City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Ken Zuidervaart, Planning Director
Date: 06/14/2022
Subject: Towne Place Suite by Marriott Incentive Program Resolution RECOMMENDED ACTION: Ripon City Council to adopt a resolution approving the participation of Towneplace Suites by Marriott in the City of Ripon’s Economic Development Incentive Program.
BACKGROUND: As the Council is aware, for some time now the City Council has desired to and has taken steps to increase the City’s economic position by becoming more competitive with our surrounding communities when it comes to non-residential growth. Another main objective of the Council was to work on changing Ripon’s negative image in the development community pertaining to non-residential development in Ripon. Change of this magnitude and improving Ripon’s reputation in the development community takes some time and as such, the City Council has taken many steps in improving Ripon’s image over the past five to seven years. In an effort to move towards those goals, the Council has taken the following steps over the past seven years:
Approval of the North Pointe Specific Plan – June of 2015 Adopted a Resolution revising and reducing the existing benefit assessment district fees – April 2016
Completed Ripon Video Showcase (marketing videos for our community) - 2016 Amended the City of Ripon’s PFFP fee program to become more competitive with our surrounding communities – March 2017
o Commercial Development – 9.6% reduction
o Professional Office Development – 19.1% reduction
o Light Industrial Development – 10.5% reduction
Implemented an Economic Development Incentive Program – May 2017 Contract and consult with San Joaquin County’s Economic Development Association to explore opportunities for business retention and attraction for the City of Ripon (valuable resource for business incentives and education) - 2018
Completed a marketing brochure for the City of Ripon – June 2020 Continually work to establish and maintain relationships with local commercial realtors, developers, brokers, and agencies - ongoing
More steps to come as the City progresses forward:
Explore ways to utilize benefit assessment fee repayments to further develop infrastructure for non-residential areas in Ripon – ongoing Attend conferences and trade shows to stay current on upcoming trends and market opportunities for our region - ongoing
With all that being said, with adoption of this resolution, the City of Ripon will be approving the third business, which is utilizing the City of Ripon’s Economic Development Incentive Program.
FISCAL IMPACT: Delay in General Fund revenue as the first $416,426 of transient occupancy tax (TOT) revenue generated by Towneplace Suites by Marriott will be used to replenish the Public Facilities Financing Plan capital funds over the next three to five years.
Attachments:
1. Exhibit A - Development Incentive Program Participation Agreement Towneplace Suites by Marriott
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIPON APPROVING THE QUALIFICATION AND DEFINING
THE TERMS OF TOWNEPLACE SUITES BY MARRIOTT'S
USAGE OF THE CITY OF RIPON’S ECONOMIC
DEVELOPMENT INCENTIVE PROGRAM
WHEREAS, on May 9, 2017 the Ripon City Council adopted Resolution No. 17-22 adopting the City of Ripon Economic Development Incentive Program (the “Program”) in an effort to increase municipal revenues to support vital City services, minimize sales and transient occupancy tax leakage, increase the production of high-paying jobs and attract new regional commercial development; and
WHEREAS, on February 14, 2022 the Ripon Planning Commission approved a Use Permit application for Towneplace Suites by Marriott, a commercial hotel wishing to develop a new hotel within the City of Ripon with a 5-0 vote; and WHEREAS, the Applicant has provided information and records to the City of Ripon verifying qualification for the City of Ripon Economic Development Incentive Program pursuant to the eligibility thresholds listed within the program guidelines; and WHEREAS, the City and the Applicant have negotiated the terms of an “Economic Development Incentive Program Participation Agreement” attached as Exhibit A to memorialize the terms under which the Applicant could participate in the Program.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ripon does hereby approve the Economic Development Incentive Program Participation Agreement in substantially the form specified in this Resolution, including the reduction of all City of Ripon’s Public Facilities Financing Plan (PFFP) fee program of $416,426 related to the Towneplace Suites by Marriott project and replenish those PFFP capital funds with money from the transient occupancy tax (TOT) revenue generated from the project.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ripon this 14th day of June, 2022, by the following vote:
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
DEAN UECKER, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk