AGENDA
ECONOMIC DEVELOPMENT AND TECHNOLOGY COMMITTEE
REGULAR MEETING NOTICE
SEPTEMBER 17, 2024
PUBLIC MEETING 5:00 P.M.
MEMBERS
Tyron Hampton, Chair District 1
Jessica Rivas, District 5
Steve Madison, District 6
Jason Lyon, District 7
STAFF
David Klug, Economic Development Director
Dion O’Connell, Assistant City Attorney
Sandra Robles, Recording Secretary
MISSION STATEMENT
The City of Pasadena is dedicated to delivering exemplary municipal services, responsive to our entire community and consistent
with our history, culture and unique character.
In compliance with the Americans with Disabilities Act of 1990, Assistive Listening Devices are available from the City Clerk’s Office with a 24-hour advance notice.
Please call (626) 744-4124 to request use of a listening device.
Language translation services are available for this meeting by calling (626) 744-4124 at least 24 hours in advance.
Habrá servicio de interpretación disponible para éstas juntas llamando al (626) 744-4124 por lo menos con 24 horas de anticipación.
Items on the agenda may not be called in order listed.
Agendas and supporting documents are available on the Internet at https://www.cityofpasadena.net/commissions/city-council-economic-development-technology/
Materials related to an item on this Agenda submitted to the Economic Development and Technology Committee after distribution of the agenda packet will be posted online and listed as: “Supplemental Agenda Material Received after the Posting of the agenda”
PUBLIC COMMENT AT THE ECONOMIC DEVELOPMENT AND TECHNOLOGY
COMMITTEE MEETING FOR
SEPTEMBER 17, 2024 AT 5:00 P.M. WILL BE ACCEPTED IN-PERSON AND BY VIDEOCONFERENCE/TELECONFERENCE.
Link to City Meeting Policy:
cityofpasadena.net/CityCouncilMeetingPolicy
TO VIEW A LIVE STREAM OF THE MEETING:
http://pasadena.granicus.com/MediaPlayer.php?publish_id=9 AND
WWW.PASADENAMEDIA.ORG
In order to facilitate public participation at meetings the City will accept public comment in the following manner:
1. Whether participating in-person or virtually at the meeting, members of the public may provide public comment by submitting a speaker card prior to the start of public comment on that item, at the following webpage:
www.cityofpasadena.net/commissions/public-comment/
If a public comment speaker wishes to speak on more than one agenda item, please indicate which items on the online form (multiple item speakers will be handled according to the process posted on the agenda and as specified in the City meeting policy). Public comments are limited to 3 minutes each, and the Chair and Committee may limit this time if reasonable under the circumstances.
2. In-person Meeting Participation: Complete an online speaker card at the following website: www.cityofpasadena.net/commissions/public-comment/ After submitting a public speaker card, members of the public may attend the meeting in-person by coming to the Pasadena City Council Chamber, Room S249 at City Hall at the date and start-time of the posted meeting.
Virtual Meeting Participation: For virtual participants, you may attend by connecting to the meeting using a computer, other electronic device, or by telephone. Please review the agenda to identify the published start time for the meeting and connect to the meeting just prior to, or at the start of the meeting.
To participate in public comment for an item and to be recognized to speak, it is required that the speaker login to the meeting using the same name or telephone number used on the Speaker Card form. This will allow City staff to locate and promote the speaker into the meeting when it is time for their public comment.
Participants’ phone calls to the Committee meeting will be recorded as part of the Committee meeting. By staying on the line and making public comment during the Committee meeting by phone, you are agreeing to have your phone call recorded. Following is the connectivity information for virtual participation:
Computer or electronic devices, join the meeting at: cityofpasadena.net/cczoom Telephone only dial-in: 1-669-900-6833, Meeting ID: 161 482 446
3. Speaker Card Help Line: If a public comment speaker needs assistance in completing a speaker card, please call the City Clerk’s Office at: (626) 744-4124.
