3 YEAR ECONOMIC
DEVELOPMENT ACTION PLAN:
2026-2028
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1 TABLE OF CONTENTS............................................................................................2 ACKNOWLEDGEMENTS........................................................................................4 INTRODUCTION ............................................................................................... 5-6 CATEGORIZED TIMELINES......................................................................................7 IMAGE ENHANCEMENT & PROMOTION OF COMMUNITY....................................8-9 REVENUE ENHANCEMENTS...........................................................................10-11 ATTRACTION & DIVERSIFICATION OF EMPLOYERS IN INDUSTRIAL DISTRICT...12-14 DOWNTOWN DEVELOPMENT (18-HOUR COMMUNITY; 6AM-MIDNIGHT)...…...15-16 RETAIL/RESTAURANT ATTRACTION & SHOPPING CENTER ENHANCEMENT.....17-18 AUTO DEALERSHIPS......................................................................................19-20 PARTNERSHIPS WITH EDUCATIONAL INSTITUTIONS & JOB TRAINING.............21-22 SMALL BUSINESS DEVELOPMENT..................................................................23-24 TARGETED SERVICES.....................................................................................25-26 INCENTIVES & SERVICES...............................................................................27-28
T A B L E O F
C O N T E N T S
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ACKNOWLEDGEMENTS
City Council
Christina Fugazi, Mayor
Jason Lee, Vice Mayor, District 6 Michele Padilla, Councilmember, District 1 Mario Enriquez, Councilmember, District 4 Michael Blower, Councilmember, District 3 Mariela Ponce, Councilmember, District 2 Brando Villapudua, Councilmember, District 5 Council Appointees
Johnny Ford, City Manager
Marci Arredondo, City Attorney
Katherine Roland, City Clerk
William Crew, Deputy City Manager Stanley McFadden, Chief of Police Christine Tien, Deputy City Manager Bryan Carr, Fire Chief Jeff Marasovich, Interim Director of Municipal Utilities Gilbert Garcia, Chief Financial Officer Peni Basalusalu, Director of Public Works Stephanie Ocasio, Director of Community Development Marie Guillory-Jones, Interim Director of Human Resources Ricardo Noguera, Director of Economic Development Tina McCarty, Director of Housing and Homelessness Tony Mannor, Public Information Officer Jamil Niazi, Director of Information Technology Lora Larson, Office of Violence Prevention Audree Jones-Taylor, Interim Deputy City Manager Donte Watson, Director of Community Services Economic Development Team
Jordan Peterson – Deputy Director of Redevelopment Nancy Arroyo – Real Property Agent I Angelina Abella – Economic Development Manager Michael Vargas – Economic Development Analyst Grant Kirkpatrick – Environmental & Sustainability Officer Julisa Villalobos – Economic Development Analyst Veronica Johnson – Office Assistant II
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Executive Team
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INTRODUCTION
The Economic Development Action Plan encompasses several projects and programs proposed and planned to be carried out over a three-year period (2026-2028). The Plan will be periodically revised and updated on an annual basis. Implementation of the Plan is dependent upon several factors, such as market conditions, site availability, Council objectives, and other considerations. For example, current market conditions across California, and more specifically the San Francisco Bay Area, do not lend themselves well to the expansion of several economic sectors, including life sciences, technology and software, hotels, and office uses. Other sectors, such as advanced manufacturing, medical devices, aerospace, and cleantech, offer greater opportunities for growth and for Stockton to attract these industries.
Stockton maintains a healthy and robust industrial district and strategically considers annexations to support new and expanding businesses. The Industrial District continues to offer opportunities for new and expanding companies to establish operations within the City.
