Tulare City Council
July 7, 2026

Table of Contents
A. INVITATION................................................................................................................ 3 B. BACKGROUND.......................................................................................................... 3 C. ROLE OF CONSULATANT ........................................................................................ 3 D. SCOPE OF SERVICES .............................................................................................. 3 E. PROPOSAL FORMAT AND CONTENT ..................................................................... 6 F. EVALUATION CRITERIA AND SELECTION PROCESS........................................... 7 G. OTHER PROPOSAL INFORMATION......................................................................... 8 Exhibit A - City of Tulare Community Services Organizational Chart ..............................10 Exhibit B - Professional Services Agreement template ...................................................11 Exhibit C - Insurance Requirements................................................................................18

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A. INVITATION
The City of Tulare (“City”) is requesting proposals from experienced and qualified consulting firms to assist the City in the Tulare Public Library Strategic Plan and Efficiency Study Proposals shall be submitted electronically only via portable document format (PDF) to BidNet Direct/Sovra. Late proposals will not be accepted.

B. BACKGROUND
Incorporated on April 5, 1888, Tulare, California, is in the San Joaquin Valley region of California, approximately forty-five miles south of Fresno and sixty miles north of Bakersfield. It has a population of approximately 71,000 residents.

The City operates under the council-manager form of government. Its five-member council includes four members, elected by district, for four-year staggered terms on a non-partisan basis, and a mayor who is selected by the City Council for a two-year term. The Council appoints the City Attorney and the City Manager, who is responsible for day-to-day administration of the City under the policy direction of the Council.

The Tulare Public Library provides a variety of digital and in-person services to support the educational and personal needs of the community. Books, DVDs and audiobooks are available for checkout. Through the San Joaquin Valley Library System, you can request items from other libraries or use the Zip Books program to request books not currently owned by the library for free. Through the Digital Library (eLibrary) there is access to eBooks, digital magazines, and streaming services via apps like Libby, Hoopla, and Kanopy. The ValleyCat app can be used to manage accounts and search the catalog. In the Computer Lab there are 20 public computers with a 1-hour daily limit (extensions may be available). Laptops are also available for 3-hour checkout for use within the library (ages 18+). The library also offers printing, scanning, and fax services. There are study and meeting spaces that can be reserved for up to 3 hours for groups of up to 5 people. Room rentals are also available for larger needs. The library also has specialized centers. The Veteran Resource Center offers dedicated support for veterans and their families. The Literacy Center offers tutoring for reading and writing, English conversation circles, and GED or citizenship test preparation. The Genealogy Center provides access to Ancestry.com and local history volunteers. There are also regular story times (including bilingual sessions), book clubs, makerspace crafts for kids, and passport services (by appointment only).

C. ROLE OF CONSULATANT
The Consultant will work closely with the City Team and stakeholders. The Consultant must demonstrate proficiency in data-driven insight, including library performance indicators, usage statistics, and staffing assessment and experience leading focus groups, community surveys, and board-level presentations to build consensus. An ideal consultant will also have a proven track record of facilitating at least 3–5 similar projects for libraries of a comparable size and budget.

D. SCOPE OF SERVICES
The Scope of Services involves conducting a comprehensive operational study and strategic plan aimed at ensuring the organization operates at maximum efficiency while delivering highquality community services.

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This RFP is a step in the City’s procurement process to competitively acquire the desired services and products. The City intends to enter into an agreement with one firm to provide services. The project consists of furnishing all labor, materials, equipment, tools, supervision, and travel necessary to complete the following tasks:

1. Work Program and Schedule
Prepare a work program and schedule with milestone dates for completing research, field work, stakeholder meetings, an administrative review draft, and final report.

2. Document Review
City of Tulare Community Services Organizational Chart shown as Exhibit A https://www.tulare.ca.gov/government/departments/community-services/tulare-publiclibrary https://www.tulare.ca.gov/home/showpublisheddocument/21248/638386688430130000

3. Findings
The Consultant will work with the City Staff to determine the necessary other public facilities, operations, equipment, and staffing to deliver library services at the City’s current population and as the City grows. The Consultant shall provide recommendations regarding opportunities to streamline operations and reduce costs, as well as providing a neutral, detailed evaluation of potential future delivery models, including privatization, consolidation, and further internalization. Crucially, this analysis must be supported by financial modeling that estimates the implementation costs and long-term savings for each scenario, resulting in a final report with prioritized, actionable recommendations.

For context and comparison, the Consultant shall perform research and provide a summary of operations from similar California cities and surrounding communities.

4. Best Practices
Recommend best practices that focus on a balanced approach that combines financial metrics, operational workflows, and community impact.

5. Meetings
The consultant should include the following meetings in their proposal, at a minimum:
• Kick off meeting with consultants and City staff to review objectives and expectations, agree to methodology, and exchange information. • Data collection and clarification meetings with City staff to obtain and clarify information.
• Review of findings with City staff. Consultant to provide information supporting findings and proposed fees.
• Stakeholder meetings with City staff and community groups.

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6. Report Deliverables
a. Organizational Assessment
Conduct a thorough assessment of the current organizational structure, operations, and service delivery models. This should include:
• Review of current staffing structure, job descriptions, and responsibilities. • Evaluation of the organizational chart and reporting relationships, including alignment with City of Tulare administrative structure, where applicable. • Assessment of workflows, decision-making processes, and communication channels.
• Review of policies, procedures, and service delivery practices for consistency with modern public library service and alignment with City of Tulare policies and applicable regulations.
b. Evaluation of Staffing Needs and Roles:

Analyze staffing levels and functions to:
• Identify current and future staffing needs based on service demands and City of Tulare Strategic Plan objectives.
• Recommend modifications to improve staffing efficiency and effectiveness. • Clarify roles, responsibilities, and authority of City of Tulare staff at all levels to ensure accountability and coordination.
• Identify opportunities to eliminate duplication of roles and responsibilities. • Assess the administrative structure to determine whether it should be streamlined, realigned, or expanded to improve efficiency and oversight. c. Recommendation for Organizational Change
Provide recommendations for changes that would enhance flexibility, efficiency, and accountability in all aspects of the organization. These may include:
• Revised organizational structure with clearly defined roles and responsibilities. • Updated policies and procedures that support operational effectiveness and consistency with modern public library service standards and in alignment with City of Tulare principles.
d. Service Delivery Strategy
Evaluate the best approach to service delivery to ensure maximum efficiency and cost-effectiveness. This should include:
• Assessing whether services should be provided directly by City of Tulare staff, subcontracted to external service providers, or through agreements with municipal partner.
• Proposals for improving collaboration with municipal partners to ensure consistency and alignment of services delivery.
e. Report and Action plan

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Prepare a comprehensive report that includes:
• An analysis of findings from the organizational assessment. • Clear recommendations for organizational improvements, staffing changes, and service delivery strategies.
• A detailed draft Tulare Public Library Strategic Plan that outlines the steps the City of Tulare should take to achieve the recommended changes. • A timeline for implementing recommendations, including potential milestones for achieving key objectives
E. PROPOSAL FORMAT AND CONTENT
The proposal should demonstrate the qualifications of the Proposer and of the staff to be assigned to perform the work. The proposal shall be clear, accurate, and comprehensive.

Excessive or irrelevant materials will not be favorably received.

Cover Letter. A cover letter summarizing the key points of the proposal in a clear and concise manner shall be signed by an individual in the authorized to negotiate terms, render binding decisions, and commit resources. The letter shall state the proposer has read and will comply with all terms and conditions of the RFP and summarize the understanding of the work to be done and ability to perform it. It must also include a statement indicating the proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal, the proposer’s full legal name, state of incorporation, location of office(s), and background and other general information, including the size of the organization, and years in business.

Personnel. Names, qualifications, proposed roles, office location(s), and availability of the principal personnel who would be assigned to perform the services. The primary person(s) who would be responsible for managing the relationship with the City.

Subconsultants. If any part of the work described in the proposal is to be provided by subconsultants provide a description of each subcontractor’s role, previous joint ventures with the subcontractor, and their experience.

Organizational Chart. Provide an organizational chart for the project team.

References. Provide a minimum of three (3) client references. References should be California cities or other public sector entities with similar engagements. Provide the designated person's name, title, telephone number, email address, the project that was completed under their direction, and the dollar value of that contract.

Contract Terminations. If your organization has had a contract terminated in the last five (5) years, describe such incident. Termination for default is defined as notice to stop performance due to the Consultant’s non-performance or poor performance and the issue of performance was either (a) not litigated due to inaction on the part of the Consultant, or (b) litigated and such litigation determined that the Consultant was in default. Submit full details of the terms for default including the other party’s name, address, and phone number. Present the Consultant’s position on the matter. The City will evaluate the facts and may, at its sole discretion, reject the proposal on the grounds of the experience.

If the organization has not experienced any such termination for default or early termination in

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the past five (5) years, so indicate.

Consultants, their principals, or subcontractors may not be presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any regulatory agency
Conflict of Interest Disclosure. The Proposer must disclose any finder’s fees, fee splitting, payments to consultants, or other contractual arrangements of the proposer which constitute a real or perceived conflict of interest.

Deviations from the RFP. Explanation must be provided for proposed deviation from any requirement specified in this RFP.

F. EVALUATION CRITERIA AND SELECTION PROCESS

1. Evaluation Criteria
Proposers will be evaluated on a combination of responsiveness, organization, and clarity of proposals related to the scope of work, as well as the following criteria:
experience with similar engagements, qualifications and relevant experience of proposed assigned personnel, demonstrated understanding of the City’s desired scope of work, cost proposal, and references.

2. Selection Process
Staff will evaluate the proposals received and select the most qualified proposers for further review and consideration. Interviews (virtual and/or in-person) may be scheduled.

3. Tentative Schedule
RFP Issued April 1, 2026
Last day RFI’s can be submitted. April 22, 2026
Deadline for submission of proposals May 18, 2026
Interviews June 8-12, 2026
City Council Consideration (if necessary) June 16, 2026

4. Project Schedule
The City desires the work to be completed within six (6) months.

5. Professional Services Agreement
A draft Professional Services Agreement (“Agreement”) with insurance requirements is shown as Exhibit B. In submitting a proposal, Consultant certifies it takes no exceptions to the RFQ and will accept the terms and conditions of the Agreement. If any exceptions are taken, such exceptions must be clearly noted in the proposal and may be reason for rejection of the proposal. As such, Consultant is directed to carefully review the sample Agreement.

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G. OTHER PROPOSAL INFORMATION

1. Reservations
Issuance of this RFP does not commit the City to award an agreement or to procure an agreement for services. The City reserves the right to amend this RFP. The City reserves the right to postpone or cancel, for any or no reason, in part or in its entirety, this RFP. The City reserves the right to reject any or all proposals or any portion of any proposal received in response to this RFP without cause or liability or to waive any irregularities or informalities in the proposals or proposal process. The City is not obliged to accept any proposal or to negotiate with any respondent. Execution of an agreement is dependent upon the negotiation of a mutually acceptable agreement with the successful respondent.

2. Variations in Scope of Work
The City may materially change the scope of work of this RFP. Such changes may include additions, deletions, or other revisions within the general scope. No material changes or adjustments shall be made without a written amendment to this RFP.

3. Costs for Preparing Proposal
The City will not compensate for the cost of preparing any proposal, and all materials submitted with a proposal shall become the property of the City. The City will retain all proposals submitted and may use any idea in a proposal, regardless of whether that proposal is selected.

4. Applicable Laws
Any litigation related to this RFP shall be brought in the State of California, with a venue of the Tulare County Superior Courts.

5. Non-Conforming Terms & Conditions
Any proposal that includes terms and conditions that do not conform to the terms and conditions of this RFP or Agreement may be subject to rejection as non-responsive. The City reserves the right to permit the respondent to withdraw non-conforming terms and conditions from its proposal prior to action by the City to award an agreement.

6. California Public Records Act
Documents received by the City may be subject to the California Public Records Act, and as such, may therefore be subject to public disclosure unless otherwise exempt under the Act.

7. Requests for Information (RFI)
All questions regarding this RFQ shall be submitted via Bid Net Direct.

All interpretations and any supplemental instructions will be sent to all proposers. All addenda issued shall become part of the contract documents. Under no circumstances

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may any other department or individual be contacted for clarification or interpretation of any requirements herein. Any oral statements made that materially change any portion of this RFP are not valid unless subsequently ratified by a formal written amendment to this RFP.

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Exhibit A – City of Tulare Community Services Organizational Chart

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Exhibit A – Professional Services Agreement Template

CITY OF TULARE

PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement ("Agreement") is entered into as of xxxx between the City of Tulare, a California charter city ("City") and consultant legal name, a corporation/company type and state of registration ("Consultant") with respect to the following recitals, which are a substantive part of this Agreement.

RECITALS
A. The City of Tulare desires to obtain services for xxxx ("Services") more fully described in Exhibit A, which is attached hereto and incorporated by reference.

B. Consultant is engaged in the business of furnishing Services and hereby represents they are qualified, experienced, and capable of performing Services, and possesses any required licenses, certifications, security/bonding, and/or training necessary to perform Services.

C. The City of Tulare desires to retain Consultant, and Consultant desires to provide City with Services, on the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the promises and mutual agreements herein, City and Consultant agree as follows:

1. Scope of Services. Consultant shall perform Services described in the Recitals and detailed in Exhibit A. Changes in the scope of Services, including the work performed and/or deliverables produced, shall be made in writing and particularly describe the changes in Services, including payment/costs and schedule/term, as applicable.

2. Priority and Conflicts; Exclusions. If the terms and requirements of this Agreement conflict with Exhibit A, this Agreement shall control. No contractual terms and/or conditions found in Exhibit A shall purport to waive, disclaim, or limit Consultant’s liability, indemnification obligations, warranties, damages for breach or delay, or any security, bonding, or insurance requirements, and any such provisions shall have no force or effect with respect to this Agreement and Services performed by Consultant.

3. Term of Agreement; Commencement of Services; Schedule. Consultant shall begin performing Services upon notice from City on or after the Effective Date, unless otherwise instructed by the City, and continue with Services until xxxx (“Completion Date”). This Agreement may be terminated prior to the Completion Date pursuant to Section 14 herein.

4. Payment for Services. As sole compensation for the performance of Services, City hereby agrees to pay Consultant monthly for services rendered to City pursuant to this Agreement on a xxxx basis according to the rates of compensation as set forth in Exhibit A. The total amount paid by the City to Consultant for Services shall not exceed xxxx dollars ($xxxx). The foregoing is inclusive of all labor, equipment, materials, costs and expenses, taxes, and overhead. Consultant will receive no royalty or

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other remuneration for the production or distribution of any products developed by City or by Consultant in connection with, or based upon, Services. Consultant shall submit to City an itemized invoice, prepared in a form satisfactory to the City, describing its services and costs for the period covered by the invoice. Except asspecifically authorized by the City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant’s bills shall include the following information to which such services cost or pertain: a brief description of services performed; the date Services were performed; and the number of hours spent, rate, and by whom. Any such invoices shall be in full accord with any and all applicable provisions of this Agreement. City shall make payment on each such invoice within thirty (30) days of receipt; provided, however, if Consultant submits an invoice which is incorrect, incomplete, or not in accord with the provisions of this Agreement, City shall not be obligated to process any payment to Consultant until thirty (30) days after a correct and complying invoice has been submitted by Consultant.

5. Independent Contractor Status, Taxes. Consultant is an independent contractor, and nothing contained in this Agreement is intended, or shall be construed in any manner to create or establish the relationship of agent or employee of the City. Consultant has no authority to bind City by contract or otherwise. Consultant will perform the professional services under the general direction of the City Manager or their Designee, subject to the requirement that Consultant shall, at all times, comply with applicable law. Consultant shall pay all taxes, assessments, and premiums under the federal Social Security Act, any applicable unemployment insurance contributions, Workers Compensation insurance premiums (if required), sales taxes, use taxes, personal property taxes, or other taxes or assessments now, or hereafter, in effect and payable by reason of, or in connection with, Services performed by Consultant.

Consultant shall be required to possess a valid and current City of Tulare Business Tax Certificate.

6. Warranty. By executing this Agreement, Consultant agrees Services it will perform under this Agreement will be of a professional quality conforming to generally accepted industry standards and practices and that Consultant shall maintain all required licenses and certifications necessary for performance of Services hereunder. Consultant further agrees and represents to City that Consultant possesses, or shall arrange to secure from others, all of the necessary professional capabilities, experience, resources, and facilities necessary to provide City Services contemplated under this Agreement and that City relies upon the professional skills of Consultant to do and perform Consultant’s work. Consultant further agrees and represents that Consultant shall follow the current, generally accepted industry practices to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding Services rendered under this Agreement.

7. Subcontractor Provisions. Consultant shall include in its written agreements with its subcontractors, if any, provisions which: (a) impose upon the subcontractors the obligation to provide to City the same insurance and indemnity obligations that Consultant owes to the City; (b) make clear that City intends to rely upon the reports, opinions, conclusions and other work product prepared and performed by subcontractors for Consultant; and (c) entitle City to impose upon subcontractors the assignment rights found elsewhere in this Agreement.

8. Power to Act on Behalf of the City. Consultant is not acting as an agent of City and shall not have any right, power, or authority to create any obligation, express or implied, or make representations on behalf of City except as may be expressly authorized in advance in writing from time to time by City and then only to the extent of such authorization.

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9. Access to Records. Consultant shall maintain all preparatory books, records, documents, accounting ledgers, and similar materials, including, but not limited to, calculations and notes relating to work performed for City under this Agreement, on file for at least three (3) years following the date of final payment to Consultant by the City. Any duly authorized representative(s) of City shall have access to such records for the purpose of inspection, audit, and copying at reasonable times during Consultant’s usual and customary business hours. Consultant shall provide proper facilities to the City’s representative(s) for such access and inspection.

10. Ownership of Documents. Title to all final documents, including drawings, specifications, data, reports, summaries, correspondence, photographs, computer software (if purchased on the City’s behalf), video and audio tapes, software output, and any other materials with respect to work performed under this Agreement shall vest with City at such time as City has compensated Consultant, as provided herein, for Services rendered by Consultant in connection with which they were prepared. City agrees to hold harmless and indemnify Consultant against all damages, claims, lawsuits, and losses of any kind including defense costs arising out of any use of said documents, drawings, and/or specifications on any other project without written authorization of the Consultant. The provisions of this Section 4 shall survive the termination of this Agreement for any reason.

11. Confidentiality. All work product prepared and performed by and on behalf of Consultant in connection with Services performed pursuant to this Agreement shall be kept confidential and shall be disclosed only to the City, unless otherwise provided by law or expressly authorized by the City.

Consultant shall not disclose or permit the disclosure of any confidential information acquired during performance of Services, except to its agents, employees and subcontractors who need such confidential information in order to properly perform their duties relative to this Agreement. Consultant shall also require its subcontractors to be bound to these confidentiality provisions.

12. Conflicts of Interest. Consultant represents that neither Consultant nor any of its employees have an improper interest, present or contemplated, in Services which would affect Consultant’s or its employees’ performance of Services and the work product produced. Consultant further warrants that neither Consultant nor any of its employees have real property, business interests or income that will be affected by Services. Consultant covenants that no person having any such interest, whether an employee or subcontractor shall perform Services under this Agreement. During the performance of Services, Consultant shall not employ or retain Services of any person who is employed by City or a member of any City board, commission, committee, or other legislative or recommending body.

13. City’s Right to Employ Other Consultants. This Agreement and performance of Services are nonexclusive and City reserves the right to employ other consultants in connection with Services while this Agreement is in effect.

14. Termination of Agreement. This Agreement shall terminate as provided in Section 3, unless terminated earlier pursuant to the following:
a. Termination by City or Consultant: For Convenience. Either party may, at their discretion, terminate this Agreement for convenience and without cause upon ninety (90) days prior written notice to the other party. Upon receipt of a termination notice pursuant to this subsection, Consultant shall promptly discontinue all Services affected, unless the notice directs otherwise.

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b. Termination by City or Consultant: For Cause. Either party may terminate this Agreement upon ten (10) days prior written notice to the other party of a material breach, and a failure within that time period to cure or commence reasonable steps to cure the breach. c. Compensation to Consultant Upon Termination. Consultant shall be paid compensation for Services satisfactorily performed prior to service of the written notice of termination. As to any phase partially performed but for which the applicable portion of Consultant's compensation has not become due, Consultant shall be paid the reasonable value of its Services provided. However, in no event shall such payment when added to any other payment due under the applicable part of the work exceed the total compensation of such part as specified Section 4. In the event of termination due to Consultant’s failure to perform in accordance with the terms of this Agreement through no fault of the City, and City may withhold an amount that would otherwise be payable as an offset to the City's damages caused by such failure.
d. Effect of Termination. Upon termination of this Agreement, Consultant shall: (i) promptly discontinue all Services affected, unless the notice of termination directs otherwise; and (ii) deliver or otherwise make available to the City, without additional compensation, all work product and/or deliverables accumulated by Consultant in performing this Agreement, whether completed or in process.

Consultant may not refuse to provide such work product for any reason whatsoever. e. Non-Appropriation; Lack of Available Funds. The parties acknowledge Services to be performed under this Agreement are expected to extend beyond the City’s budgeted fiscal year. If, during the term of this Agreement, or any renewal term, as applicable, City budget does not appropriate sufficient funds for this Agreement, then City may elect to terminate this Agreement, at its sole discretion, by giving thirty (30) days' prior written notice of termination to Consultant. Upon termination of the Agreement under this section, City shall have no further liability to pay any funds to Consultant or to furnish any other consideration under this Agreement, and Consultant shall not be obligated to perform any provisions of this Agreement or to provide services intended to be funded pursuant to this Agreement. If partial funds are appropriated or provided, City shall have the option to either terminate this Agreement with no liability to City or offer an amendment to Consultant to reflect the reduced amount. City represents and warrants that (i) as of the Effective Date, it has appropriated the funds for this Agreement for the current fiscal year and (ii) it shall not use the foregoing right to terminate for nonappropriation as a means to terminate for convenience. Consultant’s assumption of risk of possible nonappropriation is part of the consideration for this Agreement. City budget decisions are subject to the discretion of the City Council.

15. Insurance. Consultant shall satisfy the insurance requirements set forth in Exhibit B.

16. Indemnity and Defense. Consultant hereby agrees to indemnify, defend and hold the City, its officials, officers, employees, agents, and volunteers harmless from and against all claims, demands, causes of action, actions, damages, losses, expenses, and other liabilities, (including without limitation reasonable attorney fees and costs of litigation) of every nature arising out of or in connection with the alleged or actual acts, errors, omissions or negligence of Consultant or its subcontractors relating to the performance of Services and the safeguarding of any financial data and information obtained from City necessary to perform Services described herein to the fullest extent permitted by law, unless the injuries or damages are the result of the City's sole negligence or willful misconduct, subject to any limitations imposed by law. Consultant and City agree that said indemnity and defense obligations shall survive the

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expiration or termination of this Agreement for any items specified herein that arose or occurred during the term of this Agreement.

17. Compliance with Laws, Rules, and Regulations. Services performed by Consultant pursuant to this Agreement shall be performed in accordance and full compliance with all applicable federal, state, and city laws and any rules or regulations promulgated thereunder.

18. Assignment. Neither this Agreement nor any duties or obligations hereunder shall be assignable by Consultant without the prior written consent of the City. In the event of an assignment to which City has consented, the assignee shall agree in writing to personally assume and perform the covenants, obligations, and agreements herein contained. In addition, Consultant shall not assign the payment of any monies due 38 Section 8, Item 8D. 5 Consultant from City under the terms of this Agreement to any other individual, corporation or entity. City retains the right to pay any and all monies due Consultant directly to Consultant.

19. Form and Service of Notices. Any and all notices or other communications required or permitted by this Agreement or by law to be delivered to, served upon, or given to either party to this Agreement by the other party shall be in writing and shall be deemed properly delivered, served or given by one of the following methods: a. Personally delivered to the party to whom it is directed. Service shall be deemed the date of delivery. b. Delivered by e-mail to a known address of the party to whom it is directed provided the e-mail is accompanied by an acknowledgment of receipt by the other party. Service shall be deemed the date of acknowledgement. c. Delivery by a reliable overnight delivery service, ex., Federal Express, receipted, addressed to the addressees set forth below the signatories to this Agreement. Service shall be deemed the date of delivery. d. Delivery by deposit in the United States mail, first class, postage prepaid. Service shall be deemed delivered seventy-two (72) hours after deposit.

20. Entire Agreement. This Agreement, including the Exhibits and any other attachments, represents the entire Agreement between City and Consultant and supersedes all prior negotiations, representations or agreements, either written or oral with respect to the subject matter herein. This Agreement may be amended only by written instrument signed by both City and the Consultant.

21. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

22. Severability. In the event any term or provision of this Agreement is declared to be invalid or illegal for any reason, this Agreement will remain in full force and effect and will be interpreted as though such invalid or illegal provision were not a part of this Agreement. The remaining provisions will be construed to preserve the intent and purpose of this Agreement, and the parties will negotiate in good faith to modify any invalidated provisions to preserve each party’s anticipated benefits.

23. Applicable Law and Interpretation and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. The language of all parts of this Agreement shall, in all cases, be construed as a whole, according to its fair meaning, and not strictly for or against either party. This Agreement is entered into by City and Consultant in the County of Tulare, California. Consultant shall perform Services required under this Agreement in the County of Tulare, California.

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24. Amendments and Waiver. This Agreement shall not be modified or amended in any way, and no provision shall be waived, except in writing signed by the parties hereto. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the remaining provisions of this Agreement.

25. Third Party Beneficiaries. Nothing in this Agreement shall be construed to confer any rights upon any party not a signatory to this Agreement.

26. Execution in Counterparts. This Agreement may be executed in counterparts such that signatures may appear on separate signature pages. A copy or an original, with all signatures appended together, shall be deemed a fully executed Agreement.

27. Alternative Dispute Resolution. If a dispute arises out of or relating to this Agreement, or the alleged breach thereof, and if said dispute cannot be settled through negotiation, the parties agree first to try in good faith to settle the dispute by non-binding mediation before resorting to litigation. The mediator shall be mutually selected by the parties, but in case of disagreement, the mediator shall be selected by lot from among two nominations provided by each party. All costs and fees required by the mediator shall be split equally by the parties, otherwise each party shall bear its own costs of mediation. If mediation fails to resolve the dispute within thirty (30) days, either party may pursue litigation to resolve the dispute. Demand for mediation shall be in writing and delivered to the other party to this Agreement.

A demand for mediation shall be made within a reasonable time after the claim, dispute or other matter in question has arisen. In no event shall the demand for mediation be made after the date when commencement of legal or equitable proceedings based on such a claim, dispute or other matter in question would be barred by California statues of limitations.

28. Non-Discrimination. Consultant shall not discriminate based on any protected class under federal or State law in the provision of Services or with respect to any Consultant employees or applicants for employment. Consultant shall ensure any subcontractors are bound to this provision. A protected class includes, but is not necessarily limited to race, color, national origin, ancestry, religion, age, sex, sexual orientation, marital status, and disability.

