPLE INDUSTRIES
10-30%
OPERATING COST SAVINGS
ACROSS ALL ENGAGEMENTS
15 AVERAGE YEARS OF
CONSULTANT EXPERIENCE
$15B+
IN ECONOMIC
INCENTIVES NEGOTIATED
Economic Development, City & Regional Analysis, and Economic Incentives NEWMARK 5
Newmark Project Team
Consulting & Project Leadership
Gregg Wassmansdorf
Sr Managing Director
Toronto, Canada
Bob Hess
Vice Chairman
Chicago, IL
Gabriel Dion
Managing Director
Quebec City, Canada
Carlos Sanchez
Managing Director
Mexico City, Mexico
Brian Peterson
Managing Director
Minneapolis, MN
Kim L. Moore
Exec Managing Director
Dallas, TX
Gillian Apps
Sr. Analyst
Toronto, Canada
Location & Site Analysis
Brad Lindquist
Exec. Managing Director
Chicago, IL
Agnes Cikowska-Teczar
Consultant
Chicago, IL
Carrie Zethmayr
Managing Director
Chicago, IL
Bhargava Kotapalli
Consultant
Dallas, TX
Terrance Hall
Sr Location Analyst
Chicago, IL
Joshua Gruen
Analyst
Chicago, IL
EXECUTIVE SUMMARY
NEWMARK 6
Project Background
Economic development and industrial megasite readiness strategies for the City of Bakersfield and the Rosedale Ranch Pacific Ag Management, Inc. owns the Rosedale Ranch, an approximately 1,650-acre site in the City of Bakersfield, California, and is in the process of advancing the site’s readiness for industrial development. Rosedale’s efforts include successfully completing the rezoning of the property from residential to industrial uses in September 2023.
The City of Bakersfield, is the largest city and the county seat of Kern County, California.
The economy and job market of the city and region have historically been driven by the oil and gas industries. As the State of California has reduced its permit allowances for oil and gas drilling, the Kern County economy is focused on diversification to rebuild its industrial economy and job market.
The Rosedale Ranch presents a unique opportunity for the City of Bakersfield to attract new business investment in a period where many industrial companies are seeking large, flexible sites with heavy utility capacities. Due to the large acreage, M-1 zoning, and robust natural gas and wastewater infrastructure, the Rosedale Ranch could be an ideal location for targeted segments of the new industrial economy that is being driven by a federal emphasis on reshoring of heavy industry and critical supply chains.
The challenge for the Rosedale Ranch and the City of Bakersfield is to develop and implement a strategy that positions the City and the Ranch to attract investment from employers that align with the goals of both entities: to realize investment income from the sale of the Ranch, while creating new jobs in the region that will meet the income levels of the declining oil and gas industry. To accomplish this, stakeholders will need to overcome constraints in water and power utilities, and the bureaucratic constraints imposed by the multi-jurisdictional regulatory agencies that oversee development in California.
Newmark was hired due to its experience in representing both occupiers in site selection decision making and communities as they develop and implement economic development strategic plans. Our global expertise supporting both perspectives enables our collective team to develop a cohesive strategy that if implemented, will best position the Rosedale Ranch and the City of Bakersfield to achieve long-term job creation and capital investment at the Rosedale Ranch.
EXECUTIVE SUMMARY
NEWMARK 7
EXECUTIVE SUMMARY
Project Goals & Approach
City and Regional Analysis
The goal of City and Regional Analysis is to understand the local business climate and operating environment and assess the region’s ability to support future growth in industrial-related business sectors, specifically at the Rosedale Ranch. This process identifies areas where the community excels (“selling points”), and areas where improvement is needed. Key facets of this work include:
Macroeconomic Trend Analysis
Identify key characteristics of the local economy and industries with compelling concentration. Key growth trends, wages, and future projections.
Real Estate Inventory
Understand the availability of real estate across the county and city, including Rosedale Ranch. Compare space availability with the needs of target industries.
Demographic Analysis and Peer Comparison
Understand key characteristics of the population as they pertain to economic development. Compare the region to a set of peers that could compete for projects. Use comparison to identify opportunities and challenges.
Target Industry Identification
Identify selected industries that could drive development of Rosedale Ranch and other sites throughout the region.
Stakeholder Engagement
Engage the community in one-on-one and roundtable
discussions to determine “on-the-ground” business climate conditions. Assess capabilities of various economic development assets to support future growth and expansion.
Operating Environment Analysis
Combine qualitative and quantitative analysis into a succinct perspective on the community’s ability to support target industry growth.
Education Pipeline Review
Assess the local talent pipeline and alignment with potential target industries.
SWOT Analysis
Identify the region’s strengths, weaknesses, opportunities, and threats related to future economic growth.
