Cities Index.
Agenda

Economic Development & Technology Committee
October 21, 2025

Document
Agenda
Meeting
October 21, 2025
Body
Economic Development & Technology Committee
Original file
3.0 MB
Text extracted from the city's file for reading and search. Open the original on www.cityofpasadena.net. That file is the official record.

A
GENDA

ECONOMIC DEVELOPMENT AND TECHNOLOGY COMMITTEE

REGULAR MEETING NOTICE
OCTOBER 21, 2025
PUBLIC MEETING 5:00 P.M.

M
EMBERS
Tyron Hampton, Chair District 1
Jessica Rivas, District 5
Steve Madison, District 6
Jason Lyon, District 7
S
TAFF
David Klug, Economic Development Director
Dion O’Connell, Assistant City Attorney
Betty Gao, Recording Secretary
M

ISSION 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.

I
n 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.

I
tems on the agenda may not be called in order listed.

A
gendas and supporting documents are available on the Internet at https://www.cityofpasadena.net/commissions/city -council-economic-development-technology/ M
aterials 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
OCTOBER 21, 2025 AT 5:00 P.M. WILL BE ACCEPTED IN-PERSON AND BY VIDEOCONFERENCE/ TELECONFERENC E.

Li
nk to City Meeting Policy:
cityofpasadena.net/CityCouncilMeetingPolicy
T
O 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:
b
[email protected]
C
orrespondence will be forwarded to the City Council prior to the start of the meeting, posted online, and made part of the legislative record for the item.

L
IVESTREAM WITH CAPTIONING IS AVAILABLE AT WWW.PASADENAMEDIA.ORG, WWW.CITYOFPASADENA.NET/COMMISSIONS/AGENDAS ,
I

F 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] .

C

ITY OF PASADENA

NOTICE OF REGULAR MEETING OF THE

ECONOMIC DEVELOPMENT AND TECHNOLOGY COMMITTEE
O
CTOBER 21, 2025
PUBLIC MEETING 5:00 P.M.

PASADENA CITY HALL, COUNCIL CHAMBER
100 NORTH GARFIELD AVENUE, ROOM S249
N
OTICE IS HEREBY GIVEN that the regular meeting of the Economic Development and Technology Committee, will be held on Tuesday, October 21, 2025, 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 16 th day of October 2025 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 distributio n herein below.

K
atrine Panoyan
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
OCTOBER 21, 2025
Public Meeting: 5:00 P.M.

Council Chamber, Pasadena City Hall
100 North Garfield Avenue, Room S249
Teleconference Location:

JW Marriott Dongdaemun Square Seoul
279, Cheonggyecheon-ro, Jongno-gu
Seoul, South Korea, 03198
Business Center
Telephone: +8 222-276-3000
T
he City Council may take action on any item listed on this agenda as it deems appropriate following consideration and discussion of the matter.

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
• SEPT
EMBER 16, 2025 – REGULAR MEETING*

NEW BUSINESS

1. F
EASIBILITY STUDY ON INCLUSIONARY HOUSING ORDINANCE*

INFORMATION ONLY

2. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ECONOMIC
DEVELOPMENT: COMMERCIAL FAÇADE IMPROVEMENT*

3. CONSIDERATION OF THE 2026 POINT IN TIME HOMELESS COUNT

4. ECONOMIC DEVELOPMENT UPDATE BY DAVID A. KLUG, ECONOMIC DEVELOPMENT DIRECTOR*

ADJOURN
*Attachment

APPROVAL OF MINUTES

• SEPTEMBER 16, 2025 – REGULAR MEETING*

01 09/16/2025

CITY OF PASADENA

ECONOMIC DEVELOPMENT AND TECHNOLOGY COMMITTEE MINUTES
SEPTEMBER 16, 2025 – 5:00 P.M.

MEETING

OPENING Chair Hampton called the meeting of the Economic Development and Technology Committee to order at 5:08 p.m.

ROLL CALL:

Staff:

Councilmember Tyron Hampton, Chair
Vice Mayor Jessica Rivas
Councilmember Steve Madison (Absent)
Councilmember Jason Lyon (Absent)

David Klug, Director of Economic Development
Brenda Harvey-Williams, Assistant City Manager
Manuel Carmona, Director of Public Health
Elizabeth Taylor, Program Coordinator II
Dion O’Connell, Assistant City Attorney
Tamer Sabha, Recording Secretary

PUBLIC COMMENT The following individuals expressed concerns with vacant properties in the City and/or provided comments regarding implementation of vacancy tax to support local economic activities:

Bert Newton, representing Making Housing and Community Happen Donna Sider, representing Pasadena Mennonite Church
Joshua Bautista, representing Making Housing and Community Happen
David Baer, representing Making Housing and Community Happen Stephen Hill, representing Making Housing and Community Happen

Anthony Manous os, representing Making Housing and Community Happen, advocated for impl ementing a transfer tax to raise revenue for affordable housing.