Help line will open 30 minutes prior to the posted start time of the meeting.
4. Members of the public may submit correspondence of any length prior to the start of the meeting, at the following email address:
Written correspondence will be forwarded to the Economic Development and Technology Committee prior to the start of the meeting, posted online, and made part of the legislative record for the item.
LIVESTREAM WITH CAPTIONING IS AVAILABLE AT WWW.PASADENAMEDIA.ORG, AND ALSO AT WWW.CITYOFPASADENA.NET/COMMISSIONS/AGENDAS
IF YOU NEED A REASONABLE MODIFICATION OR ACCOMMODATION PURSUANT
TO THE AMERICANS WITH DISABILITIES ACT
BECAUSE YOU ARE UNABLE TO PARTICIPATE ELECTRONICALLY AS SET FORTH ABOVE, CONTACT THE CITY CLERK’S OFFICE
AS SOON AS POSSIBLE AT (626) 744-4124 OR
[email protected].
CITY OF PASADENA
NOTICE OF THE REGULAR MEETING OF THE
ECONOMIC DEVELOPMENT AND TECHNOLOGY COMMITTEE
SEPTEMBER 17, 2024
PUBLIC MEETING 5:00 P.M.
PASADENA CITY HALL, COUNCIL CHAMBER
100 NORTH GARFIELD AVENUE, ROOM S249
NOTICE IS HEREBY GIVEN that the regular meeting of the Economic Development and Technology Committee, will be held on Tuesday, September 17, 2024, at 5:00 p.m., in the Council Chamber to discuss matters on the attached agenda.
_____________________
Tyron Hampton, Chair
Economic Development and
Technology Committee
I HEREBY CERTIFY that this agenda in its entirety, was posted on the Internet at https://www.cityofpasadena.net/commissions/city-council-economic-development-technology/ and on the Council Chamber Bulletin Board, Room S249, and the Bulletin Board in the rotunda area; City Hall, 100 North Garfield Avenue, this 12
th day of September 2024 by 5:30 p.m. and that copies hereof were emailed or delivered to each member of the City Council and to each local newspaper of general circulation, radio or television station requesting notice in writing, all of which recipients are identified on the distribution herein below.
Liseth Gonzalez
City Manager’s Office
DISTRIBUTION:
City Council Los Angeles Times
City Manager Pasadena Journal
City Attorney Pasadena Now
Public Information Officer Pasadena Star News
Pasadena Weekly La Opinion
Pasadena Independent
REGULAR MEETING
AGENDA
ECONOMIC DEVELOPMENT AND TECHNOLOGY COMMITTEE
SEPTEMBER 17, 2024
Public Meeting: 5:00 P.M.
Council Chamber, Pasadena City Hall
100 North Garfield Avenue, Room S249
PUBLIC MEETING – 5:00 P.M.
ROLL CALL
PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA
Public comment will be limited to a total of 20 minutes at the beginning of the meeting and will continue at the conclusion of the meeting, if necessary.
Please limit comments to 3 minutes each.
APPROVAL OF MINUTES
• JU LY 16, 2024 – REGULAR MEETING*
• AUGUST 20,2024 – REGULAR MEETING*
NEW BUSINESS
1. ACCESSORY DWELLING UNIT (ADU) FEE STUDY*
INFORMATION ONLY
1. ECONOMIC DEVELOPMENT UPDATE BY DAVID A. KLUG, ECONOMIC DEVELOPMENT DIRECTOR*
ADJOURN
*Attachment
APPROVAL OF MINUTES
• JULY 16, 2024 – REGULAR MEETING*
• AUGUST 20,2024 – REGULAR MEETING*
01 07/16/2024
CITY OF PASADENA
ECONOMIC DEVELOPMENT AND TECHNOLOGY COMMITTEE MINUTES
JULY 16, 2024 – 5:00 P.M.
CITY HALL, COUNCIL CHAMBER
MEETING
OPENING Chair Hampton called the meeting of the Economic Development and Technology Committee to order at 5:05 p.m.
