Economic Development
Issue Issue Summary Desired Outcome Strategies Recommendations Industries in Transition Although they will still be viable for the foreseeable future, Kern
County’s historic core industries –
agriculture and oil production – are
transitioning. Oil and gas
production's viability is threatened
by State policy and climate change
trends, while agriculture faces
operational pressures and
sustainability concerns. Logistics, a
newer core industry, struggles with
community acceptance due to
environmental impact and job
quality concerns.
Repositioning of industries to
create positive economic
outcomes
1. Technology Driven Economic Development:
Leverage the strengths in agriculture, manufacturing,
and logistics to promote technology-driven research
and development related to modern advancements
of these industries.
1.A. Establish a Research, Technology, and Education overlay zone in identified locations in Downtown and near the CSUB campus to promote and facilitate technological research and development related to local industry, such as collaboration with local industries and partnerships with CSUB and Bakersfield College. [EDSP crossover]
1.B. Advertise the City to compatible technology driven industries such as agri-tech, advanced manufacturing, environmental technology, renewable energy R&D, and autonomous
transportation R&D.
1.C. Identify incentives, such as modernized infrastructure and telecommunications, financial incentives, permit streamlining, and high quality amenities to implement and promote to desired businesses.
1.D. Partner with the local secondary education providers and research institutions to leverage their expertise, facilitate collaborative research and workforce training, and networking.
1.E. Establish an economic development fund (potentially leveraging available State and Federal resources) to support workforce training programs, infrastructure improvements, and small business grants. [EDSP crossover]
1.F. Organize and facilitate entrepreneur networking groups, building on key partner-driven initiatives. [EDSP crossover]
1.G. Develop and maintain an online business incentives guide, providing a “one stop” resource for incentives available to businesses in Bakersfield. [EDSP crossover]
2. Energy Production: Oil and gas production is
anticipated to continue for the foreseeable future,
and the historic focus on energy production can
provide the foundation for an expanded focus on
renewable energy and related emerging technologies
such as carbon management. The City can work with
oil and gas companies to meet their current needs,
foster future sustainable business practices, and
transition markets to renewable energy.
2.A. Identify and promote financial incentives, including regional and State funding, for oil and gas companies that invest in renewable energy projects, carbon capture and storage, and other sustainable practices.
2.B. Regularly review and update policies to reflect advancements in technology, changes in the energy market, and evolving environmental goals.
Economic Development
3. Ties to Regional Initiatives: Bakersfield’s
opportunities vis-à-vis transitioning industries are
closely aligned with several major regional economic
and workforce development initiatives currently
taking shape in Kern County. By leveraging these
regional investments, the City’s General Plan policies
can be more impactful relative to desired outcomes.
Although the landscape of economic development
partnerships in the region is likely to evolve over the lifespan of the updated General Plan, the City can
have a leadership role in directing the future course
of these initiatives,
3.A. Actively participate in regional economic and workforce development initiatives (e.g., B3K Prosperity and the Kern Coalition) related to Kern County’s transitioning industries.
3.B. Position Bakersfield as an advanced manufacturing and R&D hub with capacity to support technology and aerospace
development in eastern Kern County (including the Mojave Air and Space Port).
Market Demand Demand for retail commercial will
increase in response to population
growth, but the global reduction in
brick-and-mortar retail demand will
present a “headwind” to overall
retail growth. Older malls and power
centers will likely require attention
from a tenant-mix perspective
(possibly introducing opportunities
for mixed use development) in order
to remain viable in the long run. The
current office market in Bakersfield
is soft, with high vacancy rates
(nearly 12%) and expectations that
absorption of office space will be
minimal for the foreseeable future.