29. Performance Requirements. Notwithstanding, and in addition to the provisions of Section 17 of this Agreement, if Services performed hereunder are not in conformity with the requirements of this Agreement and other pertinent documents, City shall have the right to require Consultant to correct the work in conformity with the requirements of this Agreement at no additional increase in the payment to Consultant. Consultant shall promptly correct the work rejected by City for failing to conform to the requirements of the Agreement. Remedy for non-compliance or non-performance shall commence within 24 hours of notice. City shall also have the right to require Consultant to take all necessary steps to ensure future performance of Services in conformity with the requirements of this Agreement. In the event Consultant fails to correct the work or fails to take necessary steps to ensure the future performance of Services in conformity with the requirements of this Agreement, City shall have the right to immediately terminate this Agreement for default.

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NOW, THEREFORE, City and Consultant have executed this Agreement on the date(s) set forth below:

CONSULTANT LEGAL NAME CITY OF TULARE

Name, Title Marc Mondell, City Manager

APPROVED AS TO FORM ATTEST

Mario U. Zamora, City Attorney Marc Mondell, City Clerk By: Melissa Wilcox
Chief Deputy City Clerk

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Exhibit C – Insurance Requirements
CSJVRMA Category 1 Non-Technology Professional Services Prior to commencement of the Services, Consultant shall take out and maintain at its own expense the insurance coverage required by this Exhibit B. Consultant shall cause any subcontractor with whom Consultant contracts for the performance of Services pursuant to this Agreement to take out and maintain equivalent insurance coverage. Said insurance shall be maintained at all times during Consultant’s performance of Services under this Agreement, and for any additional period specified herein. i. Commercial General Liability.
a. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

Consultant’s general liability policies shall be primary and shall not seek contribution from the City’s coverage and be endorsed using Insurance Services Office form CG 20 10 (or equivalent) to provide that City and its officers, officials, employees, and agents shall be additional insureds under such policies. For construction projects, an endorsement providing completed operations coverage for the additional insured, ISO form CG 20 37 (or equivalent), is also required.
b. Any failure to comply with reporting provisions of the policies by Consultant shall not affect coverage provided the City.
c. Coverage shall state that Consultant insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. d. Coverage shall contain a waiver of subrogation in favor of the City. ii. Business Automobile Liability. Consultant shall provide auto liability coverage for owned, non-owned, and hired autos using ISO Business Auto Coverage form CA 00 01 (or equivalent) with a limit of no less than one million dollars ($1,000,000) per accident. iii. Workers’ Compensation and Employers’ Liability – Statutory. Consultant shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance with limits of at least one million dollars ($1,000,000). Consultant shall submit to City, along with the certificate of insurance, a waiver of subrogation endorsement in favor of City, its officers, agents, employees, and volunteers. Proof of Worker’s Compensation is not required if Consultant provides written verification that they have no employees. iv. All Coverages.
a. It shall be a requirement under this agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be available to the Additional Insured. Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of any Insurance policy or proceeds available to the named insured; whichever is greater. No

8.9 Consent 74 of 76

representation is made that the minimum insurance requirements of this agreement are sufficient to cover the obligations of the Contractor under this agreement. b. Each insurance policy required by the agreement shall be endorsed to state that coverage shall not be suspended, voided, cancelled, or reduced in limits except after thirty (30) days' prior written notice has been given to the City, except that ten (10) days’ prior written notice shall apply in the event of cancellation for nonpayment of premium. c. All self-insurance, self-insured retentions, and deductibles must be declared and approved by the City.
d. Evidence of Insurance - Prior to commencement of work, the Consultant shall furnish the City with certificates, additional insured endorsements, and waivers of subrogation evidencing compliance with the insurance requirements above. The Consultant must agree to provide complete, certified copies of all required insurance policies if requested by the City.
e. Acceptability of Insurers - Insurance shall be placed with insurers admitted in the State of California and with an AM Best rating of A- VII or higher. v. Ancillary Coverages.
a. Professional Liability Insurance. Contractor shall maintain professional liability insurance that insures against professional errors and omissions that may be made in performing the Services to be rendered in connection with this Agreement, in the minimum amount of two million dollars ($2,000,000) per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement, and Contractor agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.

8.9 Consent 75 of 76
RESOLUTION 202X-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULARE
APPROVING FISCAL YEAR 2027 BUDGET ADJUSTMENTS
WHEREAS, on June 2, 2026, the City Council of the City of Tulare adopted the Fiscal Year 2027 Budget following a public hearing; and
WHEREAS, from time to time it is necessary to amend said budget; and WHEREAS, budget amendments must be made by City Council Resolution; and WHEREAS, City Council now desires to make an amendment to said budget.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tulare, as follows:

Section 1. The Fiscal Year 2027 Budget is hereby amended to appropriate $109,726 from the Library Development Impact Fee (DIF) Fund (215) fund balance to Object 5223 “Studies, Plans, & Reports,” within Fund 215 for preparation of the Tulare Public Library Strategic Plan and Efficiency Study.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Tulare this 7th day of July 2026, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Patrick Isherwood, President of the Council
and Ex-Officio Mayor
ATTEST:

Marc Mondell, City Clerk
By Melissa Wilcox, Chief Deputy City Clerk
The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Tulare City Council.

8.9 Consent 76 of 76
Item #: 9.1
Public Hearing
Staff Report
City Council
Date: July 7, 2026
Department: Finance
Submitted by: Mark Roberts, Chief Financial Officer & Treasurer Agenda Title: Parking & Business Improvement Area Report and Annual Assessments

RECOMMENDED ACTION
Conduct a public hearing and adopt a resolution confirming the report and recommendation of the Tulare Downtown Association Board of Directors and levy assessments for the Tulare Downtown Parking & Business Improvement Area Annual Assessments for Fiscal Year 2027.

ALIGNMENT WITH STRATEGIC PRIORITIES
Economic Development

SUMMARY
Tulare Municipal Code Section 8.48.080 requires the Advisory Board of the Parking & Business Improvement Area (“PBIA”), the Tulare Downtown Association (“TDA”), to prepare a report for each fiscal year for which assessments are to be levied and collected to pay the cost of the improvements and activities described in the report. A report was presented and approved by the City Council on June 16, 2026. A public hearing was set for July 7, 2026, to confirm the report and levy assessments for Fiscal Year 2027.

The following table provides the proposed assessments for each Zone. Assessments are due at the same time business license fees are due.

Zone A (business license required) 175% of business license fee Zone A (business license not required) $30/employee*; min. semiannual assessment of $200, max. semiannual assessment of $1,000
Zone B (business license required) 87.5% of business license fee Zone B (business license not required) $17.57/employee*; min. semiannual assessment of $122.06, max. semiannual assessment of
$610.33
• Employed for at least 20 hours per week

FISCAL IMPACT & FUNDING SOURCES
There is no net fiscal impact associated with this action as assessment revenues collected are sent directly to the TDA for administration of the PBIA.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

LEGAL REVIEW
This item does not require legal review.

9.1 Public Hearing 1 of 16

PUBLIC NOTICE
A notice of public hearing was published in The Visalia Times Delta on June 25, 2026, which is at least 10 days prior to the public hearing.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table
If a public hearing is not held on this matter or the assessments are not levied, the TDA will not have the funds necessary for administration of the PBIA for the upcoming fiscal year, possibly resulting in the reduction or suspension of improvements and activities due to lack of available funds for payments of contractors and for purchases of materials and supplies.

ATTACHMENTS

1. Tulare Downtown Association Annual Report, 2026-2027

2. Resolution
Reviewed/Approved:

9.1 Public Hearing 2 of 16

TULARE DOWNTOWN ASSOCIATION
Annual Report
2026-2027
Lino Pimentel, President

9.1 Public Hearing 3 of 16

TULARE DOWNTOWN ASSOCIATION
Board of Directors
Member-At-Large: Don LeBaron, 830 Sycamore, Tulare, CA 93274, 936-3244 Member-At-Large: Lino Pimentel, Lino Pimentel Real Estate, 260 N “J” St, Tulare, CA 93274 (559) 688-1900
Zone A : Artemisa Valdez, Kings View South Tulare Mobile Services, 201 N K St, Tulare, CA 93274,
Zone A: Jacob Fraga, Tulare Real Estate Team, 241 E Kern Ave, Tulare, CA 93274, (559)334-7990
Zone A: Adrian Herrera, 151 South “K” Street, Tulare, CA 93274 (559)684-2728
Zone A: Chris Beck, Motor Cars Inc, 213 E King Ave, Tulare, CA 93274, (559)688-0404
Zone A: Michael Limas, Kern Square, 126 E Kern Ave Tulare, CA 93274, (707)592-7997
Zone B: Adrian Madrid, Madrid Real Estate Team, 120 North M Street, (559)688-1800
Zone B: Karen Bravo , Land O Lakes, 400 S M St, Tulare, CA 93274, (559) 687-8287
Zone B: Anthony Torrez, The Well Coffee Shop, 126 S N St, Tulare, CA 93274 (559) 510-1076
City Appointments
City Council Steve Harrell, Councilmember
Police Department Sgt Chris Marvin, Tulare Police Department

9.1 Public Hearing 4 of 16
The downtown is divided into two physical zones, “A” and “B” and one “virtual” zone, “C”.

Of the 335 operating business addresses within the boundaries of the assessment district, 57 of
them appear to not have a business license. Refer to Appendix A for possible non-licensed businesses.

In Zone A, a total of 205 businesses paid the
assessment last period, with 51 businesses
failing to pay.

Only 15 businesses are classified as Zone C ,
of which 8 don’t pay the assessment.

NOTE: Most of the non-paying “C” Zone
businesses are larger corporations where
local managers aren’t responsible for processing and paying business license fees or assessments.

In Zone B, one business was closed, one
was purchased by a large corporation (see
note on Zone C), two were not confirmed to
be operating, one is vacant, two businesses
claimed the assessment didn’t apply to
them.

9.1 Public Hearing 5 of 16
2025 -2026 Outlook
For this fiscal year, the Tulare Downtown Association:

Continues implementation of the Clean and
Safe program for Downtown Tulare.

The Clean and Safe program removed 12,270
pounds (6.1TONS) of trash from the streets of Downtown Tulare June 2025 —May, 2026. This is a 100% increase over same period last year.

Supports and manages the Tulare Tower Square PBID
As managers of the Tower Square PBID, we continue to make recommendations and oversee implementation of board objectives.

Continues real estate vacancy tracking system.

Our website features a page for available real estate for potential occupants and investors.

The site has dropped from an historic high of 21 properties a few years ago to only nine available properties.

Continues “Project Re-Connect”
In cooperation with the Tulare PD, addresses homelessness and under-employment issues through job initiatives and assistance.

Supports activities at Zumwalt Park.
“Best damn park in the county!”
Pounds of Trash Removed per Month; Jun 2026—May, 2026
Our Clean and Safe Team removed nearly 6,000 pounds of
trash July –Dec, 2024
Clean and Safe addressed over 30 incidents of human waste clean up in the downtown district.

In 2024 July—December, Clean and Safe removed 6
pieces of discarded furniture.

MAY
JAN
FEB

MAR APR
As with last
year, the
trash and
refuse removal increased with
the warmer
months.

9.1 Public Hearing 6 of 16
TDA and Tulare Downtown Foundation Together
Producing events and other promotional activities for the Downtown, the Association and Foundation work together and with other entities both inside and outside the downtown..

These events include but are not limited to:
• Taco Truck Throwdown
• Mad Scientist Night STEAM Educational Event
• Vintage Days
• Jack-O-Lantern Jubilee/Historic Wild West Wagon Ride
• Tulare Christmas Parade
• Annual Banquet
These events benefit the businesses of the downtown, bring visitors to the city’s core and maintain downtown’s visibility through various partnerships.

9.1 Public Hearing 7 of 16
Recommendations to Tulare City Council for 2026-2027
The Tulare Downtown Association Inc. Board of Directors, offers the following recommendations for the management and operation of activities associated with the Tulare Parking and Business Area during the fiscal year (July 1, 2026-June 30, 2027):
 Continue addressing funding issues in aftermath of PBID initiative.  Consider updating BID (current TDA) funding model to more intuitive approach.  Work with the City, Code Enforcement and Police Department to control graffiti, vandalism, and crime in the downtown.  Continue to coordinate with the Tulare Police Department in implementing Project Reconnect to help individuals on the street reconnect with family.  Continue to work with the Tulare Chamber of Commerce as well as other organizations and individuals in their efforts to encourage growth in Downtown Tulare.  Support efforts to market and develop downtown, especially in regard to the newly remodeled and reopened Zumwalt Amphitheater and blossoming businesses in the downtown.  Attached is the approved TDA budget for providing the improvements and the activities for fiscal year 2025-2026.
 Based on the Consumer Price Index (CPI), in the last 15 years, the economy has experienced a total cumulative inflation rate of roughly 47% meaning prices have increased nearly 1.5 times over the past 15 years. Fully implementing business license compliance and assessment participation is more crucial than ever.
 Refer to Appendices A, B and C following report for breakdown on businesses within the district for no business license (A), no longer operating (B) and outside district (C) Lino Pimentel, President
Tulare Downtown Association

9.1 Public Hearing 8 of 16

9.1 Public Hearing 9 of 16
Appendix A: Businesses with No Business License on File Southern Tire Mart 362 S "K" Street
Sozinho Insurance 124c N "L" Street
4 Creeks Carol Atwater 132 S "N" Street
A F Services 219 N "M" Street
A1 Window Tinting 444 E Cross Ave
ABSOLUTE DESIGN 128 N "M" Street
American Thunder Rick Allison 515 E Cross Ave
Anderson Management 124 N "L" Street
Andrade's Construction 229 N "N" Street
Art Life 564 E Kern Ave
Barber Ink 130 E Kern Ave
Barb's Bookkeeping
Blue Print Fitness Joseph 138 S "K" Street
BR Tax Planners 442 N "M" Street
Cardoza Real Estate Group 151 N "N" Street
Coco Loco 286 E Cross Ave
Confia Tax Service 243 S "K" Street
Cora's Cakes Luvia Herrera 204 S "K" Street
Cora's Cakes Luvia Herrera 210 S "K" Street
Cream Base 533 E Cross Ave
DENNIS BUHLER, DENTIST DENNIS BUHLER 202 S "N" Street
Gaither Family Home 306 S "N" Street
Gallardo Agency Thelma Gallardo 220 N "J" Street
Granite-Tile-Cabinets 444 E Cross Ave
Griffin Liquor Store 115 E Cross Ave
Kelly Brooks Insurance Company Kelly Brooks 225 N "M" Street Lino Pimentel Real Estate Lino Pimentel 256 N "J" Street LITIGATION SUPPORT Marilyn Brazil 135 N "K" Street
MARTIN INSURANCE AND INVESTMENTS Dean Martin 515 E Kern Ave Mi Panderia Bakery 204 E Cross Ave
Momentum Dance Academy Chrystal Reynolds 161 N "N" Street New Horizons Timothy Zavala 327 S "K" Street
Nito Customs 444 E Cross Ave
Nu-Clear Media Creative Studios 304 E King Ave
Octapharma Plasma 180 E Cross Ave
Opus Escrow 161 N "M" Street
Paradise Auto Spa 300 S "J" Street
Portilla Club 200 N "J" Street
Premier Realty 250 N "M" Street
QME Evaluation 130 N "M" Street
Rancho Grande Mexican Resaurant 250 E Cross Ave
Robinson Financial Group Don Damschen 442 N "M" Street
ROUND TABLE PIZZA Trisha Smith 150 E Cross Ave
Secure Alliance 157 S "K" Street
Smoke 7 540 E Cross Ave

9.1 Public Hearing 10 of 16
No Business License on File (Con’t)
Soul Good 216 S "K" Street
Studio 11 124 E Kern Ave
Sumruld Family LP 124 N "L" Street
Super 7 Liquors 536 E Cross Ave
Surf Thru Carwash 433 N "J" Street
The Shop 410 N "K" Street
Tulare Realty Wayne Denning 100 E Kern Ave
Uh La La Coffee 122 E Kern Ave
Mike Muller Alkem 120b N "L" Street
Garcia Martial Arts 315 S "L" Street
California Rural Legal Assistance 438 N "M" Street
Gather 141 S "K" Street
Tulare Real Estate Team 157 S "K" Street
Appendix B: Businesses No Longer Operating in DT.

LIGHTHOUSE RESCUE MISSION
49 W TULARE AVE
TULARE CA 93274-0000

NEXUS POINT MARKETING
141 N K ST
TULARE CA 93274-4003

EMERALD GRACE FLORAL DESIGN
254 N L ST
TULARE CA 93274-4116

MI CASA BELLA
118 S K ST
TULARE CA 93274

YOU-BE'S U-BAKE PIZZA
580 E KERN AVE
TULARE CA 93274
2026 Taco Truck Throwdown

9.1 Public Hearing 11 of 16
Appendix C: Businesses No Longer Operating in
Assessment District Boundaries

FRINGE SALON AND SPA
262 N M ST
TULARE CA 93274

JAMES C MA DDS INC
125 N N ST
TULARE CA 93274

ALADDIN LOUNGE
135 E TULARE
TULARE CA 93274

BANK OF THE SIERRA
246 E TULARE AVE
TULARE CA 93274-4133

BARKER SHOP
1406 E TULARE AVE
TULARE CA 93274-3063

BROWN INTERNATIONAL CORPORATION, LLC
446 N M ST
TULARE CA 93274

CHICAGO TITLE INSURANCE COMPANY
1905 HILLMAN ST
TULARE CA 93274-4148

LEWIS INSURANCE
1108 LELAND AVE
TULARE CA 93274

TINTA LLC
525 E CROSS AVE
TULARE CA 93274

NAILS BY POSTIE
223 S K ST
TULARE CA 93274

POWER CALIFORNIA
209 NORTH N ST
TULARE CA 93274

POWERCA ACTION
209 NORTH N ST
TULARE CA 93274

SHERLANE DE LA CRUZ
144 N M ST
TULARE CA 93274-4147

BODY SCULPTING BY ALICIA
209 N K ST
TULARE CA 93274-4005

CREATIVE TOUCH BY LC
209 N K ST
TULARE CA 93274-4005

SMITH & MEDEROS REALTY
265 E WASHINGTON AVE
TULARE CA 93274
THREADS & THINGS LLC1
100 W INYO AVE
TULARE CA 93274

VALLEY OAK CREDIT UNION
255 E KING AVE
TULARE CA 93274-4109

9.1 Public Hearing 12 of 16
Appendix D: Assessment Non-Payers
Business/Individual Address Zone Reference # Status

ALEX COVARRUBIAS
245 S K ST
TULARE CA 93274-4013 A bl BL-27294 06/30/2025 NO

AMELIA HAIR DESIGN
572 E KERN AVE
TULARE CA 93274 A bl BL-25426 12/31/2025 NO

BEATRIZ BEAUTY SALON
260 N L ST
TULARE CA 93274 A bl BL-26442 12/31/2025 NO

BEAUTIFIED STUDIO BY IMELDA
210 S K ST
TULARE CA 93274 A bl BL-28270 06/30/2025 NO

BOUTIQUES BY JESSICA
266 E CROSS AVE
TULARE CA 93274-2842 A bl BL-24891 12/31/2023 NO

CHENDITOS BARBERSHOP, JOSE LARA JR
245 S K ST
TULARE CA 93274-4013 A bl BL-26095 06/30/2024 NO

CLAUDIA LOPEZ
219 E TULARE
TULARE CA 93274 A bl BL-28180 06/30/2026 NO

CORA CAKES
204 S K ST
TULARE CA 93274 A bl BL-26321 06/30/2026 NO

DMK PARTY RENTALS & DECORATION LLC
117 S K ST
TULARE CA 93274 A bl BL-26980 12/31/2025 NO

EL TACO VOLADOR
240 N L ST
TULARE CA 93274-4116 A bl BL-25286 12/31/2023 NO

ELEVATE BARBER LOUNGE
117 S M ST
TULARE CA 93274-4125 A bl BL-27270 12/31/2023 NO

ELISA ALONZO
124 S K ST
TULARE CA 93274 A bl BL-25913 06/30/2024 NO

ELITE TAX SERVICES
150 S N ST
TULARE CA 93274-4212 A bl BL-27622 12/31/2024 NO

EMILIA VILLA
219 E TULARE AVE
TULARE CA 93274 A bl BL-28527 12/31/2025 NO

ERICA'S FLOWER BOUQUETS
201 S K ST
TULARE CA 93274 A bl BL-12364 06/30/2026 NO

ERNEST DIAZ
139 S K ST
TULARE CA 93274-4011 A bl BL-25019 12/31/2025 NO

ESSENCE BEAUTY
137 E TULARE AVE
TULARE CA 93274-4019 A bl BL-28302 12/31/2025 NO

FADE MASTERS
465 N K ST
TULARE CA 93274-4009 A bl BL-23288 06/30/2025 NO

FERNANDO DIAZ
139 S K ST
TULARE CA 93274-4011 A bl BL-25072 06/30/2026 NO

FRESH CUT FACTORY
205 S K ST
TULARE CA 93274-4013 A bl BL-26007 12/31/2024 NO

GOLDEN BLADE BARBER SHOP INC
215 E TULARE AVE
TULARE CA 93274-4132 A bl BL-27141 12/31/2025 NO

HALEY FARIA
124 S K ST
TULARE CA 93274 A bl BL-26820 12/31/2023 NO

HAZEL'S KITCHEN
237 N L ST
TULARE CA 93274 A bl BL-10941 12/31/2025 NO

IZEL LILIANA HERNANDEZ LMFT
115 S M ST, SUITE F
TULARE CA 93274 A bl BL-27434 12/31/2024 NO

9.1 Public Hearing 13 of 16
Appendix D: Assessment Non-Payers (Con’t)
Business/Individual Address Zone Reference # Status

JANETTE LIMAS
162 N M ST
TULARE CA 93274 A bl BL-24914 06/30/2026 NO
JANNETTE DAY'S ALLIED/1 - HEARING AID
CENTER
140 N M ST
TULARE CA 93274-4147 A bl BL-21060 12/31/2025 NO

JASMINE VALDIVIA
144 N M ST
TULARE CA 93274-4147 A bl BL-27603 06/30/2024 NO

JC SIGNS
113 S M ST
TULARE CA 93274-4125 A
cont BL-27673
06/30/2026 NO

LIGHTHOUSE RESCUE MISSION
49 W TULARE AVE
TULARE CA 93274-0000 A bl BL-27033 06/30/2025 NO
LIGI ENTERPRISES INC.
204 E CROSS AVE
TULARE CA 93274-2852 A bl BL-25780 12/31/2025 NO

MADRID'S TEAM REALTY
120 N M ST
TULARE CA 93274-4137 A bl BL-23235 06/30/2026 NO

NAILSXEVELYN
137 E TULARE AVE
TULARE CA 93274-4019 A bl BL-28300 12/31/2025 NO

PEEL & POLISH
144 N M ST
TULARE CA 93274-4147 A bl BL-27891 12/31/2024 NO

PELICANS SNOBALS TULARE
440 N K ST
TULARE CA 93274 A bl BL-27968 12/31/2025 NO
PRODIGY HEALTHCARE INC.
115 S M ST
UNIT A
TULARE CA 93274 A bl BL-27263 06/30/2024 NO

QUICK AND CLEAN LAUNDRY TULARE
246 E CROSS AVE
TULARE CA 93274-2842 A bl BL-27843 12/31/2025 NO

SAGE CONSTRUCTION & DEVELOPMENT
LLC
157 S K ST
STE 1
TULARE CA 93274 A
cont BL-27555
12/31/2025 NO
SIMPLIFIED BOOKKEEPING & TAX SERVICE327 E KING AVE
TULARE CA 93274 A bl BL-18371 12/31/2025 NO

STERLING & SMITH FUNERAL HOME
415 N K ST
TULARE CA 93274-4009 A bl BL-21326 12/31/2025 NO

T-SHIRT AND MORE
232 E CROSS AVE
TULARE CA 93274-2852 A bl NO

TAP YARD, LLC
151 S K ST
TULARE CA 93274 A bl BL-28089 12/31/2025 NO

THE PROTEIN SPOT
576 E KERN AVE
TULARE CA 93274 A bl BL-27728 12/31/2025 NO

THE WISE FROG
412 N K ST
TULARE CA 93274 A bl BL-27736 06/30/2025 NO

TROPHY SHOPPE
120 E KERN
TULARE CA 93274 A bl BL-24701 12/31/2025 NO

TULARE MERCANTILE
139 E TULARE AVE
TULARE CA 93274-4019 A bl BL-28426 12/31/2025 NO
V.I.P. PIZZA
235 N K ST
TULARE CA 93274-4005 A bl BL-09394 06/30/2025 NO
VALI COFFEE CO.
241 E KERN
TULARE CA 93274 A bl BL-27958 12/31/2025 NO

9.1 Public Hearing 14 of 16
Appendix D: Assessment Non-Payers (Con’t)
Business/Individual Address Zone Reference # Status

VERONICA ANDERSON
144 N M
TULARE CA 93274 A bl BL-28415 12/31/2025 NO

WYNDI GALLAWAY
219 E TULARE AVE
TULARE CA 93274 A bl BL-25082 06/30/2025 NO
CALIFORNIA BEAN & PEA INC.
302 N N ST
TULARE CA 93274 B bl BL-16701 06/30/2026 NO

RICHELLE'S RELAXATION RETREAT
302 NORTH "N" ST
TULARE CA 93274 B bl BL-23099 06/30/2025 NO

RES-COM PEST & TERMITE CONTROL
305 S M ST
TULARE CA 93274-5428 B bl BL-11325 06/30/2025 NO

BLANK N SHIP INC
415B E CROSS AVE
TULARE CA 93274 B
bl
bl BL-28349 12/31/2025 NO

SELF-SPA
446 N M ST
TULARE CA 93274 B bl BL-27418 06/30/2025 NO

SERENE HEALTH
441 N N ST
TULARE CA 93274-4249 B bl BL-26720 06/30/2025 NO

MONICA LEAL THERAPY
440 E KING AVE
TULARE CA 93274-4223 B bl BL-28373 12/31/2025 NO

FRINGE SALON AND SPA
262 N M ST
TULARE CA 93274 B bl BL-24688 12/31/2023 NO

MAJESTY HAIR SALON
541 E CROSS AVE
TULARE CA 93274-2843 B bl BL-27533 06/30/2025 NO
TACOS Y TORTAS CHALIOS #4 & BASE
CREAM
533 E CROSS AVE
TULARE CA 93274-2843 B bl BL-25571 12/31/2023 NO
BMO BANK N.A.
333 E TULARE AVE
TULARE CA 93274 C bl BL-28170 06/30/2026 NO

KINGS VIEW MOBILE CRISIS RESPONSE
201-209 N K ST
TULARE CA 93274 C bl BL-28557 06/30/2026 NO

LOVE INC OF TULARE COUNTY
250 S K ST
TULARE CA 93274 C bl BL-26309 12/31/2024 NO

LOVE INC THRIFT STORE
316 E KERN AVE
TULARE CA 93274-4108 C bl BL-11888 12/31/2024 NO
TULARE CHRISTIAN OUTREACH MINISTRIES160 N N ST
TULARE CA 93274 C bl BL-27052 06/30/2026 NO
USED TREASURE INC.
232 S K ST
TULARE CA 93274 C bl BL-16202 12/31/2024 NO

9.1 Public Hearing 15 of 16
RESOLUTION 202X-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULARE

CONFIRMING THE REPORT AND RECOMMENDATION OF THE ADVISORY BOARD OF THE

PARKING & BUSINESS IMPROVEMENT AREA AND ADOPTION OF ASSESSMENTS FOR SAID AREA FOR FISCAL YEAR 2027
WHEREAS, the Council of the City of Tulare previously adopted Resolution 2026-048, setting July 7, 2026, at 5:30 p.m. as the date and hour for a public hearing concerning its intention to levy assessments for Fiscal Year 2027 in connection with the Parking & Business Improvement Area (“PBIA”); and
WHEREAS, said public hearing has been conducted, and the City Council has reviewed and considered the report and recommendations of the Tulare Downtown Association Board of Directors, acting as the Advisory Board of the PBIA with regard to improvements and activities to be provided, estimated cost of providing such improvements and activities, and the method and basis of levying assessments against businesses within the PBIA for Fiscal Year 2027; and WHEREAS, the City Council desires to confirm the report of the Advisory Board and to levy assessments for Fiscal Year 2027 on all businesses located within the PBIA.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tulare, as follows:

Section 1. The report of the Advisory Board, a copy of which is attached hereto as Exhibit A and incorporated herein by reference, is hereby confirmed.