As it relates to retail, aside from a few large parcels in South Stockton, the City’s retail market is largely built out. However, opportunities remain to recruit retailers to fill vacant supermarket and big box locations, such as the former Sears department store and REI. As it relates to Downtown, there are numerous opportunities to support infill development, new construction, and the adaptive reuse of existing buildings. 5 ATTACHMENT A
Construction costs for new buildings, as well as adaptive reuse of office buildings converted to residential use, are very high. Combined with relatively low residential rents in the downtown area, these factors make it difficult to support new construction and/or the adaptive reuse of existing buildings without some type of public subsidy. Additionally, infill opportunities are not unlimited across the city. The current City Council is supportive of economic development. However, a future City Council may not be as development- friendly. Therefore, for the reasons cited above, it is important to update the Economic Development Action Plan on an annual basis.
This Plan consists of ten (10) components. Each component includes several individual projects that can be implemented over a short, medium, or long-term, or require an ongoing commitment, meaning the City must continue to plan and implement these initiatives for the foreseeable future to achieve success. It should be noted that some projects may be dropped from further consideration for the reasons cited above, while new ones may be added.
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CITY OF STOCKTON
3-YEAR ECONOMIC DEVELOPMENT ACTION PLAN (2026-
2028)
Note: This 3-Year Economic Development Action Plan will be reviewed periodically and updated annually. Updates will be affected by several factors, including market conditions, site availability, and City Council objectives.
It should also be noted that Economic Development staff may not always serve as the lead in implementing each action item. In some cases, staff may instead play a facilitative or supportive role.
The implementation timelines are categorized as follows:
Short-term: Within 1 year
Medium-term: 1–3 years
Long-term: More than 3 years
Ongoing: Continuous planning and implementation for the foreseeable future. 7 ATTACHMENT A
IMAGE ENHANCEMENT &
PROMOTION OF COMMUNITY
Establishing a positive image, both internally and externally, is key to achieving economic success. Local residents, regional visitors, developers, and investors need to be made aware of the City’s many positive attributes. This can be achieved through the continual promotion of activities taking place throughout the city, such as waterfront activities, sporting events at the Arena and Ballpark, the University of the Pacific’s new medical school, the expansion of St. Joseph’s Medical Center and other medical facilities, updates to the City’s Economic Development webpage highlighting current and planned initiatives, and the preparation of a quarterly electronic newsletter to share the positive activities taking place throughout the city. It should also be noted that there is limited local media coverage, from television to print, as Sacramento serves as the primary media market for supporting the Stockton area.
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IMAGE ENHANCEMENT &PROMOTION OF COMMUNITY
Promote Downtown Waterfront Activities
(Short-Term & Ongoing)
Adventist Health Arena, Baseball Stadium,
Bob Hope Theatre (Basketball, Baseball,
Hockey, Arena Football & Potentially Soccer).
Few cities in Northern California can boast
to be the home of so many professional sports
teams.
University of the Pacific (Medical School)
(Long Term-4 Years)
Hospital Expansions (St. Joseph’s $800 million
expansion) (Medium-Term)
Parks (Weber Point Events Center)
Repurposing (Ongoing)
Revise Economic Development Website to
reflect all the positives taking place across the
city. (Ongoing)
Create drone videos to promote various
economic segments of the city. (Ongoing)
Establish an electronic Economic
Development Newsletter for the city, to be
distributed on a quarterly basis. (Ongoing)
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REVENUE ENHANCEMENTS
One of the key elements of economic development is helping to foster the growth of the City’s tax base to support much-needed City services, such as Public Safety and Infrastructure.
Strategically pursuing industries that generate significant revenue is key to fostering a healthy economy and balancing the City’s budget.
