NOTICE OF SPECIAL MEETING
Pursuant to Section 54956 of the Government Code of the State of California, a Special Meeting of the Tracy City Council is hereby called for:
Date/Time: Tuesday, June 21, 2022, 6:00 p.m.
(or as soon thereafter as possible)
Location: Tracy City Hall
333 Civic Center Plaza, Tracy, CA.
Government Code Section 54954.3 states that every public meeting shall provide an opportunity for the public to address the Tracy City Council on any item, before or during consideration of the item, however no action shall be taken on any item not on the agenda.
This meeting will be open to the public for in-person and remote participation pursuant to Government Code Section 54953(e)
The City of Tracy remains under a local emergency for COVID-19. For all persons attending the meeting in-person, in accordance with the California Department of Public Health Guidelines, universal masking indoors is recommended for all persons regardless of vaccination status as well as social distancing. Members of the public may participate remotely in the meeting via the following method.
For Remote Public Comment:
During the Items from the Audience, public comment will be accepted via the options listed below. If you would like to comment remotely, please follow the protocols below:
• Comments via:
o Online by visiting https://cityoftracyevents.webex.com and using the following Event Number: 2550 983 5881 and Event Password: TracyCC o If you would like to participate in the public comment anonymously, you may submit your comment via phone or in WebEx by typing “Anonymous” when prompted to provide a First and Last Name and inserting [email protected] when prompted to provide an email address. o Join by phone by dialing +1-408-418-9388, enter 25509835881#8722922# Press *3 to raise the hand icon to speak on an item
• Protocols for commenting via WebEx:
o If you wish to comment under “Items from the Audience/Public Comment” portion of the agenda:
Listen for the Mayor to open “Items from the Audience/Public Comment”, then raise your hand to speak by clicking on the Hand icon on the Participants panel to the right of your screen.
If you no longer wish to comment, you may lower your hand by clicking on the Hand icon again.
o Comments for the “Items from the Audience/Public Comment” will be accepted until the public comment period is closed.
• The total allotted time for public comment under “Items from the Audience/Public Comment” will be 15 minutes.
June 21, 2022 Special Meeting
1. Call to Order
2. Roll Call
3. Items from the audience - In accordance with Council Meeting Protocols and Rules of Procedure, adopted by Resolution 2019-240, a five-minute maximum time limit per speaker will apply to all individuals speaking during “Items from the Audience/Public Comment”. For non-agendized items, Council Members may briefly respond to statements made or questions posed by individuals during public comment; ask questions for clarification; direct the individual to the appropriate staff member; or request that the matter be placed on a future agenda or that staff provide additional information to Council.
4. CONSENT ITEMS
4.A ADOPT A RESOLUTION MAKING FINDINGS AND AUTHORIZING REMOTE
TELECONFERENCE MEETINGS OF THE CITY COUNCIL AND ALL
LEGISLATIVE BODIES OF THE CITY OF TRACY FOR THE PERIOD FROM JUNE 21, 2022 THROUGH JULY 22, 2022 PURSUANT TO THE BROWN ACT
5. DISCUSSION ITEMS
5.A RECEIVE AN INFORMATIONAL REPORT REGARDING THE CITY’S
ANNUAL ECONOMIC DEVELOPMENT EFFORTS AND ONGOING
STRATEGIES
6. Council Items and Comments
7. Adjournment
Mayor
Posting Date: June 16, 2022
The City of Tracy is in compliance with the Americans with Disabilities Act and will make all reasonable accommodations for the disabled to participate in employment, programs and facilities. Persons requiring assistance or auxiliary aids in order to participate, should contact the City Manager’s Office at (209) 831-6000 at least 24 hours prior to the meeting.
June 21, 2022
AG
ENDA ITEM 4.A
REQUEST
ADOPT A RESOLUTION MAKING FINDINGS AND AUTHORIZING REMOTE
TELECONFERENCE MEETINGS OF THE CITY COUNCIL AND ALL LEGISLATIVE BODIES OF THE CITY OF TRACY FOR THE PERIOD FROM JUNE 21, 2022 THROUGH JULY 22, 2022 PURSUANT TO THE BROWN ACT
EXECUTIVE SUMMARY
AB 3
61 allows legislative bodies to use abbreviated teleconferencing procedures during a declared state of emergency upon the making of required findings. These abbreviated procedures allow a body to conduct remote teleconference meetings without compliance with paragraph (3) of subdivision (b) of section 54953 of the Ralph M. Brown Act (Cal. Gov.
Code section 54950 – 54963).