Section 2. Consistent with the report and its recommendations, an assessment for Fiscal Year 2027 is hereby levied on all businesses located within said PBIA.

Section 3. Said assessments shall be levied in the time and manner consistent with the provisions of Chapter 8.48 of the Tulare Municipal Code.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Tulare this 7th day of July 2026, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Patrick Isherwood, President of the Council
and Ex-Officio Mayor
ATTEST:

Marc Mondell, City Clerk
By Melissa Wilcox, Chief Deputy City Clerk
The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Tulare City Council.

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Item #: 9.2
Public Hearing
Staff Report
City Council
Date: July 7, 2026
Department: Finance
Submitted by: Mark Roberts, Chief Financial Officer
Agenda Title: Placing Public Works Improvement Loans on Tax Roll

RECOMMENDED ACTION
Adopt a resolution placing costs associated with connection of existing improved properties to the City’s water and/or wastewater systems, and/or the construction of sidewalks, gutters, pavement, driveways, and curbs on existing improved properties within the City on property tax rolls in installments.

ALIGNMENT WITH STRATEGIC PRIORITIES
Not Applicable

SUMMARY
In 1997, the Board of Public Utilities Commissioners and the City Council approved resolutions authorizing the adoption of the provisions of Streets and Highways Code Section 5870 et. Seq., under the 1911 Act. These provisions provide for the financing of certain public works related costs and declaring the repayment of the same to be assessed against property owners and placed on the property tax rolls.

The City has entered into nine agreements with various property owners to construct and finance connections, primarily to City sewer services, and place those costs on property tax rolls in installments.

Prior to sending the assessments to the County of Tulare, a public hearing is required to allow anyone objecting and wanting to address the City Council.

FISCAL IMPACT & FUNDING SOURCES
There is no fiscal impact associated with this action.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA)...

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
A notice of public hearing was published in The Visalia Times Delta on June 25, 2026, which is at least 10 days prior to the public hearing.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table

ATTACHMENTS

1. Resolution

9.2 Public Hearing 1 of 5

2. Exhibit A – Public Works Improvement Loans Repayments Reviewed/Approved:

9.2 Public Hearing 2 of 5
RESOLUTION 202X-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TULARE
CONFIRMING THE REPORT AND ASSESSMENT LIST FOR 1911 ACT COSTS OF UTILITY

CONNECTIONS AND/OR CURB, GUTTER, PAVEMENT, SIDEWALK, AND DRIVEWAY

CONSTRUCTION
WHEREAS, Resolution 97-4314, dated May 6, 1997, of the City Council of the City of Tulare, authorized the adoption of the provisions of Streets & Highways Code Sections 5870 et seq., under the 1911 Act, for the purpose of financing certain costs and declaring the repayment of same to be assessed against property owners and placed on the property tax rolls; and WHEREAS, after public hearings, the Council did approve said work and order the costs be assessed and collected on the property tax rolls; and WHEREAS, a public hearing was held before the City Council of the City of Tulare on August 6th, 2024, pertaining to the report and assessment list for these costs; and WHEREAS, said assessment list has been reviewed by the City Council and public comment considered.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tulare, as follows:

Section 1. That the report and assessment list for recovering costs of improvements and/or utility connections, attached hereto as Exhibit "A" and incorporated herein by this reference, is hereby confirmed, and City staff is directed to place same on the Tulare County tax assessment rolls.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Tulare this 7th day of July 2026, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Patrick Isherwood, President of the Council
and Ex-Officio Mayor
ATTEST:

Marc Mondell, City Clerk
By Melissa Wilcox, Chief Deputy City Clerk
The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Tulare City Council.

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EXHIBIT "A"
Public Works Improvement
APN NAME Loan Repayments
164-072-015 Rangel & Misti Mata 464.28
164-130-008 Mario L. Mattos & Mattos Fam Trst 1,516.80
168-044-016 Robert & Lillian Aguilar 563.40
177-032-007 Phillip Usher 486.90
177-210-019 Rosario Isais 797.58
182-030-014 Isidro & Elvia Parra 404.69
182-100-020 Ramon & Anastacia Sanchez 509.05
182-350-005 Rumaldo Saenz 442.06
182-350-009 Luis Perez 1,020.12
6,204.88

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City of Tulare
Public Works Improvement Loan
June 30, 2027

APN NAME
Loan Pymnt
Due
$1
County
Fee
Total Prop
Tax Amt
164-072-015 Rangel & Misti Mata 463.28 1.00 464.28
164-130-008 Mario L. Mattos & Mattos Fam Trst 1,515.80 1.00 1,516.80 168-044-016 Robert & Lillian Aguilar 562.40 1.00 563.40 177-032-007 Phillip Usher 485.90 1.00 486.90
177-210-019 Rosario Isais 796.58 1.00 797.58
182-030-014 Isidro & Elvia Parra 403.69 1.00 404.69
182-100-020 Ramon & Anastacia Sanchez 508.05 1.00 509.05 182-350-005 Rumaldo Saenz 441.06 1.00 442.06
182-350-009 Luis Perez 1,019.12 1.00 1,020.12
6,195.88 9.00 6,204.88

9.2 Public Hearing 5 of 5
Item #: 10.1
General Business
Staff Report
City Council
Date: July 7, 2026
Department: City Clerk
Submitted by: Melissa Wilcox, Chief Deputy City Clerk
Agenda Title: Appointment to the Library Board

RECOMMENDED ACTION
Appoint one member to the Library Board with a term beginning July 1, 2026, and ending June 30, 2029.

ALIGNMENT WITH STRATEGIC PRIORITIES
Not Applicable

SUMMARY
The Library Board was established pursuant to California Education Code §18910, which states that a public library shall be managed by a board of library trustees, consisting of five members, to be appointed by the mayor with the consent of the Council. The Board advises staff and Council on all matters relating to library services. Members serve three-year terms.

The Board meets at 4:00 p.m. on the third Wednesday of each month at the Tulare Public Library.

Currently, there is one vacancy on the Library Board. Bonnie Thiele was appointed to an unexpired seat on the Board in August 2024 with a term ending on June 30, 2026. Staff began advertising for this opportunity on June 4, 2026. Applications that conveyed interest in serving on the Library Board are attached for review and consideration.

Since this recruitment began prior to the approved revisions of the Handbook for Council-Appointed Bodies, the new appointment process does not apply. Applicants were advised of the appointment being placed on the agenda and were invited to attend the meeting.

Staff recommends appointing one of the applicants to the Library Board for a three-year term.

FISCAL IMPACT & FUNDING SOURCES
There is no fiscal impact associated with this action.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

10.1 General Business 1 of 12

3. Table

ATTACHMENTS

1. Applications
Reviewed/Approved:

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RESIDES IN DISTRICT 3

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RESIDES IN DISTRICT 4

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RESIDES IN DISTRICT 4

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Item #: 10.2
General Business
Staff Report
City Council
Date: July 7, 2026
Department: City Manager
Submitted by: Marc Mondell, City Manager
Agenda Title: Presentation of the Citywide Fiscal Impact Analysis of Future Development

RECOMMENDED ACTION
Receive the presentation regarding the Citywide Fiscal Impact Analysis of Future Development, provide direction as appropriate, and receive and file the report.

ALIGNMENT WITH STRATEGIC PRIORITIES
Organizational Excellence
The Fiscal Impact Analysis supports informed, data-driven decision making by evaluating the long-term fiscal sustainability of future development and identifying strategies to ensure municipal services remain financially sustainable as the City grows.

SUMMARY
As Tulare continues to experience significant residential, commercial, and industrial growth, it is important for the City to understand the long-term fiscal impacts of that development. The City retained NBS to prepare a comprehensive Fiscal Impact Analysis (FIA) to evaluate whether projected future development under the General Plan will generate sufficient ongoing General Fund revenues to support the municipal services required to serve that growth.

The General Fund supports many of the City's day-to-day services, including police, fire, parks, streets, recreation, planning, administration, and other municipal operations.

The analysis evaluates projected residential, commercial, and industrial development based on the City’s General Plan. Existing service levels, projected population growth, employment growth, and anticipated municipal operating expenditures were used to develop the analysis. The report estimates revenues from property tax, sales tax, documentary transfer tax, property tax in lieu of vehicle license fees and other General Fund revenues, and compares those revenues to the City's projected operating costs associated with serving future development.

As the community continues to grow, residents frequently ask how new development affects the City's financial condition and whether new housing generates enough revenue to pay for the services it requires. The Fiscal Impact Analysis provides an objective evaluation of those questions by comparing the recurring General Fund revenues generated by future development with the City's estimated longterm cost of providing municipal services.

The analysis concludes that while residential development generates important revenues, it also creates ongoing demands for services such as police, fire, parks, streets, recreation, administration, and other General Fund operations. Under current revenue structures, projected residential development is expected to generate less recurring General Fund revenue than the cost of providing those services.

Conversely, commercial and industrial development is projected to generate a positive fiscal impact that helps offset the costs associated with residential growth. Collectively, the City's planned mix of residential, commercial, and industrial development results in a General Plan buildout that is projected to be nearly fiscally balanced.

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The report identifies potential long-term funding strategies that may assist the City in maintaining service levels as growth occurs. One option discussed is the future use of Community Facilities Districts (CFDs), commonly known as Mello-Roos districts, for new residential developments. CFDs are a financing tool authorized under California law that allow property owners within a new development to fund specified public services and facilities benefiting that development.

Establishing a CFD can help ensure that a portion of the ongoing cost of serving new neighborhoods is funded by the properties benefiting from those services, rather than shifting those costs to the City's existing taxpayers. The Fiscal Impact Analysis does not recommend establishing a CFD at this time, nor does this agenda item seek Council action regarding any financing mechanism. Rather, the report recommends that the City evaluate funding options, including CFDs, as future development proposals are considered.

Like any long-range planning analysis, the study relies on current economic conditions, demographic projections, land use assumptions, and existing revenue structures to estimate future fiscal impacts.

Understanding the long-term fiscal impacts of growth is essential to maintaining high-quality public services while accommodating future development. The Fiscal Impact Analysis provides the City Council with an important planning tool that can help guide future land use decisions, development agreements, infrastructure planning, and long-term financial sustainability.

The consultant will present the findings of the analysis, explain the methodology used to prepare the report, answer Council questions, and receive feedback.

This agenda item is intended to receive the consultant's presentation and obtain Council feedback. No policy decisions or implementation actions are requested at this time. Following Council discussion, staff anticipates returning at a future meeting with any recommended implementation strategies or financing options for Council consideration.

FISCAL IMPACT & FUNDING SOURCES
There is no fiscal impact associated with this action.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. Receive the presentation and provide alternative direction to staff.

2. Table.

ATTACHMENTS

1. Draft Citywide Fiscal Impact Analysis of Future Development Reviewed/Approved:

10.2 General Business 2 of 31
nbsgov.com

Report For:

Fiscal Impact Analysis of Future Development
May 2026

10.2 General Business 3 of 31

TABLE OF CONTENTS
1 | Introduction ..................................................................................................................... 1 2 | Background ...................................................................................................................... 2 Analysis Methodology .............................................................................................................. 2 Current City Persons Served .................................................................................................... 3 Future City Development ......................................................................................................... 4 Future City Persons Served ...................................................................................................... 5 Future Development ................................................................................................................ 6 3 | Revenue Estimate ............................................................................................................ 9 Property Tax Revenue .............................................................................................................. 9 Documentary Transfer Tax ..................................................................................................... 14 Sales Tax Revenue .................................................................................................................. 15 Other City Revenue ................................................................................................................ 16 Revenue Summary ................................................................................................................. 17 4 | Expenditures Estimate .................................................................................................... 19 Current Service Level Expenditures ....................................................................................... 19 Allocation of Expenditures to Population Served .................................................................. 20 Current Service Level Expenditures per Person Served ......................................................... 20 Total Expenditures Summary ................................................................................................. 21 5 | Fiscal Impact .................................................................................................................. 22 6 | Fiscal Impact with Sales Tax Increase .............................................................................. 23 7 | Fiscal Impact Funding Options ........................................................................................ 25 Community Facilities Districts ................................................................................................ 25

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LIST OF TABLES
Table 1. Current Persons Served .................................................................................................................... 3 Table 2. Future Persons Served ...................................................................................................................... 5 Table 3. Change in Persons Served................................................................................................................. 6 Table 4. Growth in Households ...................................................................................................................... 6 Table 5. Estimated Non-residential Building Square Feet to Develop ........................................................... 7 Table 7. Total Future Assessed Value of SFR and MFR Development ............................................................ 9 Table 8. Current Assessed Value for Unsubdivided Land ............................................................................. 10 Table 9. Current Assessed Value for Undeveloped Residential Acreage Subdivided Land .......................... 10 Table 10. Incremental Assessed Value of Future Residential Development.................................................. 10 Table 11. Property Tax Revenue Generated by Future Residential Development ........................................ 11 Table 12. Current Assessed Value of Future Non-residential Development.................................................. 11 Table 13. Commercial and Industrial Price per Building Square Foot ............................................................ 12 Table 14. Total Future Assessed Value of Non-Residential Development ..................................................... 12 Table 15. Incremental Assessed Value of Future Non-residential Development .......................................... 12 Table 16. Property Tax Revenue Generated by Future Non-residential Development ................................. 13 Table 17. Property Tax in Lieu of VLF Ratio .................................................................................................... 13 Table 18. Property Tax in Lieu of VLF Revenue .............................................................................................. 14 Table 19. Documentary Transfer Tax Generated by Future Development .................................................... 14 Table 20. Sales Tax Revenue Generated by Increase in Residential Population ............................................ 15 Table 21. Sales Tax Revenue Generated by Increase in Employee Population .............................................. 16 Table 22. Other City Revenue ......................................................................................................................... 16 Table 23. Other City Revenue per Person Served/Employee ......................................................................... 17 Table 24. Other City Revenue Generated by Future Development ............................................................... 17 Table 25. Revenue Summary .......................................................................................................................... 18 Table 26. Revenue Summary By Future Development Type .......................................................................... 18 Table 27. Current Service Level Expenditures ................................................................................................ 19 Table 28. Expenditures Allocation to Persons Served, Residents Served, or Employees Served .................. 20 Table 29. Current Service Level Expenditures per Person Served ................................................................. 20 Table 30. Current Service Level Expenditures Generated by Future Development ...................................... 21 Table 31. Expenditures Summary by Future Development Type ................................................................... 21 Table 32. Annual Fiscal Impact ....................................................................................................................... 22 Table 33. Fiscal Impact by Development Type ............................................................................................... 22 Table 34. Sales Tax Revenue Generated by Increase in Residential Population ............................................ 23 Table 35. Sales Tax Revenue Generated by Increase in Employee Population .............................................. 23 Table 36. Annual Fiscal Impact ....................................................................................................................... 24 Table 37. Fiscal Impact by Development Type ............................................................................................... 24

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City of Tulare | Fiscal Impact Analysis of Future Development Prepared by NBS – May 2026 1
1 | Introduction
The City of Tulare (“City”) is undertaking a comprehensive review of the net fiscal impact to its General Fund (“General Fund”) in anticipation of projected future development within the City. A review of the revenues expected to be generated by projected development, as compared with expenditures the City will incur to provide certain public services, determined that projected Single-Family Residential (“SFR”) and Multi-Family Residential (“MFR”) development within the City will have a negative fiscal impact on the City’s General Fund, whereas Commercial (“Commercial”) and Industrial (“Industrial”) development will have a positive fiscal impact. To offset negative fiscal impacts created by projected residential development, the City should consider establishing funding through a special financing district.

This fiscal impact analysis will provide background information, applicable financial information, and recommended actions for the City’s consideration. To achieve these objectives, this report includes the following information:
 Background Information. The introductory portion of the report focuses on the City and public services/operations under review. Existing development information is also addressed in this section.
 Revenues. The revenue section of the report identifies the various revenue sources and the potential recurring revenues, given certain reasonable assumptions.  Expenditures. The expenditure section of the report identifies the estimated recurring cost burden placed upon the City’s operations.
 Fiscal Impact. Using projected development’s identified revenues and expenditures, this section of the report identifies the overall fiscal impact on the City’s operations. Fiscal impacts are addressed on a land use category basis using either a per dwelling unit, building square foot, lot square foot, or acre factor.
 Fiscal Impact Funding Options. The report concludes with a summary of fiscal analysis findings and recommendations for the City’s consideration.

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City of Tulare | Fiscal Impact Analysis of Future Development Prepared by NBS – May 2026 2
2 | Background
As part of the overall decision-making process to move forward with proposed development, it is important to evaluate the contributions and demands that future development will place upon a public agency’s operating funds. This analysis seeks to determine the fiscal impact of future development throughout the City and the accompanying impact placed upon the City’s General Fund. The General Fund is used to account for all the general revenues of the City not specifically levied or collected for other City funds or related expenditures. The General Fund accounts for all financial resources of a governmental unit not accounted for in another fund. To determine the anticipated fiscal impacts placed upon the City, this fiscal impact analysis is designed to quantify the approximate cost of providing services to the City’s projected future population.

Analysis Methodology
The revenue portion of the fiscal impact analysis focuses on various taxes, fees, and other City revenues collected to fund ongoing operational costs. The expenditure portion of the fiscal impact analysis focuses on recurring expenditures incurred by the City to provide ongoing services to its population.

This analysis utilizes data from various sources including, but not limited to, the California Department of Finance, the Census Bureau, the General Plan, and financials of the City. Data sources are detailed where applicable in this report. Current-day dollar values are used in this analysis due to the inability to project, with accuracy, revenues and expenditures at the time of buildout. The rounding of decimals may cause marginal variances between calculated and listed figures that appear in this report.

There are several industry-accepted methods for allocating a public agency’s recurring revenues and expenditures to future development. This fiscal analysis primarily employs two industry-standard approaches: the case study approach and the multiplier approach. Both approaches are described below.

CASE STUDY APPROACH
When data used in a fiscal impact analysis is specific to the analysis itself and is not dependent on industryaccepted generalized multipliers such as the number of residents, employees, etc., the case study approach is utilized. The case study approach relies on development-specific data to estimate the fiscal impacts of projected future development. Data used in the case study approach may include anything applicable to the future projections, including assessed valuations, property turnover rates, residential and employee populations, household incomes, estimated sales, and taxable expenditures.

MULTIPLIER APPROACH
The multiplier approach is used in a fiscal impact analysis when relationships between projected future development and revenues or expenditures generated from projected future development are difficult to quantify. This approach anticipates that certain revenues and expenditures are indicators of future anticipated revenues and expenditures, which can be quantified based on changes in, for example, the number of persons served by a public agency. To apply the multiplier approach, this report determines an average revenue or expenditure amount based upon a per-person-served basis. Depending on the type of revenue or expenditure, persons served can include residents, employees, or a combination of both.

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City of Tulare | Fiscal Impact Analysis of Future Development Prepared by NBS – May 2026 3
Current City Persons Served
To best apply the multiplier approach in this fiscal impact analysis, and to allocate applicable revenues and expenditures, population information is utilized.

RESIDENTIAL POPULATION
Current residential population data was obtained from the California Department of Finance (“CA DOF”).

Per the California Department of Finance, as of 2025, the residential population of the City is 73,002.

EMPLOYEE POPULATION
Current employee population data was obtained from the US Census Bureau. Per the Census, in 2024 the employee population of the City (i.e., the number of jobs within the City) was 22,864 and has averaged

1.7% growth since 2014. Using the 2024 employee population and historical annual growth rate, this analysis estimates that as of 2025 the employee population of the City is 23,252.

CURRENT PERSONS SERVED
Using residential and employee population estimates, the total number of persons served within the City can be determined. When establishing the total number of persons served within the City, this analysis recognizes that an employee population does not have the same impact on demand for public services as a residential population. This is especially true for the portion of the employee population which works within the City but resides outside of its boundaries. While the exact service-demand relationship between an employee and a resident is difficult to quantify with accuracy, an industry-standard correlation of onehalf employee to one resident is commonly used. This 50% adjustment suggests that a resident will have twice the impact on a public agency’s revenues and demand for services as that of an employee within the City. The 50% adjustment also seeks to account for employees included within the identified employee population count that are also residents of the City. Applying the 50% adjustment to the City’s existing employee population base, the total number of persons served within the City is calculated in the following table.

TABLE 1. CURRENT PERSONS SERVED
Description Total
Current Residential Population (1) 73,002
Current Employee Population (2) 23,252
Adjusted Employee Population (3) 11,626
Current Persons Served (4) 84,628
(1) Per CA DOF.
(2) 2024 Employee Population per Census adjusted to 2025. (3) Current Employee Population adjusted by 50%, rounded to the nearest whole number.
(4) Equal to (Current Residential Population) + (Adjusted Employee Population).

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City of Tulare | Fiscal Impact Analysis of Future Development Prepared by NBS – May 2026 4
Future City Development
The City of Tulare is located in the southern portion of California’s San Joaquin Valley within Tulare County, approximately 45 miles south of the City of Fresno and 200 miles north of Los Angeles. The City encompasses a diverse mix of residential, commercial, industrial, and agricultural land uses and serves as an important economic and transportation hub within the Central Valley region. According to recent demographic estimates, the City is home to approximately 73,000 residents and continues to experience steady population and employment growth driven by regional economic expansion and housing demand.

The City benefits from its strategic location along State Route 99, providing regional connectivity to major employment and distribution centers throughout California. Tulare has historically maintained strong ties to the agricultural industry, which continues to play a significant role in the local economy through dairy production, food processing, agricultural services, warehousing, and logistics-related uses. In recent years, the City has also experienced continued commercial and industrial growth associated with distribution facilities, light industrial development, retail expansion, and supporting service industries.

The demographics of Tulare indicate a stable and expanding workforce capable of supporting future economic development opportunities. While many residents continue to commute throughout the region for employment, the City has made considerable efforts to attract additional employers and expand local job opportunities in order to strengthen the local economy and reduce regional commuter dependence.

Industrial and commercial development within the City has continued to expand due to Tulare’s available land supply, transportation access, and relatively affordable development environment compared to larger metropolitan areas throughout California.

According to the City’s General Plan, future growth within Tulare is anticipated to occur through a combination of residential neighborhood expansion, commercial corridor development, and industrial growth areas. Existing development patterns generally consist of established residential neighborhoods surrounding the historic downtown core, with newer residential subdivisions expanding outward along the City’s perimeter. Commercial development is concentrated along major transportation corridors and arterial roadways, while industrial uses are primarily located near Highway 99 and rail-served areas to support distribution and manufacturing activities.

The downtown core of the City continues to serve as a civic, cultural, and commercial center containing a mix of historic buildings, local businesses, government facilities, and community-serving uses. The City continues to pursue revitalization and economic development efforts intended to enhance the downtown area, encourage reinvestment, and support additional commercial activity. Newer retail and commercial development have also expanded along regional corridors to accommodate continued population growth and consumer demand.

Large portions of the planning area surrounding the City remain in agricultural production or consist of vacant and underutilized land planned for future urban development. As future development occurs, the City is expected to continue balancing residential growth with commercial and industrial expansion in order to maintain long-term fiscal sustainability and provide employment opportunities for residents. The City’s long-range planning efforts focus on accommodating future growth while preserving operational efficiency, maintaining infrastructure and public services, and supporting continued economic development opportunities throughout the community.

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City of Tulare | Fiscal Impact Analysis of Future Development Prepared by NBS – May 2026 5
For purposes of this fiscal impact analysis, land use information was obtained from the City’s General Plan Land Use Map and supporting planning documents. As future Specific Plans, development proposals, and planning areas are further refined, the associated fiscal impacts on the City should be evaluated in greater detail to ensure consistency with long-term municipal service and infrastructure objectives.

Future City Persons Served

FUTURE RESIDENTIAL POPULATION
To determine the build-out population, the projection utilizes the General Plan as the primary framework for density allowances, which was then cross-referenced with GIS parcel data to identify vacant acreage.

Finally, the 2025 New Subdivisions Map was integrated to account for projects currently in the development pipeline. Based on this synthesis, the City is projected to reach a population of 111,475 at 100% build-out. This represents an effective growth increase of 52.70%.

FUTURE EMPLOYEE POPULATION
Using the same methodology applied to the Future Residential Population analysis, employee density factors were used to estimate employment generation for vacant industrial and commercial parcels within the City of Tulare. Due to the absence of locally adopted or site-specific employee density data for the City, the County of Riverside General Plan Socioeconomic Buildout Assumptions and Methodology (“Riverside County Buildout Assumptions”) were utilized. The Riverside General Plan provides a comprehensive and regionally comparable framework, making it the most appropriate proxy available for this analysis. Based on these assumptions, full buildout of the City is projected to support an employee population of approximately 46,855.

FUTURE PERSONS SERVED
Using projected future residential and employee population estimates, the total number of future persons served within the City can be determined. Applying the 50% adjustment (described earlier in this report) to the City’s projected future employee population, the total number of future persons served within the City is provided in the following table.