Jill Shook, representing Making Housing and Community Happen, urged the Committee to agendidize consideration of a transfer tax similar to the Measure United to House Los Angeles (ULA).

NEW BUSINESS FEASIBILITY STUDY ON INCLUSIONARY HOUSING ORDINANCE

Chair Hampton announced that this item will not be considered and will be agendized at a future Committee meeting.

INFORMATION ONLY MEHKO (MICROENTERPRISE HOME KITCHEN OPERATIONS)

Manuel Carmona, Director of Public Health, presented a PowerPoint presentation on the item, including providing information on MEHKO’s background and summary of small-scale restaurants operating in a home program, potential benefits and challenges of the program, role of City Departments, unpermitted home restaurant complaints, cost of additional City services, feasibility study, and proposed next steps ; and responded to questions.
02 09/16/2025

In response to Vice Mayor Rivas’ inquiry regarding selling food on private property, Elizabeth Taylor, Program Coordinator II, clarified that outdoor grilling would be permitted , however most of the food preparation must occur inside the residence.

The following individuals spoke in support of the MEHKO propos ed program and/or provided other related comments on the matter:

Roger Overstreet, Pasadena resident
Richard Gomeztrejo, Monrovia resident
Patrick Haugen, Pasadena resident
Lauren Wolfer, representing COOK Alliance

Chair Hampton expressed support for creating additional opportunities for residents to build businesses through the MEHKO program.

Following discussion, Vice Mayor Rivas and Chair Hampton spoke in support of staff researching other municipalities with MEHKO programs, collecting data and return to the Committee with a proposed MEHKO pilot program.

Following discussion, on the order of the Chair, and by consensus of the Committee, the information was received and filed.

UPDATE ON RECONNECTING PASAENA 710 MASTER PLAN

PROCESS

Brenda Harvey-Williams, Assistant City Manager and Vaughan Davies, Principal at Perkins Eastman ( City consultant), provided introductory comments, and Susan Ambrosini, Principal from AECOM (City consultant), presented a PowerPoint presentation on the 710 Master Plan preliminary economic analysis , including providing information on the summary of key findings, development options and program, with all responding to questions.

In response to V ice Mayor’s inquiry related to the rental housing units , Hunter Gillespie, Project Manager from AECOM, provided information on the baseline model, and responded to questions.

Following discussion, on the order of Chair, and by consensus of the Committee, the information was received and filed.

ECONOMIC DEVELOPMENT UPDATE BY DAVID A. KLUG,

ECONOMIC DEVELOPMENT DIRECTOR

David Klug, Economic Development Director, summarized the staff memo as part of his oral presentation, including providing information on business developments, conferences and workforce development, technology startups and Science, and real estate; and responded to questions.

Vice Mayor Rivas and Chair Hampton thanked staff for their hard work.

03 09/16/2025
Following a brief discussion, on the order of the Chair, and by consensus of the Committee, the information was received and filed.

APPROVAL OF

MINUTES
It was moved by Vice Mayor Rivas, seconded by Chair Hampton, to approve the minutes of August 19, 2025, as submitted. ( Motion unanimously approved) (Absent: Councilmembers Madison, Lyon)

ADJOURNMENT:

On the order of the Chair, the meeting of the Economic Development and Technology Committee was adjourned at 6:21 p.m.

ATTEST:

____________________
Betty Gao
Recording Secretary

_________________________________
Councilmember Tyron Hampton, Chair
Economic Development and Technology Committee

NEW BUSINESS

1. FEASIBILITY STUDY ON INCLUSIONARY HOUSING ORDINANCE*

Planning & Community Development Department
Feasibility Analysis to Consider Increasing
Requirements of the Inclusionary Housing Ordinance
Economic Development & Technology Committee
October 21, 2025
Planning & Community Development Department
2 Introduction
Planning & Community Development Department
Agenda
• Introduction (City Staff)
• Policy Context (City Staff)
• AECOM Analysis (AECOM)
• Alternative Opportunities (City Staff)
• Conclusion & Next Steps (City Staff)
3 Planning & Community Development Department
Introduction
• At the South Fair Oaks Specific Plan
update hearing the City Council
requested staff study increasing the
mandatory affordable set-aside
percentage of the City’s IHO.
• Program #8 of the 2021-2029 Housing
Element also calls to continue to monitor
the effectiveness of the City’s IHO.
4 Planning & Community Development Department
5 Rental
Projects
5% - Very
Low Income
(VLI)
5% - Low
Income (LI)
10% -
Moderate
Income (MI)
For-Sale
Projects
20% -
Moderate
Income (MI)
In Lieu
Fee
Off-Site
Units
Land
Donation
• IHO was last updated in August 2019, when the City Council:
> Eliminated trade downs.
> Increased in-lieu fee.
> Created an affordable housing concession menu.
> Increased the inclusionary percentage requirement
from 15% to 20%.
• Minimum onsite household affordability for projects
with 10 units or more:

Background – IHO
Planning & Community Development Department
6 Policy Context
Planning & Community Development Department
City
Min
Project
Size
Inclusionary
Requirement %
Sub-
Geographies
Deed
Restriction In-Lieu Fee Option
Pasadena 10 units
For Rent: 20%
(5% VLI, 5% LI & 10% MI)
For Sale: 20% (MI)
No
For Rent:

Perpetuity
For Sale: 45 yrs
Yes, can also be combined
with providing some
inclusionary units.

Burbank 5 units
For Rent: 15%
(5% VLI & 10% LI)
For Sale: 15% (LI or MI)
No
For Rent:

Perpetuity
For Sale: 55 yrs
Yes
Glendale 8 units 15% (LI) No 55 years
Yes, can be combined with
providing some
inclusionary units.

Santa
Monica
2 units
2 to 19 Units: 15% LI
20+ Units: 15% requirement
is divided equally between
VLI, LI and Moderate
No 55 years 2-5 unit projects only
West
Hollywood 2 units
2 to 10 Units: 1 unit (LI or
MI)
11+ Units: 20% (LI or MI)
No Perpetuity 2 to 10-unit projects only
Long
Beach 10 units
For Rent: 12% (LI or VLI
depending on submarket)
For Sale: 10% (MI)
Yes - Downtown
and Midtown
Submarkets
and resource
areas.
55 yrs
Yes, for all ownership or
rental 1 to 20 units or if
hardship is found by City
Alhambra 5 units 15% (9% LI & 6% MI) No
For Rent:

Perpetuity
For Sale: 45 yrs
5 to 6 Units: No units
required; in-lieu fee
required
7 to 20 Units or in-lieu
21+: Units required, in-lieu
not an option
• Set aside requirements vary
by percentage required,
project size, and location
within the jurisdiction.
• Comparatively, Pasadena has
one of the highest inclusionary
requirement percentages.
• Many jurisdictions have a
lower minimum project
threshold.

Peer and Neighboring Jurisdictions
Planning & Community Development Department
Developer Interview Takeaways
8 Image by bsd studio
• City staff carried out several interviews with
affordable housing and market rate
developers to gain qualitative information and
insights into the current environment in the
housing market.
• Some general insights include:
> Development costs continue to rise.
> Policy adjustments should be made during a
better time in market cycle.
> Pasadena offers strong development
opportunities, but housing types must be
balanced across affordability level and density.

Planning & Community Development Department
9 AECOM Analysis

Market Context: Specific Plan Areas (SPA)
• SPA Areas contributed 74% of all projects from 2019 to 2023 with nearly all other projects clustered near SPAs. • This suggests that the marketable location and amenity benefits of the SPAs extend just beyond the SPA boundaries.
580
0 0
118
0 0 0
1,139
186 281
0 0 0 76
0 200
400
600
800
1,000
1,200
Units by Specific Plan Area (2019-2023)
Completed Projects Pipeline Projects
10 Market Context: TOD Areas
• TOD Areas contributed 86% of completed units since 2019, and 98% of pipeline. • Recent multifamily development in Pasadena has been synonymous with TOD development 118
664
0 3245
1,118
392
463
0 200
400
600
800
1,000
1,200
Non TOD Both Regional
and Local
TOD
Only Regional
TOD
Only Local
TOD
Units by TOD Area (2019-2023)
Completed Units Pipeline Units
11 Market Context: Land use & Density Cohort
• The highest density zones (with base allowable density >48 DUAC) contribute the highest shares of units (80%). • Low Density areas followed at 12% (<33 DUAC) and Medium Density Areas (33-48 DUAC) contributed 7%. 48 48
650
283
122
1,459
-
200
400
600
800
1,000
1,200
1,400
1,600
Low Density (<33
duac)
Medium Density
(33-48 duac)
High Density (>48
duac)
Units by Density Cohort (2019-2023)
Completed Units Pipeline Units
12 Prototype Development
• The market analysis assessed recent historical and proposed residential developments and provided key inputs into the pro-forma financial modelling process, which resulted in the development of courtyard and podium prototypes for both for rental apartments and for sale condominiums (6 different typologies).
• AECOM also developed both a courtyard and podium typology with ground floor retail to be tested for the higher density land uses.