ROLL CALL:
Staff:
Councilmember Tyron Hampton, Chair
Vice Mayor Steve Madison
Councilmember Jason Lyon
Councilmember Jessica Rivas
David Klug, Director of Economic Development
William Huang, Director of Housing
Caroline Lockwood Nelson, Program Coordinator
Dion O’Donnell, Assistant City Attorney
Tamer Sabha, Recording Secretary
PUBLIC COMMENT No one appeared for public comments on matters not on the agenda.
NEW BUSINESS AUTHORIZE THE SUBMITTAL O F AN APPLICATION TO THE
BURBANK-GLENDALE-PASADENA REGINAL HOUSING TRUST
FUND FOR FUNDING IN AN AMOUNT NOT -TO-EXCEED $3,250,000
FOR AN AFFORDABLE HOUSING PROJECT WITH HERITAGE
HOUSING PARTNERS AT 1878 E. WALNUT STREET
Vice Mayor Madison
arrived at 5:15 p.m.
William “Bill” Huang, Director of Housing , provided introductory Comments, and Caroline Lockwood Nelson, Program Coordinator, summarized the agenda report as part of her PowerPoint presentation on the ADU Standard Plans Program, and responded to questions.
Mr. Huang reported that the agenda report refers to “…an additional six (6) Moderate Income units”, but the correct information is “…an additional three (3) Moderate Income units”, which will be corrected prior to presenting the item to the City Council.
Charles Loveman representing Heritage Housing Partners , provided information on the number of Market and Workforce for sale units, anticipated sale prices, and responded to questions.
Councilmember Madison asked staff to provide information on the Workforce Income units when the item is presented at the City Council ; and advocated for staff to work with the City’s Public Information Officer (PIO) and representatives of the League of California Cities, to announce to the community the number of affordable units the project will provide.
Chair Hampton suggested that Heritage Housing Partners work with the City’s PIO or the Human Resources Department to distribute information on the available Workforce Units.
02 07/16/2024
Following discussion, it was moved by Vice Mayor Madison, seconded by Councilmember Lyon, to approve the staff recommendation, and forward the item to the City Council for further consideration. (Motion unanimously carried) (Absent: None)
INFORMATION ONLY ECONOMIC DEVELOPMENT UPDATE BY DAVID A. KLUG,
ECONOMIC DEVELOPMENT DIRECTOR
David Klug, Director of Economic Development provided a summary of the staff report as part of his oral update and responded to questions.
Following a brief discussion, on the order of the Chair, and by consensus of the Committee, the information was received and filed.
ADJOURNMENT: On the order of the Chair, the meeting of the Economic Development and Technology Committee was adjourned at 5:39 p.m.
_________________________________
TYRON HAMPTON, Chair
Economic Development and Technology Committee
ATTEST:
____________________
Sandra S. Robles
Recording Secretary
01 08/20/2024
CITY OF PASADENA
ECONOMIC DEVELOPMENT AND TECHNOLOGY COMMITTEE MINUTES
AUGUST 20, 2024 – 5:00 P.M.
CITY HALL, COUNCIL CHAMBER
MEETING
OPENING Vice Mayor Madison called the meeting of the Economic Development and Technology Committee to order at 5:02 p.m.
ROLL CALL:
Staff:
Councilmember Tyron Hampton, Chair (Absent)
Vice Mayor Steve Madison
Councilmember Jason Lyon
Councilmember Jessica Rivas
David Klug, Director of Economic Development
Dion O’Donnell, Assistant City Attorney
Sandra S. Robles, Recording Secretary
APPROVAL OF MINUTES It was moved by Councilmember Rivas, seconded by Councilmember Lyon, to approve the minutes of June 18 , 2024 , as submitted. ( Motion unanimously carried)
INFORMATION ONLY APPRENTICESHIP PROGRAM
David Klug, Director of Economic Development , provided introductory comments, and Chris Cagle, Director of Business Services & Apprenticeship with South Bay Workforce Investment Board, presented a PowerPoint presentation on the Board’s business and employment services, hiring and training services, rapid responses and layoff aversion services, apprenticeships, and responded to questions. Deborah Shepard, Special Projects Career Pathways Coordinator, with South Bay Workforce Investment Board, spoke on the collaborative hiring and training efforts with Pasadena Bio Collaborative Incubator and community colleges.