TABLE 2. FUTURE PERSONS SERVED
Description Total
Future Residential Population (1) 111,475
Future Employee Population (1) 46,855
Adjusted Future Employee Population (2) 23,427
Future Persons Served (3) 134,902
(1) Current Residential/Employee Population adjusted to Full Buildout. (2) Future Employee Population adjusted by 50%, rounded to the nearest whole number. (3) Equal to (Future Residential Population) + (Adjusted Future Employee Population).

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City of Tulare | Fiscal Impact Analysis of Future Development Prepared by NBS – May 2026 6

CHANGE IN PERSONS SERVED
Using the residential and employee population estimates provided above, the total number of persons served within the City can be determined. When establishing the total number of persons served within an area, it should be noted that the employee population does not have the same impacts on service that the residential population has on a public agency. While the exact service demand relationship between an employee and a resident is often difficult to measure, an industry-standard correlation of one-half employee to one resident is common practice. This 50% adjustment suggests that a resident will have twice the impact on a public agency’s revenues and services than that of an employee. Applying this 50% adjustment to the City’s existing employee population base, the total number of persons served within the City is provided in the following table.

TABLE 3. CHANGE IN PERSONS SERVED
Description Total
Change in Residential Population 38,473
Change in Employee Population (1) 23,602
Adjusted Employee Population (2) 11,801
Change in Persons Served (3) 50,274
(1) Reflects change in employee population prior to application of 50% adjustment. (2) Employee population adjusted by 50%.
(3) Equal to (Change in Residential Population) + (Adjusted Employee Population).

Future Development

FUTURE RESIDENTIAL DEVELOPMENT
To accommodate the City’s estimated population, the projected increase in households is considered. Per the CA DOF, as of 2025, there are 23,125 housing units in the City, with approximately 78% of the total SFR units, and 22% of the total MFR development. Per the City of Tulare GIS: General Plan Land Use Layer, there is approximately 2,332 acres of vacant land available for residential development. The areas in the northern section of the City designated as “Village,” have been omitted from this analysis as there are currently no plans for development in the near future. Cross-referencing these parcels with the General Plan and 2025 New Subdivision Map yields 12,187 additional units at full buildout, or a total of 35,312 for the City.

TABLE 4. GROWTH IN HOUSEHOLDS
Description Total
Households in 2025 (1) 23,125
Households in Future (2) 35,312
Growth (3) 52.70%
Growth in Households (4) 12,187
(1) Per CA DOF.
(2) Per General Plan yield analysis
(3) Percent growth of current households to full Buildout (4) Equal to (Households in Future) - (Households in 2025).

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FUTURE DEVELOPMENT NON-RESIDENTIAL BUILDING SQUARE FOOTAGE To estimate the amount of future non-residential development that will lead to the projected increase in the City’s employee population, average employees per building square feet and the amount of undeveloped property within the City currently planned for non-residential uses were considered.

An analysis of the City of Tulare GIS: General Plan Land Use Layer identified 2,686.09 gross acres of vacant Industrial and Commercial parcels. As mentioned previously, due to the absence of locally adopted or sitespecific employee density data for the City, the County of Riverside General Plan Socioeconomic Buildout Assumptions and Methodology (“Riverside County Buildout Assumptions”) was utilized to guide the calculation, resulting in 2,069.15 net acres for development. This methodology assumes a 75-80% development factor applied to gross acreage for Commercial and Industrial property.

Undeveloped land zoned for non-residential use currently generates a level of property tax revenue for the City. For purposes of assigning current assessed value to property that will contain projected future Commercial and Industrial development, Floor Area Ratios (“FAR”), or the maximum ratio of building to lot square footage, are considered. The maximum FAR of various non-residential uses detailed in the City’s General Plan were examined. On average, the maximum FAR of non-residential uses that can contain Commercial development range from 0.27 to 3.0. The FAR of non-residential uses that can contain Industrial development ranges from 0.4 to 0.6. This analysis assumes an average FAR. The projected square footage to develop is presented in the following table by land use category.

TABLE 5. ESTIMATED NON-RESIDENTIAL BUILDING SQUARE FEET TO DEVELOP Land Use Category Net Acreage (1) Adj. FAR (2) Total (KSF) (3) Neighborhood Commercial (4) 11.27 0.12 105.06
Community Commercial 164.99 0.21 1,509.30
Regional Commercial 283.78 0.21 2,595.89
Central Business District 7.54 3.0 985.57
Service Commercial 418.12 0.19 3,460.53
Office Commercial 1.62 0.28 19.70
Light Industrial 873.37 0.12 4,565
Heavy Industrial 308.46 0.2 2,687
Total 2,069.15 15,929
(1) Total Acreage adjusted by 0.75 - 0.80 to account for actual developable area. (2) Average FAR of developed properties in Secured Roll by Land Use Category. (3) Equal to (Net Parcel Acreage) x (Adj. FAR)
(4) Includes additional 92,000 SF of Neighborhood Commercial from COS North Development Using these development figures, the projected increase in the City’s employee population can be calculated. Average employee density figures specific to the City or the County could not be obtained. As such, for purposes of this analysis, estimated employee density figures for the City were calculated by utilizing non-residential density figures presented in the Riverside County Buildout Assumptions. The estimated building square feet per employee of non-residential development are presented in the

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following table and used to project the estimated employee population from Commercial and Industrial development.

TABLE 6. FUTURE NON-RESIDENTIAL BUILDING SQUARE FEET AND PROJECTED EMPLOYEES (1) Per Riverside County Buildout Assumptions.
(2) Calculated in Table 5.
(3) Equal to (Potential Non Res. SF) / (Employee /SF) rounded to the nearest whole number.

Development Type Employee / SF (1) Projected Non Res. SF (2) Est. Employees (3) Neighborhood Commercial 500 105,060 210
Community Commercial 500 1,509,301 3,019
Regional Commercial 500 2,595,888 5,192
Central Business District 500 985,572 1,971
Service Commercial 500 3,460,533 6,921
Office Commercial 300 19,698 66
Light Industrial 1,030 4,565,286 4,432
Heavy Industrial 1,500 2,687,324 1,792
Total 15,928,662 23,602

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3 | Revenue Estimate
The City relies on revenue received from several sources to fund its expense obligations. A majority of the City’s operating revenue derives from property taxes, sales taxes, property taxes in lieu of vehicle license fees, property transfer taxes (i.e., documentary transfer taxes), and various other taxes and fees. The case study approach is used to determine the estimated property tax revenue generated from projected future development within the City, and the multiplier approach is used to allocate certain types of other revenue the City receives.

Property Tax Revenue
Under California law, non-exempt property pays an ad valorem property tax equal to 1% of the assessed value of the property. Any additional voter-approved taxes or assessments will result in a total property tax rate burden that can exceed 1% of the property’s assessed value. The property tax revenue received from the 1% ad valorem property tax rate is then allocated to various overlapping public agencies based upon their authorized allocation for each Tax Rate Area (“TRA”). Across the City’s various TRAs, of the 1% ad valorem property tax collected from property within its boundaries, the City receives approximately 18.55%.

Property is subject to the 1% ad valorem tax rate unless it can qualify for an exemption under existing California laws. Certain types of property that are granted this property tax exemption, also known as the Welfare Exemption (“Welfare Exemption”), include hospitals, universities, churches, affordable housing, and other non-profits. If the Welfare Exemption is granted, the property will not be subject to the 1% ad valorem property tax. However, the property may still be subject to other assessments, taxes, and charges levied by local governments. As identified in the City’s General Plan, there are expected to be 1,500 units identified as Affordable or Low Income units. Therefore, the Affordable and Low Income Units will be exempt from paying the ad valorem taxes and have been excluded as calculated in Table 7. All other future SFR and MFR development will be subject to the 1% ad valorem property tax rate.

To calculate the amount of property tax revenue projected to be generated for the City by future SFR and MFR development, the estimated sales price of each property type as of March 2026 is considered.

TABLE 7. TOTAL FUTURE ASSESSED VALUE OF SFR AND MFR DEVELOPMENT Description SFR MFR Total
Estimated Price per Unit (1) $354,641 $246,380 N/A
Unit Count (2) 7,484 4,703 12,187
Affordable and Low Income Units 1,084 416 1,500
Total Unit Count for Future
Assessed Value: 6,400 4,287 10,687
Total Future Assessed Value (3) $2,269,748,348 $1,056,269,161 $3,326,017,509 (1) Sales price data drawn from Zillow.com Home Value Index for the City. Figures reflect market conditions as of March 2026 and are subject to fluctuation.
(2) Identified in Table 4.
(3) Equal to (Estimated Price per Unit) x (Total Unit Count for Future Assessed Value).

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Undeveloped land zoned for residential use currently generates a level of property tax revenue for the City.

The total acreage and assessed value of undeveloped property zoned for residential use and projected to develop into SFR and MFR property in the City are detailed in the following tables for unsubdivided and subdivided land.

TABLE 8. CURRENT ASSESSED VALUE FOR UNSUBDIVIDED LAND
Description (1) Acreage (2) Current Assessed Value (3)
Rural Residential 224.30 $19,116,782
Residential Estate 10.14 864,302
Low Density Residential 479.09 40,831,910
Medium Density Residential 102.00 8,693,274
High Density Residential 101.31 8,634,628
Total Undeveloped Acreage 916.84 $78,140,897
(1) Per Tulare General Plan.
(2) Estimated using City of Tulare GIS: General Plan Land Use Layer. (3) Equal to (Acreage) x (Current AV per Secured Roll).

TABLE 9. CURRENT ASSESSED VALUE FOR UNDEVELOPED RESIDENTIAL ACREAGE SUBDIVIDED LAND Description (1) Acreage (2) Current Assessed Value (3)
Residential 28.22 $2,405,264
Residential Estate 1.28 108,856
Low Density Residential 1,024.84 87,345,728
Medium Density Residential 44.57 3,799,023
High Density Residential 46.06 3,925,807
COS North TOD 230.23 19,622,244
Village 6.80 579,413
Total Undeveloped Acreage 1,382.01 $117,786,335
(1) Per Tulare General Plan cross referenced with 2025 Planned Subdivisions Map. (2) Estimated using City of Tulare GIS: General Plan Land Use Layer. (3) Equal to (Acreage) x (Current AV per Secured Roll).

TABLE 10. INCREMENTAL ASSESSED VALUE OF FUTURE RESIDENTIAL DEVELOPMENT Description SFR MFR Total
Total Future Development AV(1) $2,269,748,348 $1,056,269,161 $3,326,017,509 Current Assessed Value (2) 176,793,909 19,133,323 195,927,232 Incremental Assessed Value (3) $2,092,954,439 $1,037,135,838 $3,130,090,277 (1) Calculated in Table 7.
(2) Equal to the sum of the Current Assessed Values Calculated in Tables 8 and 9. (3) Equal to (Total Future Development Assessed Value) - (Current Assessed Value).

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The amount of property tax revenue expected to be generated by projected SFR and MFR is subject to the allocation of 1% ad valorem tax. Data provided by City staff showed that the City, on average, receives around 18.55% of the 1% ad valorem tax. Given this figure, the amount of property tax revenue projected SFR and MFR development is expected to generate for this City is calculated in the following table.

TABLE 11. PROPERTY TAX REVENUE GENERATED BY FUTURE RESIDENTIAL DEVELOPMENT Description SFR MFR Total
Incremental Assessed Value (1) $2,092,954,439 $1,037,135,838 $3,130,090,277 1% Ad Valorem(2) 20,929,544 10,371,358 31,300,903
Allocation of 1% Ad Valorem(3) 18.55% 18.55% N/A
Projected Property Tax Revenue to City (4) $3,882,430 $1,923,887 $5,806,317 (1) Calculated in Table 10.
(2) Equal to (Incremental Assessed Value) x (1.00%).
(3) Provided by City staff.
(4) Equal to (1% Ad Valorem) x (Allocation of 1% Ad Valorem).

NON-RESIDENTIAL DEVELOPMENT PROPERTY TAX
Utilizing the gross undeveloped acreage of 2,686.09 identified in the City of Tulare GIS: General Plan Land Use Layer, the estimated amount of property tax revenue generated from the future non-residential development can be determined.

Undeveloped land zoned for non-residential use currently generates a level of property tax revenue for the City. The current assessed value of property projected to develop is calculated in the following table using Secured roll.

TABLE 12. CURRENT ASSESSED VALUE OF FUTURE NON-RESIDENTIAL DEVELOPMENT Land Use Category Undeveloped Acreage (1)
Average Value per
Acre (2) Estimated AV (3)
Neighborhood Commercial 15.03 $122,831 $1,846,025
Community Commercial 219.99 122,831 27,021,760
Regional Commercial 378.37 122,831 46,475,469
Central Business District 10.06 122,831 1,235,163
Service Commercial 557.49 122,831 68,477,301
Office Commercial 2.15 122,831 264,496
Light Industrial 1,091.71 97,743 106,706,971
Heavy Industrial 411.28 97,743 40,199,895
Open Space/Agriculture n/a n/a n/a
Public/Quasi-Public n/a n/a n/a
Total 2,686.09 $292,227,081
(1) Gross Acreage per City of Tulare GIS: General Plan Land. (2) Average Assessed Value per Acre for Vacant Parcels in Tulare Secured Roll. (3) Equal to (Undeveloped Acreage) x (Average Value per Acre).

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To calculate the total assessed value of projected future Commercial and Industrial development, the average sales price per building square foot of each property type was calculated. An average price per building square foot was calculated for Commercial and Industrial property using data received from CoStar as of April 2026.

TABLE 13. COMMERCIAL AND INDUSTRIAL PRICE PER BUILDING SQUARE FOOT Description Commercial Industrial
Average Price per Bldg. Sq. Ft. $180 $131
The total future assessed value from Commercial and Industrial development is calculated in the following table.

TABLE 14. TOTAL FUTURE ASSESSED VALUE OF NON-RESIDENTIAL DEVELOPMENT Description Price per Bldg. SQFT (1) Bldg. KSF to Develop (2) Future Development AV (3) Commercial $180 8,676 $1,561,689,272
Industrial $131 7,253 $950,091,921
(1) Identified in Table 13.
(2) Identified in Table 6. Commercial includes all “commercial” land use categories as well as the Central Business District. Industrial includes both “Industrial” land use categories. (3) Equal to (Price per Bldg. SQFT) x (Bldg. KSF to Develop) x 1,000.

The total assessed value and the incremental assessed value of projected Commercial and Industrial development are calculated in the following table.

TABLE 15. INCREMENTAL ASSESSED VALUE OF FUTURE NON-RESIDENTIAL DEVELOPMENT Description Commercial Industrial Total
Total Future Development AV (1) $1,561,689,272 $950,091,921 $2,511,781,193 Current Assessed Value (2) 145,320,214 146,906,866 292,227,081 Incremental Assessed Value (3) $1,416,369,058 $803,185,054 $2,219,554,112 (1) Identified in Table 14.
(2) Identified in Table 12.
(3) Equal to (Total Future Development AV) – (Current Assessed Value).

As with future residential development, the amount of property tax revenue expected to be generated by projected non-residential properties is subject to the allocation of 1% ad valorem tax. Data provided by City staff showed that the City, on average, receives around 18.55% of the 1% ad valorem tax. Given this figure, the amount of property tax revenue projected non-residential development is expected to generate for the City is calculated in the following table.

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TABLE 16. PROPERTY TAX REVENUE GENERATED BY FUTURE NON-RESIDENTIAL DEVELOPMENT Description Commercial Industrial Total
Incremental Assessed Value (1) $1,416,369,058 $803,185,054 $2,219,554,112 1% Ad Valorem (2) 14,163,691 8,031,851 22,195,541
Allocation of 1% Ad Valorem (3) 18.55% 18.55% N/A
Property Tax Revenue
Generated for City (4) $2,627,365 $1,489,908 $4,117,273 (1) Calculated in Table 15.
(2) Equal to (Incremental Assessed Value) x (1.00%).
(3) Provided by City Staff.
(4) Equal to (1% Ad Valorem) x (Allocation of 1% Ad Valorem).

PROPERTY TAX IN LIEU OF VEHICLE LICENSE FEE (“VLF”) REVENUE Property tax in lieu of VLF is revenue the City receives in addition to the City’s share of ad valorem property tax revenues. In 2004, the California Legislature permanently reduced the VLF rate from 2.00% to 0.65% and compensated cities and counties for their revenue loss with a like amount of property taxes, dollar for dollar. A public agency’s property tax in lieu of VLF revenue allocation changes in proportion to the growth or decline in gross assessed valuation.

Per assessed value data provided by the CA BOE, and the Fiscal Year 2024/25 Property Tax in Lieu of VLF revenue received by the City, the ratio of property tax in lieu of VLF received by the City to the City’s assessed value is calculated, as shown in the following table.

TABLE 17. PROPERTY TAX IN LIEU OF VLF RATIO
Description
Fiscal Year
2024/25 Value
City Total Assessed Value (1) $6,494,349,000
VLF Revenue (2) 8,003,411
Property Tax in Lieu of VLF Ratio (3) 0.1232%
(1) Per the CA BOE.
(2) Per the State Controller’s Office.
(3) Equal to (VLF Revenue) / (City Total Assessed Value).

The property tax in lieu of VLF ratio is applied to the incremental assessed value of projected future development within the City to estimate the amount of property tax in lieu of VLF to be generated by said development.

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TABLE 18. PROPERTY TAX IN LIEU OF VLF REVENUE
Description
Incremental Assessed
Value (1)
Property Tax in Lieu of
VLF Ratio
Property Tax in Lieu of
VLF Revenue (2)
SFR $2,092,954,439 0.1232% $2,578,520
MFR 1,037,135,838 0.1232% 1,277,751
Commercial 1,416,369,058 0.1232% 1,744,967
Industrial 803,185,054 0.1232% 989,524
Totals $5,349,644,389 $6,590,762
(1) Identified in Tables 10 and 15.
(2) Equal to (Incremental Assessed Value) x (Property Tax in Lieu of VLF Ratio).

Documentary Transfer Tax
When property is sold, a documentary transfer tax is charged and distributed to the City and County. The documentary transfer tax is charged at a rate of $0.55 per $500 of assessed value, or $1.10 per $1,000 of assessed value. To determine the annual documentary transfer tax revenue, estimated property turnover rates are considered. This analysis assumes that SFR and MFR units will turnover approximately every 13 years, which results in an annual turnover rate of about 8%. Commercial and Industrial land uses typically have minimal ownership turnover. However, to consider the potential for land use turnover, a conservative estimate of once every 20 years, or an annual turnover rate of 5%, is applied in this analysis to the projected non-residential development. Utilizing the estimated incremental assessed value of projected future development and estimated annual turnover rates, the City’s share of the documentary transfer tax is calculated in the following table.

TABLE 19. DOCUMENTARY TRANSFER TAX GENERATED BY FUTURE DEVELOPMENT Description SFR MFR Commercial Industrial
Incremental Assessed Value $2,092,954,439 $1,037,135,838 $1,416,369,058 $803,185,054 Estimated Annual Turnover Rate (1) 8% 8% 5% 5%
Annual Turnover Assessed Value (2) 167,436,355 82,970,867 70,818,453 40,159,253
Annual Turnover Assessed Value /
$1,000 167,436 82,971 70,818 40,159
Documentary Transfer Tax Rate per
$1,000 (3) 0.55 0.55 0.55

0.55 Documentary Transfer Tax
Revenue: $92,090 $45,634 $38,950 $22,088
(1) Source for SFR and MFR rates: “Latest Calculations Show Average Buyer Expected to Stay in Home 13 Years,” Economic and Housing Policy, National Association of Homebuilders. (2) Equal to (Incremental Assessed Value) x (Estimated Annual Turnover Rate). (3) $1.10 tax rate is split $0.55 to the County and $0.55 to the City.

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Sales Tax Revenue
A sales tax is a tax levied on the sale, transfer, or exchange of a taxable item or service. The base sales tax rate in California is 7.25%. Revenue generated from the sales tax is allocated to certain state and local jurisdictions, with the City receiving 1.00% of the base sales tax rate.

In addition to the base sales tax, the County levies and collects an additional 0.50% sales tax. Additionally, the city institutes a 0.50% transactions and use tax aimed at providing funding for various public safety services. In total, the sales rate in the City is 8.25%. The rate used to project sales and transactions and use tax revenue for the City referred to collectively as sales tax revenue in this report is 1.50%.

FUTURE RESIDENTS
To determine the amount of sales tax revenue expected to be generated by the residential population that will result from projected residential development, the median income per household within the City and the percentage of income spent on taxable retail sales per household are considered.

Per the CA BOE, approximately 29.5% of a household’s spending is spent on taxable retail goods. This percentage is discounted by 40% to attempt to account for purchases made outside of City boundaries and shifts in taxable sales from one point of sale to another within the City. The estimated sales tax revenue generated by projected future households is calculated in the following table.

TABLE 20. SALES TAX REVENUE GENERATED BY INCREASE IN RESIDENTIAL POPULATION Description SFR MFR
Median Household Income (1) $80,776 $80,776
Percentage of Income Spent on Taxable Retail
Sales per Household (2) 29.50% 29.50%
Income Spent on Taxable Retail Sales Within City
per Household (3) $23,829 $23,829
Number of Households 7,484 4,703
Sales Tax Revenue – Residential Population (4) $2,675,062 $1,681,077 (1) Per 2024 American Community Survey escalated to 2025. (2) 29.5%, per BOE.gov household spending for California taxable retail goods, discounted by 40% to account for shifts in taxable sales and purchases made outside of the City boundaries. Estimate; subject to change. (3) Equal to (Median Household Income) x (Percentage of Income Spent on Taxable Retail Sales per Household). (4) Equal to (Income Spent on Taxable Retail Sales Within City per Household) x (Number of Households) x (City Sales Tax Rate of 1.50%).

FUTURE EMPLOYEES
In addition to the increased residential population, the increase in employees resulting from projected nonresidential development will generate a certain amount of sales tax revenue for the City. The International Council of Shopping Centers conducted a survey that determined the approximate dollar amount an average employee spends per year on taxable goods and services. After adjusting this amount to the year 2025 using the change in Consumer Price Index (“CPI”) of the San Francisco-Oakland-Hayward region, it’s estimated that an average employee within the City will spend approximately $8,882 per year on taxable goods and services. While personal spending is unique to each individual, this analysis assumes that

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approximately 60% of the employee’s annual spending will be on taxable purchases that will occur near their place of employment within the City’s boundaries. Using this information, the estimated sales tax revenue generated from future employees is calculated in the following table.

TABLE 21. SALES TAX REVENUE GENERATED BY INCREASE IN EMPLOYEE POPULATION Description Commercial Industrial
Average Annual Taxable Spending per Employee (1) $8,882 $8,882 Additional Employee Count (2) 8,689 3,112
Estimated % of Taxable Sales within City (3) 60% 60%
Employee Taxable Sales within City $46,306,396 $16,584,113 Sales Tax Revenue – Employee Population (4) $694,596 $248,762 (1) Drawn from a survey conducted by The International Council of Shopping Centers, adjusted to the year 2025 using the change in CPI of the San Francisco-Oakland-Hayward region. (2) Identified in Table 3.
(3) 40% reduction seeks to account for taxable sales made outside of the City boundary. (4) Equal to (Average Annual Spending per Employee) x (Additional Employee Count) x (Estimated % of Taxable Sales within City) x (City Sales Tax Rate of 1.50%).

Other City Revenue
The City receives revenue from various other sources including fees, fines, franchise taxes, charges for services, and other revenues (“Other City Revenues”). For purposes of this analysis, revenues that are not considered include one-time building and planning permits, interest from City investments, use of money and property, special project funds, and grants. The following table presents the City’s 2025/26 Other Revenues derived from the City’s 2026 Adopted Budget (“2026 Budget”) which apply to the development categories considered in this analysis (i.e., categories of revenue generated by projected residential and non-residential development).

TABLE 22. OTHER CITY REVENUE
Description
Fiscal Year
2025/26 Value (1)
Charges for Services $3,631,147
Franchise Taxes 1,790,000
Transient Occupancy Tax 2,250,000
Other Taxes 2,930,000
Licenses & Permits 3,333,750
Fines & Forfeitures 36,000
Other Revenue 5,710,420
Other City Revenue $19,681,317
(1) Per the 2026 Adopted Budget.

To estimate the overall impact that future development will have on the listed Other City Revenue sources, it is assumed that current per capita revenue amounts will serve as the best indicator of future per capita

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revenue amounts. Therefore, to best allocate Other City Revenues to projected future development, the multiplier approach is utilized. It was previously identified that the total number of persons served within the City is 84,628 and the employee population is 23,252. Using the current City persons served and employee population, the Other City Revenue per person served or employee served can be determined, as shown in the following table.

TABLE 23. OTHER CITY REVENUE PER PERSON SERVED/EMPLOYEE Description
Fiscal Year
2025/26 Value
Current City Persons
Served or Employee
Count (1)
Amount per Person
Served/Employee (2)
Charges for Services $3,631,147 84,628 $42.91
Franchise Taxes (3) 1,790,000 23,252 76.98
Transient Occupancy Tax 2,250,000 84,628 26.59
Other Taxes 2,930,000 84,628 34.62
Licenses & Permits 3,333,750 84,628 39.39
Fines & Forfeitures 36,000 84,628 0.43
Other Revenue 5,710,420 84,628 67.48
(1) Identified in Table 1.
(2) Equal to (Fiscal Year 2025/26 Value) / (Current City Persons Served or Employee Count). (3) Revenue calculated on a per-employee basis due to approximately 60% of revenue deriving from business activity (i.e., business licenses).

To determine the amount of other City revenue allocated to projected residential and non-residential development, the amount per person served/employee calculated in Table 23 is multiplied by the increase in persons served or employees that will result from future development.

TABLE 24. OTHER CITY REVENUE GENERATED BY FUTURE DEVELOPMENT Description
Increase in Persons
Served/Employees (1)
Amount per Person
Served/Employee (2) Other City Revenue
Charges for Services 50,274 $42.91 $2,157,277
Franchise Taxes 23,602 76.98 1,816,900
Transient Occupancy Tax 50,274 26.59 1,336,798
Other Taxes 50,274 34.62 1,740,502
Licenses & Permits 50,274 39.39 1,980,311
Fines & Forfeitures 50,274 0.43 21,618
Other Revenue 50,274 67.48 3,392,521
Total $12,445,927
(1) Identified in Table 3.
(2) Calculated in Table 23.

Revenue Summary
Projected residential and non-residential development will generate various forms of general revenues for the City. A portion of the anticipated revenue was calculated utilizing the case study approach and the

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remaining City revenue was allocated to projected future development using the multiplier approach. A summary of the revenues projected to be generated by future development is presented in the following tables.