On March 17, 2020, the City Council of the City of Tracy ratified the declaration of an emergency by the City Manager due to COVID-19 in accordance with Chapter 3.26 of the Tracy Municipal Code. The City Council subsequently adopted resolutions with requisite findings authorizing remote teleconference meetings of the City Council and all legislative bodies of the City of Tracy, including Boards and Commissions, pursuant to AB 361.
While the City has allowed in-person attendance at City Council meetings, the City is experiencing an increase in rates of COVID-19 cases within the County of San Joaquin and amongst the City staff pool. Due to this increase, the City is reinstating social distancing protocols at in-person attendance at City Hall and encouraging the use of teleconferencing for City Council meetings.
And, given the changed circumstances created by the increasing rates of COVID-19, the recommendation is that City Council adopt this Resolution to resume teleconference meetings of the City Council and all legislative bodies of the City of Tracy.
DISCUSSION
O
n June 11, 2021, Governor Newsom issued Executive Order N-08-21, which among other things rescinded his prior Executive Order N-29-20 and set a date of October 1, 2021, for public agencies to transition back to public meetings held in full compliance with the Brown Act.
A
s the Delta variant has surged in California, the Legislature took action to extend the COVID-19 exceptions to the Brown Act’s teleconference requirements, subject to some additional safeguards. On September 16, 2021, Governor Newsom signed Assembly Bill 361, to allow a local agency to use teleconferencing if certain circumstances exist without complying with the Brown Act’s traditional agenda posting, physical access, and quorum requirements for teleconferencing provisions (Attachment A).
Agenda Item 4.A
June 21 2022
The goal of AB 361 is “to improve and enhance public access to local agency meetings during the COVID-19 pandemic and future applicable emergencies, by allowing broader access through teleconferencing options” consistent with Executive Order N-29-20. The bill contains an urgency clause, which made the bill effective upon signing with a sunset date of January 1, 2024.
The new
Section 54953(e)(1) of the Brown Act, as amended by AB 361, allows legislative bodies to continue to meet via teleconference without complying with the Brown Act’s teleconferencing requirements, but only during a state of emergency proclaimed by the Governor, in which, 1) state or local health officials have imposed or recommended measures to promote social distancing, or 2) the legislative body has determined by majority vote that meeting in person would present an imminent risk to the health or safety of the attendees.
A
local agency that holds a meeting under these circumstances would be required by AB 361 to follow the steps listed below, in addition to giving notice of the meeting and posting agendas as required under the Brown Act. These additional requirements are intended to protect the public’s right to participate in the meetings of local agency legislative bodies.
P
ursuant to AB 361 local agencies are required to do all of the following in addition to meeting notice requirements under the Brown Act:
• A
llow the public to access the meeting and require that the agenda provide an oppor
tunity for the public to directly address the legislative body pursuant to the Brown Act’s other teleconferencing provisions.
• In each instance when the local agency provides notice of the teleconferenced m
eeting or posts its agenda, give notice for how the public can access the meeting and provide public comment.
• Identify and include in the agenda an opportunity for all persons to attend via a c
all-in or an internet-based service option; the legislative body needs not provide a physical location for the public to attend or provide comments. • Conduct teleconference meetings in a manner that protects the statutory and c
onstitutional rights of the public.
• Stop the meeting until public access is restored in the event of a service disruption that either prevents the local agency from broadcasting the meeting t
o the public using the call-in or internet-based service option or is within the l
ocal agency’s control and prevents the public from submitting public comments (any actions taken during such a service disruption can be challenged under the Brown Act’s existing challenge provisions).
• Not require comments be submitted in advance (though the legislative body may provide that as an option) and provide the opportunity to comment in real- time.
• Provide adequate time for public comment, either by establishing a timed public comment period or by allowing a reasonable amount of time to comment.
• If the legislative body uses a third-party website or platform to host the Agenda Item 4.A
June 21 2022
teleconference, and the third-party service requires users to register to participate, the legislative body must provide adequate time during the comment period for users to register and may not close the registration comment period until the comment period has elapsed.
W
hile the City has allowed in-person attendance at City Council meetings, the City is experiencing an increase in rates of COVID-19 cases within the County of San Joaquin and amongst the City staff pool. The San Joaquin County Public Health Services provided an update to the City Council of this situation at the June 7, 2022 meeting. In addition, the Human Resources Department of the City of Tracy has documented an increase in COVID-19 positive test rates amongst City staff in recent weeks. To minimize the exposure to COVID-19 from this recent surge, the City is reinstating social distancing protocols at in-person attendance at City Hall and encouraging the use of teleconferencing for City Council meetings.