Economic Development Context for U.S. Megasite
Development
Set the scene for current trends in development of Projects in the US and how California can uniquely position itself to attract similar projects.
Rosedale Ranch Development Planning
Meet with the City and conduct a desktop review to identify the current status of zoning for the site, historical changes, and proposed changes to the development plan.
Megasite Benchmarking
Identify and research competitor industrial megasite
developments / projects to understand approaches to ownership, size and phasing, target industries, land use, etc. and the regional/metro, local, and site contexts.
Rosedale Ranch Utility Access
Engage with relevant utilities to learn current utility availability at site, understand timelines for development, and identify strengths/weaknesses inherent to the Ranch.
Bakersfield Regional Industrial Market
Research other developments / land available in Bakersfield to understand direct regional competition and market absorption.
Rosedale Ranch Transportation Assets
Identify methods of access to the site, including roads/highways and seaports, and potential railway spurs. Demonstrate the strengths of easy access.
Rosedale Ranch Site Characteristics
Engage with experts to determine relevant characteristics of the land, including available acreage, topography, and geotechnical and environmental considerations.
Rosedale Ranch Overall Site Assessment
Provide ratings of important factors to the site’s competitiveness to identify strengths, weaknesses, and next steps needed to properly position the Ranch for success.
NEWMARK 8
EXECUTIVE SUMMARY
Project Goals & Approach
Site Specific Analysis
The goal of Site-Specific Analysis is to draw upon Newmark expertise to understand the Rosedale Ranch’s strengths and weaknesses and provide context on how it compares to other sites designed to attract Projects. This phase is meant to provide a critical review of the Rosedale Ranch property from a site selection and occupier point of view.
NEWMARK 9
EXECUTIVE SUMMARY
Newmark Analytical Foundations
The Newmark team relied on multiple data sources to develop findings and recommendations.
Industry & Occupation
Data Analysis
Demographic & Education
Data Analysis
In-Person Market Visits
and Site Tours
Peer Community
and Site Comparisons
Employer Interviews
and Roundtable Discussion
Workforce Development &
Stakeholder Discussions
City Planning
Engagement
Utility & Railroad Research
& Discussions
NEWMARK 10
EXECUTIVE SUMMARY
Capitalizing on New Opportunities
• The urgency is now – the competition isn’t waiting!
• Economic Development is fast moving and very competitive. • The Rosedale Ranch site presents a catalytic opportunity to create jobs, garner capital investment, and diversify Bakersfield’s economy – with near- and long-term potential. • Competitive communities evolve and innovate with new programs, marketing strategies, incentives, site readiness funds, improved infrastructure, and robust workforce development programs. • The region’s economic development landscape consists of multiple stakeholders and organizations.
The key to future success is aligning these organizations around shared goals, understanding each entity’s potential contributions, and relying on key stakeholders to take initiative in moving the region forward.
• The Rosedale Ranch has strong attributes that position it well to attract a large industrial user that requires a scalable site, including its large size, good power infrastructure, and excellent natural gas capacity; there are also constraints that need to be further studied and mitigated, such as unclear water capacity and a complex regulatory environment. • Industrial users that are attracted to the Rosedale Ranch may come from inside or outside of California and the United States. Future users will likely belong to an industry that is new to the region. State and local stakeholders must be ready to sell not only the ranch site, but also the local community. This will require a comprehensive marketing strategy. • The City of Bakersfield and the Rosedale Ranch will have to relentlessly pursue strategies, policies, and approaches that differentiate the city and the property from those things that are considered negative (“prohibitive”, “complex”, “slow”, “expensive”) about California’s value proposition.
SITE ASSESSMENT AND
POSITIONING STRATEGY
Economic Development Context
for U.S. Megasite Development
NEWMARK 12
Greenfield Investments into the U.S. Surge
Source: US Bureau of Economic Analysis, Planned Total Expenditures Number of New Project Established or Expanded, 2024
Total Capex, New Greenfield Projects
0 200 400 600 800 1000 1200
Engines & turbines
Wood products
Space & defence
Ceramics & glass
Business machines & equipment
Paper, printing & packaging
Consumer electronics
Semiconductors
Building materials
Non-automotive transport OEM
Textiles
Rubber
Aerospace
Automotive OEM
Medical devices
Pharmaceuticals
Consumer products
Metals
Plastics
Biotechnology
Automotive components
Chemicals
Electronic components
Food & Beverages
Industrial equipment
Number of Projects by Industry Type, 2019-2024
EXECUTIVE SUMMARY
NEWMARK 13
For Manufacturing, California Remains a Top FDI Destination When focused on manufacturing investments, Europe and Asia dominate FDI sources, and California remains a top destination.