10 R E V E N U E E N H A N C E M E N T S
D a t a C e n t e r s ( S h o r t & M e d i u m - T e r m ) A u t o M a l l / D e a l e r s h i p s . R e c r u i t m o r e d e a l e r s h i p s t o f i l l v a c a n t s p a c e s a n d f a c i l i t a t e t h e e x p a n s i o n o f e x i s t i n g d e a l e r s h i p s . ( O n g o i n g )
B i g B o x R e t a i l e r s n o t c u r r e n t l y i n t h e m a r k e t a r e a ( I K E A , D a v e & B u s t e r s , E t c . ) ( S h o r t & M e d i u m - T e r m )
P o i n t o f S a l e W a r e h o u s e s ( A m a z o n , W a l m a r t , e t c . ) ( S h o r t & M e d i u m - T e r m ) 11 ATTACHMENT A
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ATTRACTION & DIVERSIFICATION OF
EMPLOYERS IN INDUSTRIAL DISTRICT
Maintaining a diverse economy with a mix of industries enables the City to withstand changes in the market. For example, both the life science and technology sectors are currently facing adverse conditions due to a variety of reasons. With respect to the life science market, the sector is overbuilt across the San Francisco Bay Area. With vacancies in new buildings in Berkeley, Emeryville, and the San Mateo Peninsula exceeding 25 percent, there will likely be no new construction over the next five-plus years. As it relates to technology companies and the office market overall, cities such as Oakland, San Jose, Pleasanton, Walnut Creek, and Concord are experiencing office vacancies of approximately 30 percent. As a result, many private owners are pursuing the conversion of office to residential buildings and demolishing Class A & B buildings.
Cities are losing property tax revenue as office buildings values plummet and property tax revenues decline considerably. San Francisco’s office market has experienced a surge in occupancy, thanks in part to the rapid rise of the artificial intelligence (AI) market. 12 ATTACHMENT A
Stockton’s office market is primarily comprised of professional office space geared toward healthcare. In fact, St. Joseph’s Medical Center is undergoing an $800 million expansion over the next few years, and the University of the Pacific has recently announced plans to establish a new Medical School. This is great news for the local market and will undoubtedly help propel the local office market.
Stockton’s Industrial market has played a significant role in supporting logistics and warehouse operations over the past few decades and will continue to serve in that capacity for the foreseeable future. The City’s strategic location at the heart of both the San Francisco Bay Area and Central Valley, along with transportation networks such as the Interstate 5 and Highway 99, as well as the growing Port of Stockton and Stockton Metropolitan Airport, will continue to support the attraction of a variety of industrial companies to the City.
However, the City’s Economic Development Team understands that logistics companies require large sites and generally offer fewer jobs per square foot while generating significant truck traffic. As a result, staff are strategically seeking to attract a mix of advanced manufacturing, medical devices, aerospace, and other industries that offer higher-paying jobs and create more employment opportunities per square foot. This approach will continue as staff proactively pursue these industries to locate in Stockton.
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ATTRACTION & DIVERSIFICATION OF EMPLOYERS IN THE INDUSTRIALDISTRICT Stockton Airport Expansion (includes the recruitmentof additional airlines) (Medium-Term) Recruitment of Medical Device Companies (Short &Medium-Term) Recruitment of Advanced Manufacturing Companies(Short & Medium-Term) Recruitment of Aerospace & Defense Contractors(Short & Medium-Term) Recruitment of Drone Industry Employers (Short &Medium- Term) Recruit Shipbuilding Companies (Short & Medium-Term) 14 ATTACHMENT A
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DOWNTOWN DEVELOPMENT
(18-HOUR COMMUNITY; 6 AM – MIDNIGHT)
Several cities across the State of California seek to establish what is defined as an “18-Hour Community”—one that functions from 6:00 a.m. until midnight. While many cities continue to operate as traditional office markets (7:00 a.m. to 5:00 p.m.), cities such as Sacramento, Livermore, Pleasanton, Walnut Creek, Dublin, and Fremont, are creating environments where a mix of residents, entertainment, and industry can flourish after 5:00 p.m. When office uses, such as City Hall, shut down, entertainment venues—including restaurants, bars and sporting events — come to life, offering after-hours activities for locals and visitors alike.
Stockton has the potential to create a similar Downtown environment. With an existing arena, baseball stadium, multi-level parking structure, and hotel all situated along the waterfront, the City has the opportunity to attract developers to build downtown market-rate housing, restaurants, shops, and entertainment venues beyond the sporting events (basketball, baseball, football and hockey). Creating incentives to attract developers to the area will be key.