G
iven these changed circumstances created by the increasing rates of COVID-19, the recommendation is that City Council adopt this Resolution to resume teleconference meetings of the City Council and all legislative bodies of the City of Tracy.
If Council approves the proposed resolution, staff will present a staff report to Council every thirty days to verify that the circumstances continue to exist.
STRATEGIC PLAN
Thi
s agenda item relates to the City Council’s Strategic Priorities in the area of Public Safety (Goal #1 Support COVID-19 Public Health Recovery).
FISCAL IMPACT
Ther
e is no fiscal impact related to this agenda item.
RECOMMENDATION
S
taff recommends that Council adopt a resolution making findings and re-authorizing remote teleconference meetings of all legislative bodies of the City of Tracy for the period of June 21, 2022, to July 22, 2022, pursuant to the Brown Act.
P
repared by: Bijal Patel, City Attorney
R
eviewed by: Adrianne Richardson, City Clerk
Midori Lichtwardt, Assistant City Manager
A
pproved by: Michael Rogers, City Manager
ATTACHMENTS
A –
Assembly Bill 361
ATTACHMENT A
APPROVED AS TO FORM AND LEGALITY
________________________
CITY ATTORNEY’S OFFICE
TRACY CITY COUNCIL
RESOLUTION NO. _______________
MAKING FINDINGS AND RE -AUTHORIZING REMOTE TELECONFERENCE
MEETINGS OF THE CITY COUNCIL AND ALL LEGISLATIVE BODIES OF THE CITY OF TRACY FOR THE PERIOD OF JUNE 21, 2022, TO JULY 22, 2022,
PURSUANT TO THE BROWN ACT
WHEREAS, The City of Tracy is committed to preserving and nurturing public access and participation in meetings of the City Council; and
WHEREAS, All meetings of the City of Tracy’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code section 54950 – 54963), so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business; and
WHEREAS, AB 361 allows legislative bodies to use abbreviated teleconferencing procedures during a declared state of emergency upon the making of required findings, so as to allow a body to conduct remote teleconference meetings without compliance with paragraph (3) of subdivision (b) of section 54953 of Brown Act; and
WHEREAS, On March 17, 2020, the City Council of the City of Tracy ratified the declaration of an emergency by the City Manager due to COVID-19 in accordance with Chapter
3.26 of the Tracy Municipal Code; and
WHEREAS, While the City has allowed in-person attendance at City Council meetings, the City is experiencing an increase in rates of COVID-19 cases within the County of San Joaquin and amongst the City staff pool; and
WHEREAS, The San Joaquin County Public Health Services provided an update of the increasing rates at the June 7, 2022, City Council meeting; and
WHEREAS, the Human Resources Department of the City of Tracy has documented an increase in COVID-19 positive test rates amongst City staff in recent weeks; and
WHEREAS, To minimize the exposure to COVID-19 from this recent surge, the City is reinstating social distancing protocols at in-person attendance at City Hall and encouraging the use of teleconferencing for City Council meetings; and now therefore be it
RESOLVED:
Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution as findings of this City Council by this reference.
Section 2. Findings. The City Council hereby finds the following:
2 A. That due to COVID-19, including the recent surge being experienced in the City of Tracy, holding City Council and other legislative body meetings exclusively in person will present imminent risk to the health and safety of attendees.
B. That COVID-19 has caused, and will continue to cause, conditions of peril to the safety of persons within the City that are likely to be beyond the control of services, personnel, equipment, and facilities of the City, and desires to affirm a local emergency exists and re-ratify the proclamation of a state of emergency by the Governor of the State of California.
Section 3. Remote Teleconference Meetings. The City Council, including Council subcommittees, and all Boards and Commissions of the City of Tracy are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including, continuing to conduct open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act for the period of June 21, 2022 through July 22, 2022.
* *
* * * * * * * * * * * *
The foregoing Resolution 2022-_____ was adopted by the Tracy City Council on June 21, by the following vote:
AYES
: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTENTION: COUNCIL MEMBERS:
___________________________________________
NA
NCY D. YOUNG
Mayor of the City of Tracy, California
AT
TEST:
ADRIANNE RICHARDSON
City Clerk and Clerk of the Council of the
City of Tracy, California
Resolution 2022-
June 21, 2022
AGENDA ITEM 5.A
REQUEST
RECE
IVE AN INFORMATIONAL REPORT REGARDING THE CITY’S ANNUAL
ECONOMIC DEVELOPMENT EFFORTS AND ONGOING STRATEGIES
EXECUTIVE SUMMARY
The purpos
e of this report is to provide the City Council with an update on the economic environment, review the City’s economic development (ED) performance and efforts, and provide an update on the status of various ED efforts and accomplishments in the City. Economic development has been one of the Council’s strategic priorities and remains an essential tool for maintaining the quality of life, creating a diversified economic base, and providing an opportunity for upward mobility in the City. This report defines economic development, discusses economic climate and performance, Tracy’s economic composition, business attraction, business retention and expansion, and community education and brand management efforts.
