Stockton Economic Stimulus Program (SESP) Update & Consideration of Potential Program AmendmentsCity Council MeetingJune 3, 2025Agenda Item 16.4 Overview
Council has requested a program update
Program background and summary of PFF funds waived to-date SESP Employment Effect
Financial Implications
Potential options available to the Council for consideration Introduction: Public Facility Fees (PFFs)
Charged to new development to fund infrastructure
PFFs Included in SESP:•City Office Space•Community Recreation Centers•Library•Police Stations•Street Improvements•Fire Stations•Parkland*•City Administrative Legally required to show “nexus” between new growth and impacts to City facilities Based on the demand created by additional residents and employees Authorized Under AB 1600
*Parkland fee not charged on Nonresidential Permits
Background: SESP Program TimelineProgram Established (CC Resolution 2015-11-17-1602)Reduced fees for Residential, Commercial, & Industrial Development•Intent: Stimulate building + incentivize local hiring•Limits: •Cap of 1,000 Single Family Residential (SFR) & 500 Multi-Family Residential (MFR) permits•Builders cannot receive more than 20 permits per Final Map, and no more than 40 citywide at any given time •Program expires December 31, 2018•Requires: 50% local hire + BIA & NAACP to coordinate inclusion of disadvantaged communities; quarterly self-certified reporting by recipients (residential only)•Projected Impacts: UOP Study (presented by BIA in support of program) predicted creation of 3,700 jobs for every 1,000 SFRs in addition to other economic benefits to region 2015
SESP Fee Waiver Amounts Per Land Use TypeTotal WaivedSub-CategoryCategory$19,919.61per unitSingle FamilyResidential100% reduction for included fees$14,572.80per unitMulti-Family$2,912Per 1,000 SFOfficeCommercial50% reduction for included fees$3,502Per 1,000 SFRetail$5,626Per roomGuest Rooms$1,192.58Per $1,000 SFn/aIndustrial50% reduction for included fees Background: Program Timeline
2018
Program Extended(CC Resolution 2018-07-17-1302)•Expiration extended 2 years to December 31, 2020•Increased permit limitations in non-disadvantaged areas to 30 per subdivision & 80 citywide 2019
Program Expansion(CC Motion 2019-08-20-1405)• Removed program expiration date; expiration now triggered by PFF Nexus Study adoption• Eliminated caps (1,000 single family permits, 500 multi-family permits)• Removed local hire requirement for multi-family projects• Removed limits per builder Residential Fee Amounts Waived By CategoryMulti-FamilySingle-FamilyPFF Category548 MFR Units3,461 SFR Permits$214,268$1,616,287City Office Space$221,940$1,664,741Community Recreation Centers$417,028$3,121,822Library$272,356$2,045,451Police Stations$5,291,488$45,775,186Street Improvements$360,584$2,703,041Fire Stations$938,176$9,683,878Parkland$270,053$2,331,365Administrative Fee (3.5%)$7,985,893$68,941,771TOTAL $ WAIVED $76,927,664 in Waived Residential PFFsAll figures are rounded to the nearest whole dollar.
Non-Residential Fees Waived By CategoryIndustrial (113 Permits)Commercial (164 Permits)PFF CategoryGuest Rooms (2 Permits)Retail (88 Permits)Office (74 Permits)Total $ Waived$438,025$512,896$7,248$18,621City Office Space$400,243$ -$6,291$12,456Community Recreation Centers$963,852$8,424$15,623$28,148Library $1,067,122$13,141$17,395$44,903Police Stations$9,653,681$252,253$920,585$1,129,851Street Improvements$929,429$6,943$19,649$37,572Fire StationsExempt$ -$ -$ -Parkland$470,833$27,778$34,538$44,504Administrative Fee (3.5%)$13,923,185$821,435$1,021,329$1,316,055TOTAL $ WAIVED$17,082,004 in Waived Non-Residential PFFsAll figures are rounded to the nearest whole dollar.
Employment Projections & ActualsSingle-Family Residential Development Under SESPActual Annual Averages* UOP Study Projections3851,000Single-Family Housing Units (SFRs)6142,138Total Construction Jobs320n/aJobs for Stockton Residents1.592.14Total Jobs per Housing Unit Ratio*From 1/1/16 - 12/31/24, 3,461 SFRs were constructed, with 5,525 unduplicated construction jobs reported Financial Impacts
All figures are rounded to the nearest whole dollar.
Total WaivedBetween 1/1/2016 & 12/31/2024Fee$2,807,345City Office Space$2,305,671Community Recreation Centers$4,554,897Library$3,460,368Police Stations$63,023,044Street Improvements$4,057,218Fire Stations$10,622,054Parkland$3,179,071Administrative Fee (3.5%)$94,009,668TOTAL $ WAIVED