Typology
Program Single Use Single Use Single Use Mixed Use Single Use Tenure Rental For Sale Rental Rental For Sale
Representative
Examples
Parking Typology
Height
Site SF
DUAC Range
Residenital Typologies for Financial Feasibility Testing Low-Rise Courtyard Mid-Rise Podium
Podium & Underground parking
Madison Courtyard Apartments Union Court MW Lofts
409 N MADISON AVE 645 E UNION ST 218 N EL MOLINO AVE
3-4 stories
3/4 Acre
35-87 87-165
5-7 stories
3/4 Acre
Rental
Mixed Use
Underground Parking
Typology
Program Single Use Single Use Single Use Mixed Use Single Use Tenure Rental For Sale Rental Rental For Sale
Representative
Examples
Parking Typology
Height
Site SF
DUAC Range
Residenital Typologies for Financial Feasibility Testing Low-Rise Courtyard Mid-Rise Podium
Podium & Underground parking
Madison Courtyard Apartments Union Court MW Lofts
409 N MADISON AVE 645 E UNION ST 218 N EL MOLINO AVE
3-4 stories
3/4 Acre
35-87 87-165
5-7 stories
3/4 Acre
Rental
Mixed Use
Underground Parking
Typology
Program Single Use Single Use Single Use Mixed Use Single Use Tenure Rental For Sale Rental Rental For Sale
Representative
Examples
Parking Typology
Height
Site SF
DUAC Range
Residenital Typologies for Financial Feasibility Testing Low-Rise Courtyard Mid-Rise Podium
Podium & Underground parking
Madison Courtyard Apartments Union Court MW Lofts
409 N MADISON AVE 645 E UNION ST 218 N EL MOLINO AVE
3-4 stories
3/4 Acre
35-87 87-165
5-7 stories
3/4 Acre
Rental
Mixed Use
Underground Parking
For Rent Increased Affordability Scenarios
Scenarios were tested which increased the required inclusionary requirement in two ways:

1. Increasing the share of higher affordability units (e.g., a higher proportion of VLI to LI); and

2. Increasing the overall percentage of affordable units (e.g., from 20% to greater than 20%). A mixed-use scenario was tested in the for-rent scenarios as the market typically dictates mixed-use rental units and not ownership.
14 For Rent Increased Affordability Scenario Feasibility Results Density Bonus and
% Affordable
Housing Only Project Mixed Use Project
Courtyard
(Low)
Courtyard-
Smaller
Units
(Medium)
Podium
(High) Courtyard (High) Podium
(High)
25% Affordable & No Bonus:
(Scenario 2-AR)
Very Low
Low
Moderate
5%
10%
10%
Not Feasible Feasible Not Feasible Feasible Not Feasible 25% Affordable & 28% Bonus:
(Scenario 7-R)
Very Low
Low
Moderate