Source: US Bureau of Economic Analysis, FDI Intelligence Total FDI by Country, US Inflow ($M’s), 2019 - 2023
$6,728
$9,569
$13,750
$14,699
$16,278
$23,758
$28,182
$31,840
$46,814
$58,036
Sweden
Netherlands
Canada
Ireland
South Korea
Japan
France
Switzerland
United Kingdom
Germany
FDI Project Concentration by State, Manufacturing
2019-2024
State FDI Projects State FDI Projects
Texas 483 Massachusetts 206
California 407 South Carolina 199
North Carolina 262 New York 191
Georgia 254 Ohio 188
Florida 228 Michigan 186
EXECUTIVE SUMMARY
NEWMARK 14
EXECUTIVE SUMMARY
“Megasite” Property, Infrastructure, and Location Attributes Site and community megaproject assessments are based on the key attributes and specifications frequently sought in the site s election process for a complex and heavy manufacturing project, including estimated ability to meet capacity requirements and project tim elines.
Site Size: 500 acres or more
Electricity:
Phased delivery of 5 MW immediately, 70MW
within 2 years, and 200 MW within 5 years
Dual service / circuit preferred, via heavy
transmission power circuits (at least 69kV)
The following parameters are categorical to differentiate a potential industrial site from a regular large piece of land. Through interviews with utility providers, municipalities, counties and the state, Newmark's assessment will include current in-place services and infrastructure plus the time and cost required to make any required upgrades to satisfy potential industrial clients or real estate developers.
Water:
275,000,000 gallons/year
At least a 12 inches water line to
the site at 50-70 psi
Access to major roads, including Interstate and major highways Limited signs of wetlands or fragile environment
Wastewater:
200,000,000 gallons/year
At least a 12 inches sewer line to
site, 10 inches if pressurized
Rail:
Access to freight rail (Class 1
or short line service)
Natural Gas:
Peak Daily Demand: 12,000,000 ft3/day
Peak Hourly Demand: 700,000 ft3/hr
Delivery Pressure: 60 psia
Telecommunications:
Fiber optic cable to site
Labor Force of at least 100,000 within 45 minutes
Source: Newmark Representative project specifications
NEWMARK 15
Large Sites and “Megasites” around the U.S.
Source: Newmark Global Strategy Select Sites of 100 + Acres; not exhaustive of all sites in U.S.
The map shows 100+ acre sites evaluated by Newmark Global Strategy since 2019 for project work. California is under -represented due to a lack of megasites but also because clients often request that we not examine California for major industrial projects.
EXECUTIVE SUMMARY
City and Regional Analysis
ECONOMIC DEVELOPMENT & PROPERTY POSITIONING STRATEGY
EXECUTIVE SUMMARY
Stakeholder Engagement
Section Overview
The Newmark team engaged with over 80 stakeholders throughout the project, utilizing different avenues, including virtual and in-person interviews and roundtable discussions with multiple parties.
NEWMARK 17
Stakeholders
engaged80+
Consultant
days in market
25+
Businesses
engaged
18
QUALITY OF LIFE
• The region suffers from poor outsider perception. Negative opinions about the community may not reflect current realities. • Primary selling points according to local residents include affordability, low housing costs, many family-focused activities, “small town” feel. • Strong access to outdoor recreational amenities, proximity to Los Angeles a benefit. • Many concerns about public safety, crime, substance abuse. NEWMARK 18
EXECUTIVE SUMMARY
Stakeholder Engagement
Key Findings
BUSINESS ENVIRONMENT
• Significant concerns among all stakeholders about how state-level policy will affect future growth. SGMA, CEQA, permitting are all major barriers to future growth. • Widespread recognition among stakeholders that the current economic reliance on Oil, Gas, and Agriculture is no longer sustainable. • Concern about local government fiscal stability as Oil & Gas is replaced by tax exempt renewables. • Local permitting is a major challenge that slows down business development; considerable changes between zoning restrictions in adjacent municipalities can hinder the development of certain activities in Bakersfield.
TALENT PIPELINE
• Strong entry level talent pool with good work ethic.
• Skilled talent is very difficult to find. Engineers and business administration were cited as key occupations with shortages. • Talent from Oil & Gas is moving to other parts the of the country. • Higher education institutions are eager to partner with employers and understand their labor needs.
REGIONAL ALIGNMENT
• Concerns that economic development efforts are not aligned between key players (state, county, city, EDOs, utilities and landowners). • Economic development priorities range between job creation, environmental and social justice and profit maximization. • Strong sense of competition among adjacent municipalities limits opportunities to build a cohesive regional brand.