DISCUSSION
Def
inition
Economic development is the process of growing the local economy by investing in the quality of life, job creation, economic resiliency, revenue generation to fund community services, and creation of new wealth and upward mobility for residents and businesses.
Economic development efforts vary from policy level strategies to tactical objectives focused on a variety of areas like quality of life, workforce development, developer negotiations, revenue enhancements, business friendliness, retail tenanting, arts, diversification of housing, and business retention and expansion among many other initiatives. Economic development has been consistently emphasized as a strategic City Council priority.
Ec
onomic Climate and Demographics
The state of the national economy is uncertain with concerns about labor shortage, high national debt, and high inflation, including record high fuel prices. Consumer confidence index has been decreasing since early 2022 which reflects pessimism from the public about the short-term outlook for income, taxes, and broader economic conditions. Over the last decade, the U.S. national gross domestic product (GDP), which is a common measure of economic output, grew by 48%. This includes annual growth of nearly 10% between 2020 and 2021.
Trac
y has experienced substantial growth over the last 10 years, benefitting from its central location in the Northern California megaregion and the spillover demand from landlocked coastal areas and higher cost of living in the Bay Area. The City’s population is approaching 100,000. During 2021, the City added 668 housing units and 2,800 jobs.
Annual population growth during this time period was 2.3%. For comparison, Manteca grew by 3.6% while Lathrop grew by 10%, although the countywide average was 1.7%.
During 2021, incomes and home values have also grown rapidly. Average home values Agenda Item 5.A
June 21, 2022
in Tr
acy increased by 12.6% during the last year, while median values increased by
16.3%.
Trac
y enjoyed strong employment increases and low unemployment rates over the last decade. A drop in employment at the start of the COVID-19 pandemic in 2020 was short lived with the economy recovering in 2021, with early 2022 employment rising to record levels. Tracy’s current unemployment rate of below 4% continues to outperform the countywide and statewide average, as shown below.
30,000
32,000
34,000
36,000
38,000
40,000
42,000
44,000
46,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Tracy Employment
0%
2%
4%
6%
8%
10%
12%
January March May July September November January March 2021-22 Unemployment Rate by Month
Tracy Manteca San Joaquin County California
Agenda Item 5.A
June 21, 2022
The Ci
ty has over 3,000 active businesses ranging in size and industry. Well over half of the businesses have five employees or less, which highlights the small business composition of the local economy. While these businesses are more vulnerable to economic downturns, they are also more rooted in the community and more likely to remain in the City as they grow. Similar to the broader trend, Tracy has experienced a high number of new businesses since the beginning of COVID-19, which is reflective of the local entrepreneurial climate. About 1/3 of businesses in Tracy are home occupation businesses, which highlights the impact from housing on economic development.
Pr
operty and sales taxes are two of the City’s largest revenue sources. The City’s net taxable assessed value is $13.7 billion, an increase of 7.4% from the prior year.
Residential development comprises 71.0% of the net taxable value total with 12.6% comprised by industrial development and 7.7% by commercial development, as shown below. The City receives an average of 13.2% of each property tax dollar, though the City’s property tax share varies by location and by tax rate area.
Agenda Item 5.A
June 21, 2022
Trac
y has the highest per capita sales in the County. The business and industry category comprises 63% of sales tax revenue to the City, highlighting the value of business activity. Tracy’s location has lent itself for strong growth in the fulfillment and e- commerce sector. As shown in the graph below, the business and industry sales tax category experienced strong growth during COVID-19 when many traditional retailers struggled. E-commerce growth creates a hedge against sales tax performance within brick-and-mortar retailers. This industry increased per capita sales by nearly 80 percent over the last year and generates 1/3 of Tracy’s overall sales.