5%
10%
10%
Not Feasible Feasible Feasible Feasible Not Feasible
25% Affordable & 89% Bonus:
(Scenario 6-R)
Very Low
Low
Moderate
15%
0%
10%
Feasible Feasible Feasible Not Feasible Feasible
25% Affordable & 35% Bonus:
(Scenario 9-R)
Very Low
Low
Moderate
10%
10%
5%
Not Feasible Feasible Not Feasible Not Feasible Feasible 15 For Sale Increased Affordability Scenario Feasibility Results Density Bonus and
% Affordable
Courtyard
(Low)
Courtyard-
Smaller
Units
(Medium)
Podium
(High)
25% Affordable & No Bonus:
(Scenario 2-AS)
Moderate 25%
Feasible Feasible Feasible
25% Affordable & 28% Bonus:
(Scenario 1-S)
Moderate 25%
Feasible Feasible Feasible
16 Feasibility Analysis Conclusion
• While a modest increase in affordable housing requirements (additional 5% or shift from MI to LI) could be feasible for only the highest density areas, AECOM recommends maintaining the current ordinance until market conditions change.
• Raising the requirement at this moment of time could prevent the short-term development of both market-rate and affordable homes in the City. • A heightened requirement could distort the market and cause only projects at the densest and highest intensity to be viable.
• The City has one of the highest inclusionary requirements relative to peer jurisdictions, and additional requirements are likely to deter development in the short term and have an adverse impact on housing production in the City.
17 Planning & Community Development Department
18 Alternative Opportunities to Increase
Affordable Housing Production
Planning & Community Development Department
Strategies Inspired by Peer Cities
19 • Consider implementing changes based on policies other cities have adopted such as a lower unit threshold:
> The threshold could be lowered from the current 10-unit requirement to be subject to the inclusionary requirements to a lower number such as five (which is the minimum for Density Bonus eligibility).
> This would potentially result in a greater number of small residential projects being required to include affordable units or pay an in-lieu fee. Options could be to provide one unit for projects of 5-9 units or pay a lower in-lieu fee.
> Between 2019 and 2025, six projects consisting of 5-9 units were completed. Five additional projects are under review. > Requiring one inclusionary unit for each of these projects would have resulted in 11 additional affordable units.

City Min. Project
Size
Pasadena 10 Units
Burbank 5 Units
Glendale 8 Units
Santa Monica 2 Units
West
Hollywood 8 Units
Long Beach 10 units
Alhambra 5 Units
Planning & Community Development Department
Strategies Inspired by Peer Cities
20 • Consider increasing deed restriction in for-sale
housing:
> Increase deed restriction in for-sale housing from
45 years to in perpetuity, the same as rental housing.
> Since its inception in 2001, the inclusionary ordinance has resulted in 96 affordable for-sale units consisting of 50 moderate income, 38 low income, and 8 very low-income
units. These units are deed restricted for 45 years.

City Deed Restriction
Pasadena For Rent: Perpetuity
For Sale: 45 years
Burbank For Rent: Perpetuity
For Sale: 55 years
Glendale 55 years
Santa Monica 55 years
West Hollywood Perpetuity
Long Beach 55 years
Alhambra For Rent: Perpetuity
For Sale: 45 years
Planning & Community Development Department
• Study establishing a residential property vacancy tax:
> The tax would charge a fee for any residential units empty for set length of time (exemptions can be determined for
renovations, hospitalizations, etc.).
• Study establishing a real estate transaction fee:
> The fee would be for all real estate transactions and funds generated would be specifically directed towards the
acquisition/production of affordable housing units.
• Study establishing a commercial development linkage fee:
> The purpose of the fee would be to mitigate the impacts of an increase in affordable housing demand from new worker
households associated with new commercial development.

Fees would be charged based on connection between the
development of commercial projects by type and the demand for affordable housing units. 21
“Investigate the most effective
means available to generate funds
locally to support the construction of
affordable housing in Pasadena,
such as but not limited to a
residential property vacancy tax,
real estate transaction fee, and
commercial development linkage
fee.”
- Housing Element Program #12
“
”
Implementing Housing Element Programs
Planning & Community Development Department
Additional Incentives
• Study offering fee reductions:
> Inclusionary projects currently get a reduction in residential impact fees. Additional fee reductions could be offered, providing lower development costs for qualifying projects. Fees to study may include, but not limited to, residential impact, plan check, and permit processing fees.
• Study expedited permitting:
> An expedited review could be implemented offering
accelerated permitting. Expedited permitting is shown to offset developer cost.
> Program #10 of the Housing Element looks to reduce
processing time for both entitlement and plan checking for affordable housing projects (with 50% or more units for lower- income households).
22 Planning & Community Development Department
Additional Compliance Options
• Study option to convert existing off-
site market-rate units to affordable
units.
• Study option to extend the term of
affordability of existing affordable
units expiring within 3-5 years.
23 Planning & Community Development Department
Apply Inclusionary Requirement to Total Units
(Resulting from Density Bonus)
• The inclusionary requirement is calculated on
the base density allowed. Any additional units
gained through a density bonus are not included
in this calculation.
• There has been discussion about including
bonus units in the inclusionary requirements.
• However, this approach is not allowed under
state law as it would conflict with the state’s
formula for awarding density bonuses based on
affordable units.
24 Image by Siti Masriatun

Planning & Community Development Department
Workforce Housing
25 • Across the State, there is no universal
definition of “workforce housing”,
although it typically falls in a range
from 80 to 150% of Area Median
Income (AMI).
> The 2025 AMI for Los Angeles
County for a family of four is
$106,600.