Dr. Wendie Johnston, representing Pasadena Bio Collaborative Incubator, spoke on her organization’s work related to workforce training.
Dr. Salvatrice Cummo, Vice President of E conomic and Workforce Development, Pasadena City College (PCC), presented a PowerPoint presentation on PCC’s Ec onomic and Workforce program including information on the program’s goals, initiatives, and impacts; and responded to questions.
Luis Portillo, President and CEO of the San G abriel Valley E conomic Partnership, presented a PowerPoint presentation on the partnerships mission, partners, and the kindergarten through high school consortium, and responded to questions.
Following discussion, on the order of the Chair, and by consensus of the Committee, the information was received and filed.
02 08/20/2024
ECONOMIC DEVELOPMENT UPDATE BY DAVID A. KLUG,
ECONOMIC DEVELOPMENT DIRECTOR*
David Klug, Director of Economic Development, provided a brief summary of the staff report as part of h is oral update, specifically the “Dine Out Pasadena” event where Congressm ember Judy Chu pres ented the City with a $1.5M check in recognition of the Dine Out Pasadena grant award, and responded to questions.
Vice Mayor Ma dison spoke on the statue unveiling honoring the 50 th anniversary of Archie Griffin’s first Heisman trophy winning season held at the Rose Bowl Stadium on Saturday, August 17, 2024.
In response to Vice Mayor Madison’s inquiry related to the next Committee meeting, Mr. Klug res ponded that the next regular scheduled meeting is September 17, 2024.
Following a brief discussion, on the order of the Chair, and by consensus of the Committee, the information was received and filed.
ADJOURNMENT: On the order of the Chair, the meeting of the Economic Development and Technology Committee was adjourned at 6:06 p.m.
_________________________________
TYRON HAMPTON, Chair
Economic Development and Technology Committee
ATTEST:
____________________
Sandra S. Robles
Recording Secretary
NEW BUSINESS
1. ACCESSORY DWELLING UNIT (ADU) FEE STUDY*
MEMORANDUM
TO: ECONOMIC DEVELOPMENT AND TECHNOLOGY COMMITTEE
FROM: JENNIFER PAIGE, DIRECTOR OF PLANNING AND COMMUNITY
DEVELOPMENT DEPARTMENT
DATE: SEPTEMBER 17, 2024
SUBJECT: FEE STUDY FOR POTENTIAL FEE REDUCTIONS FOR ACCESSORY DWELLING UNITS (ADUs)
RECOMMENDATION:
Receive the report and provide feedback to staff regarding potential fee reductions for Accessory Dwelling Units (ADUs).
INTRODUCTION:
Pasadena recently updated its ADU ordinance to comply with state law. During community meetings and at public hearings, staff received requests to consider reducing fees applicable to ADUs, specifically related to plan check/permit fees and Residential Impact Fees (RIFs). The Planning Commission requested an ADU fee study as part of their recommendation to the City Council. As part of the ordinance approval, the City Council directed staff to complete a study to consider potential reductions to ADU fees and present draft recommendations to the Economic Development and Technology Committee (EdTech). In addition, the City’s 2021-2029 Housing Element includes Program #9, which discusses the removal of constraints (including evaluating fees related to housing production) and Program #11, which discusses alternative housing opportunities (including strategies to facilitate the construction of ADUs).
Demand to construct ADUs has been high in Pasadena. From 2020 through 2023, a total of 484 ADUs were constructed in Pasadena (Table 1). The average house size in the City is approximately 1,600 square feet, while the average ADU size is approximately 600 square feet.