Agenda Item 5.A
June 21, 2022
Ec
onomic Composition
Tracy is located in one of the fastest growing regions in the State. The City has 44,400 jobs and added 2,800 jobs over the last year. Consistent with San Joaquin County having one of the highest concentrations of industrial jobs in the nation, a large part of Tracy’s economy is comprised of logistics, supply chain, and transportation. Tracy also has a high concentration of retail jobs due to the City being a regional retail destination, particularly along the I-205 corridor. The healthcare category also has a high concentration of jobs, with these industries generally supporting higher paying wages than transportation and retail. The City’s share of finance and insurance as well as tech services jobs offers a growth and diversification opportunity. Staff has been targeting these categories in its business attraction efforts, focusing on clean and green technologies, among others.
Trac
y residents have longer commutes than the regional average, as many commute to Bay Area employment centers for higher paying opportunities relative to local job offerings. Meanwhile, many jobs in Tracy are filled by non-residents. As shown below, only 18.6% of residents work in the City. This highlights Tracy’s role in the regional economy as a major employment provider in the region, but also as a bedroom community to the Bay Area labor force. Given strong economic linkage to the Bay Area, it is important to continue creating local job opportunities that match the skills and income requirements for the existing and future population.
Tracy has several major business parks with a total of 33 million square feet of industrial space with an additional 4.7 million square feet in the development pipeline. Tracy’s industrial zoning is highly flexible, and many existing buildings have an office component. Given the flexibility of zoning, the spectrum of industries in the City’s business parks varies from supply chain logistics and packaging companies to advanced
Agenda Item 5.A
June 21, 2022
manufacturing, biotech, and medical device operations. There is a wide spectrum of jobs across various skill and income levels housed within these economic acti vity ce nters.
Vacancy rate is 5.1% with market rent of $9.14 per square foot. Over the last year, vacancies decreased by 1.5% while rents increased by 9.2% Tracy has 4.6 million square feet of retail space. The space is located across the City, with the largest cluster in the I-205 area and in downtown. Additionally, new retail development is in the pipeline at the International Park of Commerce and in South Tracy. Tracy has the highest per capita sales in San Joaquin County. Vacancy rate is
4.2% with market rent of $24.24 per square foot. Over the last year, vacancies reduced by 1.0% while rents increased by 2.1%. The office market in Tracy is sm aller , with about 800,000 square feet of space.
Business Attraction
ED staff focuses its business att raction efforts on companies that offer head of household jobs1 in advanced manufacturing, green technology, information technology, medical devices, finance and professional services, and research & development sectors. Attraction of employers in these industries diversifies the City’s existing economic base and expands a range of wage levels while reducing resident commuting.
Staff utilizes various efforts to target employers. During the last year, Tracy editorials and advertisements
were featured across three Site Selection publications, two Xpansion Magazine, Site Selection Magazine, and Business Facilities Magazine, each of
which has a readership of over 60,000 site selectors, relocation executives, c
onsultants, and brokers.
As shown below, staff is currently working with nearly 80 prospects across a w ide range of business types. Economic development staff actively manages business attraction prospects and works with potential businesses to support their relocation needs. Staff also actively follows up on leads and with perspective tenants to ensure that Tracy remains at the forefront of their site selection decision making. 1 The City defines head of household jobs as those paying annual wages of $73,000 or above.
Agenda Item 5.A
June 21, 2022
Si
te Selection and Business Attraction for Retail and Restaurants Retail attraction is a key objective for the City that targets desired tenants by the community. During the last year, ED staff attended three Innovating Commerce Serving Communities (retail conferences) and promoted Tracy to hundreds of target retailers, including Trader Joe’s and Whole Foods. Tracy attracted Hobby Lobby to West Valley Mall in 2021. Hobby Lobby is a top ten desired retail chain in the Tracy Retail Survey and represents a significant investment into the Tracy community with reuse of the vacant JC Penney building. Other new retail businesses opened last year or are scheduled to open for business in the City include:
Downtown Other Areas
Stained Canvass Crumbl Cookies*
The Station La Dona Taqueria i Birrieria
L’aube Boutique Bay Boys Brewing
Stile & Grace El Jefe Taqueria
Midori Fine Asian Dining
*Not opened yet.
ED Di
vision staff actively works to recruit community desired retailers to Tracy. The survey recently conducted by ED staff found entertainment and upscale restaurants as the top two retail categories for business attraction. Staff’s retail recruitment efforts consist of ongoing communications with company representatives, brokers, and other agents to keep Tracy at the forefront of expansion opportunities. Staff also attends retail conferences where it actively targets retailers and prepares customized data packages as part of business attraction pitches. Staff also works with landowners and developers to promote available sites, offer tenant attraction incentives, and spotlight other Tracy Retail
RestaurantIndustrial
Hotel
Other
ECONOMIC DEVELOPMENT BUSINESS
ATTRACTION PROSPECTS
Agenda Item 5.A
June 21, 2022
advantages
to desired users.