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DOWNTOWN DEVELOPMENT (18-HOUR COMMUNITY; 6 AM–MIDNIGHT) Consider establishment of an Enhanced Infrastructure Financing District (EIFD) and amend the Opportunity Zone (2.0) to attract private investment downtown and elsewhere across the city. (Short & Medium-Term)
Promote the attraction of technology employers, medical industries, etc. As well as TOD mixed- use developers on vacant parcels, parking lots, etc. (Short, Medium & Long-Term) Promote 70% market-rate vs. 30% affordable housing downtown (Short & Medium Term) Recruit a full-service supermarket, restaurants, breweries, entertainment uses in the downtown area. (Ongoing)
Develop a strategy to develop the Weber Point site with a mix of uses including recreation (Short & Medium Term)
Develop a strategy to clean up and redevelop a 3-acre City-owned property between arena and baseball stadium (Short & Medium-Term)
Develop strategy to reactivate Historic City Hall and former Wells Fargo Building. (Short, Medium & Long-Term)
Complete and implement Downtown Master Plan (Short, Medium, & Long-Term) Coordinate with downtown property owners & Downtown Stockton who own existing buildings to restore, upgrade, etc. To support downtown living and business development (Short & Medium- Term)
Promote the sale and redevelopment of key downtown privately-owned idle properties (Ongoing) Promote events which serve to draw people downtown from movies downtown to cultural events (Ongoing)
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RETAIL/RESTAURANT ATTRACTION &
SHOPPING CENTER ENHANCEMENT
Stockton is home to several retail centers throughout the city. However, there is competition from shopping centers in neighboring communities, including Lodi, Lathrop, and Manteca. When Stockton residents patronize retailers and restaurants outside the city, it has an adverse impact on the local retail market and results in sales tax leakage, which hurts the local economy and may eventually lead to the closure of local businesses. There are several shopping centers across the city that have lost anchor tenants, such as Sears, REI, and former supermarkets. Economic Development staff are working closely with property owners, managers, and their brokers to recruit appropriate tenants to fill these vacancies.
17 RETAIL/RESTAURANT ATTRACTION & SHOPPING CENTER ENHANCEMENT Weberstown Mall: Facilitate the recruitment of a
replacement tenant for Sears and coordinate
renovations and recruitment of new tenants. (Short
& Medium-Term)
Trinity Parkway Center: Support full occupancy
following the addition of the new In-N-Out and
Chick-Fil-A, while continuing recruitment efforts
for a full-service supermarket. (Short & Medium-
Term)
8 Mile Rd: Pursue annexations on the north side to
support a future Costco and other commercial
development. (Long-Term)
Other Shopping Centers Throughout the City:
Coordinate recruitment efforts shopping center
upgrades with property owners. (Ongoing)
Miracle Mile: Support the redevelopment of the
theatre site, recruit locally serving retailers, and
coordination with the business association.
(Ongoing)
Yosemite Village: Support corridor enhancements
through the attraction of artists and culturally
oriented businesses. (Ongoing)
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AUTO DEALERS
Many people may not be aware that auto dealers, on average, represent one of the largest sales tax generators for cities. They have minimal impact on public safety and other City services, yet generate significant revenues for municipalities. For this reason, cities should consider procuring vehicles for police, public works, code enforcement, and other fleet operations from local dealerships because the City receives 1 percent of the total sales generated. For example, if the City purchases a fleet of trucks totaling $5 million from a local dealership, it stands to receive approximately $50,000 in sales tax revenue.
Stockton is home to more than a dozen auto dealerships. This Action Plan calls for Economic Development staff to begin regularly meeting with new car dealers (including CarMax) to discuss business rentention, expansion opportunities, and future investment. 19 ATTACHMENT A
AUTO DEALERSHIPS
Conduct regular business visits with auto dealers in an effort to retain, expand, andattract additional dealerships, one of the City’s largest tax generators. (Ongoing) 20 ATTACHMENT A
PARTNERSHIPS WITH EDUCATIONAL INSTITUTIONS
& JOB TRAINING AGENCIES
The City relies on its County, educational, and non-profit partners to lead job training and workforce placement efforts with private and public employers. Most recently, Walmart.com sought to fill more than 1,000 jobs. Economic development staff connected the company with the County’s WorkNet Department to assist with recruitment and workplace placement.