Opportunities for new office
development are likely to be
neighborhood-specific and tied to
the success of a concerted economic
development effort to attract new
office-using industries (e.g. tech
firms) in commercial/mixed-use
environments attractive to
entrepreneurial startups. The surge
in industrial construction over the
past 10 years has resulted in a short-
term oversupply of industrial space
Land use designations, zoning,
and incentives that respond to
the current and future economic
market
4. Mixed Use Development: New retail centers in the
future are likely to be smaller and focused on a mix of “lifestyle” uses (including restaurants, entertainment, fitness/recreation, other personal services, and
housing). Residential density can facilitate financially feasible infill development or redevelopment of older
properties. Intensification of residential uses can also enhance demand for adjacent retail, restaurant and
service businesses. Mixed-use zoning can therefore
be a catalyst for reinvigoration of key focus areas
such as the Downtown Core.
4.A. Review permitting and approvals process for businesses and strive to continually improve efficiency, clarity, and collaboration during application submittal and review.
4.B. Encourage adaptive reuse of older or underutilized commercial buildings into mixed-use developments, supporting densification without requiring extensive new construction.
Provide incentives to developers to encourage this
4.C. Collaborate with private developers to create mixed-use projects that include accessible housing or community spaces, ensuring economic inclusivity and fostering vibrant
neighborhoods.
4.D. Encourage high density housing and visitor serving commercial such as restaurants, shops, and corner markets near the HSR station and other public transit hubs to promote walkability, reduce traffic congestion, and attract residents and businesses that value proximity to public transit.
4.E. Prioritize the inclusion of workforce housing in mixed-use developments to ensure that the area’s workers can afford to live nearby, reducing commuting costs and supporting local
businesses.
4.F. Create branding and marketing campaigns for mixed-use districts, highlighting the unique combination of amenities, retail, and living spaces to attract both businesses and residents.
4.G. Partner with anchor institutions (e.g., universities or hospitals) to support mixed-use developments that provide housing, retail, and services for employees, students, and visitors.
4.H. Explore the use of a Tax Increment Financing (TIF) strategy to fund infrastructure improvements in areas targeted for
Economic Development
and elevated vacancy rates
(currently about 11% compared to
less than 5% for all years between
2014 and 2022). Nevertheless,
demand for new industrial space is
projected to remain strong over the
next 10 years. Consistent with
recent market trends, most of the
industrial demand in Bakersfield is
likely to be for logistics facilities.
Through aggressive economic
development efforts, the City can
cultivate demand for higher-value
industrial uses such as
manufacturing and R&D,
densification and mixed-use development, making those areas more attractive to developers and investors. [EDSP crossover]
4.I. Offer additional density bonuses to developers who include affordable housing units, green space, or community services as part of their mixed-use projects beyond baseline requirements.
5. High-value industrial uses: The City can prioritize
higher-value aspects of logistics (e.g., R&D related to goods movement technology), and other also
industrial uses such as technology-oriented
manufacturing and research and development.
5.A. Improve the transportation connectivity of Bakersfield by improving airport, rail, and highway access and infrastructure, making Bakersfield more accessible for goods movement as well as business travelers.
5.B. Explore the use of tax abatements on property for a fixed period to reduce initial operational costs for technology, R&D, and manufacturing companies.
5.C. Identify available grants or subsidies for specific activities such as research and development, workforce training, and site preparation. Promote and assist interested businesses in applying for these grants or subsidies.
5.D. Invest in transportation infrastructure and promote linkages between “Smart Mobility” and targeted industries.
5.E. Partner with local universities, community colleges, and technical schools to develop training programs specifically targeted at the skill needs of advanced manufacturing, logistics, and R&D companies.
5.F. Create public-private partnerships to connect trained workers with employers in high-value industrial sectors to address labor force needs.
5.G. Ensure robust utility infrastructure such as reliable electricity, high-capacity water supply, broadband, and natural gas lines to meet the needs of advanced manufacturing and R&D activities
5.H. Offer concierge services to guide companies through the process of locating in the city, navigating regulations, and accessing city services. Assign dedicated staff to assist high-value industrial companies in getting up and running quickly.