Table 1 – Pasadena ADU Construction from 2020 through 2023 ADU Size # of ADUs % of ADUs
Up to 600 SF 262 77.7% 601 to 749 SF 114
750 to 800 SF 50 10.3%
801 to 1,000 SF 34 7.0%
Greater than 1,000 SF 24 5.0%
Total 484 100.0%
Economic Development and Technology Committee September 17, 2024 Proposed Fee Reductions for Accessory Dwelling Units
Plan Check and Permit Fees
The purpose of plan check and permit fees is to cover City staff costs related to reviewing, processing, inspecting, and maintaining records for construction projects. Most construction projects, including ADUs, are subject to compliance with state and local codes for zoning, building, plumbing, mechanical, fire, electrical, energy conservation, etc. The California Code of Regulations allows cities and counties to prescribe fees for plan checks, building permits, certificates of occupancy, etc. and provides a framework to limit those fees. State law does not currently mandate any reductions to plan checks and permit fees for ADUs. Pasadena currently applies the same fees to ADUs for plan checks and permitting as other residential construction.
Residential Impact Fees (RIFs)
The City of Pasadena has had a RIF since 1988, which has generated substantial funding for parks, open space and recreational facilities in the City. The fee is applicable when new housing units are built and is charged per residential unit based on the number of bedrooms. In compliance with California’s Mitigation Fee Act, new development pays only for its fair share of public facilities and prevents existing deficiencies from being passed on to new development.
The current RIF rates were updated in 2020 and are based on population projections from the Southern California Association of Governments (SCAG). By 2040, the City’s population is projected to increase by five percent, with 62,400 households and 150,700 people. These new residents will require new parks and recreation facilities. One means of meeting these needs is to improve and upgrade existing parks and facilities in the City. As of fiscal year (FY) 2024, the RIF ranges from $22,362 for a studio unit to $41,393 for a residence with five or more bedrooms (Table 2).
Table 2 – Pasadena RIFs for Residential Development (FY 2024) Number of Bedrooms Fee
Studio $ 22,362
1 $ 23,599
2 $ 26,209
3 $ 30,140
4 $ 36,621
5 or more $ 41,393
RIFs Applicable to ADUs
Per state law, impact fees, including RIFs, can apply to ADUs that are 750 square feet or greater. However, when impact fees can be applied, they shall not exceed an amount proportionate in relation to the square footage of the primary dwelling. For example, if the primary dwelling unit is 2,000 square feet and the ADU is 1,000 square feet, the RIF shall not exceed 50 percent of what would otherwise be charged.
While not required under state law, the RIF in Pasadena for ADUs of 750 square feet or greater is reduced to $1,158 when the ADU is reserved as affordable housing via a contract or covenant with the Housing Department. To reserve the ADU for affordable housing, the property owner must enter into either an Affordability Covenant or a Landlord Agreement for a minimum seven years. For an Affordability Covenant, the tenant must be a household whose annual income does not exceed 120 percent of the Area Median Income (AMI). For a Landlord Agreement, the tenant must be a qualified family member or a client of the City’s Rental Assistance Program.
These are optional contracts that are available for homeowner interested in reducing the RIF.
Economic Development and Technology Committee September 17, 2024 Proposed Fee Reductions for Accessory Dwelling Units
As noted in Table 1, the majority of ADUs constructed from 2020 to 2023 were less than 750 square feet and not subject to the RIF (77.7%). During the same time period, $420,000 in RIFs were collected from ADUs (or $105,000 annually), which was approximately 5.6 percent of the RIFs collected from all residential development.
FEE SURVEY FINDINGS:
City staff conducted a fee survey of plan check and permit fees, as well as RIFs applicable to ADUs. A total of 14 cities were surveyed, including Pasadena. See Tables 3 and 4 for the summaries. It should be noted that for the RIFs, cities collect them for different impact categories (e.g. Parks, Traffic, Water) and the fees are based on different thresholds.