NEWMARK 19
EXECUTIVE SUMMARY
Stakeholder Engagement
Quotes
“We have so much interest in our programs that we are turning some students away. We would love to expand again. Our biggest limitation right now with CTE programs is space.” – K-12 Leader
“It’s nearly impossible to attract talent to Bakersfield. There is a strong negative perception of the community.” – Local Business Leader
“The entry-level talent pool here is great. I have never had a problem hiring entry- level talent. You can post a position and get scores of applicants within a few hours, it’s great.” – Local Business Leader
“Once you get talent to come, they stay. The real problem is getting them here.” – Local Business Leader
“What is happening at Mojave [with aerospace research and development] is remarkable. We need to find a way to build on that in Bakersfield.” – Local Business Leader
“Kern EDC has been great. I don’t think we would have as much success growing in other parts of California as we have here.” – Local Business Leader “The permitting process is incredibly difficult here on the state and local level. I don’t think anyone in government understands that time is money and we can’t wait for months and months for every single permit.” – Local Business Leader “We have great higher ed institutions here but there is a lot of brain drain. People get a degree and want to move elsewhere.” – Local Business Leader “I think the community see the opportunity in renewable projects, but those aren’t jobs creators. We need something else.” – Local Business Leader “Economic development here is fragmented. We don’t have the right players on the same page. It’s just too provincial to get anything done.” – Local Business Leader
NEWMARK 20
EXECUTIVE SUMMARY
Demographics & Peers
Peer Communities
Photo sources: Visit Long Beach, City of Rockford, Reno-Sparks Convention & Visitors Authority, Oklahoma City Convention & Visitors Bureau Long Beach, CA Oklahoma City, OK MSA
Context
Prosperous city within L.A. metro, some
similar economic strengths, direct port
access. Opportunity to lure land-locked
businesses.
Context
Aspirational mid-tier southern peer with
strong focus on energy. Transitioning from
energy toward services and
manufacturing. Improving quality of life.
Major rail freight hub.
Facts:
Population: 462,000
Median HH Income: $78,995
Poverty Rate: 15.1%
Notable Industries: Mgmt. of Companies,
Transp./Warehousing, Health Care,
Education
Facts:
Population: 1.4 Million
Median HH Income: $67,805
Poverty Rate: 13.8%
Notable Industries: Oil & Gas, Public
Administration, Utilities
Rockford, IL MSA
Context
Manufacturing and Transportation focused
community located 90 miles west of
Chicago. Presence of “megasite”
opportunities, strong rail access.
Facts:
Population: 339,000
Median HH Income: $64,397
Poverty Rate: 15.1%
Notable Industries: Manufacturing,
Transp./Warehousing, Health Care.
Reno, NV MSA
Context
Quickly growing MSA pursuing economic
diversification away from tourism/gaming.
Significant transportation assets. Target
community for CA business relocations.
Facts:
Population: 550,000
Median HH Income: $80,341
Poverty Rate: 10.8%
Notable Industries: Transp./Warehousing,
Construction, Manufacturing
NEWMARK 21
EXECUTIVE SUMMARY
Demographics & Peers
Baseline Statistics
Sources: JobsEQ, Chmura, U.S. Bureau of Labor Statistics The Bakersfield metropolitan area is home to a very young population, with a median age of 32.2. The region has a high unemployment rate relative to its peers.
This high unemployment rate can be a positive consideration from a site selection perspective as it indicates available labor for new or expanding businesses to tap.
Bakersfield is characterized by a lack of economic diversity relative to its peers.
Bakersfield
MSA
Long Beach,
CA
Reno, NV
MSA
Rockford, IL
MSA
Oklahoma
City MSA California
Population (ACS 2022) 906,883 462,293 550,204 338,050 1.4 Million 39.4 Million Population Annual Average Growth Rate
(since 2013) +0.6% -0.4% +1.5% -0.3% +1.1% +0.2%
Median Age 32.2 36.1 39.2 39.4 35.8 37.3
Total Establishments (2023) 25,510 N/A 18,025 6,854 48,844 1.8 Million Chmura JobsEQ MSA Economic Diversity Rank
Among all 384 MSAs (lower = more diverse)
290th 10th* 86th 215th 34th N/A
Civilian Labor Force 391,833 251,134 290,943 168,511 723,640 20.0 Million Unemployment Rate (Sept. 2024) 7.7% N/A 4.5% 5.4% 3.1% 5.3% % Population (25+) with HS or Higher 76.9% 82.1% 87.9% 88.5% 89.7% 85.2% % Population (25+) with Associate or Higher 25.9% 40.9% 38.9% 34.6% 41.8% 44.6% Lagging Leading
Bakersfield MSA and Peer Region Demographic Statistics
*Los Angeles MSA
NEWMARK 22
EXECUTIVE SUMMARY
Target Industries
Target Industry Identification Process
1. Existing
Conditions Analysis
Current industry strengths
Growth trends
Past target areas review
4. Site Selection
Perspective
Assess real estate
Review talent pool/pipeline
Consider global trends in
local context
3. Stakeholder
Engagement
Assess business climate
Understand community
perspectives
Discuss potential targets
with stakeholders
2. Target Industry
Model
Benchmark 300 national
industries and their
presence in Bakersfield
Employment growth
Wages
National momentum
The Newmark team identified a list of “target” industries for Bakersfield and the Rosedale Ranch. These industries represent the best opportunities for supporting future economic growth through attraction and retention.
