Stockton Economic Stimulus Program
(SESP) Update & Consideration of
Potential Program Amendments
City Council Meeting
August 12, 2025
Agenda Item 15.1
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 Timeline
Program 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 Type
Category Sub-Category Total Waived
Residential
100% reduction for
included fees
Single Family $19,919.61
per unit
Multi-Family $14,572.80
per unit
Commercial
50% reduction for
included fees
Office $2,912
Per 1,000 SF
Retail $3,502
Per 1,000 SF
Guest Rooms $5,626
Per room
Industrial
50% reduction for
included fees
n/a $1,192.58
Per $1,000 SF
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 Category
PFF Category
Single-Family Multi-Family
3,461 SFR Permits 548 MFR Units
City Office Space $1,616,287 $214,268
Community Recreation
Centers $1,664,741 $221,940
Library $3,121,822 $417,028
Police Stations $2,045,451 $272,356
Street Improvements $45,775,186 $5,291,488
Fire Stations $2,703,041 $360,584
Parkland $9,683,878 $938,176
Administrative Fee (3.5%) $2,331,365 $270,053
TOTAL $ WAIVED $68,941,771 $7,985,893
$76,927,664
in Waived
Residential
PFFs
All figures are rounded to
the nearest whole dollar.
Non-Residential Fees Waived By Category
PFF Category
Commercial (164 Permits)
Industrial
(113 Permits)Office
(74 Permits)
Retail
(88 Permits)
Guest Rooms
(2 Permits)
Total $ Waived
City Office Space $18,621 $7,248 $512,896 $438,025
Community Recreation
Centers $12,456 $6,291 $ - $400,243
Library $28,148 $15,623 $8,424 $963,852
Police Stations $44,903 $17,395 $13,141 $1,067,122
Street Improvements $1,129,851 $920,585 $252,253 $9,653,681 Fire Stations $37,572 $19,649 $6,943 $929,429
Parkland $ - $ - $ - Exempt
Administrative Fee (3.5%) $44,504 $34,538 $27,778 $470,833 TOTAL $ WAIVED $1,316,055 $1,021,329 $821,435 $13,923,185 $17,082,004 in Waived Non-Residential PFFs
All figures are rounded to the
nearest whole dollar.
Employment Projections & Actuals
Single-Family Residential Development Under SESP
UOP Study
Projections
Actual Annual
Averages*
Single-Family Housing Units (SFRs) 1,000 385
Total Construction Jobs 2,138 614
Jobs for Stockton Residents n/a 320
Total Jobs per Housing Unit Ratio 2.14 1.59
*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
Fee Total Waived
Between 1/1/2016 & 12/31/2024
City Office Space $2,807,345
Community Recreation Centers $2,305,671
Library $4,554,897
Police Stations $3,460,368
Street Improvements $63,023,044
Fire Stations $4,057,218
Parkland $10,622,054
Administrative Fee (3.5%) $3,179,071
TOTAL $ WAIVED $94,009,668
Potential City Council Options
No. Action Summary Product
1 None Maintain current SESP Waivers will remain until new PFF fees are adopted. 2 Amend
SESP Grandfathered & Phased
All active entitled projects and projects deemed
complete at time of Council action shall receive SESP
waivers.
New (future) projects shall receive gradually reduced
SESP waivers, reduced in 6 -month increments, over the
next 18 months.
3 Amend
SESP Gradual Phase Out
From effective date onward, SESP waivers will gradually be phased out, reduced in 4 -month increments, over the next 24 months.
4 Elimination
of SESP
Adoption of an
immediate or future SESP
sunset date
Waivers will cease immediately or at a specified date.
Recommendation
Staff Recommends that the City Council:
• Receive SESP Program Update
• Consider Information Regarding Program
Performance
• Contemplate Potential Amendments
• Provide Direction To Staff