Table 3 – Survey of Plan Check and Permit Fees for ADUs (rounded to the nearest hundred) City ADU Plan Check & Permit Fees
Small ADU1 Medium ADU1 Large ADU1
Pasadena $ 14,300 $ 16,900 $ 22,100
Santa Monica $ 10,700 $ 12,000 $ 13,800
El Monte $ 8,500 $ 9,300 $ 9,600
La Cañada-Flintridge $ 7,700 $ 9,900 $ 11,400 Sierra Madre $ 7,600 $ 9,000 $ 9,800
Alhambra $ 7,100 $ 9,000 $ 10,200
San Marino $ 7,000 $ 9,000 $ 13,100
West Covina $ 6,700 N/A $ 9,800
Burbank $ 6,800 $ 9,100 $ 9,600
Pomona $ 6,400 $ 7,300 $ 7,600
West Hollywood $ 5,500 $ 6,400 $ 7,200
Temple City $ 4,800 $ 6,000 $ 6,700
Arcadia $ 3,900 N/A $ 5,800
South Pasadena $ 3,900 N/A $ 5,400
Average $ 7,200 $ 9,400 $ 10,200
Table 4 – Survey of RIFs for ADUs2 (rounded to the nearest hundred) City RIF Amounts RIF Categories Thresholds
Pasadena $ 13,1003 Parks Number of bedrooms and
proportion of main dwelling
Burbank $ 11,600
Parks Proportion of main dwelling
Pomona $ 9,300
South Pasadena $ 5,300
Arcadia $ 5,000
El Monte $ 4,000 Parks and traffic
Alhambra $ 2,000 Traffic Amount reflects reduced RIFs for ADUs Santa Monica $ 2,000 Water
Temple City $ 500 Parks
San Marino, West Covina,
West Hollywood, Sierra
Madre and La Cañada-
Flintridge
$ 0 No RIF fees
charged
West Covina has no RIFs for
ADUs. Other cities have no
RIFs for residential
development.
1 A small ADU is calculated at 800 SF, a medium at 1,000 SF and a large at 1,200 SF. 2 Fee is based on a 1,000 SF, 2-bedroom ADU and a 2,000 SF primary dwelling. 3 Fee is reduced to $1,158 for ADUs with an Affordability Covenant or Landlord Agreement.
Economic Development and Technology Committee September 17, 2024 Proposed Fee Reductions for Accessory Dwelling Units
FEE REDUCTION OPTIONS FOR CONSIDERATION:
Plan Check and Permit Fee Reductions
Option 1: Tiered Reduction for all ADUs
Option 1 would be a tiered reduction for plan check and permit fees, with smaller ADUs receiving greater reductions as they typically take less time to review. Staff does not recommend reductions for ADUs greater than 1,000 square feet, as they typically require a greater level of staff review. Since most ADUs (88%) in the City are 800 square feet or less, the overwhelming majority of ADUs will benefit from the proposed reductions.
Option 2: Tiered Reduction for Affordable ADUs Only
Option 2 would further the goal of incentivizing ADUs as affordable housing. This option would only provide reductions for small and medium sized ADUs that include an Affordability Covenant or Landlord Agreement. Tables 5 and 6 below outline the proposed reductions for both options.
Table 5 – Proposed Plan Check/Permit Fee Reductions for ADUs
Table 6 – Examples of Reductions for ADUs (rounded to the nearest hundred)
RIF Reductions
As previously noted, the City currently provides a very considerable RIF reduction for affordable ADUs. The fees are reduced to a flat rate of $1,158 regardless of size with an Affordability Covenant or Landlord Agreement. Further, state law currently exempts ADUs less than 750 square feet from RIFs (regardless of affordability).
Option 1: Exempt all ADUs up to 800 square feet
This option would go beyond state law and exempt all ADUs up to 800 square feet from the RIF (affordable and market rate). State law already mandates that cities must allow the construction of ADUs up to 800 square feet and exempts ADUs that are less than 750 square feet from RIFs.