Planning & Community Development Department
Workforce Housing
26 • In Pasadena, a residential impact fee (RIF) rebate is provided for “workforce housing” units between 121 to 180% of AMI, that provide a recorded 15-year covenant.
• If a new residential development project offers:
> 15% of its units as workforce housing for rent or sale at 121 to 150% of AMI, the workforce housing units shall receive a 50% rebate on the RIF. > 15% of its units as workforce housing for rent or sale within the price range of 151 to 180% of AMI, the workforce housing units shall receive a 35% rebate on the RIF. • There has only been one completed workforce project receiving a RIF rebate in past 10 years:
> Seven units at Lincoln Avenue at Orange Grove Boulevard.

Planning & Community Development Department
Incentivizing Workforce Housing
27 • Per State law, when creating incentives for workforce housing, incentives cannot compete with the incentives of State Density Bonus or make workforce housing more advantageous to provide than lower-income housing. Potential options to study:
• Provide larger RIF rebate for workforce units:
> The rebate discussed on previous slide could be increased to a 75% (for 121 to 150% of AMI units) and 50% (for 151 to 180% of AMI units) rebate on the RIF to provide additional incentive.
• Exempt workforce units from inclusionary requirement:
> For example, if a project has 100 units and 20 of them are proposed to be workforce units, then the number of units used to calculate inclusionary units or in-lieu fee payments would be based 80 units.

Planning & Community Development Department
28 Conclusion & Next Steps
Planning & Community Development Department
Conclusion & Next Steps
29 • Given the current market conditions and the
challenges posed by elevated development
costs and risks, the recommendation is to
maintain the existing inclusionary housing
requirements.
• Receive feedback on this recommendation and
the additional options staff has outlined that can
potentially increase the production of affordable
units.
• If directed to study any of the alternatives
presented, further analysis will be needed to
determine their feasibility, effectiveness and
alignment with the City’s housing goals.

Planning & Community Development Department
Feasibility Analysis to Consider Increasing
Requirements of the Inclusionary Housing Ordinance
Economic Development & Technology Committee
October 21, 2025

INFORMATION ONLY

2. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ECONOMIC
DEVELOPMENT: COMMERCIAL FAÇADE IMPROVEMENT*

Commercial Façade
Improvement Grant
Program
Economic Development & Technology Committee
October 21, 2025
Background
2 • $1.5M Federal Funding (2023): Secured for outdoor dining; ~$100K allocated for façade improvements.
• CDBG Application (Feb 2025): EconDev applied for City Set-Aside grant funds via Housing Department.
• City Council Approval (May 2025): Approved $200,500 for the Commercial Façade Improvement Program.
• Federal Update (July 2025): Executive order temporarily paused federal fund use.
• MOU Signed (Aug 2025): Federal pause ended and EconDev and Housing Department signed an MOU.
• EdTech Update (Aug 2025): Shared program update and upcoming details.

Context
Program Information
3 • Launch: November 3, 2025
• Purpose: Support storefront and
façade improvements for local
businesses.
• Goal: Revitalize disadvantaged areas,
boost foot traffic, and increase sales.
• Funding: Up to $20,000 per business
(approx. 10 grantees).
• Outreach: Info shared via newsletter,
liaisons, direct emails, website, flyer,
Instagram, and in-person meetings.

Commercial Façade Improvement Program
(Image is for sample purposes only)

Eligibility Criteria
4 Category Criteria
Location Located in a CDBG-census tract and operate a street-level storefront Registration and Good
Standing
Registered and cleared with SAM.gov, in good standing with California, and no pending ligation with Pasadena
Property Ownership /
Lease
Own the property or have a lease agreement covering at least 3 years after construction completion.

Eligible Use of Funds • Exterior signs
• Painting or exterior treatments
• New/replacement exterior doors
• Outdoor lighting fixtures
• Decorative/security fencing
• Plate glass replacement, re-glazing, window art, merchandising supplies
Ineligible Use of Funds • Reimbursement for expenses before grant approval • Payment of non-business/personal debt or expenses
• Supporting other businesses
• Political activity, taxes, or fines
• Interior improvements, equipment, furniture, or repairs Eligibility Map
5 Eligible service areas will only include those in CDBG benefit service areas. Eligible tracks include parts of most Council Districts.
*Map subject to change based on HUD guidelines
Selection Criteria
6 Evaluated on a 100-point scale. Evaluation Committee will include Pasadena Community Foundation and City of Pasadena staff.
• Impact (35 pts): Projects that boost corridor vitality including attracting customers, those that consider nearby businesses, and enhance the area’s overall look and economic health.
• Capacity (30 pts): Applicants who show readiness and reliability such as having a complete application, financial stability, project management capability, timely completion, long-term maintenance, and strong collaboration with city partners.
• Need (25 pts): Demonstrated need for storefront upgrades that will meaningfully improve the business and surrounding area. • Vision (10 pts): Designs that are attractive, cohesive, durable, and elevate the storefront’s appearance while supporting business growth.