Busi
ness Retention and Expansion
The City works closely with the Tracy Chamber of Commerce, the Tracy City Center Association (TCCA), San Joaquin County Employment Development Department, and Small Business Administration to bring resources to Tracy businesses, as demonstrated in the accomplishments below. City staff’s focus on business support resulted in the following achievements during the last year:
Outdoor Dining Implementation 2.0 was a partial reopening of 10th Street to accommodate access to businesses and additional parking while retaining outsi
de dining. Staff worked closely with the Tracy City Center Association (TCCA) and restaurant owners to establish a long-te rm program where parklet designs and funding were developed to create safe, consistent, and aesthetic seating capacity on the public right of way at no cost to restaurants. The program is
fully funded through the American Rescue Act grant and covers up to $50,000 in parklet expenses per business. The City is currently processing parklet applications.
COVID
-19 Strategies Committee was formulated in December of 2020 based on direction from City Council. ED staff formed a committee comprised of the Tracy
business community, City staff, TCCA, Tracy Chamber of Commerce, and other stakeholders. ED staff hosts bi-weekly meetings focused on sharing information about business resources and regulations, financial assistance, and other
ED issues.
Business Retention Visits. Staff teamed up with the County Office of Economic Development and Tracy Chamber of Commerce to conduct on site business retention visits and share local, regional, State, and Federal resources available to the business community.
Industrial
Round Table includes collaboration with the Tracy Chamber of Commerce to conduct outreach to industrial businesses and host roundtable events focused on local industrial business needs and challenges. Updated the
City’s Card Room Ordinance. As part of a collaboration with the City Attorney’s Office, staff updated the City’s ordinance to help Stars Card Room ov
ercome capacity restrictions during COVID. The change enabled Stars Card Room to survive and invest into future operation by upgrading its facility. After the app
roval by the Planning Commission, Stars Card Room is moving into the former
Famous Dave’s building and is expecting to increase its employment by 50%
.
Other Business Retention Assistance efforts include business outreach and conti
nued engagement with businesses as well as promotion of local, regional, and Stat
e resources. Staff continuously monitors financial performance and communicates
with a variety of business representatives ranging from small to large business in the City.
Agenda Item 5.A
June 21, 2022
Disposi
tion of the Westside Market. After receiving direction to proceed with the disposition of the City-owned Westside Market building, ED staff issued a Request For Proposals (RFP), solicited developers and end users, and reviewed RFP responses. The item brought to City Council on March 29, 2022 resulted in the selection of the preferred developer to negotiate exclusive terms of the public-private partnership for leveraging the City’s building to activate an important downtown block.
Comm
unity Education and Brand Management
ED staff invests heavily in marketing the City as the premier destination for doing business and for high quality of life. The following accomplishments demonstrate staff’s focus in this area during the last year:
Secured a consultant and engaged in the Economic Development Strategic Plan update. Staff implemented City Council direction to develop an RFP, find a consultant, negotiate the scope, and secure the funding to seek community input and to
update the City’s long-term economic development vision. This effort will touch on
all facets of economic development including business attraction, business
retention, revenue generation, brand management, and community education.
Implemented New “Shop Tracy” Marketing Campaign to support local businesses
in collaboration with Tracy Chamber of Commerce and Tracy City Center Association (TCCA). This ongoing campaign is designed to boost small business
support. It resulted in the creation of a user-friendly digital business directory
and promotion of “shop local” messaging through window decals, social media,
newsletter advertisements, and videos. Due to the campaign’s success, in part,
businesses within TCCA’s boundary experienced record sales during the second, third, and fourth quarter of 2021.
Won a
grant award and implemented “Discover Tracy” Marketing Campaign t
o support local tourism industry. The City was awarded a $67,000 grant from San Joaquin County and invested the funding to promote the City as a tourism des
tination. This effort resulted in the new campaign, landing page, and digital marketing of the City’s image and specific events. Additionally, staff took out adv
ertisements in BART as well as in Diablo Magazine, the East Bay’s premier quality of life publication.
Updated banners along 11th Street. The City’s appearance affects the image and brand
of the community. ED staff coordinated the reprinting and replacement o
f the City of Tracy-branded promotional banners that line the 11th Street among other locations
Conducted an economic development survey. Following the National Community Survey results shared with the City Council on February 15, 2022, ED s
taff implemented a follow-up survey and received 59 responses. The survey f
ound that affordability is the primary driver for attracting residents to Tracy and that
infrastructure is the highest priority for attracting businesses.