The results of the analysis are supported by multiple data-driven processes, Newmark’s site selector perspective of the region, and conversations with local stakeholders. The analysis considers industry location requirements (labor, costs, infrastructure, market access, etc.) that align with the strengths of the region. Each target industry has business needs that can be met by Bakersfield’s labor pool, infrastructure, and real estate.
Photo Source: Pexels
Alternative Energy Component Manufacturing Food Processing Steel Fabrication & Metals Manufacturing Description
Businesses engaged in manufacturing renewable
energy generation equipment and supplies.
Description
Business engaged in the transformation of raw
ingredients into packaged food products through
cooking, preservation and packaging processes.
Description
Companies engaged in transforming raw metals into
components or structures through cutting, bending and
assembling processes
Employment: 1,887 Employment: 4,567 Employment: 369
Location Quotient: 0.60 Location Quotient: 1.19 Location Quotient: 0.32 10-Yr Ann. Growth
Forecast: +0.4% 10-Yr Ann. Growth
Forecast: +1.2% 10-Yr Ann. Growth
Forecast: +0.1%
Example Industries
Electrical Equipment Manufacturing, Machine Shops,
Metal Fabrication, Battery Manufacturing, Chemicals
Manufacturing.
Example Industries
Perishable Prepared Food Manufacturing, Ice Cream
and Frozen Dessert Manufacturing, Roasted Nuts
Manufacturing.
Example Industries
Fabricated Structural Metal Manufacturing, Industrial
Valve Manufacturing, Metal Tank Manufacturing.
NEWMARK 23
EXECUTIVE SUMMARY
Target Industries
Accelerate & Attract
The Newmark team identified three industries that would benefit from acceleration and attraction efforts. These industries are primed to take advantage of the workforce, infrastructure, and market access afforded by the Rosedale Ranch and the region. These industries include:
Accelerate & Attract Industries
Icon source: The Noun Project Page 33 of 47
NEWMARK 24
EXECUTIVE SUMMARY
Incentives and Funding Opportunity
Bakersfield and the Rosedale Ranch must navigate through the California Economic Incentives and Development Funding landscape.
Sources: California Association for Local Economic Development, Newmark interview with California GO-Biz Development Funding
While many states now have dedicated funding secured to help industrial site development, infrastructure upgrades, and due diligence studies, California has not yet followed that path.
However, Tax Increment Financing (TIF), a public financing method used across the nation by real estate developers to subsidize redevelopment and infrastructure, is available in California under three forms: the Enhanced Infrastructure Financing District (EIFD), the Climate Resilience District (CRD), the Community Revitalization & Investment Authority (CRIA).
Bakersfield and the Rosedale Ranch could investigate options to create a TIF to fund infrastructure improvement in and around the site. Sacramento (Metro Air Park EIFD) and Stanislaus County (Crows Landing Industrial Business Park EIFD) are two examples of successful use of TIF for industrial development.
Economic Incentives
Economic Incentives, although not the single most important driver in business relocation or expansion, are integral in making one market standout from another and closing competitive gaps. California is not known to be a very competitive State on this. Programs exist but are limited in scope or cumbersome in compliance.
Some Californian cities – mostly outside of the large urban areas – have their own incentives programs in place, particularly around property tax abatement, accelerated permitting processes, and permitting fee waivers or discounts.
Although it would be hard to compete with other communities in Arizona, Nevada or Illinois, Bakersfield and Kern County could follow the path taken by a few Californian communities by being more aggressive with their local business attraction incentive programs.
The community should monitor the competition's playbook on business attraction & retention incentives, including other local jurisdictions within California. To be competitive on incentives, the city and county should challenge themselves periodically and consider adapting existing incentives or creating new ones.
Rosedale Ranch
Site Specific Analysis
ECONOMIC DEVELOPMENT & PROPERTY POSITIONING STRATEGY
NEWMARK 26
EXECUTIVE SUMMARY
Bakersfield Regional Industrial Market – Context for the Rosedale Ranch Source: CoStar, December 2024
An average of 2.14 million square feet of new leases were signed annually in Kern County over the last 10 years (2.7 MSF in 2024). If the Rosedale Ranch were to win 25% of total new industrial leases signed in Kern County (aggressive projection), it would take 33-years to fully buildout the Rosedale Ranch. This timeline would shorten considerably, of course, if the Ranch were to land one or more “megaprojects.” With new construction declining 2022 – 2024 and relatively stable leasing activity, the two years of negative absorption (2023 – 2024) indicates an increase in industrial vacancy rates.