By aligning the RIF to 800 square feet would ensure that anyone constructing an ADU that is allowed by state mandate also qualifies for an exemption from the RIF. Many applicants are surprised that they would be allowed the 800 square feet, but they are subject to the RIF if their ADU is between 750 and 800 square feet. This option represents only a 50 square foot increase from the current state exemption, and given that most ADUs (88%) in the City are 800 square feet or less, the overwhelming majority of ADUs will benefit from the proposed reductions. In addition, the reductions would target smaller ADUs that have less of a demand for services. It is estimated that the RIF collected annually for ADUs would be reduced by approximately 35 percent (from $105,000 to $68,000).
4 A small ADU is calculated at 800 SF, a medium at 1,000 SF and a large at 1,200 SF.
ADU Size4 Option 1 (all ADUs) Option 2 (Affordable ADUs only) Small ADU 50% reduction 50% reduction
Medium ADU 25% reduction 25% reduction
Large ADU No reduction No reduction
ADU Size4 Current Fees Proposed Reductions Proposed Fees Small ADU $ 14,300 -50% $ 7,200
Medium ADU $ 16,900 -25% $ 12,700
Large ADU $ 22,100 N/A No reduction
Economic Development and Technology Committee September 17, 2024 Proposed Fee Reductions for Accessory Dwelling Units
CONCLUSION:
While the City has already implemented several resources and services to help encourage ADU production, including the adoption of revised regulations, offering complimentary ADU virtual consultations, the availability of pre-approved ADU plans, etc., the fee reduction options would make ADUs more affordable for homeowners and may incentivize some to construct an ADU.
FISCAL IMPACTS:
It should be recognized that a reduction in plan check/permit fees would result in a loss of revenue to the City’s Building Fund with the City subsidizing staff costs related to reviewing, processing, inspecting and maintaining records for ADUs. With regards to RIFs, staff estimates the RIF collected annually for ADUs would be reduced by approximately 35 percent. This would directly impact funds available to the Parks and Recreation Department funds for parks, open space and recreational facilities in the City.
NEXT STEPS:
If EdTech supports reductions to these fees, the next step would be to return to EdTech with a formal recommendation for the City Council to adopt a fee resolution for ADUs.
INFORMATION ONLY
1. ECONOMIC DEVELOPMENT UPDATE BY DAVID A. KLUG, ECONOMIC DEVELOPMENT DIRECTOR*
MEMORANDUM
Date: September 17, 2024
To: Economic Development and Technology Committee
From: David A. Klug, Economic Development Director
Subject: Economic Development Update
The Economic Development Division is committed to supporting a thriving local economy. This memo provides an update on market conditions and the Division’s efforts.
1. Business Development
a. Notable Openings & Successes
i. Fresh Bites, located at 105 N Hill St.,
opened on August 31. The restaurant
specializes in dishes crafted from Lebanese
recipes and focuses on using locally sourced
ingredients.
ii. Le Grand Restaurant, located at 55 S Lake
Ave., provides a variety of offerings including
happy hour, bar service, weekend brunch,
cocktails, dinner, appetizers, salads, pasta,
baked goods, and desserts. This full-service
restaurant features an unlimited tasting
menu, allowing guests to order multiple
signature dishes within a two-hour time
frame.
iii. Sincerely Syria, located at 21 S Fair Oaks
Ave. in the former El Toreo Café, is now
open. This Syrian-style shawarma restaurant
has opened its third Southern California
location in Old Pasadena.
iv. Skillets Grill, located at 57 E Holly St., is a
family-owned restaurant serving breakfast
and lunch in Old Pasadena.
2 b. Website Updates and Improvements
i. Economic Development Strategic Plan
The strategic plan has been added to the website. The plan provides a roadmap around six guiding principles that serve as the framework for twenty-seven projects the Division, City departments and external partners will pursue over the next five years.