The effort was highly successful. Delta College and job training agencies throughout the city and San Joaquin County are often called upon when new and expanding industries are seeking to hire qualified workers.
21 PARTNERSHIPS WITH EDUCATIONAL INSTITUTIONS & JOB TRAINING AGENCIES
Form partnerships with educational institutions and job training agencies, such asCounty’s WorkNet Program, to help create good-paying jobs for local residents. (Ongoing) Connect new and expanding industries with job training agencies and educationalinstitutions to support the placement of local workers. (Ongoing) 22 ATTACHMENT A
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SMALL BUSINESS DEVELOPMENT
Similar to its job training partners, the City’s Economic Development Team relies on partnerships with governmental and nonprofit organizations to support new and expanding entrepreneurs. These partners include iHUB San Joaquin, Huddle CoWork, the Small Business Development Center (SBDC), the University of the Pacific’s Small Business Program, the U.S. Small Business Administration (SBA), and other organizations.
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DEVELOPMENT
Miracle Mile Commercial Corridor
Revitalization (Short & Medium-Term)
Establish Virtual Technical Workshops
(Ongoing)
Form Partnerships with Local Chambers of
Commerce (Ongoing)
Business Planning & Counseling (University of
the Pacific, SCORE, etc.) (Ongoing)
Promote Small Business Financing Programs
(SBA and other financing resources)
(Ongoing)
Coordinate on the expansion of opportunites
for local entrepreneurs. (Ongoing)
Façade Loan Program: Continue promoting
the program’s use in Downtown and along
eligible commercial corridors (Short &
Medium-Term)
Promote use of SizeUp by local businesses
(Ongoing)
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TARGETED SERVICES
The City offers a variety of economic development services to support new and expanding industries, as well as the revitalization of underutilized and vacant properties, such as the former Kmart store. The Economic Development Team coordinates Economic Review Committee (ERC) meetings with other City departments, developers, and businesses to identify key planning and permitting issues before formal plans are submitted. Staff also provides ERC meetings and pre- lease or pre-purchase building walkthroughs at no cost to businesses. In addition, staff assists businesses in identifying suitable locations and provides demographic and technical data to support site selection and investment decisions within the City. 25 TARGETED SERVICES
Recruit a full-service supermarket to South Stockton. (Short & Medium-Term) Recruit commercial uses for the former Kmart site and the property owned by Walmart and Vestar in South Stockton. (Short & Medium-Term)
Recruit a full-service supermarket along the 8-Mile Road Corridor. (Short & Medium-Term)
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INCENTIVES & SERVICES
The City offers several progressive incentive programs to support new and expanding businesses and development. Some programs focus on impact fee deferments, while others provide assistance for façade and building improvements.
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Explore the establishment of an EnhancedInfrastructure Financing District (EIFD) to help financenew construction, renovations, industry, mixed-usedevelopment, market-rate and affordable housing, andinfrastructure improvements in targeted areas of thecity, including downtown. (Ongoing) Pursue an extension of Opportunity Zone 2.0 andpromote regionally to developers and investors.(Ongoing)Promote the Office and Industrial Sales Tax RebateProgram. (Ongoing) Promote the Short-Term Non-Residential PublicFacilities Mitigation Fee Deferral Program.(Ongoing) Provide Site Selection Assistance. (Ongoing) Provide Retail Recruitment Services. (Ongoing) Implement a Business Retention & ExpansionProgram within the Industrial District. (Ongoing) Support the continued development and growth ofthe Port of Stockton. (Ongoing) Support the continued development and growth ofthe Stockton Metropolitan Airport. (Ongoing) Examine the potential redevelopment of SanJoaquin County Fairgrounds. (Medium & Long Term)
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