Hypothetical Rosedale Ranch Land Absorption Timeline
Total Acreage 1,600
25% Building to Land Ratio (SF)
(25% of 1,600 acres in square feet) 17,424,000
New Leases Signed Annually in Kern County
(10-year average) 2,136,748
Rosedale Ranch Success Rate (Example) 25%
Rosedale Ranch New Annual Leases (Example) 534,187
Years to Achieve Buildout of 25% of 1,600 acres 33 years Total leasing activity remains relatively consistent in Kern County; two years of negative absorption may indicate a slow down. (1.0)
0.0 1.0
2.0 3.0
4.0 5.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
(YTD)
Square Feet
Millions
Industrial Activity - Kern County
New Leases Signed New Construction Net Absorption
NEWMARK 27
EXECUTIVE SUMMARY
Total Acreage and Configuration
The large size of the site enables flexibility for an end-user or developer to achieve a variety of potential site configuration s.
Image Source: Google Earth
Factor Newmark Notes
Size - Site contains approximately 1,650
acres
Previous
Use
- The site was primarily previously
used for agriculture with small
portions having been developed.
- There were oil wells identified on
site (2005), all of which are
abandoned and needing “waivers”.
Site
Encum-
brances
- The site has a protected “Cross of
Palms” that runs north / south
along Rudd Ave. and east / west
across the center of the site.
- There are several interior private
roads, which may be moved
pending final site planning.
- A gas pipeline runs north/south
along Rudd Ave., bisecting the site.
The gas pipeline would be
expensive to move, making it likely
a developer or end-user would
maintain its current location and
not develop across Rudd Ave.
Site Boundaries (Approximate)
“Cross of Palms” Landmark
Site Characteristics Development Readiness Utilities Transportation Assets Score
1 = Fatal Challenges
9 = Excellent
Strengths
+ Large site allows for site plan
flexibility
+ Mostly compatible adjacent
uses
+ Minimal encumbrances
+ Likely ability to sell 20-acre
parcels without severance
process
+ Single owner; willing seller
+ Supportive City planning and
council support
+ M1 zoning allows for many likely
end-users
+ No on-site cultural resources
+ Minimal environmental constraints
+ City is making progress on its
planning and development
approvals process and timelines
+ PG&E has identified path to
achieve 100 MW capacity to site
+ High pressure natural gas pipeline
is onsite
+ Water district and water purveyor
are confident in water access
+ NORSD has excellent wastewater
capacity, and may be able to
provide creative solutions for
scalped water for industrial uses
+ Three adjacent fiber carriers
+ Adjacent to major local arterials
+ Direct BNSF service potential,
QDC offers direct transload
access
+ Rail and road accessible to Ports
of LA/LB and Oakland
+ 7
th Standard Road connects to
major highways and interstates
+ 130 miles to LAX for global air
passenger and freight; connecting
passenger flights from BFL
Challenges
‒ Minimal onsite
encumbrances
‒ Drilling wells require waivers
‒ Cross of Palms historical
monument located at center
of the site
‒ Requires amendment to General
Plan circulation element
‒ Requires documentation of land
parcel acreages
‒ Lacks industrial infrastructure
‒ Bakersfield Habitat Conservation
Plan (BHCP) still in development
‒ In nonattainment or maintenance
EPA status for many emissions
‒ Need clarity from PG&E on time
and cost to achieve 100 MW
‒ Multi-jurisdictional layers of water
regulation combined with
constrained water resources
creates ambiguity and doubt on
water specific volumes of water
availability
‒ Relatively distant from I-5
compared to potential competing
sites
‒ Limited direct flight access
through BFL
‒ California is relatively distant from
much of the U.S. population for
distribution
NEWMARK 28
EXECUTIVE SUMMARY
Overall Location & Site Rating
Source: Newmark Analysis
The Rosedale Ranch offers scalability and flexibility for industrial companies seeking large greenfield sites. Remaining challenges are largely related to the need to update the circulation element of the general plan, and work with utilities to confirm sufficient capacities.
Score Guide: 1 = Potential fatal flaw 3 = Mitigable challenge 5 = Typical 7 = Above-average 9 = Excellent
NEWMARK 29
EXECUTIVE SUMMARY
Megasite Benchmarking
Megasite benchmarking establishes the competitive position of the Rosedale Ranch against selected competing alternatives Newmark Global Strategy has been active researching and assessing megasites around North America. We drew upon
our expertise to collect information on four selected industrial megasite developments / projects to understand various
approaches to ownership, size and phasing, target industries, land use, . of key properties in peer or competitive locations.