Timeline
7 • Application Open: November 3, 2025
• Application Close: November 30, 2025
• Pre-Approval Environmental Review: 30 days to complete • Grantee Selection: January 2026
• Upgrades/Improvements: January – April 2026
• Projects/Construction Completed: May 2026
• Reimbursement: June 2026
End of Presentation
8 Thank you!

4. ECONOMIC DEVELOPMENT UPDATE BY DAVID A. KLUG, ECONOMIC DEVELOPMENT DIRECTOR*

MEMORANDUM

Date: October 21, 2025

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. Tierra Mia Coffee
has opened a
new location at 817 N. Lake Ave.

The opening follows a community
pop-up held at the site in support
of first responders and residents
affected by recent wildfires. The
Pasadena café expands the
Southern California– based coffee
chain’s presence, offering its
signature Latin -inspired
beverages and pastries.
ii. Goop Kitchen has opened a new location at 1060 E. Colorado Blvd, operating out of the Allied Food To Go ghost kitchen. The delivery -only kitchen offers gluten -free, dairy-free, and preservative-free dishes, including bowls, salads, wraps, soups, and rotisserie chicken. This location delivers to Pasadena and surrounding communities. iii. Hawaii Fluid Art has opened a new studio at the Paseo. The experiential art studio offers a variety of creative classes, including fluid art, resin tumblers, glass painting, and mosaic patch parties. The studio is available for individual sessions, group events, and private parties.

iv. The Open Book, An independently owned bookstore has opened at The Paseo. The store offers a selection of new, like- new, and gently used books for all ages, along with collectibles, comics, games, and other media. Staff provide recommendations and host community events, creating a full -service shopping experience for local cust omers.

2. Conferences & Special Events
a. Most Business-Friendly City Finalist
The City of Pasadena has been named a
finalist for the Most Business -Friendly
City Award at the 30th Annual Eddy
Awards, hosted by the Los Angeles
County Economic Development
Corporation (LAEDC). This nomination
recognizes the City’s ongoing efforts to
support local businesses, foster
innovation, and strengthen the
community for residents and employers
alike. Winners will be announced on
Wednesday, November 5, at the Rose
Bowl, and Economic Development staff
looks forward to attending and
celebrating Pasadena’s
accomplishments in economic
development.

b. Pasadena Business & Economic Summit
Economic Development staff attended the
Pasadena Business & Economic
Summit at Brookside Golf Club, hosted in partnership with the Pasadena Chamber of Commerce. The event, held October 21, brought together local business leaders, city officials, and economic development partners to discuss regional trends, workforce development, and strategies for supporting the local business community. Economic Development Director, David Klug, delivered a presentation highlighting the City’s recent initiatives, including attraction and retention efforts, support for businesses, and upcoming development projects.

c. LA Tech Week – Pasadena Events
Economic Development partnered with Innovate Pasadena to host a series of events during LA Tech Week (October 13–19), highlighting Pasadena’s innovation ecosystem and connecting entrepreneurs, investors, and talent across Southern California. The week’s programming showcased Pasadena’s leadership in fields such as climate technology, biotech, and deep tec h

entrepreneurship, reinforcing the city’s role as a hub for science and technology -based industries.

d. 88 Cities Summit
The Economic Development team attended the 88 Cities Summit on October 15, 2025, at the Port of Long Beach. Presented by the Los Angeles County Economic Development Corporation (LAEDC) in partnership with the City and Port of Long Beach, the event convened civic and business leaders from across Los Angeles County to discuss strategies for building a more resilient and inclusive regional economy. Session topics included public -private partnerships, economic development best practices for smaller cities, leadership development, and community revitalization.

e. International Council of Shopping Centers
Economic Development staff attended the International Council of Shopping Centers (ICSC) W estern Cities conference in Palm Springs to learn about emerging retail trends, development strategies, and the growing role of technology and AI in operations. Despite recent national closures among several major chains, retail activity remains strong overall, with record- low vacancies and deal velocity up by roughly 25 percent from last year. Sessions also highlighted how large- format spaces are being successfully repurposed for uses such as grocery, medical offices, auto services, and swim schools.