TABLE 25. REVENUE SUMMARY
Revenue
Description Total
Property Tax $9,923,950
Property Tax in Lieu of VLF 6,590,762
Documentary Transfer 198,762
Sales Tax 5,299,496
Other 12,445,927
Total $34,458,537
TABLE 26. REVENUE SUMMARY BY FUTURE DEVELOPMENT TYPE
Development Type Total
SFR $14,223,132
MFR 8,067,354
Commercial 8,280,731
Industrial 3,887,320
Total $34,458,537

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4 | Expenditures Estimate
The revenues identified in Section 3 of this report are intended to pay for recurring expenditures related to general services provided by the City. City General Fund expenditures not considered in this analysis include costs associated with infrastructure improvements, special fund expenditures, governmental transfers, and expenses supported by one-time development fees.

For purposes of determining the overall fiscal impact of projected residential and non-residential development, City expenditures are allocated based upon amounts presented in the 2026 Adopted Budget.

Current Service Level Expenditures
Future development will add residents and employees to the City’s existing population base. This residential and employee population increase will place additional demands on existing services provided by the City. To account for increased expenditures associated with additional demand for public services, City expenditures are allocated to projected development using the multiplier approach. However, development-induced increases in demand for public services will not necessarily result in a direct 1:1 relationship increase in expenditures (i.e., there are some “step” functions). For example, a 20% increase in the City’s residential population will likely not cause a 20% increase in City Clerk or City Council expenditures. A portion of the City’s expenditures are fixed or will increase marginally as a result of population increases. Therefore, to account for relationships between expenditures and population changes that are less than 1:1, City expenditures have been adjusted to conservatively estimate the impact of projected development on City expenditures. Of note, City expenditure adjustments are estimates based on the individual characteristics of projected development and industry-standard assumptions. The original budgeted expenditure amounts, the demand adjustment percentage, and the adjusted expenditure amounts are presented in the following table.

TABLE 27. CURRENT SERVICE LEVEL EXPENDITURES
Description
Fiscal Year
2025/26
Expenditures
Demand
Adjustment
Percentage (1)
Adjusted Fiscal Year
2025/26 Expenditures (2)(3)
General Government $8,513,624 50% $4,256,812
Public Safety 38,625,991 95% 36,694,691
Public Services 10,781,254 90% 9,703,129
Culture and Recreation 8,916,381 75% 6,687,286
Community Development 2,929,561 50% 1,464,781
Totals $69,766,811 $58,806,698
(1) Estimated; subject to change.
(2) Equal to (Estimated Fiscal Year 2025/26 Expenditures) x (Demand Adjustment Percentage). (3) Figures may not sum due to rounding.

After adjusting the estimated Fiscal Year 2025/26 Expenditures to account for relationships that are less than a 1:1 relationship, the total expenditure amount to be considered is approximately $58.8 million. This

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figure is used to determine the current service level expenditures per person served in the City, which in turn is used to calculate what additional current City expenditures will result from projected development.

Allocation of Expenditures to Population Served
Each City expenditure line item was categorized as being tied to serving the residential and employee population, solely the residential population, or solely the employee population. As previously noted, the total number of persons served in the City is 84,628, the number of residents served in the City is 73,002, and the number of employees served is 23,525. The following table provides the persons served category for each of the recurring current expenditure categories.

TABLE 28. EXPENDITURES ALLOCATION TO PERSONS SERVED, RESIDENTS SERVED, OR EMPLOYEES SERVED
Description Persons Served
General Government Persons Served
Public Safety Persons Served
Public Services Persons Served
Public Works Persons Served
Cultural and Recreation Residents Served
Community Development Persons Served
Current Service Level Expenditures per Person Served
Using the multiplier approach, the number of persons served within each expenditure category is applied to the corresponding adjusted expenditure line item to determine the allocable expenditure per person.

The table below provides the current service level expenditures per person served for each of the listed expenditure categories.

TABLE 29. CURRENT SERVICE LEVEL EXPENDITURES PER PERSON SERVED Description
Adjusted Fiscal Year
2025/26 Expenditures (1)
Current City
Persons Served (2)
Amount per
Person Served (3)
General Government $4,256,812 84,628 $50.30
Public Safety 36,694,691 84,628 433.60
Public Services 9,703,129 84,628 114.66
Culture and Recreation 6,687,286 73,002 91.60
Community Development 1,464,781 84,628 17.31
Totals $58,806,698 $707.47
(1) Identified in Table 27.
(2) Identified in Table 1.
(3) Equal to (Adjusted Fiscal Year 2025/26 Expenditures) / (Current City Persons Served).

To determine the amount of other current service level expenditures allocated to projected residential and non-residential development, the amount per person served calculated in Table 29 is multiplied by the increase in persons served or residents that will result from future development.

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TABLE 30. CURRENT SERVICE LEVEL EXPENDITURES GENERATED BY FUTURE DEVELOPMENT Description
Increase in
Persons Served (1)
Amount per
Person Served (2)
Current
Expenditures (3)
General Government 50,274 $50.30 $2,528,805
Public Safety 50,274 433.60 21,799,007
Public Services 50,274 114.66 5,764,470
Culture and Recreation 38,473 91.60 3,524,158
Community Development 50,274 17.31 870,251
Total $707.47 $34,486,691
(1) Identified in Table 3.
(2) Identified in Table 29.
(3) Equal to (Increase in Persons Served) x (Amount per Person Served).

Total Expenditures Summary
Projected residential and non-residential development will cause the City to incur various forms of expenditures to provide an optimal/target level of public services to its current and future populations. A summary of the expenditures projected to be generated by future development is presented in the following table.

TABLE 31. EXPENDITURES SUMMARY BY FUTURE DEVELOPMENT TYPE Development Type Total
SFR $16,714,757
MFR 10,503,981
Commercial 5,351,407
Industrial 1,916,546
Total $34,486,691

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5 | Fiscal Impact
Based on the City’s future development estimated revenue determined in Section 3 and the future development’s allocated expenditures presented in Section 4, future residential development will result in an overall negative fiscal impact and future non-residential development will result in an overall negative fiscal impact for the City, as shown in Table 32.

TABLE 32. ANNUAL FISCAL IMPACT
Description Value
Total City Revenue $34,458,537
Total City Expenditures (34,486,691)
City Positive / (Negative) Fiscal Impact ($28,154)
The fiscal impact future development is projected to have on the City’s General Fund is presented in the following table.

TABLE 33. FISCAL IMPACT BY DEVELOPMENT TYPE
Development
Type Revenue Expenditures Difference Fiscal Impact
SFR $14,223,132 ($16,714,757) ($2,491,625) Negative
MFR 8,067,354 (10,503,981) (2,436,627) Negative
Commercial 8,280,731 (5,351,407) 2,929,324 Positive
Industrial 3,887,320 (1,916,546) 1,970,773 Positive
Total $34,458,537 ($34,486,691) ($28,154)
The net fiscal impact identified in this section is based on revenues and expenditures projected to be generated by future development within the City. A portion of the expenditures considered when calculating the net fiscal impact are not eligible to be recovered through Community Facilities District special tax revenues. Thus, any revenues generated through Community Facilities District special tax rates proposed through this report must and can only be used to finance eligible services, as detailed in Section 6 of this report.

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6 | Fiscal Impact with Sales Tax Increase
The City is proposing a local sales tax measure that is anticipated to be considered by voters in the November 2026 election. If approved, the measure would increase the City's local sales tax rate from 1.5% to 2.5%, resulting in an increase in the total combined sales tax rate from 8.25% to 9.25%. To evaluate the potential fiscal implications of the measure, sales tax revenues generated by the residential and employee populations were recalculated using the proposed 2.5% local sales tax rate. The resulting sales tax revenue estimates are presented in the following tables.

TABLE 34. SALES TAX REVENUE GENERATED BY INCREASE IN RESIDENTIAL POPULATION Description SFR MFR
Median Household Income (1) $80,776 $80,776
Percentage of Income Spent on Taxable Retail
Sales per Household (2) 29.50% 29.50%
Income Spent on Taxable Retail Sales Within City
per Household (3) 23,829 23,829
Number of Households 7,484 4,703
Sales Tax Revenue – Residential Population (4) $4,458,436 $2,801,795 (1) Per 2024 American Community Survey escalated to 2025. (2) 29.5%, per BOE.gov household spending for California taxable retail goods, discounted by 40% to account for shifts in taxable sales and purchases made outside of the City boundaries. Estimate; subject to change. (3) Equal to (Median Household Income) x (Percentage of Income Spent on Taxable Retail Sales per Household). (4) Equal to (Income Spent on Taxable Retail Sales Within City per Household) x (Number of Households) x (City Sales Tax Rate of 2.50%).

TABLE 35. SALES TAX REVENUE GENERATED BY INCREASE IN EMPLOYEE POPULATION Description Commercial Industrial
Average Annual Taxable Spending per Employee (1) $8,882 $8,882 Additional Employee Count (2) 8,689 3,112
Estimated % of Taxable Sales within City (3) 60% 60%
Employee Taxable Sales within City 46,306,396 16,584,113 Sales Tax Revenue – Employee Population (4) $1,157,660 $414,603 (5) Drawn from a survey conducted by The International Council of Shopping Centers, adjusted to the year 2025 using the change in CPI of the San Francisco-Oakland-Hayward region. (6) Identified in Table 3.
(7) 40% reduction seeks to account for taxable sales made outside of the City boundary. (8) Equal to (Average Annual Spending per Employee) x (Additional Employee Count) x (Estimated % of Taxable Sales within City) x (City Sales Tax Rate of 2.50%).

Based on the City’s future development estimated revenue determined in Section 3, the future development’s allocated expenditures presented in Section 4, and the proposed 1% sales tax increase, future residential development will result in an overall negative fiscal impact and future non-residential development will result in an overall positive fiscal impact for the City, as shown in Table 36.

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TABLE 36. ANNUAL FISCAL IMPACT
Description Value
Total City Revenue $37,991,534
Total City Expenditures ($34,486,691)
City Positive / (Negative) Fiscal Impact $3,504,843
The fiscal impact future development is projected to have on the City’s General Fund is presented in the following table.

TABLE 37. FISCAL IMPACT BY DEVELOPMENT TYPE
Development
Type Revenue Expenditures Difference Fiscal Impact
SFR $16,006,506 ($16,714,757) ($708,251) Negative
MFR 9,188,072 (10,503,981) (1,315,909) Negative
Commercial 8,743,795 (5,351,407) 3,392,388 Positive
Industrial 4,053,161 (1,916,546) 2,136,615 Positive
Total $37,991,534 ($34,486,691) $3,504,843

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7 | Fiscal Impact Funding Options
To mitigate the negative fiscal impacts identified in Section 5 of this report, the City should consider the establishment of a special financing district (“SFD”), which could include a special tax or a special assessment. Since the City’s negative fiscal impacts are attributable to the provision of general services, a special assessment may not be the most appropriate funding option for the City to mitigate those impacts.

Special assessments require the identification and separation of general and special benefits. Special benefits can be assessed to property, but all general benefits must be funded by sources other than the special assessments. Therefore, a special assessment would not entirely alleviate the identified negative fiscal impacts. Alternatively, the City could implement a special tax.

Community Facilities Districts
A Community Facilities District (“CFD”), also referred to as a Mello-Roos District, is a type of SFD that is established via the Mello-Roos Community Facilities District Act of 1982 (“1982 Act”). Through the levy and collection of a special tax, CFDs provide funding for authorized public improvements and/or public services.

The CFD’s Rate and Method of Apportionment includes procedures for identifying and classifying property within the CFD, establishing the initial maximum special tax rates, and the formula for calculating the annual special tax and assigning the special tax to taxable property within the CFD. Since a CFD authorizes the levy and collection of a special tax as opposed to a special assessment, there is no requirement to make a finding of special benefit for the property subject to the special tax. However, the special tax should be based on a benefit received by property, the cost of providing the facilities or services, or some other reasonable basis for assigning the special tax, as determined by the relevant legislative body.

To establish a CFD, the 1982 Act requires two-thirds approval of the registered voters, residing within the proposed CFD boundary, voting in the special tax election. If there are less than 12 registered voters within the proposed CFD boundaries, then a landowner special tax election can take place. In the case of a landowner special tax election, a two-thirds approval is still required, and each landowner receives one vote per acre or portion of an acre of land owned. It should be noted that if a CFD is approved via a landowner special tax election, the CFD is only authorized to fund additional services. In Building Industry Association of the Bay Area v. City of San Ramon, the California Appellate Court held that a landownerapproved CFD can only fund the increase in demand for pre-existing services, so long as the special tax revenue is not available for general government purposes. The additional services funded by the CFD shall not replace services already available and provided within the boundaries of the CFD. Furthermore, special tax revenue generated from the CFD can only be used to fund the authorized public services outlined in the 1982 Act. CFD authorized public services include fire protection and park maintenance/lighting services. It should be noted that any CFD formed by the City, as well as any potential annexations to that CFD, would be approved by a landowner special tax election, as new development projects would be required to participate in the CFD as a condition of approval.

FUTURE DEVELOPMENT SPECIFIC COSTS
In addition to using a CFD to mitigate the negative fiscal impacts of future development, the CFD can also fund authorized CFD services that are intended to provide an enhanced level of service or services that are unique to future development. These services would be in addition to any identified negative fiscal impacts

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placed upon the City in providing existing levels of public services. Funding for any enhanced and/or additional recurring public service costs, including repairs and replacements, reserves and administration can be accomplished through a CFD.

BENEFITS TO THE CITY
Through the formation of a CFD, the City can establish an ongoing funding source that mitigates negative fiscal impacts created by future residential and non-residential development, as well as provide funding for new or enhanced services within the City. To keep pace with changing costs, the CFD’s maximum special tax rate can include an annual escalation factor based on an annual fixed amount or tied to a specific inflation index. Furthermore, the CFD special tax can be established without a sunset date so that the CFD special tax can be levied in perpetuity or until voters choose to end it.

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Item #: 10.3
General Business
Staff Report
City Council
Date: July 7, 2026
Department: Economic Development & Redevelopment
Submitted by: Jennifer Gomez, Executive Director of Economic Development & Redevelopment Agenda Title: Economic Development Strategic Plan

RECOMMENDED ACTION
Adopt the Economic Development Strategic Plan.

ALIGNMENT WITH STRATEGIC PRIORITIES
Economic Development

SUMMARY
A draft of the Economic Development Strategic Plan (EDSP) was presented on June 16, 2026, by the City’s consultant, Kosmont Companies for Council’s review and consideration. This EDSP identifies citywide opportunities, economic development strategies, and an action plan. One continued focus is Downtown since that is the historic core for all Tulare residents and a destination for eating, shopping, and entertainment.

One revision since the draft was presented to Council pertains to the Inyo Corridor. The City has already begun efforts with the Inyo Corridor Streetscape, Placemaking, and Revitalization project, which will identify strategies to redevelop this area. The deliverables from this separate project will be reviewed once finalized and any approved action plan can be incorporated into the overall priorities of the EDSP.

The final EDSP is now before Council and upon adoption, staff will proceed with prioritizing strategies and implementing proposed actions that will support the Council’s economic development objectives and streamline development.

FISCAL IMPACT & FUNDING SOURCES
There is no fiscal impact associated with this action.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table

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ATTACHMENTS

1. Economic Development Strategic Plan
Reviewed/Approved:

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2301 Rosecrans Ave., Suite 4140
El Segundo, CA 90245
TEL: 424-297-1070 | URL: www.kosmont.com

CITY OF TULARE

ECONOMIC DEVELOPMENT STRATEGIC PLAN
JULY 2026

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CITY OF TULARE

ECONOMIC DEVELOPMENT STRATEGIC PLAN
Kosmont Companies Staff City Council Staff & Advisory
Ken K. Hira, President
Thomas Jirovsky, Senior Advisor
Fernando Sanchez, Vice President
Lily Schenk, Project Analyst
Patrick Isherwood, Mayor
Stephen C. Harrell, Vice Mayor
Jose Sigala, Councilmember
Terry A. Sayre, Councilmember
Dennis A. Mederos, Councilmember
Marc Mondell, ICMA-CM, AICP, City Manager
Jennifer Gomez, Exec. Director, Econ. Devt.

Gladys Gonzalez, Sr. Mgmt. Analyst, Econ. Devt.

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TABLE OF CONTENTS

1. Introduction Page 4

2. Background Page 8

3. Summary of Existing Conditions Page 15

4. Economic Development Strategies Page 23

5. Economic Development Tools Page 41
Appendix Page 51
A. Demographic and Economic Profile Page 52
B. Market Demand Analysis Page 98
C. Stakeholder Outreach Page 123

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1. INTRODUCTION
CITY OF TULARE – EDSP

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INTRODUCTION
Kosmont Companies ("Kosmont"), a real estate and economics advisory firm serving hundreds of local governments for over 40 years, was retained by the City of Tulare ("City" or “Tulare") to develop an Economic Development Strategic Plan (“EDSP”). The goal of the EDSP is to provide a comprehensive analysis of the existing conditions in the City, identify and develop a list of prioritized economic development goals and objectives, and provide stakeholder-informed implementation strategies to support economic development objectives and streamline development.

Kosmont’s approach to preparing the EDSP included the following tasks:
 Review of relevant documents together with a tour of the City  Interviews / feedback from City staff, City Councilmembers, and community stakeholders  Assessment of regional economic trends, including analysis measuring regional specialization within key industries  Analysis of local demographic and market conditions, including visitation trends  Identification of key opportunities, strategies, and economic development tools Supplemental to the EDSP, Kosmont also evaluated the economic benefits from the proposed Project Vesta Retail Development and the recently-opened Adventist Health Amphitheater at Zumwalt Park.

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OVERVIEW – HISTORY
 The City is one of the ten fastest-growing cities in California among cities with populations over 30,000 residents. It is the second largest city in Tulare County, and population has grown by nearly 20% in the last 15 years  The City is well positioned in California’s Central Valley along Hwy 99 and contains access to rail and airport infrastructure. The City’s physical location was identified as a key asset for further industrial and logistics growth over the long-term. The City has a large industrial base (over 6M square feet) and is home to a large amount of ag-processing facilities  Tulare is a major agriculture center and is home to the International Agri-Center. The Agri-Center hosts the annual World Ag Expo, drawing over 100,000 attendees and 1,200 exhibitors from across the U.S. and over 50 countries  The City is located in one of the country’s top agricultural producing regions with over 1.6 million acres of harvested land, a crop valuation of ~$7.9 billion, and exporting to over 90 different countries  Downtown Tulare is the City’s historic civic and commercial core located west of Hwy 99, with Zumwalt Park and the Adventist Health Amphitheater as major anchors in the Downtown. Downtown’s business mix includes local restaurants, specialty retail, personal services, offices, and civic uses. It is also home to the Tulare Business Innovation Zone (“TBIZ”)  In addition to a large industrial base, the City has nearly 4 million square feet of retail. Retail centers are primarily concentrated along Hwy 99 and along Prosperity Ave. in the north of the City. The Tulare Outlets draws ~4 million visits annually Source: City of Tulare, 2024 Annual Report
(Accessed May 2026)

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OVERVIEW – RECENT ACHIEVEMENTS
 City is home to several businesses in agriculture and ag-processing, and is leveraging its proximity along Hwy 99 and rail infrastructure to attract businesses in ag tech, distribution, logistics, last-mile, and warehousing, evidenced by the construction of the 99 Central Logistics Center (500,000+ SF distribution facility, additional ~1.1M SF proposed). Further, a proposed Business Park and Inland Port could support long-term job creation in these industries, while creating opportunities to improve infrastructure and services to the nearby Matheny Tract  City adopted the Downtown Master Plan Update in 2024 that provided a formal framework for public and private reinvestment, redevelopment incentives, highlighted key development opportunity sites, highlighted challenges to Downtown Tulare, and strategies to address identified challenges.

For this effort, the City recently received the 2025 Award of Excellence for Comprehensive Plans from the CenterCal section of the APA  Zumwalt Park and the Adventist Health Amphitheater opened in 2025 anchors Downtown Tulare as a destination for concerts and events  The City purchased the County Courthouse in 2021. After extensive renovations, the Tulare Business Innovation Zone (“TBIZ”) opened in July 2025 as a business accelerator, offering 15,000 SF of private offices, coworking space, and a makerspace with industry-grade machinery and tools. TBIZ offers mentorship opportunities, accelerator programs classes, and a resource center for start-ups and small businesses  Tulare recently adopted economic development incentives and programs to attract new business and assist existing businesses in the City. The Downtown TASTE (Tulare Assistance for Small Town Eateries) program assists restaurants looking to expand to or rehab/renovate existing space in Downtown Tulare by providing forgivable loans or grants. Additionally, under Tulare’s Economic Development Investment Program, the City may provide fee waivers / reductions, infrastructure improvements, and sales / property tax abatements to projects with a mixed-use, hotel, grocery, and destination retail use where a positive return on investment to the City and community can be determined  College of the Sequoias Tulare Campus opened an Applied Technology & Trades complex in 2024 further enhancing workforce training to prepare Tulare’s young labor force to work in the ag/ag-tech jobs in Tulare

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2. BACKGROUND
CITY OF TULARE – EDSP

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BACKGROUND
The City’s economy is supported by several factors:
 City is well-positioned along Hwy 99 and rail infrastructure to attract additional industrial/flex space tenants. Additional construction at 99 Central Logistics Center
 Adventist Health Amphitheater in Zumwalt Park serves as an anchor for Downtown Tulare
 TBIZ is a significant resource for start-up business and entrepreneurs  Tulare Outlets, a 268,000 SF outlet center, receives ~4 million visits per year
 College of the Sequoias, Tulare Campus is a 495-acre campus, including a 320-acre working farm, with 3,700 students and over 1,100 full time faculty. It is home to the Agriculture Division including ag business management, equipment technicians, animal science, horticulture, and water management programs. Recently opened Applied Technology & Trades complex serves to enhance workforce development
Sources: College of the Sequoias Tulare Campus (Accessed May 2026) From Left to Right: Exterior image of COS Tulare Campus; Aerial image of Tulare Outlets shopping center; 99 Central Logistics Center; Adventist Health Amphitheater at Zumwalt Park

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COMMUNITY ASSETS
Kosmont has identified significant community assets:

Downtown Tulare– The City’s historic and civic core. Due to age of buildings, there are ADA and other building code issues that may make reuse difficult. There is a need for a more diverse mix of tenants and improved lighting, landscaping, and signage.

Significant investments have been made to enhance Downtown, including the opening of the Adventist Health Amphitheater (drawing ~73,000 visits) and TBIZ in 2025. Additionally, the City implemented the Downtown TASTE program that provided forgivable loans / grants to businesses looking to grow in Downtown Tulare or repair / improve existing shop space.

The City pursued a Tulare Downtown Property-Based Business Improvement District (“PBID”) to provide funds for a Cleaning and Maintenance Program and a Safety and Homeless Mitigation Program.

The PBID is not proceeding currently, but Kosmont encourages the City to revisit when the right mix of property owners are ready to proceed. The goals of these PBID programs will be to retain tenants, increase occupancy, improve walkability and safety, and encourage shoppers to visit Downtown Tulare. The City is also looking to add a Downtown Public Market.

Top Left and Right: Examples of historic buildings in Downtown Tulare Below Left: Adventist Health Amphitheater in Zumwalt Park Below Middle and Right: Tulare Business Innovation Zone

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COMMUNITY ASSETS
International Agri-Center (“IAC”) is a non-profit organization founded in 1976 whose goal is to promote California’s agriculture industry. The IAC owns 700 acres and offers corporate and banquet facilities.

The IAC hosts two major events during the year – the World Ag Expo (2.6M SF of exhibitor space, over 100,000 visitors, 1,200 exhibitors from around the world) and the California Antique Farm Equipment Show (celebrating the region’s agricultural past).

Additionally, the IAC hosts ~20 equestrian events and several sports/recreation events throughout the year, the Ag Museum, along with AgVentures, an ag learning center for children (draws ~10,000 students annually)
A recent study cited the economic impact of the IAC was ~$101 million annually, of which $53 million is from the World Ag Expo.

Given the opening of the new Highway 99 interchange scheduled for 2026 and the IAC’s large visitor draw, the IAC is interested in expanding and bringing a hotel and restaurant to its campus and develop a climate-controlled equestrian center.

Top Left and Right: Scenes from the World Ag Expo
Below Left: Demonstration at the California Antique Farm Equipment Show Below Right: Event at the Banquet Hall at IAC

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COMMUNITY ASSETS
The Tulare County Fairgrounds are located just half a
mile south of Downtown Tulare and host the annual
Tulare County Fair (drawing over 100,000 visitors),
along with livestock shows, conventions, and
motorsport events at the Thunderbowl Raceway.

Additionally, the Fairgrounds offer 50 acres of open
space, banquet hall space, and a livestock area for rent year-round. ~100,000 people visit the Fairgrounds for
interim events.

Adventist Health Amphitheater opened in 2025
showcasing a dozen musical performances drawing over
10,000 attendees to downtown, the majority from
outside Tulare County. Kosmont estimates over
$250,000 in off-site retail spending from attendees,
while hotels receive +250 new room nights from
visitors, artists / crew.

Sources: Tulare County Fairgrounds (www.tcfair.org) (Accessed May 2026) Top Left: Livestock demonstration at the Tulare County Fair; Top Right: Thunderbowl Raceway; Bottom Left: Adventist Health Amphitheater Bottom Right: Aerial from the Tulare County Fair

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COMMUNITY ASSETS
 Parks: City maintains 18 parks / recreation assets, including community parks, sports facilities, and trail/skate areas, totaling 363 acres. Notable parks include:
➢ Prosperity Sports Park – 20 acres, four softball fields, a clubhouse, lighted basketball court
➢ Live Oak Park – ~19 acres, picnic shelter for 70 people, baseball field, exercise course, horseshoe pits, lighted tennis courts, volleyball court
➢ Del Lago Community Park – ~14 acres with a lake, basketball courts, lighted tennis courts, water play area, and picnic shelters
➢ Zumwalt Park – Serves as a core gathering space in Downtown Tulare with the Adventist Health Amphitheater
 West Tulare / Corridors: City is looking to enhance its transit corridors, beginning with Inyo Ave. (State Route 137) in West Tulare. The City has hired an advisory firm to conduct the Inyo Ave. Corridor Streetscape, Placemaking, and Revitalization project that will help create redevelopment scenarios that respect adjacent communities and environmental constraints
Sources: City of Tulare (https://www.tulare.ca.gov/government/departments/communityservices/parks-recreation) (Accessed May 2026) Top Left: Prosperity Sports Park; Top Right: Live Oak Park Bottom Left: Del Lago Community Park; Bottom Right: Zumwalt Park

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COMMUNITY EVENTS
Sources: City of Tulare
(https://www.tulare.ca.gov/government/departments/community- services/parks-recreation) (Accessed May 2026)
Top Left: Spring Carnival Eggstravaganza
Bottom Left: Tulare Hometown Christmas Parade
Right: Fall Festival
 Dozens of community events are funded by the City
and Chamber every year. Some notable events
include: ➢ Spring Carnival Eggstravaganza at Prosperity Sports Park offers egg hunts, crafts, games, and
food vendors
➢ Fall Festival at Zumwalt Park – first annual fall
festival occurred in 2025
➢ Tulare Hometown Christmas Parade and Tree
Lighting at Zumwalt Park
➢ Crush Party – an annual wine/food tasting event
hosted by the Tulare Chamber of Commerce in
conjunction with College of the Sequoias Tulare
Campus

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3. SUMMARY OF EXISTING CONDITIONS
CITY OF TULARE – EDSP

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CITYWIDE OPPORTUNITIES
Kosmont has identified major projects that may positively impact economic development in the City for many years to come.