• Build Systems and Partnerships for Success
• Champion Life Sciences and Cultivate a Deep Tech Ecosystem • Invest in Neighborhoods and Small Businesses
• Reinforce Pasadena as a Regional Destination for Culture and Entertainment
• Expand and Streamline Workforce Opportunities
• Prioritize Place and Accessibility Investments
ii. Property-Based Improvement District (PBID) Webpage
The Economic Development webpage now includes information on PBIDs and the three existing BIDs in Pasadena, detailing their functions and providing a link to the recent 101 webinar for groups interested in forming BIDs. This update supports Goal 2.4 of the Economic Development Strategic Plan, which aims to promote the formation of property and business improvement districts.
3 2. Housing
a. Bridge Housing
Bridge Housing has launched Heritage Square South, a new senior housing complex in Pasadena with 69 one-bedroom apartments for formerly homeless seniors. Located at Fair Oaks Avenue and Orange Grove Boulevard, the development features three low-rise buildings connected by pedestrian bridges. Union Station Homeless Services will provide residents with counseling, healthcare support, independent living assistance, and on-site activities. The project, designed by KTGY Architecture and built by R.D.
Olson Construction, aims to offer a stable, dignified living environment and support services to help seniors thrive.
3. Conferences & Special Events
a. Vets in AI
Economic Development staff spoke at the event representing the City of Pasadena as a leading deep-tech hub in the AI industry. Vets in AI is part of the Vets in Tech event series focused on integrating veterans into the rapidly growing AI sector, with opportunities in education, employment, and entrepreneurship. The gathering brought together industry leaders from AI, media, space, and defense.
b. Small Business Expo
Economic Development staff attended the Small Business Expo at the Pasadena Convention Center on September 5. The business-to-business trade show, conference & networking event of the helps small business owners, start-ups and entrepreneurs expand their business.
4. Strategic Partnerships and Initiatives
a. Small Business Green Survey Crawl Results
Economic Development staff collaborated with the Center at Lendisrty (Center) to conduct a survey to understand the challenges small businesses face in becoming climate resilient. Through an online questionnaire and a "Green Survey Crawl," 129 small business owners, including minority-led and
4 disadvantaged community businesses, provided insights into their environmental practices and challenges.
While many businesses are taking steps to reduce waste and improve energy efficiency, 72.6% were unaware of clean energy programs, and financing was a significant concern. The survey revealed interest in additional support, financial incentives, and forming a local business association. The Center aims to bridge these gaps through initiatives like the Contractors Accelerator for Climate Resilience. The findings will guide future efforts to support small businesses in accessing resources and contributing to a green economy.
5. Tech, Startups & Science
a. Arrowhead Pharmaceuticals, located at 177 E Colorado Blvd., is preparing to enter the obesity drug market with two new drug candidates. The company, known for its RNA-based platform that targets disease-causing genes, plans to start clinical trials for these drugs, which aim to treat obesity and metabolic diseases. The new drugs have shown potential to reduce body weight and fat while preserving lean muscle mass, differentiating them from existing treatments like Wegovy and Ozempic, which are often in short supply.
Arrowhead expects to submit clinical trial applications to the FDA by the end of this year and to begin studies with obesity volunteers early next year. The company anticipates reporting trial data later in 2024. Arrowhead currently has 14 drugs in clinical development, with several in Phase 3 trials, the final stage before FDA approval
.
b. Motiv Space Systems has opened a new facility in East Pasadena at 395 N Rosemead Blvd, reinforcing the city's position as a growing deep tech hub.
CEO Chris Theyer highlighted the company’s focus on technology development and Pasadena’s economic growth. Known for its robotic arm on the Mars 2020 Perseverance Rover, Motiv’s expansion is part of a broader trend of tech and science companies moving to or growing within Pasadena.
Pasadena’s proximity to institutions like Caltech and JPL provides access to advanced research, which attracts tech companies. Other companies recently expanding in Pasadena include Xencor, Doheny Eye Institute, AWS Center for Quantum Computing, and Honeybee Robotics, further solidifying Pasadena's status as a leading technology hub.