Agenda Item 5.A
June 21, 2022
Facili
tated adoption of the City’s first affordable housing policy. On October 5, 2021, ED staff brought forward a resolution authorizing the City to become a member of California Community Housing Agency, an affordable housing consortium formed to create affordable housing for the essential middle-income workforce.
Awarded Co
mmunity Development Block Grant (CDBG) and HOME
Investment Partnership (HOME) Program funds. Grants to local non-profits include $498,077 awarded in CDBG funding and $163,461 awarded in HOME funding to support the construction of Tracy’s Temporary Emergency Housing Facility.
Continued to
manage the City’s economic development website.
Thinkinsidethetriangle.com continues to be a resource for business attraction, business retention and expansion, community education, and resource sharing, among other benefits.
FISCAL IMPACT
This is
an informational item only and no actions by the City Council are being requested. Any fiscal items summarized in this report were included in the City’s Budget for FY2021/22.
STRATEGIC PLAN
This agenda ite
m is informational.
RECOMMENDATION
Staff recommends that the City Council receive an informational report regarding the City’s annual economic development efforts and ongoing strategies.
Prepared by
: Michael Nimon, Economic Development Manager
Reviewed by
: William Dean, Assistant Director of Development Services Karin Schnaider, Finance Director
Vanessa Carrera, Assistant to the City Manager
Midori Lichtwardt, Assistant City Manager
Approved by
: Michael Rogers, City Manager
ATTACHMENTS:
Attachment A - Powerpoint Presentation
RECEIVE AN INFORMATIONAL REPORT REGARDING THE CITY’S ANNUAL
ECONOMIC DEVELOPMENT EFFORTS AND ONGOING STRATEGIES
June 21, 2022
ATTACHMENT A
Presentation Outline:
• What is Economic Development?
• Economic Climate and Demographics
• Economic Composition
• Business Attraction
• Business Retention and Expansion
• Community Education and Brand Management
2 Why Invest in Economic Development?
3 Economic Development Functions
4 ECONOMIC
DEVELOPMENT
STRATEGIC
PLAN 2011
(mid-term)
CITY COUNCIL
STRATEGIC
PRIORITIES
FY2021-23
(short-term)
Economic
Development
Objectives
1. Business Attraction
2. Business
Retention and
Expansion
3. City Revenue
Generation
4. Community
Education and Brand
Management
5. Other
1.1 Conferences and trade
shows (ICSC, IAMC, ULI)
2.1 Retention visits 3.1 Disposition of public
property 4.1 Community preference
survey 5.1 Regional partnerships
1.2 Articles, ads, and
publications 2.2 Industry workshops 3.2 Incentive negotiations 4.2 Marketing and messaging 5.2 Boards and Meetings (statewide EDC, iHUB, TCCA)
1.3 Quarterly business
attraction newsletter 2.3 ED and COVID-19
Strategies meetings 3.3 Pursue grant funding 4.3 Tracy Chamber updates 5.3 Create staff reports,
memos, and other
deliverables
1.4 Respond to site selection
and business attraction
RFPs
2.4 Deploy grants (ARPA,
Small Business Relief Grant,
CDBG, HOME)
3.4 Contract
Management (Tracy
Chamber, HDL Econ
Solutions, Golden Shovel,
Tripeppi Smith, National
Development Council,
Downtown Assessment)
4.4 Community group
presentations 5.4 Data brokerage and
research
1.5 Site tours (real estate
development, corporate tours) 2.5
Deploy loans (Grow
Tracy Loan Program,
Forgivable Small Business
Loan Program)
3.5 Revenue
diversification and
tracking
4.5 Community events 5.5 Affordable housing
administration
1.6 Promote key opportunity
sites and buildings 2.6 Tourism campaign 3.6
Strategic Policy
development and
research
4.6 Business owner and
resident education
(government outreach, front
counter, respond to council
inquiries, etc.)
5.6 Connection to resources
/ COVID resources
1.7 Manage new prospect list
and pursue leads 2.7 Shop Local campaign 3.7 Public private partnerships 4.7 Wayfindings / Banners 5.7 Concierge service
1.8 Outreach to developers,
brokers, and tenants 2.8 Business outreach 3.8 Sustainability 4.8 ED website 5.8 Admin (internal
tracking, finance, and
human resources tasks)
1.9 Collect feedback /
develop competitiveness
policies
2.9 Expansion support 3.9 Workforce readiness 4.9 Corporate relations 5.9 Miscellaneous special assignments
Economic Development Function Summary
Economic
Development
Tasks
Economic Climate and
Demographics
How Tracy is meeting its Economic Development Goals
Tracy Growth Trends
6 Item 2021 2022 Change
Population 93,624 94,538 1.0%
Housing Units 28,955 29,623 2.3%
Median Age 34 34 0%
Median HH
Income ($2020) $91,911 $95,741 4.0%
Median Home
Value (Q1) $626,750 $729,000 16.3%
Source: DOF, HdL, and Census
Employment Trends (2011-2022)