Business Park / Inland Port – The City is exploring the development of a Business Park and Inland Port to support long-term investment and job creation.

The Business Park is planned for offices, warehouses, and other industrial uses, while the Inland Port will support large logistics users that help increase efficient distribution of goods away from seaports.

The recommended project area is near the Matheny Tract, an unincorporated area of Tulare County. Staff recommends annexing the Matheny Tract to deliver proper infrastructure to the area Project Vesta – Proposed retail project to be located near Cartmill Ave. and Hwy 99. This project is slated to be anchored by a +150,000 SF big box retailer, a 12-island gas station, and several retail / restaurant tenants. Upon buildout and ongoing operations, Project Vesta is estimated to support 647 County-wide jobs and yield $1.5M in gross annual general fund tax revenues
Indoor Sports Facility and Entertainment Complex – The City is looking to improve its retail, entertainment, and sports facilities options, by developing an entertainment district anchored by a new indoor sports facility along Hwy 99.

The indoor sports facility is projected to be ~100,000 SF with eight basketball courts. The sports facility is anticipated to offer weekday community programming and draw regional youth/amateur sports tournaments on the weekend. The proposed facility is projected to host 30 tournaments and draw 579,500 visits annually
The project will also contain restaurants, including destination “eatertainment” venues that blend food and experiences (e.g., Dave & Busters, Top Golf, F1 Arcade), retail shops, and hotels This complex is intended to create a year-round visitor destination, expand local entertainment options, and generate hotel stays and visitor spending. A recent study by Victus Advisors projected this project to yield $31M in annual economic output, 404 sustainable full and part-time jobs, 41,000 annual hotel nights, and nearly $1M in sales and hotel TOT revenues

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SUMMARY

ECONOMIC PROFILE
Employment
 More residents leave the City to go to work compared to workers coming into the City for work, yielding a net outflow of jobs  Employees who work in Tulare are coming from Visalia, Porterville, Fresno, Hanford, and Bakersfield. Employed residents living in Tulare go to Visalia, Fresno, Porterville, Bakersfield, and Corcoran for work  The top five industries with the most employees in the City are:
retail trade, health care and social assistance, manufacturing, accommodation and food services, and education services. Of these industries, three (health care and social assistance, accommodation and food services, and retail trade) are among the top five fastest growing industries in Tulare County
 The jobs/housing ratio for Tulare is 1.56, slightly higher than County and State (1.53 and 1.48, respectively). This number indicates a possible need for more housing in Tulare to accommodate the labor force that works in the City
Location Quotients
 Location quotients were calculated for broad industry categories at a citywide level (Tulare vs Visalia and Tulare County) along with specific categories (e.g., ag tech/support, food and beverage manufacturing, distribution, and population-serving industries [retail, hotel, medical facilities]) at a countywide level (Tulare County vs. San Joaquin Valley Counties [Fresno, Kern, and Kings])
 Tulare has a higher concentration of jobs in utilities, manufacturing, retail trade, information, and accommodation and food services compared to Visalia. Although the City is showing less specialization, it is gaining ground in transportation and warehousing, admin and support, and health care and social assistance
 Tulare County has a regional specialization in general agriculture, food and beverage manufacturing, other manufacturing, and logistics and distribution
 Tulare could try to attract ag tech/support and manufacturing businesses given the County increased regional specialization in those categories
See Appendix A for more information.

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SUMMARY
ECONOMIC PROFILE (CONT’D)
Visitation Trends
 Visitation data to Tulare was pulled from Placer.ai, a mobile data analytics provider
 In 2025, Tulare received a total of 18.2 million visits from out-ofmarket visitors and 2.1 million visits from employees who work in the City, but live outside of the City
 Visits declined during Covid, but returned to pre-pandemic levels by April 2021. Since thien, visits by out-of-market visitors and inbound commuters have grown 5% and 10%, respectively
 ~63% of visitors and employees are of Hispanic ethnicity and have lower levels of education (17% have a bachelor’s degree or higher).

Incomes are distributed more evenly across visitors and employees  67% of inbound commuters come from within 10 miles of the City.  Out-of-market visitors are coming to Tulare from a broader area, given 38% of visits come from within 10 miles of the City, 32% from 10 to 30 miles away, and 30% from over 30 miles away
 The most popular location in the City is Tulare Outlets with 811,000 visitors*
 According to Placer.ai, Tulare has a retail sales surplus of ~$87.0 million in categories of gasoline stations, auto parts/accessories, and shoe stores
 According to Placer.ai, many retail categories are exhibiting sales leakage, indicating consumers are going elsewhere to shop/dine. The total retail sales leakage observed totals ~$356.6 million  Tulare retail categories exhibiting “brick & mortar” retail sales leakage include limited and full-service restaurants, grocery stores, and building material and supply stores. City may consider attracting these retailers (See Table in Appendix A.4 for a full list of retail categories exhibiting retail sales leakage)
 Retail sales appear to be leaking to centers north of the City’s boundaries (along CA-63/Mooney Blvd.) in Visalia
See Appendix A for more information. *Visitors includes out-of-market visitors and inbound commuters. The figure does not include residents.

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SUMMARY

MARKET TRENDS AND RETAIL MARKET
Market Trends
 Retail: Retail store closures, bankruptcies, and e-commerce has changed economics of retail centers; Retail centers are being reimagined into mixed/blended use developments; Retail is driven by trip-generators like entertainment, experience, and essential  Office: Leasing activity has declined as remote work becomes new normal; shift to suburban offices and integrating office amenities in blended use environments
 Industrial: E-commerce is accelerating growth of industrial; Significant demand for fulfillment, last-mile, flex / R&D, and warehouse facilities  Residential: Home have become live, play, and work environments; Home offices are the new home amenity as single and multifamily housing projects are designed to accommodate work space  Hospitality: The hospitality sector was hurt significantly by the COVID-19 pandemic; Leisure travel is showing signs of rebounding Retail
▪ 3.9 million SF of retail in the City
▪ Approximately 105,000 SF added to the City’s retail market in the 10-year period between 2014 and 2024; while three buildings were removed
▪ Reduced demand for retail space due to e-commerce trends; major retail space is available in the City at Tulare Pavilion (64,423 SF), including former Big Lots
▪ Continued population growth is spurring interest in additional retail ▪ Retail vacancy at ~4% is slightly higher than Visalia and the County.

Retail rents in Tulare at $18 psf are moderately lower than Visalia at $21 psf
▪ A 5,000 SF Chick-fil-A opened in May 2026 at SEC of Cartmill Ave. and Hwy 99
▪ Substantial retail sales are currently leaking to Visalia shopping centers
See Appendix B for more information.

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Office
▪ Relatively small 1 million SF office market in the City ▪ Within past 10-year period, there has been office space built, totaling 107,900 SF, including a 41,100 SF medical office built in 2024 ▪ Office vacancy at ~1% is lower than that of Visalia and Tulare County; while office rents at $23 psf are on par with Visalia and the County
▪ One new 5,200 SF office building recently opened in Q1 2026 ▪ Per CoStar, there is no office space currently planned, proposed, or under construction
Industrial / Flex
▪ Industrial/Flex is largest land use type in City with 6.1 million SF ▪ Industrial vacancy in the City is ~10% and is lower than Visalia, while rents at ~$11 psf are higher than Visalia
▪ Within the ten-year period of 2014 to 2024, 628,500 SF (including a 544,100 SF distribution facility at 99 Central Logistics Center that is still vacant)
▪ ~61,300 SF was recently added to the industrial / flex market in 2026 (CNS Business Park, opened February 2026) along with two other 5,000 SF industrial warehouse buildings
▪ Another 1.1 million SF of industrial distribution facilities are proposed at the 99 Central Logistics Center and an additional 1.1 million SF is proposed at 2918 Pratt St.

SUMMARY

OFFICE AND INDUSTRIAL / FLEX MARKETS
See Appendix B for more information.

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SUMMARY

MULTIFAMILY RESIDENTIAL MARKET
Multifamily Residential
▪ Strong multifamily residential market in the City (3.0% vacancy in Q1 2026), lower than both Visalia and Tulare County.
▪ Market rents in Tulare are ~$1,300 per month for average unit size of 950 SF. Visalia multi-family market rents are moderately higher at ~$1,550 for average 880 SF units. On a per SF basis, Visalia rents are 25% higher
▪ 51% of Tulare units are market-rate, 47% of units are affordable, and 2% of units are in a building with a mix of market-rate and affordable units. Senior housing accounts for 9% of housing units
▪ Majority of the City’s units are Class C (57%), followed by Class B (35%) and Class A (8%)
▪ Between 2014 and 2024, a total of 386 units were built in four buildings. The largest project was The Riviera Apartments, a 168- unit market-rate building built in 2019.
▪ There has been no new multifamily construction in the City since the Orchards 79 project was built in 2023, adding 87 market-rate apartments
▪ According to CoStar there are currently no multifamily buildings planned, proposed, or under construction. There was an 82-unit senior market-rate apartment building proposed, but plans have been cancelled
See Appendix B for more information.

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SUMMARY OF STAKEHOLDER COMMENTS RECEIVED
Strengths
▪ Stronger leadership, vision, and responsiveness from City ▪ City has strategic regional location and transportation access (Hwy 99, rail) ▪ Established agriculture / industrial / logistics base ▪ Downtown momentum and reinvestment
▪ Competitive business environment
▪ Young workforce and expanding support ecosystem for business growth Challenges
▪ Retail leakage to Visalia
▪ Infrastructure and service capacity constraints
▪ Limited shovel-ready sites
▪ Uneven private-sector investment across neighborhoods, particularly on Westside ▪ Community skepticism
▪ Downtown lacks critical mass
Opportunities
▪ Expand retail, dining, and entertainment
▪ Build on Downtown Tulare and Amphitheater momentum
▪ Prepare more development-ready sites
▪ Leverage interchange and growth corridor investments
▪ Attract Westside commercial development
▪ Strengthen partnerships for business and workforce growth Outreach is a key part of the EDSP process and involves gathering information from key stakeholders regarding the strengths, weaknesses, and opportunities affecting economic development in the City. Kosmont conducted stakeholder outreach through March 2026 and interviewed representatives from a variety of groups (four City Council members, four business and non-profit organizations, two City staff members / Planning Commission, and two local commercial real estate brokers. Key findings are summarized below.

See Appendix C for more information.

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4. ECONOMIC DEVELOPMENT STRATEGIES
CITY OF TULARE – EDSP

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STRATEGIES / PROPOSED ACTION PLAN
Kosmont has identified Economic Development Strategies and for the City’s consideration.

Below is a summary that is followed by supporting detail and action items:

1. Business Expansion, Attraction & Retention (“BEAR”)

2. Establish Business Incentive Program for targeted retail / commercial /industrial

3. Sales Tax Initiative (case studies)

4. Housing as Economic Development (Housing Element for Economic Development HEED®)

5. Utilize Value Capture

6. Expand Sports Facilities

7. Downtown Placemaking

8. Federal Opportunity Zones

9. Gather Performance Metrics to measure annual progress Following the strategy section is a discussion of economic development tools the City may utilize to achieve its economic development goals
Source: Kosmont Companies

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BUSINESS EXPANSION, ATTRACTION AND RETENTION
A vibrant business sector is important to the fiscal health of the City. BEAR is the keystone of most economic development departments. Ideally the City should focus on attracting industries with diverse employment opportunities, that embrace new technology and offer higher paying jobs.

Business-friendliness (“How to get to Yes”) is a vital component to support the needs of businesses, developers and to foster entrepreneurship, and bolster the local economy.

Action Item 1: Develop technical assistance programs to support emerging businesses/entrepreneurs in the City.

Action Item 2: Proactively work with business/property-owners to understand challenges and opportunities that may align with the City’s economic development goals. Regularly contact the top 25 sales tax generators / employers Action Item 3: Pursue Healthcare providers (new and expansion).

Action Item 4: Create customized development agreements/incentive packages to facilitate major tenants.

Source: Kosmont Companies

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BUSINESS EXPANSION, ATTRACTION AND RETENTION
Action Item 5: Conduct outreach to property owners regarding development opportunities and challenges Action Item 6: Plan check review process with a set number of days for initial submission and subsequent submittals Action Item 7: Consider adding business concierge or ombudsman to Econ Dev or Planning Dept to assist new business or development applications.

Action Item 8: Attend ICSC and other conferences to meet with major retailers / restaurants / hotels / developers / brokers.

Source: Kosmont Companies

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BUSINESS INCENTIVE PROGRAM
The City currently has two programs to incentivize businesses in Tulare – the Downtown TASTE program and the Economic Development Investment Program (“EDIP”). The Downtown TASTE program provides forgivable loans/grants to restaurants expanding or renovating their property in Downtown Tulare. EDIP provides financial assistance in the form of fee waivers, infrastructure improvements, and sales/property tax abatements to small and large businesses so long as they meet minimum capital investment and job creation requirements. Small businesses may receive up to $150,000.

Before considering any new program, it is important to set specific goals (e.g., assist small business, expand job creation, attract major tax generator, attract downtown development) and create a system to measure the success of each initiative. Cost of implementing can vary: job credits, façade improvement, and infrastructure represent out of pocket costs, while tax sharing agreements and fee waivers are offset by new development tax revenues.

Examples of incentives include:
 Fast track permitting
 Tax sharing agreements / tax abatements
 Job tax credits / Workforce training
Source: Kosmont Companies
 Façade Improvement Program
 Infrastructure investment
 Fee waivers / deferrals in targeted areas

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SALES TAX INCREASE CASE STUDIES
City officials are evaluating a proposed 1% local sales tax increase for the November 2026 ballot. If approved, the measure would raise an estimated $16 million annually to fund local public safety, street repairs, and emergency homeless shelter. A portion of the proposed sales tax could be used to support economic development as has occurred in other
comparable cities. Kosmont researched several other sales tax measure case studies in comparable cities.

City of Turlock (2020) – a ¾ cent general sales tax measure to maintain emergency services and fund a roads program (over 12 miles of roads have been upgraded)
City of West Sacramento (2024) – a 1 cent general sales tax measure that funds public safety staffing, roads, parks/trails, and public safety facilities (fire station, police HQ, park upgrades) City of Bakersfield (2018) – a 1 cent sales tax measure to fund additional public safety positions, homelessness services, a “Clean City initiative” (neighborhood and community amenity enhancement), business retention strategies
City of Chino (2024) – 1 cent sales tax measure that funds park/recreation beautification efforts, street/sidewalk improvements, drinking water improvements, flood control, and drought resilience
City of Victorville (2020) – 1 cent sales tax measure funding police/fire services, code compliance staff, homeless shelter, and library/rec center upgrades
City of Hanford (2024) – 1 cent general sales tax measure funding new police/fire facility and staff, maintenance to city parks and streets, and homelessness services
City of Stockton (2013) – ¾ cent general sales tax measure that restored city services. Office of Violence Prevention funded, along with hundreds of police officers. Community services were restored and expanded (e.g., library, parks, public works).

Additional economic development programs were funded (e.g., fee waivers, business attraction incentives)

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Generate new demand for
commercial and retail uses
Significantly boost new tax revenues
Support local jobs

ROOFTOPS NEEDED
New housing can:

E-commerce will capture 25% of sales within 5 years
(~$9k per CA household)
Housing / hybrid living spaces
Keeping “wallets” in local communities
Townhomes by Landsea Homes in Ontario, CA
HEED®: HOUSING ELEMENT FOR

ECONOMIC DEVELOPMENT

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UTILIZE VALUE CAPTURE REAL ESTATE STRATEGIES
Public and private sector real estate can be important assets to leverage for long-term economic development benefits.

CaptureValue from Private Real Estate
• From Value Capture Zoning VCZ® – Development Opportunity Reserve (D.O.R.®) allows cities to create a “bank” of new density in zoning / specific plans, allowing them to give the density to projects that deliver community benefits & public amenities.
• From Tax Increment and Special Districts – Enhanced Infrastructure Financing Districts (“EIFD”) use property tax increment and Community Facility Districts (“CFD”) are tools to fund important local and regional infrastructure in various parts of the City potentially including around the International Agri-Center and West Tulare. This will be particularly helpful for major development projects in the future, such as the Business Park / Inland Port, Indoor Sports Complex / Entertainment District, Project Vesta, etc.
• From Public Private Partnerships – Enter into partnerships with property-owners to commit local government resources, help solicit development proposals that will advance both the property owner’s goals and the community’s goals.

Capture Value from Public Real Estate
• Cities can use a variety of sale or lease strategies to capture the value of their properties, while also increasing the General Fund tax base.

Source: Kosmont Companies

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PROPOSED BUSINESS PARK
Source: Kosmont Companies
Action Item 1: Establish Community Facilities Districts to help major landowners finance the infrastructure backbone and enable them to attract developers who market to major users in need of near-term space for rent.

Action Item 2: City Econ Dev Staff to participate in NAIOP and other industrial organizations to promote the Business Park.

Action Item 3: Consider creating a Specific Plan with an emphasis on assisting economic growth.

Action Item 4: Explore feasibility of EIFD to refund CFD Special Taxes paid by developers for the upfront infrastructure (See Section 5 discussion of EIFD financing strategies).

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SPORTS AND ECONOMIC DEVELOPMENT
In the past decade, youth sports facilities have become a major economic driver for suburban communities across the U.S. with families traveling hours to participate in weekend tournaments for baseball, softball, soccer, tennis etc. In early 2022, the City retained Victus Advisors to analyze the potential for an indoor sports center. They found significant support for an indoor facility to serve weekend tournaments (e.g. basketball, pickleball, cheer leading).

During the week, the facility would be used by local groups.  Victus estimated the center could increase overnight hotel visits and generate over $700 million in total economic activity (over a 30-year period) and substantial hotel and sales tax revenue.  Kosmont research found exciting examples of sports facilities built in rural/suburban areas that expanded into major entertainment centers that can be good examples to consider.

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EXAMPLE - ADVENTHEALTH SPORTS PARK

OVERLAND PARK, KANSAS
 Opened: 2024
 Owned/Operated by Bluhawk Sports
 Size: 420,000 sf indoor sports & entertainment
complex
 Facilities: 3,200-seat multipurpose arena, 8 basketball courts, 1,500-seat NHL regulation ice rink, 40,000 sf
indoor turf football field, e-sports arena, performance training center
 Hawk’s Outpost (family entertainment center)

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EXAMPLE - SAND MOUNTAIN PARK & AMPHITHEATER

ALBERTVILLE, ALABAMA
 Size: 130-acre sports, leisure, wellness & entertainment venue. Opened: 2021
 Owned by the City of Albertville
 Operated by The Sports Facilities Companies
 Outdoor Features: outdoor water park, 9 diamond turf
fields, 5 multi-sport turf fields, 18-hole disc golf course, 17 slot RV park, 16 tennis courts, 5,000+ capacity
amphitheater, 2 basketball courts, 2 sand courts
 Indoor Amenities: fitness center, 2 racquetball courts, 2- ane indoor track, 8-lane aquatics center, 4 hardwood
courts, 25,000 sf event space, concession area

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DOWNTOWN PLACEMAKING
Source: Kosmont Companies
A healthy Downtown is important to a city, but the age of many buildings makes reuse challenging.

Action Item 1: Consider programs to help existing businesses (such as façade improvement programs,street / outdoor retail) and help existing properties expand allowable uses in storefront spaces and allowing small scale manufacturing, food makers, artisans, breweries, woodworkers). Support non-profits willing to develop collaborative spaces with other resources in underutilized buildings. The Downtown TASTE program currently offers some assistance in the form of forgivable loans / grants.

Action Item 2: Develop a Food Incubator / Food Hall or Indoor Market that links Downtown Tulare to the region’s agricultural identity (currently being explored)
Action Item 3: Evaluate publicly-owned opportunity sites in the downtown area – such as the surface parking lots– to evaluate potential reuse strategies that aim to add gathering places, activities, and other amenities.

Action Item 4: Invest in physical improvements that can create sense of place and further activate the downtown area—through gateway signage and wayfinding, public art, pedestrian-oriented improvements such as plazas and outdoor spaces,street improvements, micro-transit services. Encourage a blend of uses including housing, office, retail, restaurants, entertainment to activate Downtown at different times of the day.

Action Item 5: Grow social media engagement channels, social medial influencer/engagement channels, as well as marketing/trade publications to promote Downtown businesses and events.

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PLACEMAKING BY DESIGN, DISTRICTS & EVENTS
The Medical
Main Street
district in
Lancaster, CA
aims to be a
blended use area
centered around
major medical
anchors that
includes many
complementary
uses.

Murals in downtown
Providence, RI add
character and highlight
local artists and themes.

Events like the CicLAvia bike / walk fairs in
Los Angeles and the Mission Inn Festival of
Lights in Riverside, CA are memorable and
engaging activations of public spaces.

Distinctive signs –
such as the neon
signs in Fillmore and
the Star Theatre in
Oceanside – can give
an area a distinctive
sense of place.

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FEDERAL OPPORTUNITY ZONES
Opportunity Zones (OZs) were created under the 2017 Tax Cuts and Jobs Act as a federal economic development tool to encourage private investment in underprivileged census tracts. OZs can help attract long-term private investment in economically disadvantaged areas by offering tax deferrals on capital gains, a partial tax reduction (investors receive a basis step-up, meaning a portion of the original gain isn’t taxed), or tax-free appreciation (investor pays no federal capital gains tax on new appreciation earned from the OZ investment if the investment is held for over 10 years).

An update to the federal OZ legislation occurred in July 2025, tracts for consideration need to be identified and submitted to the State by end of July 2026. The State needs to formally submit nominated census tracts by Fall 2026 to the U.S. Department of the Treasury, and the new law will take effect 1/1/2027. The differences between the original legislation (OZ 1.0) and the updated legislation (OZ 2.0) is below. Priority can be given for OZ boundaries within an EIFD (or Resolution of Intention is adopted). Rural census tracts receive higher tax reductions of 30%.* Areas Designation Process Tract Eligibility Existing OZ Tracts Investor Tax Benefit OZ 1.0 Based on census tracts designated in
2018
Governors nominated 25% of census
tracts
Broad eligibility with census tracts up to
80% area median income
Current tracts remain part of the
original program (remain in effect until
12/31/2028)
Deferral of capital gains until 12/31/2026
OZ 2.0 New tract map to take effect on
1/1/2027
Governors may nominate up to 25% of
census tracts, but under stricter
eligibility
Stricter eligibility; Up to 70% area
median income or poverty rate of 20%
or greater and median family income less
than 125% of area median, plus new cap
on preventing high-income tracts from
qualifying.

OZ 1.0 tracts do not automatically carry
forward; They must be redesignated.

New designation rounds occur every 10
years
Rolling five-year gain deferral structure
for new investments. 10% basis step-up
after five years, potential federal tax
exclusion on appreciation after 10 years
NOTE: Investors may still be able to use OZ 1.0 through 2028 for Qualifying Opportunity Fund investments, but the original OZ 1.0 capital-gain deferral deadline remains 12/31/2026. Following the deadline, deferral and step-up benefits end for new investments, though the 10-year exclusion may still apply to longer-held investments.

Source: U.S. Dept. of Housing and Urban Development (HUD) Online (Accessed May 2026) Notes: *A rural area is defined as an area other than a city or town with a population greater than 50,000 and an urbanized area contiguous and adjacent to a city or town.

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OZ 2.0 ELIGIBLE CENSUS
TRACTS
Sources: ESRI; U.S. Dept. of Housing
and Urban Development (HUD) Online
(Accessed May 2026)
NOTE
Much of West Tulare falls within eligible
census tracts for OZ 2.0.

Census tracts covering parts of Downtown
Tulare, northern Tulare, and southern
Tulare (by the Agri-Center) do not qualify
under OZ 2.0 standards.

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PERFORMANCE METRICS
In order to track economic development progress, it is important for the City to maintain annual business and development data analytics to keep on top of economic and market trends:

1. Commercial Building Permits in Key Areas – measure commercial developer interest

2. Assessed Value of Commercial and Industrial Property – show increased private sector investment

3. Number and Type of Business Licenses – measure new business formations

4. Employment by Industry – show success in commercial and industrial business attraction and employment growth

5. Sales Tax Revenues by Geographic District – measure success in attracting businesses and economic activity

6. Hotel Tax Revenues – measure success in attracting more visitors

7. Hotel Visitor Survey – identify types of visitors, short term vs longer term stays

8. Annual Survey of Business Owners – identify issues regarding City permitting / zoning process and other programs

9. Special Event Data attendance estimates – show success of community outreach efforts Source: Kosmont Companies

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ECON DEV ROADMAP – IMPLEMENTATION PRIORITIES
While establishing priorities for economic development is the City Council’s prerogative, Kosmont was asked to recommend a roadmap for implementing the various strategies discussed over the next 3 years. 6 Month Priorities could include:
 Assign responsibility to gather Performance Metrics
 Plan Business Expansion, Attraction and Retention (“BEAR”) and incentive policies in concert with the Chamber of Commerce 12 Month Priorities could include:
 Initiate BEAR and incentive policies
 Consider forming EIFD or CFD to fund infrastructure
 Downtown Placemaking events
2-3 Year Priorities could include:
 Provide report to Council on BEAR success and other Economic Performance Metrics  Leverage EIFD or CFD to fund infrastructure
 Examine new sports facilities district
 Master plan for Federal Opportunity Zone
 Implement Value Capture Strategies

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5. ECONOMIC DEVELOPMENT TOOLS
CITY OF TULARE – EDSP

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TAX INCREMENT FINANCING (“TIF”) TOOLKIT
Enhanced
Infrastructure
Financing District
(EIFD)
Most flexible, most
widely used
Climate Resilience
District
(CRD)
NEW - focus on climate
related mitigations &
infrastructure
TIF Districts can elevate eligibility for State funding Community
Revitalization
& Inv.

Authority
(CRIA)
More emphasis on
affordable housing (25% setaside)
TIF Fundamentals
TIF is a method of capturing
increased property tax revenue
from new development or
property value increases within
a designated area to fund
public improvements or those
that implement public policy,
such as housing.

How it Works
As private property investment
occurs, the resulting increase
in property tax revenue is
“captured” and deposited into
a separate TIF fund and used
to pay for public improvements
within a district.

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WHY PUBLIC AGENCIES AUTHORIZE TIF DISTRICTS?