Newmark researched the regional / metro, local, and site contexts to understand the megasite attributes that are competing for new investment and compare these to the
Rosedale Ranch property.
Megasites were identified in communities that correlate to the economic development peer community analysis:
• Sparks, NV (near Reno, NV)
• Rochelle, IL (near Rockford, IL)
• Oklahoma City, OK
A megasite was not identified in Long Beach, CA due to
existing industrial density. We substituted Long Beach, CA with Tucson, AZ for megasite benchmarking, as Tucson has different similar dynamics to Bakersfield, as a smaller industrial market near a larger tier-one industrial market in the Southwestern United States.
Peer Community Megasites
NEWMARK 30
EXECUTIVE SUMMARY
Megasite Benchmarking – Consolidated Summary
Site Characteristics
* Regarding Ownership, see further discussion regarding Public Private Partnerships.
Site Characteristics Dual Rail Megasite
Rochelle, IL
OKC 577
Oklahoma City, OK
TRIC
Sparks, NV
ARC & TAA
Tucson, AZ
Rosedale Ranch
Bakersfield, CA
Ownership * Number / Type of Owners 3, under option to City Single, Private Single, Private Public: County and Airport Single, Private
Development
Planning
Total Acres 1,000 455 (max contig. 237) 972 284 (west), 560 (east) 1,610 Entitlement Status Heavy-Industrial I2 - Moderate
Industrial
IC – Industrial,
Commercial, Retail I-2 Heavy Industrial M1 Zoning
Nonattainment Status No No No Yes – CO Yes
Utilities
Power Capacity (MW) 150 200
100 – 500+ MW
onsite generation through
Tracy Generating Station
Unwilling/Unable to Provide 20 – 100
Natural Gas Capacity 200 MCFH 20 MCFH TBD 32,000 / MCF month 300,000 / MCF month Water Capacity
system excess above peak demand 2 MGD 5 MGD Unwilling/Unable to Provide 5 MGD TBD Wastewater Capacity
system excess above peak demand 1.5+ MGD 20 MGD Unwilling/Unable to Provide 0.59 MGD 3 MGD Transportation
Assets
Distance (mi) to interstate 1 to I-39 & I-88 1 to I-35 and I-240 1 to I-80 7 to I-19, 7 to I-10 14 to I-5 Distance (mi) to rail 1 to BNSF & UP
Onsite transload 1 to BNSF 21 to UP Intermodal 0 to UP 0 to BNSF Distance (mi) to airport 25 to RFD
75 to ORD 10 miles to OKC 22 miles to RNO 5 to TUS 10 to BFL Distance (mi) to seaport
102 to IL Intl. Port
District (58
th largest by
TEU)
450 to Port of Houston
(5th largest by TEU)
232 to Oakland
(8
th largest by TEU)
421 to San Diego
(34
th largest by TEU)
261 to Oakland
(8th largest by TEU)
NEWMARK 31
EXECUTIVE SUMMARY
Planning and Development Process Map
The City of Bakersfield has developed a conceptual timeline of approvals required to receive a building permit.
Source: City of Bakersfield
The City of Bakersfield is responsible for ensuring projects meet CEQA requirements, administered through the City of Bakersfield permitting process. The conceptual timeline incorporates permitting required by CEQA. Site Plan Review and Conditional Use Permit renewal will require environmental studies including a traffic study, air permit application and a biological survey. While the City of Bakersfield can expedite its internal permitting process, this chart also outlines a scenario in which the biological survey results in the need for a State or Federal-level Incidental Take Permit. Proactive monitoring for wildlife on the site can help mitigate the risk of this extended permitting timeline occurring.
10 ac
Start:
Mar 15, 2025
Faster Scenario:
Feb 15, 2026
Slower Scenario:
Jan 15, 2027
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
NEWMARK 32
The Rosedale Ranch – Site Assessment Summary
The Rosedale Ranch presents a long-term opportunity to attract capital investment and job creation to the City of Bakersfield. Absent one or more megaprojects, the site disposition strategy is likely to require multiple decades for full site development.
EXECUTIVE SUMMARY
Large Site
Accommodates flexible
site plans
Transportation Assets
QDC, BNSF
Industrial Utilities
Electricity, Natural Gas,
Wastewater
Water Capacity
Requires Study
Nonattainment for Emissions
Multijurisdictional air emission
regulation; some users will require
EPA permits
Microgrids and Water Reuse
Increased utilization and
technology advancements
diversify opportunities
Marketing Differentiation
Pursue marketing strategies that
position Bakersfield and the Ranch
separately from California
Wonderful Pacific Terminal
Inland rail terminal in development
in Shafter will present competition
Regional Industrial Parks
Buttonwillow, Tejon Ranch, other infill
industrial development projects
Recommendations
ECONOMIC DEVELOPMENT & PROPERTY POSITIONING STRATEGY
NEWMARK 34
EXECUTIVE SUMMARY
Rosedale Ranch – Site Specific Recommendations
The Rosedale Ranch’s inherent advantages of size and location can provide value to end-users and developers, pending ownership addressing gaps in documentation, water and power scalability, and the City amending the circulation element of the General Plan.
