1 STAFF REPORT
DATE: January 28, 2025
TO: Justin Hess, City Manager
FROM: Courtney Padgett, Assistant City Manager
By: Cathryn LaBrado, Assistant to the City Manager
SUBJECT: Approval of Legislative Advocacy Letters Signed by all City of Burbank Council Members Supporting Increased Funding For the California Film Tax Credit, Requesting a Permanent Equestrian Exemption in California Government Code Section 65913.4, and Recommending Incentivized Development
RECOMMENDATION
Forgo the customary second step report and approve l etters signed by all Council Members as follows:
1. Supporting an Increase in Funding For the California Film Tax Credit
2. Requesting a Permanent Equestrian Exemption in California Government Code Section 65913.4
3. Recommending Incentivized Development
BACKGROUND
The legislative advocacy letters listed above were requested at City Council meetings on October 29, 2024 (#1, Mayor Perez), November 19, 2024 (#2, Council Member Mullins), and December 17, 2024 (#3, Council Member Rizzotti).
DISCUSSION
California Film Tax Credit
Film production in the City of Burbank is an economic development tool that provides jobs, generates revenue, and benefits local business. As the media capital of the world, television and motion picture production is one of Burbank’s primary industries and an essential source of economic growth, tax revenue, jobs, and tourism.
CITY MANAGER’S
OFFICE
2 On October 27, 2024, Governor Gavin Newsome (Governor) announced a proposal to increase funding for the California Film & Television Tax Credit Program. On January 10, 2025, the Governor’s proposed budget was released, increasing the program’s budget from $330 million annually to $750 million annually through 2030. The California Film Commission administers the Film & Television Tax Credit Program 3.0, which provides tax credits based on qualified expenditures for eligible productions that are produced in California. Per the City’s 2024 Legislative Platform, the City shall support incentives that promote filming within the City and state.
Request For a Permanent Equestrian Exemption in California Government Code Section 65913.4
The Burbank Rancho Neighborhood (Rancho) is bound by Buena Vista Street, Olive Avenue, Victory Boulevard, Main Street, and Alameda Avenue, and includes approximately 800 homes. The Rancho’s uniqueness comes from its large number of residential horse keeping properties, access to equestrian trails and Griffith Park, and proximity to the Los Angeles Equestrian Center. Per the City’s 2024 Legislative Platform, the City shall support state guidelines for the protection of equestrian neighborhoods, facilities, and infrastructure.
California Senate Bill (SB) 35 (2017 Legislative session) created a streamlined and ministerial approval process for certain housing projects under Government Code §65913.4. SB 35 mandates that projects meeting certain specified criteria must be processed through a streamlined, ministerial approval process and shall not be subject to a conditional use permit or any other discretionary review. The City may only evaluate the proposal against objective zoning standards, objective subdivision standards, and objective design review standards in effect at the time the completed notice of intent is submitted to the City.
On October 11, 2023, the Governor signed SB 423, amending Government Code §65913.4, relating to streamlined ministerial approval procedures for multifamily housing projects. SB 423 went into effect on January 1, 2024, and included Subsection (r), which established a temporary exemption from the streamlined ministerial approval process for multifamily housing projects proposed "qualified sites." Qualified sites are those that satisfy the following criteria:
1. The site is within an equine or equestrian district designated by a general plan, specific or master plan.
2. As of January 1, 2024, the general plan applicable to the site contains, and has contained for five or more years, an equine or equestrian district designation where the site is located.
3 3. As of January 1, 2024, the equine or equestrian district applicable to the site is not zoned to include residential uses but authorizes residential uses with a conditional use permit (CUP).
4. The local government jurisdiction has a state- law compliant adopted housing element. C. Under SB 423, this temporary exemption will apply to qualified projects
Under SB 423, the temporary exemption applies to qualified projects submitted on or after January 1, 2024, through July 1, 2025. After July 1, 2025, the Rancho will no longer qualify for an exemption from the streamlined ministerial approval process for multifamily housing projects. If approved, Council’s letter to state representatives ( Assemblymember Nick Schultz and Senator Caroline Menjivar ) will advocate for legislation that adds a permanent exemption in Government Code §65913.4 or extends the temporary exemption included in SB 423.
Incentivized Development
The City of Burbank is firmly committed to the continued development of new property and additional housing to address housing shortages and foster economic growth. New legislation and/or programs from the State of California could assist in this effort by adding incentives that will encourage property turnover and stimulate mobility in the housing market. One key strategy that can be considered to incentivize development is the reduction of capital gains tax. By reducing the tax burden on profits from the sale of properties, property owners may be encouraged to sell their property or reinvest.
Encouraging new development is critical to boost the City’s housing supply, support economic growth, and maintain strong property values.
ENVIRONMENTAL REVIEW
This activity has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and as such, is not a “project” subject to the requirements of the California Environmental Quality Act (CEQA) 14 Cal. Code Regs § 15378.
FISCAL IMPACT
There is no fiscal impact associated with this report.
CONCLUSION
Staff recommends Council approve the legislative advocacy letters as listed below:
1. Supporting an Increase in Funding For the California Film Tax Credit
2. Requesting a Permanent Equestrian Exemption in California Government Code Section 65913.4
3. Recommending Incentivized Development
4 ATTACHMENTS
Attachment 1 – Draft Letter: Supporting an Increase in Funding For the California Film Tax Credit Program
Attachment 2 – Draft Letter: Requesting a Permanent Equestrian Exemption in California Government Code Section 65913.4
Attachment 3 – Draft Letter: Recommending Incentivized Development