1. Resource Preservation: No encumbrance of existing City / County resources

2. Private Sector Catalyst: Private sector investment induced by district commitment on a “but for” basis accelerates growth of net fiscal revenues, job creation, housing production, essential infrastructure improvements

3. Other Public Money (“OPM”): Ability to attract tax increment contributions from other taxing entities (e.g., County, special districts); Increased priority for Federal / State grants loans (e.g., for TOD, water, housing, parks, remediation). Provides increased priority for grant fundings

4. No New Taxes: TIF districts do not impose a new tax on residents. They capture the value of new development

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EIFD WITH A POTENTIAL CITY/COUNTY PARTNERSHIP
Federal & State Sources
• Cap-and-Trade / HCD grant & loan
programs (AHSC, IIG, TCC)
• Prop 68 parks & open space grants
• Prop 1 water / sewer funds
• Caltrans ATP / HSIP grants
• Federal DOT / EPA / EDA funding
• Federal IRA and IIJA direct funds
• Prop 4 (10B)
Private Sector based Funding Sources
• Development Agreement / impact fees
• Benefit assessments (e.g. contribution from CFD)
• Private investment
• Private tax credits available through IRA and IIJA for climate investments
▪ Ideal strategy includes a County contribution
➢ Tulare receives approximately 11.5% of every $1 collected in property taxes on average (varies by Tax Rate Area) ➢ City additionally receives equivalent of approximately 12.3% of property tax in lieu of MVLF, also available to EIFD ➢ County receives approximately 33.0% of every $1 collected in property taxes on average ➢ School-related entities cannot participate
▪ TIF Districts which involve a City / County joint effort are more likely to win state grant funding sources

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VALUE CAPTURE ZONING ® /

UPDATED SPECIFIC PLANS
• Increase Flexibility: Review and revamp zoning and permitting requirements to ensure flexible requirements that can accommodate market and changing business and customer dynamics. • Streamline Process: Identify business and project categories that are particularly beneficial and create a fast and predictable process for review / approval.
• Encourage Active Uses: Provide an easy permit process for interesting and dynamic uses – such as pop-up users, live music / events, outdoor dining permits, and artistic improvements / installations – that can enhance visitors’ experiences
• Incentivize Reuse of Struggling Spaces: Provide flexible building permit rules for properties suited for adaptive reuse and incentivize conversion of vacant commercial buildings into other uses (such as hotel and residential). • Specialize: Tailor requirements for infill development to recognize the often-challenging circumstances involved in infill developments.

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VALUE CAPTURE ZONING (VCZ®)

USES ZONING AS CURRENCY
City “manufactures”
new bank of Density via
Specific Plan / Zoning
City places pre-approves new
Density places in DOR® Bank &
adopts amenity list;
Development projects apply
City selectively distributes DOR®
Density for Projects that deliver
Amenities & Infrastructure via D.A.
(Zoning as Currency)
What is a DOR® Bank? Pre-approved new density that is linked to preapproved public amenities / infrastructure or a density fee via a Development Agreement
When possible, Cities should avoid giving away density in a specific plan or entitlements without tying density to projects that deliver community benefits and public amenities and/or pay fees

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CASE STUDIES USING VALUE CAPTURE ZONING®
VALUE CAPTURE ZONING VCZ® STRATEGY:

HERMOSA BEACH

LAND VALUE RECAPTURE PROGRAM
City council recently approved a land value recapture program to recover & reinvest land value increases via new approved residential zoning for redevelopment in the City’s commercial districts.

Market-rate housing developments will be required to pay $76 - 104 per square foot to a Hermosa Beach fund that aims to support development of affordable housing.

VALUE CAPTURE ZONING VCZ® STRATEGY:

BUELLTON
DEVELOPMENT OPPORTUNITY RESERVE (D.O.R.)®
The City of Buellton included a D.O.R.® tool in its Avenue of the Flags Specific Plan to encourage development in the downtown area and create a vibrant main street.

D.O.R.® tool trades zoning incentives (density, building heights, parking, setbacks, fees, etc.) to projects that deliver community amenities, infrastructure, or other benefits.

The following communities have implemented or are considering Value Capture Zoning VCZ® / D.O.R.®:
• El Monte
• Temecula
• Palmdale
• Buellton
• Placentia
• Burbank
• Seaside
• Jurupa Valley
• Scotts Valley
• Hermosa Beach

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GRANTS AND OTHER PUBLIC FUNDING
 There is a wide variety of grant programs and funding sources available through the state and federal government.
 New grant programs are added every year, many with a focus on housing and climate resiliency.
 Cities should periodically review available grant sources and pursue grants that align with the City’s economic development goals (a grant-writing firm can provide assistance if the City’s internal resources are limited).

Recent Economic Development &
Climate Grant / Funding Programs
• Regional Early Action Planning (REAP)
• Local Early Action Planning (LEAP)
• Infill Infrastructure Grants (IIG)
• Affordable Housing and Sustainable Communities
(AHSC)
• Community Economic Resilience Fund (CERF)
• Multifamily Housing Program (MHP)
• ICARP Regional Resilience Grant Program (RRGP)
• Infrastructure State Revolving Fund (ISRF)
• Homeless Housing, Assistance, and Prevention
(HHAP)
• Infrastructure State Revolving Fund (ISRF)
• Coastal Conservancy Grants
• Adaptation Planning Grant Program (APGP)
• Strategic Growth Council grants
• Infrastructure Investment and Jobs Act (IIJA)

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FUNDING OPPORTUNITIES ON

STATE AND FEDERAL LEVEL
Federal Programs State Programs
Inflation Reduction Act
(IRA)
Bipartisan
Infrastructure Law
(Infrastructure
Investment and Jobs
Act) [IIJA]
Affordable Housing
and Sustainability
Communities
Program (AHSC)
Infill Infrastructure
Grants (IIG) +
Catalyst Program
(IIGC)
Multifamily Housing
Program (MHP)
Funds available through tax
credits and rebates for
individuals and tax-exempt
financing for projects aimed at
inducing private sector
investment.

Funds for roads, bridges,
railroads, broadband, water,
public transportation, airports,
cyber security, climate
resiliency, brownfield cleanup,
electric vehicles, and more
CA Program:

EIFD Preference
$1 - $30 million awards
for affordable housing,
housing infrastructure,
transportation, related
amenities, program costs
CA Program:

EIFD Preference
$1 - $7.5 million grants for
infill projects / areas, gap
funding for
infrastructure for
residential / mixed-use
with some affordability
requirements
Funding for rental housing;
includes land lease
payments, construction /
rehab, offsite
infrastructure
improvements
$400 Billion in IRA Funds, $550 Billion in Federal Infrastructure Funds, Millions More in State Programs

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CITY OF TULARE

ECONOMIC DEVELOPMENT STRATEGIC PLAN
JULY 2026
2301 Rosecrans Ave., Suite 4140
El Segundo, CA 90245
TEL: 424-297-1070 | URL: www.kosmont.com

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APPENDIX
CITY OF TULARE – EDSP

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CITY OF TULARE – EDSP
A – DEMOGRAPHIC AND ECONOMIC PROFILE

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SUMMARY

DEMOGRAPHIC AND ECONOMIC PROFILE
City Revenue Information
 Tulare is highly reliant on sales and use tax compared to other cities in California. In 2024, 44% of City tax revenues to the general fund come from sales and use tax, while the California cities average is 22%
 The City is not overexposed to hotel tax risk since just 3% of the City’s general fund revenues in 2024 comes from transient occupancy tax (“TOT”). In contrast, TOT is 6% of general fund tax revenues across California cities.
 Principal sales tax revenue generators in the City include gas stations, restaurants/bars, motor vehicles and parts, and building materials
 In the 10-year period between 2014 and 2024, sales tax revenues in Tulare have grown by 53% (4.3% per year). Over the same period, sales tax revenues from the County Pool have more than doubled.

County Pool revenues grew significantly due to rise in e-commerce sales, (10-year compound annual growth rate of 7.3%)
Population and Household Demographics
 72,200 residents and 17,100 households in the City (2nd largest city in Tulare County, following Visalia)
 City has a significant daytime population (~67,300)
 Average household size in the City is 3.26, on par with the County (3.23) and higher than the State (2.80)
 Median age in the City is 32.2, younger than both County and State (33.1 and 38.4, respectively)
 12% of Tulare residents hold a Bachelor’s degree or higher (30% lower attainment than the County, 68% lower than the State)  Education levels are correlated with incomes. The average household income in Tulare is $103,500 (7% higher than County, 28% lower than State)
 Tulare is an affordable city compared to most cities in California. The average price of a home in Tulare is $347,900, slightly lower than the Countywide average price of $355,900 and more than 50% lower than the average price of a home in the State ($763,300)

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SUMMARY
DEMOGRAPHIC AND ECONOMIC PROFILE (CONT’D)
Employment
 More residents leave the City to go to work compared to workers coming into the City for work, yielding a net outflow of jobs  Employees who work in Tulare are coming from Visalia, Porterville, Fresno, Hanford, and Bakersfield. Employed residents living in Tulare go to Visalia, Fresno, Porterville, Bakersfield, and Corcoran for work  The top five industries with the most employees in the City are:
retail trade, health care and social assistance, manufacturing, accommodation and food services, and education services. Of these industries, three (health care and social assistance, accommodation and food services, and retail trade) are among the top five fastest growing industries in Tulare County
 The jobs/housing ratio for Tulare is 1.56, slightly higher than County and State (1.53 and 1.48, respectively). This number indicates a possible need for more housing in Tulare to accommodate the labor force that works in the City
Location Quotients
 Location quotients were calculated for broad industry categories at a citywide level (Tulare vs Visalia and Tulare County) along with specific categories (e.g., ag tech/support, food and beverage manufacturing, logistics and distribution, and population-serving industries [retail, hotel, medical facilities]) at a countywide level (Tulare County vs. San Joaquin Valley Countries [Fresno, Kern, and Kings counties])
 It was observed that Tulare has a higher concentration of jobs in utilities, manufacturing, retail trade, information, and accommodation and food services compared to Visalia and Tulare County. Although the City is showing less specialization, it is gaining ground on Visalia and the County in transportation and warehousing, admin and support, and health care and social assistance
 Tulare County has a regional specialization in general agriculture, food and beverage manufacturing, other manufacturing, and logistics and distribution, although adjacent counties are starting to take a larger share of the logistics and distribution industry. Tulare County increased its regional specialization in ag, ag tech/support, and manufacturing relative to adjacent counties

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SUMMARY
DEMOGRAPHIC AND ECONOMIC PROFILE (CONT’D)
Visitation Trends
 Visitation data, including visitor and employee demographics, to Tulare was pulled from Placer.ai, a mobile data analytics provider  In 2025, Tulare received a total of 18.2 million visits from out-ofmarket visitors and 2.1 million visits from employees who work in the City but live outside of the City (inbound commuters)  Although visitation from both inbound commuters and out-ofmarket visitors dropped during the COVID-19 pandemic, visits returned to pre-pandemic levels by March/April 2021. Since this period, visits by out-of-market visitors and inbound commuters averaged 5% and 10% higher, respectively, compared to pre-pandemic levels
 ~63% of visitors and employees are of Hispanic ethnicity and have lower levels of education (17% have a bachelor’s degree or higher).

Incomes are distributed more evenly across visitors and employees  Inbound commuters to Tulare travel from a more local area given 67% of inbound commuters come from within 10 miles of the City.  Out-of-market visitors are coming to Tulare from a broader area, given 38% of visits come from within 10 miles of the City, 32% from 10 to 30 miles away, and 30% from over 30 miles away
 The most popular location by number of visitors in the City is Tulare Outlets with 811,000 visitors (including inbound commuters and out-of-market visitors)
 Retail categories exhibiting retail sales leakage in Tulare and low online sales leakage potential include limited and full-service restaurants, grocery stores, and building material and supply stores  Retail sales appear to be leaking to several centers just north of the City’s boundaries (along CA-63/Mooney Blvd.) in Visalia

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CITY OF TULARE – EDSP
A.1 – CITY REVENUE INFORMATION

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2024 GENERAL FUND TAX REVENUES
CITY OF TULARE VS. ALL CA CITIES
Source: Kosmont Companies; CA DOF; CDTFA (Accessed November 2025) Notes: Other revenues may include interest, penalties, delinquent taxes, employer payroll tax, etc.

City of Tulare
Property Taxes, 39.1%
Sales and Use Tax,

21.9%
Transient Occupancy
Taxes & STR Fees,

6.0%
Utility User Fee, 4.9%
Business License Tax,

6.3%
Franchise Fee, 3.5%
Transportation Tax,

3.5%
Property
Transfer Fee,

4.0%
Construction, 1.5%
Parking , 0.5%
Admission, 0.1%
Other, 8.6%
All CA Cities
Property Taxes,
27%
Sales and Use Tax,
44%
Trainsient
Occupancy Taxes ,
3%
Utility User Fee,
15%
Business License
Tax, 15%
Franchise Tax, 4%
Transportation
Tax , 5%
OTHER %, 0%

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HISTORIC TAX REVENUE GROWTH TABLES (2018-2024)

CITY OF TULARE VS TULARE COUNTY CITIES VS ALL CA CITIES Source: Kosmont Companies; CA DOF; CDTFA (Accessed June 2024) Note: Numbers in parentheses and in red indicate a negative number.

City of Tulare
YEAR TOTAL PROPERTY SALES AND USE HOTEL PROP % SALES % HOTEL % 2018 $ 36,815,014 $ 10,826,529 $ 16,255,205 $ 1,391,793 29.4% 44.2% 3.8% 2019 $ 39,925,870 $ 11,383,962 $ 16,751,599 $ 1,503,337 28.5% 42.0% 3.8% 2020 $ 42,247,784 $ 11,995,479 $ 16,362,273 $ 1,431,231 28.4% 38.7% 3.4% 2021 $ 42,930,445 $ 12,761,555 $ 19,980,548 $ 1,565,612 29.7% 46.5% 3.6% 2022 $ 48,339,300 $ 13,318,797 $ 23,290,064 $ 1,985,244 27.6% 48.2% 4.1% 2023 $ 55,052,310 $ 14,188,128 $ 21,973,584 $ 1,936,266 25.8% 39.9% 3.5% 2024 $ 56,283,302 $ 15,388,191 $ 24,875,477 $ 1,415,608 27.3% 44.2% 2.5% % Chg. 53% 42% 53% 2% (7%) 0% (33%)
Tulare County Cities
YEAR TOTAL PROPERTY SALES HOTEL PROP % SALES % HOTEL %
2018 $ 185,630,034 $ 48,873,757 $ 67,740,780 $ 5,523,175 26.3% 36.5% 3.0% 2019 $ 202,662,057 $ 51,619,935 $ 73,019,716 $ 5,596,596 25.5% 36.0% 2.8% 2020 $ 219,401,022 $ 54,203,238 $ 75,675,659 $ 5,066,266 24.7% 34.5% 2.3% 2021 $ 247,367,321 $ 56,891,228 $ 85,337,852 $ 6,140,036 23.0% 34.5% 2.5% 2022 $ 279,549,166 $ 59,096,406 $ 96,716,514 $ 8,033,337 21.1% 34.6% 2.9% 2023 $ 285,767,859 $ 64,270,396 $ 89,224,525 $ 7,867,531 22.5% 31.2% 2.8% 2024 $ 290,619,077 $ 70,650,973 $ 90,888,600 $ 7,602,906 24.3% 31.3% 2.6% % Chg. 57% 45% 34% 38% (8%) (14%) (12%)
All CA Cities
YEAR TOTAL PROPERTY SALES HOTEL PROP % SALES % HOTEL %
2018 $ 31,799,746,521 $ 12,890,489,342 $ 7,005,395,050 $ 2,585,451,532 40.5% 22.0% 8.1% 2019 $ 34,539,905,371 $ 14,177,924,698 $ 7,726,240,615 $ 2,748,778,129 41.0% 22.4% 8.0% 2020 $ 34,343,088,470 $ 14,733,616,783 $ 7,273,442,316 $ 2,052,851,870 42.9% 21.2% 6.0% 2021 $ 37,523,287,391 $ 15,875,562,038 $ 7,935,922,642 $ 1,299,716,160 42.3% 21.1% 3.5% 2022 $ 42,007,714,014 $ 16,441,856,815 $ 9,212,861,760 $ 2,532,105,390 39.1% 21.9% 6.0% 2023 $ 43,920,939,706 $ 17,707,029,878 $ 9,407,047,833 $ 2,981,574,028 40.3% 21.4% 6.8% 2024 $ 45,316,851,574 $ 18,600,289,452 $ 9,401,813,931 $ 3,019,232,378 41.0% 20.7% 6.7% % Chg43% 44% 34% 17% 1% (6%) (18%) 10.3 General Business 60 of 128 KOSMONT COMPANIES | 59
HISTORIC TAX REVENUE GROWTH (2018-2024)

CITY OF TULARE VS TULARE COUNTY CITIES VS ALL CA CITIES Source: Kosmont Companies; CA DOF; CDTFA (Accessed November 2025) 0%
10%
20%
30%
40%
50%
2018 2019 2020 2021 2022 2023 2024
Property Tax Revenue
Growth Since 2018
Tulare Tulare County Cities All CA Cities
-10%
0%
10%
20%
30%
40%
50%
2018 2019 2020 2021 2022 2023 2024
Sales Tax Revenue
Growth Since 2018
Tulare Tulare County Cities All CA Cities
-50%
-30%
-10%
10%
30%
50%
2018 2019 2020 2021 2022 2023 2024
TOT Revenue
Growth Since 2018
Tulare Tulare County Cities All CA Cities

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Source: CA DOF; CDTFA; Kosmont Companies (Accessed November 2025) KOSMONT COMPANIES | 60 Note: Numbers in parentheses and in red indicate a negative number.

Year City Subtotal County
Pool
City
Total
2014 $8,981,000 $996,000 $9,977,000
2015 $8,860,000 $1,276,000 $10,136,000
2016 $8,799,000 $1,110,000 $9,909,000
2017 $9,118,000 $1,060,000 $10,178,000
2018 $9,331,000 $1,140,000 $10,471000
2019 $10,160,000 $1,347,000 $11,507,000
2020 $9,781,000 $1,425,000 $11,206,000
2021 $12,917,000 $1,947,000 $14,864,000
2022 $13,565,000 $2,160,000 $15,725,000
2023 $13,138,000 $2,261,000 $15,389,000
2024 $13,291,000 $2,016,000 $15,307,000
10-Year Growth 48% 102% 53%
COVID-19 Effect
(2019-2020) (3.7%) 5.8% (2.6%)
CAGR 4.0% 7.3% 4.3%

SALES TAX REVENUES BY YEAR
CITY OF TULARE (2014-2024)
0%
50%
100%
150%
200%
250%
2018 2019 2020 2021 2022 2023 2024
Change Since 2018: City Subtotal and
Share of County Pool
TULARE TULARE County Pool

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RETAIL SALES BY CATEGORY BY YEAR
CITY OF TULARE (2015-2023)
Retail
Category 2015 2016 2017 2018 2019 2020 2021 2022 2023 % Growth (2015-23)
2023 % of
Total
Motor Vehicle
& Parts $106,094,166 $110,148,955 $117,752,525 $108,391,118 $109,235,715 $121,612,043 $140,496,856 $130,962,796 $120,742,789 13.8% 9.2% Home
Furnishings $6,751,058 $7,290,753 $6,285,732 $5,618,548 $5,997,474 $4,865,401 $5,866,733 $4,028,479 $3,446,879 (48.9%) 0.3% Building
Materials $78,162,202 $75,609,267 $76,983,566 $83,935,183 $83,522,941 $107,520,534 $120,078,742 $123,046,301 $117,045,561 49.7% 8.9% Food & Beverage $32,907,910 $31,701,419 $32,489,037 $34,727,713 $33,157,729 $31,726,323 $36,264,044 $41,137,853 $40,903,503 24.3% 3.1% Gas Stations $163,094,477 $151,461,579 $168,256,694 $188,071,610 $197,720,544 $167,444,922 $224,576,252 $294,545,022 $269,278,671 65.1% 20.6% Clothing Stores $72,204,111 $78,110,825 $79,072,433 $85,980,269 $93,871,679 $77,893,554 $120,115,639 $107,314,901 $104,321,340 44.5% 8.0% Gen.

Merchandise $93,213,520 $92,842,717 $88,194,267 $90,546,822 $93,507,165 $107,441,608 $118,129,343 $117,838,787 $116,868,257 25.4% 8.9% Restaurants/Bars $81,466,187 $87,411,274 $89,338,139 $90,801,729 $94,770,574 $91,065,635 $124,198,097 $133,616,436 $142,621,115 75.1% 10.9% Other Retail $41,861,120 $44,427,478 $46,175,118 $46,020,315 $48,096,189 $55,049,050 $70,977,121 $71,536,736 $77,440,388 85.0% 5.9% Total Retail &
Food Services $675,754,751 $679,004,267 $704,547,511 $734,093,307 $759,880,010 $764,619,070 $960,702,827 $1,024,027,311 $992,668,503 46.9% 75.8% All Other Outlets $194,634,293 $192,215,260 $207,630,266 $206,533,531 $232,687,273 $225,420,019 $300,913,996 $313,730,790 $317,189,906 63.0% 24.2% TOTAL $870,389,044 $871,219,527 $912,177,777 $940,626,838 $992,567,283 $990,039,089 $1,261,616,823 $1,337,758,101 $1,309,858,409 50.5% 100.0% Source: CA DOF; CDTFA; Kosmont Companies (Accessed November 2025) Notes: *Numbers reflected are in thousands of dollars. Other retail may include pet supply stores, tobacco stores, art dealers, etc. All other outlets refers to business to business or business to government transactions. Numbers in parentheses and in red indicate a negative number.

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CITY OF TULARE – EDSP
A.2 – POPULATION & HOUSEHOLD DEMOGRAPHICS

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POPULATION & INCOME

CITY, COUNTY, AND STATE
2025 Tulare
City
Tulare
County
California
State
Population 72,227 483,050 39,563,914
Daytime Population 67,281 470,608 39,400,957
Households 17,088 148,132 13,785,669
Average HH Size 3.26 3.23 2.80
Median Age 32.2 33.1 38.4
% Bachelor's Degree or Higher 12.4% 17.6% 39.2%
% Hispanic Origin 65.6% 67.5% 40.7%
Per Capita Income $28,894 $29,526 $50,026
Median HH Income $75,413 $75,463 $101,136
Average HH Income $103,544 $96,125 $143,246
Source: ESRI Business Analyst Online (Accessed November 2025)

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8%
9% 9%
16%
14%
13%
11%
10%
6%
3%
1%
7% 7%
8%
16%
14%
13%
11%
10%
8%
4%
1%
5% 6% 6%
13%
15%
14%
12%
12%
10%
5%
2%
0-4 5-9 10-14 15-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ Tulare Tulare County California
Median Age
City of Tulare 32.2
Tulare County 33.1
California 38.4
POPULATION BY AGE – 2025

TULARE HAS A YOUNGER POPULATION COMPARED TO COUNTY AND STATE Source: ESRI Business Analyst Online (Accessed November 2025)

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POPULATION BY EDUCATIONAL ATTAINMENT – 2025

TULARE HAS LOWER LEVELS OF EDUCATIONAL ATTAINMENT
21%
33% 33%
8%
4%
23%
29%
31%
11%
6%
14%
21%
26%
24%
15%
No high school diploma High school graduate or
equivalent
Some college or
Associate's degree
Bachelor's degree Graduate or prof. degree
Tulare Tulare County California
Source: ESRI Business Analyst Online (Accessed November 2025); Notes: Population observed includes people aged 25 and older. % Bachelor’s Degree or Higher
Tulare 12.4%
Tulare County 17.6%
California 39.2%

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7%
6%
7%
12%
19%
14%
20%
10%
7%
9%
7% 7%
11%
17%
15%
18%
9%
8% 7%
5% 5%
8%
13% 12%
18%
12%
21%
<$15K $15-$25K $25-$35K $35-$50K $50-$75K $75-$100K $100-$150K $150-$200K $200K+ Tulare Tulare County California
POPULATION BY INCOME - 2025
36% OF TULARE HOUSEHOLDS EARN >$100K ANNUALLY
HH Income Median Average
Tulare $75,413 $94,998
Tulare County $75,463 $96,125
California $101,136 $143,246
Source: ESRI Business Analyst Online (Accessed November 2025)

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58%
38%
4%
56%
38%
6%
51%
43%
6%
Owner Occupied Renter Occupied Vacant
Tulare Tulare County California
HOUSING BY TENURE - 2025

TULARE HAS MORE OWNER-OCCUPIED UNITS
Avg. HH Size
Tulare 3.26
Tulare County 3.23
California 3.26
Source: ESRI Business Analyst Online (Accessed November 2025)

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Source: Zillow.com (Accessed November 2025) KOSMONT COMPANIES | 68

HOME VALUE HISTORY
2016 - 2025
$763,288
$355,852
$347,883
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023 1/1/2024 1/1/2025 California Tulare County Tulare

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A.3 – UNEMPLOYMENT & EMPLOYMENT BY INDUSTRY
CITY OF TULARE – EDSP

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11.3%

9.9%

7.1%

6.5%

6.1% 6.0%

10.5%

8.1%

5.3%

6.2%

7.0%

13.3%

11.7%

11.2%

10.4% 9.7% 9.7%

13.3%

10.6%

8.2%

9.8%

10.3%

7.6%

6.2% 5.5%

4.8% 4.3% 4.1%

10.1%

7.3%

4.3% 4.7%

5.3%
0%
4%
8%
12%
16%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Tulare Tulare County California

UNEMPLOYMENT HISTORY

CITY, COUNTY, AND STATE
Source: California Employment Development Department (Accessed November 2025); Notes: Numbers are not seasonally adjusted. Annual averages are observed for years 2014 to 2024.

Unemployment Rate
(August 2025)
Tulare 8.0%
Tulare County 10.3%
California 5.8%

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TULARE

EMPLOYMENT

DENSITY MAP
The highest concentrations of
employment in the City of Tulare
area along 99 Hwy. and E. Prosperity
Ave. in the northern section of the City.

There are some additional areas of high
employment in the southern portion of
the City (major industrial facilities and
Agri-Center).