Staff participated in networking and informational sessions to gather insights that will inform future economic development initiatives.

3. Business Support and Networking
a. Shop Local Pasadena – Open Rewards Pilot Program
Economic Development launched the Shop Local Pasadena pilot program powered by Open Rewards on October 1, 2025. The digital rewards program offers 5% cash back on purchases at participating local businesses and runs through March 31, 2026. Residents,
visitors, and workers can earn rewards
by downloading the Open Rewards
app, selecting Pasadena as their
community, and linking a payment
method. Pasadena is home to more
than 1,600 retail businesses and over
700 restaurants, and the program aims

to encourage local shopping while providing insights into economic activity.

b. P layhouse Village Association Fall Mixer
Staff participated in the Playhouse Village Association Fall Mixer at the USC Pacific Asia Museum on October 8. Staff hosted a table to share information on the October small business campaign, World Cup, and LA28 opportunities.

Department of Transportation staff also attended with details on the upcoming parking meter launch, providing local businesses with resources and support.

c. Small Business Recovery & Resilience
Economic Development staff shared information with the local business community about the Los Angeles County Economic Development Corporation’s (LAEDC)
Small Business
Recovery & Resilience event , held on
Wednesday, October 8 at the Altadena Main
Library. The free event provided business
owners with resources to build resiliency,
strengthen their digital presence, and prepare
for future disruptions. Attendees had the
opportunity to develop a personalized
resiliency roadmap, learn strategies to launch
and optimize online stores, receive one- on-
one consultations with business experts, and
explore recovery funding opportunities.

Economic Development staff highlighted this
event as a valuable resource for Pasadena
businesses seeking support in recovery and
growth.

d. Ribbon Cutting Ceremony for Chamo Venezuelan Cuisine The Economic Development staff celebrated the grand opening of Chamo’s new outdoor dining patio. Staff was joined by Mayor Victor Gordo and restaurant owner Yesika Baker for a ribbon -cutting ceremony marking the occasion. The new patio is designed to attract more customers and further energize Pasadena’s dining scene. This project was made possible through grant funding supported by Congresswoman Judy Chu, reflecting continued investment in the city’s vibrant local businesses.

4. Tech. Startups & Science
a. NASA JPL finds potential biosignatures on Mars
NASA’s Mars rover, built and managed by the California Institute of Technology’s Jet Propulsion Laboratory (JPL) in Pasadena, collected 3.5- billion -year-old mudstone samples w ith “leopard- spot” and “poppy seed” markings. NASA officials are calling them the strongest evidence yet of ancient life on the red planet. Analysis suggests the minerals could result from chemical reactions involving organic matter, possibly microbial, though Earth-based testing is needed to confirm their origin.

b. Pasadena-based Scratch Financial modernizes veterinary lending Scratch Financial, located at 225 S. Lake Ave. (Pasarroyo) partnered with LoanPro to integrate its modern credit platform across Scratch’s veterinary network. The platform will streamline operations, improve borrower support, and enhance affordability for pet owners. Scratch and LoanPro aim to provide scalable, API-driven financial services for veterinary practices.

c. Tetra Tech Appoints New President
Roger R. Argus has been appointed president of Pasadena- based consulting and engineering firm Tetra Tech
. Argus, with over 30 years at the company,
will oversee global operations. Tetra Tech employs 30,000 people worldwide and provides consulting and engineering services focused on water, environmental management, and sustainable infrastructure, with its headquarters in Pasadena serving as the center of global operations.

5. Real Estate
a. 590 South Fair Oaks Avenue
The Keck Medicine of USC outpatient clinic at 590 S. Fair Oaks Ave. is now open. The four-story, 100,000-square-foot facility houses more than 15 medical specialties, including cancer care, cardiology, orthopedics, and diagnostic imaging, as well as an ambulatory surgery center. The clinic includes physicians affiliated with Keck Medical Center of USC, including the USC Norris Comprehensive Cancer Center, USC Cardiac and Vascular Institute, and USC Orthopaedic Surgery. It also supports clinical training for medical students, residents, and fellows, and is pursuing LEED Platinum certification. The new location expands Keck’s footprint in Pasadena, while the existing clinic at 625 S . Fair Oaks Ave. continues to provide primary and specialty care.

← All documents from this meeting