7 Source: California Economic Development Department.
• Tracy employment is at a record high
30,000
32,000
34,000
36,000
38,000
40,000
42,000
44,000
46,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Tracy Employment
Tracy Unemployment Rate by Month 2021-22
8 Source: Economic Development Department
0%
2%
4%
6%
8%
10%
12%
January March May July September November January March 2021-22 Unemployment Rate by Month
Tracy Manteca San Joaquin County California
New Business Starts
9 Source: HDL Companies
Growth in Assessed Value
10 Source: HDL Companies
Distribution of Land Uses
11 Source: Costar.
Industrial Retail and Restaurants Office Residential
Growth in Per Capita Sales
12 Source: HDL Companies
Business and Industry is the Largest Sales
Tax Generator
13 Source: HDL Companies
Economic Composition
Tracy Employment Categories
15 Retail
Trade
Mfg./
Construction/
Logistics
Trade/ Trans
Govt, Health
& Education
Finance &
Insurance
Professional,
Scientific, &
Tech Services
15% 30% 24% 3% 12%
Tracy Commute Patterns
16 Source: US Census.
Business Attraction
How Does ED Staff Attract Employers?
18 • Trade shows (attended 3 retail shows this year and 2 industrial events)
• Head of household marketing campaign (over 7,000 emails quarterly)
• Real estate tours
• Broker and tenant outreach
• Developer, land owner, and operator collaborations
• Respond to requests for proposals and conduct direct outreach • Advertising and specialized data preparation
• www.thinkinsidethetriangle.com
Business Prospects
19 Retail
RestaurantIndustrial
Hotel
Other
ECONOMIC DEVELOPMENT BUSINESS
ATTRACTION PROSPECTS
Examples of Success - Retail
20 • West Valley Mall
Hobby Lobby
• Downtown
Stained Canvass
The Station
Stile + Grace
L’aubeBoutique
• Other Retail Areas
Crumbl Cookies
Ghirardelli / Lindt
La Dona Taqueria y Birrieria
Midori Fine Asian Dining
El Jefe Taqueria
Bay Boys Brewing
Retail Attraction Key Considerations
21 • Market Analytics of City and Trade Areas
• Understanding Vacancy/Development
Opportunities
• Void Analysis
• Market Demand
Retail Attraction Market Analytics
22 • Consumer Demographic Profile (Rooftops)
• Employment Profile (Daytime Population)
• Household Segmentation Profile (Life Stage
Groups)
• Consumer Demand & Market Supply Assessment
Retail Demographic Highlights
23 ✓ City of Tracy has a population over 90,000 and more than 115,000 within 10-minute drive time.
✓ Daytime population of more than 98,000 within 10-
minute drive time.
✓ Average Household Income of more than $103,000
within a 5-minute drive time.
✓ 65.6% Home Ownership, with 34.4% Renters
✓ 30.1% of the population have a college degree or higher Business Retention and Expansion
Examples of Success – Business Retention
Visits
25 Examples of Success – Downtown Parklets
26 Other Business Retention Efforts
• Industrial round table
• COVID-19 Strategies Committee
• Updated the City’s card room ordinance
• Other assistance via resources and partnerships
• Collaborations with brokers, land owners and
operators
• Labor force enhancements
• www.thinkinsidethetriangle.com
27 Community Education and Brand
Management
Support Tracy Campaign
29 Discover Tracy Tourism Campaign
30 Publications
31 Community Survey
32 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Affordability Quality of Life Proximity to
Jobs
Safety Other
What Attracted you to Tracy?
Community Survey
33 0%
10%
20%
30%
40%
50%
60%
70%
80%
Entertainment Upscale
Restaurants
Quick Service
Restaurants
Grocery Stores Other
What Retail Options Should the City Focus on
Attracting?
Other Accomplishments
34 • Awarded the Economic Development Strategic Plan Update contract
• Updated banners along 11th Street
• Facilitated the City’s first affordable housing policy by joining the CalCHA consortium
• Awarded Community Development Block Grant (CDBG)
and HOME Investment Partnership (HOME) Program funds
• Manage the City’s ED website
www.thinkinsidethetriangle.com