Top required actions for the Rosedale Ranch to become a competitive megasite:
1. Update General Plan – Amendment of the circulation element of the General Plan to confirm that the highway will not bisect the site.
2. Validate water capacity – Receive an updated will-serve commitment from Cal Water that demonstrates capacity to meet megasite demand; this is contingent upon having a Specific Plan, or a conceptual site plan, for Cal Water to evaluate based on water demand assumptions
3. Validate power scalability – Continue discussions with PG&E to further define timing and cost of providing electrical service at different capacity requirements to end-users; consider evaluating how a behind-the-meter power provider might serve end-users at the site.
4. Build data room – Continue to align approvals and documentation to build-out a complete virtual data room to demonstrate site readiness to an end-user or developer.
5. Monitor for environmental changes – Monitor the site to ensure no new wetlands nor endangered species encroach on the site; monitor nonattainment status for potential changes in nonattainment status of all pollutants.
6. Continue to advance transportation hub marketing strategy – Continue discussions with BNSF, the Port of Oakland, and the California DOT to map out the transportation assets and marketing strategy as a “transportation hub.”
7. Reports and documentation for BNSF Certified Sites and Site Selectors Guild REDI Sites programs – Begin data submission process for the BNSF program to advance the certification and market effort, followed by the REDI Sites program to amplify the Ranch opportunity with the professional site selection community. This will require completion of certain studies and reports, and providing additional written documentation of current site facts.
NEWMARK 35
EXECUTIVE SUMMARY
Bakersfield Region – Economic Development Recommendations (1 of 2) The City of Bakersfield and other economic development stakeholders in the region have a key role to play in supporting futur e industrial development at the Rosedale Ranch and other sites.
Top 10 recommendations to improve Bakersfield's competitive position:
1. Business Retention & Expansion – Develop a business retention program and conduct retention visits on a regular basis.
2. Industrial Development Readiness – Continue to add specificity and clarity to the consolidated standard permitting and development timeline. Create multiple versions of the timeline. Some may be project-specific or site-specific. Other versions can be more general and provide an overview of the process for a broader range of project types. Consider publishing the general timeline for public access on the Bakersfield Economic Development webpage. Also share with site selectors and developers.
3. Industrial Development Readiness – Develop a dedicated industrial opportunity response team across multiple agencies, including the City of Bakersfield, Kern EDC, Kern County, and other public and non-profit economic development partners. Maintain a regular meeting schedule to review status of project pipeline and associated tasks, setting the foundation for a culture of trust and transparency across multiple agencies.
4. Industrial Development Readiness – Identify stakeholder groups that may oppose develop at key industrial sites. Conduct outreach and engage these individuals/organizations early on to educate them about the development process.
5. Marketing – Promote case studies of target industry businesses that have located or expanded in the region. Post on Bakersfield Economic Development webpage.
NEWMARK 36
EXECUTIVE SUMMARY
Bakersfield Region – Economic Development Recommendations (2 of 2) Top 10 recommendations to improve Bakersfield's competitive position:
6. Marketing – Develop a standard community visit itinerary for site selection visits. Ensure the itinerary reserves some time to address specific interests of site selectors and their clients.
7. Marketing – Identify private sector target industry cluster "champions" who can promote the region and its assets to their peers inside and outside of Bakersfield.
8. Marketing – Continue to meet with GO-Biz on a regular basis to ensure GO-Biz is telling the Bakersfield Region story appropriately. Ensure that Bakersfield/Rosedale Ranch is included in target industry RFP responses.
9. Workforce Development – Assess alignment between CTE and target industry needs. Ensure programs are operating at scale and assess any barriers to completion.
10.Organizational – Assess city staffing needs to bolster economic development activity, considering the need to implement report recommendations. Ensure economic development staff are primarily focused on economic development activities as distinct from other community development functions.
The City of Bakersfield and other economic development stakeholders in the region have a key role to play in supporting futur e industrial development at the Rosedale Ranch and other sites.
For more information:
NMRK.COM
Gregg Wassmansdorf
Senior Managing Director, Location Strategy
Occupier Solutions
+1 416-998-8848
[email protected]
Carrie Zethmayr
Managing Director, Location Strategy
Occupier Solutions
+1 312-221-1115
[email protected]
Brian Peterson
Managing Director, Economic Development
Occupier Solutions
+1 952.261.2497
[email protected]