Source: U.S. Census Bureau Center for Economic
Studies (2023, Accessed February 2026)

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EMPLOYMENT BY INDUSTRY

CITY OF TULARE
Resident Employed Population (Age 16+)
Sector Share
Health Care and Social Assistance 15.1%
Agriculture, Forestry, Fishing and Hunting 11.6%
Educational Services 10.7%
Retail Trade 9.6%
Manufacturing 9.4%
Accommodation and Food Services 8.5%
Public Administration 6.9%
Administration & Support, Waste Management and Remediation 5.1% Construction 5.0%
Transportation and Warehousing 4.5%
Wholesale Trade 3.0%
Other Services (excluding Public Administration) 2.7%
Professional, Scientific, and Technical Services 2.5%
Finance and Insurance 1.4%
Real Estate and Rental and Leasing 1.1%
Arts, Entertainment, and Recreation 0.9%
Management of Companies and Enterprises 0.6%
Utilities 0.6%
Information 0.6%
Mining, Quarrying, and Oil and Gas Extraction 0.1%
Workers Employed in Study Area (Age 16+)
Sector Share
Retail Trade 14.6%
Health Care and Social Assistance 14.5%
Manufacturing 13.4%
Accommodation and Food Services 12.1%
Educational Services 11.1%
Agriculture, Forestry, Fishing and Hunting 9.0%
Construction 3.9%
Transportation and Warehousing 3.6%
Public Administration 2.9%
Other Services (excluding Public Administration) 2.8%
Wholesale Trade 2.8%
Administration & Support, Waste Management and Remediation 2.3% Professional, Scientific, and Technical Services 2.0%
Finance and Insurance 1.4%
Utilities 1.4%
Real Estate and Rental and Leasing 1.0%
Information 0.6%
Management of Companies and Enterprises 0.5%
Arts, Entertainment, and Recreation 0.1%
Mining, Quarrying, and Oil and Gas Extraction 0.0%
“Industries in which City residents work” “Jobs in the City” Source: U.S. Census Bureau Center for Economic Studies (2023, Accessed February 2026) Notes: Categorized by North American Industry Classification System (NAICS) Industry Sectors

10.3 General Business 74 of 128
KOSMONT COMPANIES | 73

TULARE RESIDENT

CONCENTRATION
MAP
Residents are mostly located in the
northern section of the City (north of
Foster Dr. / Paige Ave.). There is a sizable
population west of the rail tracks.

Source: U.S. Census Bureau Center for Economic
Studies (2023, Accessed February 2026)
Employed residents / Sq. Mile
Employed residents / Sq. Mile
Employed residents / Sq. Mile
Employed residents / Sq. Mile
Employed residents / Sq. Mile
Employed residents
Employed residents
Employed residents
Employed residents
Employed residents

10.3 General Business 75 of 128
KOSMONT COMPANIES | 74
Outflow:

Where Residents Commute To For Work
City Count Percentage
Tulare city, CA 6,305 23.5%
Visalia city, CA 6,135 22.8%
Fresno city, CA 995 3.7%
Porterville city, CA 578 2.2%
Bakersfield city, CA 511 1.9%
Corcoran city, CA 502 1.9%
Delano city, CA 407 1.5%
Los Angeles city, CA 363 1.4%
Exeter city, CA 301 1.1%
Hanford city, CA 281 1.0%
Dinuba city, CA 243 0.9%
Goshen CDP, CA 220 0.8%
Tipton CDP, CA 186 0.7%
Clovis city, CA 182 0.7%
Lindsay city, CA 180 0.7%
San Jose city, CA 132 0.5%
Farmersville city, CA 131 0.5%
Pixley CDP, CA 121 0.5%
Sacramento city, CA 110 0.4%
San Francisco city, CA 108 0.4%
San Diego city, CA 90 0.3%
Shafter city, CA 83 0.3%
Selma city, CA 74 0.3%
Madera city, CA 70 0.3%
Camarillo city, CA 67 0.2%
All Other Locations 8,491 31.6%
Inflow:

Where Workers Come From
City Count Percentage
Tulare city, CA 6,305 34.1%
Visalia city, CA 3,223 17.4%
Porterville city, CA 528 2.9%
Fresno city, CA 486 2.6%
Hanford city, CA 386 2.1%
Bakersfield city, CA 267 1.4%
Clovis city, CA 225 1.2%
Corcoran city, CA 214 1.2%
Los Angeles city, CA 194 1.0%
Exeter city, CA 164 0.9%
Farmersville city, CA 164 0.9%
Lindsay city, CA 162 0.9%
Lemoore city, CA 138 0.7%
Dinuba city, CA 135 0.7%
Delano city, CA 119 0.6%
Selma city, CA 88 0.5%
Goshen CDP, CA 73 0.4%
Pixley CDP, CA 71 0.4%
Woodlake city, CA 70 0.4%
Tipton CDP, CA 68 0.4%
Reedley city, CA 67 0.4%
East Tulare Villa CDP, CA 66 0.4%
Kingsburg city, CA 62 0.3%
Ivanhoe CDP, CA 61 0.3%
San Jose city, CA 58 0.3%
All Other Locations 5,105 27.6%
WORKER

DESTINATIONS &

ORIGINS

CITY OF TULARE
Source: U.S. Census Bureau Center for Economic
Studies (2023, Accessed February 2026)

10.3 General Business 76 of 128
KOSMONT COMPANIES | 75
Workers employed in City
but living outside
Workers living & employed
in City
Workers living in City but
employed outside
*Employment Ratio = People employed within City (living and working in City + those who come into City for work) / Employed population of City (living and working in City + workers who live in the City, but work outside of the City) Source: U.S. Census Bureau Center for Economic Studies (2023, Accessed February 2026)

WORKER INFLOW / OUTFLOW

CITY OF TULARE
Reference Tulare Tulare
County
Workers Living and Working 6,305 110,517
Workers Coming (Inflow) 12,194 60,067
Workers Going (Outflow) 20,561 71,834
Net Inflow/Outflow (8,367) (11,767)
Employment Ratio* 0.69 0.94
 Employees who work in the City are coming from Visalia, Porterville, Fresno, Hanford, and Bakersfield
 Employed residents living in Tulare are traveling to Visalia, Fresno, Porterville, Bakersfield, and Corcoran for work
 Per the 2023-2024 ACFR, top 10
employers in Tulare include:
➢ Saputo Cheese USA, Inc. (1,178 employees)
➢ Tulare City School District (1,027)
➢ Tulare Joint Union High School District
(646)
➢ Land O’Lakes Inc. (470)
➢ Adventist Health Hospital (410)
➢ City of Tulare (381)
➢ Dryer’s Grand Ice Cream (350)
➢ Lactalis Heritage Dairy (238)
➢ Walmart (218)
➢ U.S. Cold Storage of CA (201)

10.3 General Business 77 of 128
KOSMONT COMPANIES | 76
Industry 2022 2032
Annual
Growth
2022-2032
Total
Growth
2022-2032
Total
Change
2022-2032
Health Care and Social Assistance 18,750 23,580 483 4,830 25.8% Accommodation and Food Services 12,730 12,900 17 170 1.3% Professional, Scientific, and Tech. Services 2,390 2,620 23 230 9.6% Admin. and Support / Waste Mgmt. 8,150 9,670 152 1,520 18.7% Retail Trade 16,850 17,560 71 710 4.2%
Information 630 650 2 20 3.2%
Arts, Entertainment, and Recreation 990 1.120 13 130 13.1% Transportation and Warehousing 8,630 10,920 229 2,290 26.5% Other Services (excludes Private
Household Workers) 3,840 4.040 20 200 5.2%
Educational Services (Private) 1,030 1,140 11 110 10.7% Government 33,200 34,100 90 900 2.7%
Construction 7,400 8,170 77 770 10.4%
Wholesale Trade 4,250 4,470 22 220 5.25%
Financial Activities 3,660 3,740 8 80 2.2%
Mgmt. of Companies and Enterprises 600 570 (3) (30) (5%) Utilities 660 730 7 70 10.6%
Manufacturing 13,370 14,550 118 1180 8.8%
Agriculture, Forestry, Fishing, and Hunting 37,540 38,540 95 950 2.5% Self-Employment 11,970 12,230 26 260 7.8%
Total Employment 186,640 201,250 1,366 13,660 8.4%

EMPLOYMENT

PROJECTIONS BY

INDUSTRY

TULARE COUNTY
Manufacturing, warehouse and health
care show major growth potential
Source: California Employment Development Department, (November 2025) Notes: Other refers to self-employed and private household workers. Numbers in parentheses and in red indicate negative numbers.

Professional and Business Services include professional, scientific, tech services, admin support and waste management and remediation, and management of companies.

10.3 General Business 78 of 128
KOSMONT COMPANIES | 77

CHANGE IN EMPLOYMENT BY SECTOR
CITY OF TULARE VS CITY OF VISALIA (2018 – 2023)
Source: U.S. Census Bureau Center for Economic
Studies, Longitudinal Employer-Household Dynamics
(2023, Accessed February 2026)
-571
-265
-58
-47
-45
-41
-41
-28
-23
-8
-4
1 56
56 66
153
266
296
324
881
-1,000 -500 0 500 1,000 1,500 2,000
Agriculture, Forestry, Fishing and Hunting
Professional, Scientific, and Technical Services
Construction
Real Estate and Rental and Leasing
Finance and Insurance
Wholesale Trade
Information
Arts, Entertainment, and Recreation
Public Administration
Management of Companies and Enterprises
Mining, Quarrying, and Oil and Gas Extraction
Utilities
Educational Services
Other Services (excluding Public Administration)
Administration & Support, Waste Management and Remediation Transportation and Warehousing
Manufacturing
Retail Trade
Accommodation and Food Services
Health Care and Social Assistance
City of Tulare City of Visalia

10.3 General Business 79 of 128
KOSMONT COMPANIES | 78

LOCATION QUOTIENTS INTRODUCTION
Location quotients (“LQ”) are ratios that aid in assessing an area’s specialization within an industry. Here, we are using LQ’s to compare Tulare’s share of employment in an industry to the shares in Visalia and Tulare County.

If the LQ is equal to 1, employment shares are proportional. If the LQ is greater than 1, then Tulare has a higher concentration of employment, and the industry has a regional specialization. An LQ less than 1, indicates less concentration and regional specialization.

The following slide contains 2018 and 2023 LQ’s for Tulare compared to Visalia and Tulare County. It is observed that the City of Tulare has a higher concentration of jobs compared to Visalia and Tulare County in the following industries: utilities (power generation / distribution, natural gas, water / sewage), manufacturing, retail trade, information (includes data processing, telecommunications, broadcasting, etc.), and accommodation and food services (includes hotels, caterers, bars, restaurants). It is important to note, however, that while Tulare continues to have an advantage in these categories over Visalia and Tulare County, it is losing ground to those two areas in utilities.

The City of Tulare shows the least specialization in the following industries: construction, transportation and warehousing, admin and support, health care and social assistance, arts / entertainment, and public administration. The City is, however, gaining ground on Visalia and Tulare County in the following industries: transportation and warehousing, administration and support, and health care and social assistance.

10.3 General Business 80 of 128
KOSMONT COMPANIES | 79
LOCATION QUOTIENTS (2018-2023)
CITY OF TULARE VS. CITY OF VISALIA VS. TULARE COUNTY
Source: U.S. Census Bureau Center for Economic Studies, Longitudinal EmployerHousehold Dynamics (2023, Accessed February 2026) Notes: Numbers in parentheses and in red indicate negative numbers. 2018 LQ 2023 LQ 2018-2023 LQ Chg.

NAICS Industry Tulare /
Visalia
Tulare /
Tulare County
Tulare /
Visalia
Tulare /
Tulare County
Tulare /
Visalia
Tulare /
Tulare County
Agriculture, Forestry, Fishing and Hunting 5.74 0.54 1.80 0.41 (68.6%) (23.1%) Mining, Quarrying, and Oil and Gas Extraction - 0.58 - 0.00 - (100.0%) Utilities 6.13 2.59 5.07 2.44 (17.2%) (6.0%)
Construction 0.97 1.16 0.71 0.87 (26.9%) (24.8%)
Manufacturing 2.31 1.50 2.67 1.71 15.6% 14.5%
Wholesale Trade 0.82 1.11 0.90 1.08 9.1% (2.1%)
Retail Trade 1.30 1.64 1.55 1.75 19.7% 6.2%
Transportation and Warehousing 0.75 0.73 0.85 0.87 12.6% 18.5% Information 1.07 1.76 1.68 2.07 56.4% 17.6%
Finance and Insurance 0.57 1.08 0.89 1.27 55.4% 18.1%
Real Estate and Rental and Leasing 1.26 1.66 0.81 1.18 (35.5%) (28.6%) Professional, Scientific, and Technical Services 1.34 2.02 0.73 1.26 (45.1%) (37.9%) Management of Companies and Enterprises 0.78 1.13 0.73 1.06 (6.4%) (6.4%) Administration & Support, Waste Mgmt. and Remediation 0.27 0.37 0.33 0.43 22.0% 15.3% Educational Services 0.90 1.06 1.05 1.06 16.9% 0.5%
Health Care and Social Assistance 0.55 0.85 0.66 0.96 21.1% 14.0% Arts, Entertainment, and Recreation 0.28 0.30 0.14 0.13 (49.9%) (56.9%) Accommodation and Food Services 1.25 1.60 1.42 1.70 13.5% 6.3% Other Services (excluding Public Administration) 1.00 1.30 1.05 1.40 5.0% 7.7% Public Administration 0.34 0.66 0.31 0.57 (8.9%) (13.5%)

10.3 General Business 81 of 128
KOSMONT COMPANIES | 80

TULARE EMPLOYMENT LOCATION QUOTIENT / JOBS CHANGE
(2018-2023) / SECTOR SHARE OF TOTAL (EXCL. MINING)
CITY OF TULARE VS. CITY OF VISALIA
Source: U.S. Census Bureau Center for Economic Studies, Longitudinal EmployerHousehold Dynamics (2023, Accessed February 2026) Notes: Numbers in parentheses and in red indicate negative numbers.

Agriculture, Forestry,
Fishing and Hunting, -571
Construction, -58 Utilities, 1
Manufacturing, 266
Wholesale Trade, -41
Retail Trade, 296
Transportation and
Warehousing, 153
Information, -41
Finance and Insurance, -45
Real Estate and Rental and Leasing, -47
Professional, Scientific, and
Technical Services, -265
Management of
Companies and
Enterprises, -8
Administration &
Support, 66
Educational Services, 56
Health Care and Social Assistance, 881
Arts, Entertainment, and
Recreation, -28
Accommodation and
Food Services, 324
Other Services (excluding Public
Administration), 56
Public Administration, -23
-1000
-800
-600
-400
-200
0 200
400
600
800
1000
1200

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 Tulare Job Growth (2018-2023)
Location Quotient (Tulare / Visalia)

10.3 General Business 82 of 128
KOSMONT COMPANIES | 81
Source: U.S. Census Bureau Center for Economic Studies, Longitudinal EmployerHousehold Dynamics (2023, Accessed February 2026) Notes: Numbers in parentheses and in red indicate negative numbers.

TULARE EMPLOYMENT LOCATION QUOTIENT / JOBS CHANGE
(2018-2023) / SECTOR SHARE OF TOTAL (EXCL. MINING)
CITY OF TULARE VS. COUNTY OF TULARE
Agriculture, Forestry, Fishing and
Hunting, -571
Utilities, 1
Construction, -58
Manufacturing, 266
Wholesale Trade, -41
Retail Trade, 296
Transportation and
Warehousing, 153
Information, -41 Finance and Insurance, -45
Real Estate and Rental and Leasing, -47
Professional, Scientific, and Technical Services,
-265
Management of Companies and
Enterprises, -8
Administration & Support, 66
Educational Services, 56
Health Care and Social Assistance, 881
Arts, Entertainment, and
Recreation, -28
Other Services (excluding Public Accommodation and Food Services, 324 Administration), 56
Public Administration, -23
-1000
-800
-600
-400
-200
0 200
400
600
800
1000
1200

0.00 0.50 1.00 1.50 2.00 2.50 3.00
Tulare Job Growth (2018-2023)
Location Quotient (Tulare / Tulare County)

10.3 General Business 83 of 128
KOSMONT COMPANIES | 82

INTRODUCTION TO NAICS CODES
Source: U.S. Census Bureau Center for Economic Studies, Longitudinal Employer-Household Dynamics (Accessed March 2026)  The North American Industry Classification System (NAICS) is a standardized system used to classify businesses by industries  NAICS Codes were utilized in the Location Quotient analyses  2-digit NAICS codes refer to a broad industry category. In our analysis, we included some of these industries, such as general agriculture (NAICS 11), wholesale (NAICS 42), and populationserving industries which Kosmont defined as the combination of retail (NAICS 44 and 45), health care and social assistance (NAICS 62), accommodation and food services (NAICS 72), and other services [e.g., repair/maintenance, salons, etc] (NAICS 81)  4-digit NAICS codes were used to highlight more specialized industries. For example, Ag Tech/Support includes farm machinery and equipment manufacturing, food product machinery
manufacturing, testing labs (including soil and food testing), ag consulting, and R&D in the physical/engineering sciences (including ag tech). Other manufacturing refers to manufacturing of apparel, nondurable goods (wood, paper, petroleum, plastics), and manufacturing of metals. Logistics and distribution includes various modes of transportation (rail, truck, pipeline) and warehousing and storage.

10.3 General Business 84 of 128
KOSMONT COMPANIES | 83
LQ/EMPLOYMENT SUMMARY (TULARE COUNTY VS.

SAN JOAQUIN VALLEY ADJACENT COUNTIES)
Location Quotients
 Kosmont calculated the 2014, 2019, and 2024 location quotients comparing Tulare County with adjacent counties in the San Joaquin Valley (including Fresno, Kern, and Kings Counties). Specific industry data was found at the County level
 Industries observed include: general agriculture, ag tech/support, food and beverage manufacturing, other manufacturing, logistics and distribution, wholesale, and population-serving industries (e.g., accommodation and food services, medical)
 Tulare County appears to have a higher regional specialization relative to the three adjacent counties in the following industries:
general agriculture, food and beverage manufacturing, other manufacturing, and logistics and distribution
 In the ten-year period between 2014 and 2024, Tulare County increased its regional specialization in general ag, ag tech/support, and the manufacturing categories.
 While Tulare County does not have a regional specialization in ag tech compared to neighboring counties, the industry is growing significantly in Tulare County
 Tulare County does have a regional concentration in logistics and distribution, but it is shifting to the adjacent counties Employment Growth Trends
 Across the observed categories, Tulare County is growing in each category. Comparatively, general ag and ag tech/support has shown a decline in employment in the adjacent counties
 Although ag tech/support is only a small concentrated portion of employment in both Tulare County and the surrounding counties, the share of employment has grown in Tulare County, while it has declined in neighboring counties
 Logistics and distribution comprise the largest share of total employment across the observed geographies, however, it is a much larger industry in the adjacent counties
Source: U.S. Census Bureau Center for Economic Studies, Longitudinal Employer-Household Dynamics (Accessed March 2026)

10.3 General Business 85 of 128
KOSMONT COMPANIES | 84
LOCATION QUOTIENTS (2014, 2019, 2024)
TULARE COUNTY VS. SAN JOAQUIN VALLEY COUNTIES (FRESNO, KERN, KINGS) Tulare County / SJV Counties LQ
Chg.

NAICS Industry (NAICS Code) (2014-2024) 2014 LQ 2019 LQ 2024 LQ General Agriculture (11) 1.41 1.57 1.60 12.8%
Ag Tech/Support (3331, 3332, 5413, 5416, 5417) 0.54 0.58 0.65 20.3% Food and Beverage Manufacturing (311, 312) 1.36 1.33 1.48 8.9% Other Manufacturing (313-316, 32, 33, excl. 3331, 3332) 1.26 1.56 1.27 1.3% Logistics and Distribution (481-488, 4931) 1.42 1.01 1.08 (23.8%) Wholesale (42) 0.77 0.89 0.75 (1.7%)
Population-Serving Industries (Retail, Hotels, Medical Facilities) (44, 45, 62, 72, 81) 0.98 0.85 0.94 (4.8%)
Source: U.S. Census Bureau Center for Economic Studies, Longitudinal Employer-Household Dynamics (Accessed March 2026) Notes: Numbers in parentheses and in red indicate negative numbers. General Agriculture refers to crop/cattle farming, fishing/hunting, forestry/logging, and support activities for crop production. Ag Tech/Support includes farm machinery and equipment manufacturing, food product machinery manufacturing, testing labs (including soil and food testing), ag consulting, and R&D in the physical/engineering sciences (including ag tech). Other manufacturing refers to manufacturing of apparel, non-durable goods (wood, paper, petroleum, plastics), and manufacturing of metals. Logistics and distribution includes various modes of transportation (rail, truck, pipeline) and warehousing and storage.

10.3 General Business 86 of 128
KOSMONT COMPANIES | 85
EMPLOYMENT GROWTH BY CATEGORY (2014-2024)
TULARE COUNTY VS. SAN JOAQUIN VALLEY COUNTIES (FRESNO, KERN, KINGS) Source: U.S. Census Bureau Center for Economic Studies, Longitudinal EmployerHousehold Dynamics (Accessed March 2026) Notes: Numbers in parentheses and in red indicate negative numbers.

Tulare County
NAICS Industry (NAICS Code) 2014 2024 Growth
(2014-2024)
% Sector Share
(2014)
% Sector Share
(2024)
% Sector Share
Growth
General Agriculture (11) 34,140 36,133 1,993 23.0% 20.4% (11.4%) Ag Tech/Support (3331, 3332, 5413, 5416, 5417) 1,334 1,611 277 0.9% 0.9% 1.1% Food and Beverage Manufacturing (311, 312) 6,567 7,467 900 4.4% 4.2% (4.8%) Other Manufacturing (313-316, 32, 33, excl. 3331, 3332) 4,254 5,164 910 2.9% 2.9% 1.7% Logistics and Distribution (481-488, 4931) 5,101 7,949 2,848 3.4% 4.5% 30.5% Wholesale (42) 3,842 4,089 247 2.6% 2.3% (10.9%)
Population-Serving Retail, Hotels, Medical Facilities
(44, 45, 62, 72, 81) 48,059 61,619 13,560 32.3% 34.7% 7.4% Total Employment (All NAICS Categories) 148,560 177,403 28,843 100.0% 100.0% - San Joaquin Valley Counties
NAICS Industry (NAICS Code) 2014 2024 Growth
(2014-2024)
% Sector Share
(2014)
% Sector Share
(2024)
% Sector Share
Growth
General Agriculture (11) 115,320 105,264 (10,056) 16.2% 12.8% (21.4%) Ag Tech/Support (3331, 3332, 5413, 5416, 5417) 11,831 11,560 (271) 1.7% 1.4% (15.9%) Food and Beverage Manufacturing (311, 312) 23,110 23,470 360 3.3% 2.8% (12.6%) Other Manufacturing (313-316, 32, 33, excl. 3331, 3332) 16,146 18,834 2,688 2.3% 2.3% 0.4% Logistics and Distribution (481-488, 4931) 17,202 34,221 17,019 2.4% 4.1% 71.2% Wholesale (42) 23,939 25,215 1,276 3.4% 3.1% (9.4%)
Population-Serving Retail, Hotels, Medical Facilities
(44, 45, 62, 72, 81) 233,733 306,338 72,605 32.9% 37.1% 12.8% Total Employment (All NAICS Categories) 709,809 824,760 114,951 100.0% 100.0% -

10.3 General Business 87 of 128
KOSMONT COMPANIES | 86
A.4 – VISITATION TRENDS
CITY OF TULARE – EDSP

10.3 General Business 88 of 128
KOSMONT COMPANIES | 87
0 50,000
100,000
150,000
200,000
250,000
Jan-19
May-19
Sep-19
Jan-20
May-20
Sep-20
Jan-21
May-21
Sep-21
Jan-22
May-22
Sep-22
Jan-23
May-23
Sep-23
Jan-24
May-24
Sep-24
Jan-25
May-25
Sep-25
Inbound Commuters
0 200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
Jan-19
May-19
Sep-19
Jan-20
May-20
Sep-20
Jan-21
May-21
Sep-21
Jan-22
May-22
Sep-22
Jan-23
May-23
Sep-23
Jan-24
May-24
Sep-24
Jan-25
May-25
Sep-25
Out-of-Market Visitors

OVERALL VISITS PER MONTH BY

OUT-OF-MARKET VISITORS AND INBOUND COMMUTERS
CITY OF TULARE (1/1/19 – 12/31/25)
Source: Placer.ai (Accessed September 2025)
28% drop in visits from
March to April 2020
17% drop in visits from
March to April 2020

10.3 General Business 89 of 128
KOSMONT COMPANIES | 88
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
Jan-22
Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Inbound Commuters Out-of-Market Visitors
OVERALL VISITS COMPARED TO 2019 BASELINE YEAR
CITY OF TULARE (1/1/19 – 12/31/25)
Source: Placer.ai (Accessed September 2025)
December is a peak month for
visits by inbound commuters
(peak month since 2021)
March 2021 was the month when visits by out-of-market visitors returned above baseline year levels. Visits by inbound commuters first passed this mark just a month later. Since March 2021, visits by out-of-market visitors averages 5% higher than baseline year levels and visits by inbound commuters averages 10% higher.

10.3 General Business 90 of 128
KOSMONT COMPANIES | 89

CITY OF TULARE
OUT-OF-MARKET VISITOR DEMOGRAPHICS 1/1/25 TO 12/31/25
Demographic Highlights
Total Visits 18.2 million
Avg. Days Spent in Market 7.4
Total Visitors 2.4 million
Average HH Size 3.21
Number of Households
(calculated) 747,700
Med. Visit Length 1 hr. 15 min.

Avg. Visit Length 3 hrs. 7 min.

Most Common Ethnicity Hispanic (63.3%)
Bachelor’s Degree or Higher 17.4%
Median HH Income $71,500
Average HH Income $92,900
Source: Placer.ai; STI Popstats 2024 (Accessed January 2026) Visitor Household Incomes
< $50,000 34.4%
$50,000 - $100,000 32.1%
> $100,000 33.5%
Visitor Ethnicities
Hispanic 63.3%
White 25.9%
Asian 5.2%
Other 3.4%
Black 2.2%
Education Levels (Aged 25+)
High School or Less 51.7%
Some College/Associates 30.9%
Bachelor’s or Higher 17.4%

10.3 General Business 91 of 128
KOSMONT COMPANIES | 90

CITY OF TULARE
OUT-OF-MARKET VISITOR ANALYTICS 1/1/25 TO 12/31/25
Top 10 Visitor Origins (Zip Codes)
Zip Code City / Area
Serviced
# of Visits by Outof-Market Visitors
93277 Visalia 1.7 million
93291 Visalia 1.5 million
93257 Porterville 1.4 million
93274 Tulare 1.2 million
93292 Visalia 1.1 million
93247 Lindsay 650 thousand
93230 Hanford 547 thousand
93272 Tipton 526 thousand
93212 Corcoran 519 thousand
93256 Pixley 388 thousand
Source: Placer.ai (Accessed January 2026)
▪ 38% of visits come from within 10 miles of the City; another 32% come from between 10 and 30 miles; another 30% from 30+ miles away
▪ Top 10 visitor origins are listed in the table below by zip code

10.3 General Business 92 of 128
KOSMONT COMPANIES | 91

CITY OF TULARE
INBOUND COMMUTER DEMOGRAPHICS 1/1/25 TO 12/31/25
Demographic Highlights
Total Visits 2.1 million
Avg. Days Spent in Market 161.5
Total Visitors 13,000
Average HH Size 3.26
Most Common Ethnicity Hispanic (62.8%)
Bachelor’s Degree or Higher 16.6%
Median HH Income $74,700
Average HH Income $94,200
Source: Placer.ai; STI Popstats 2024 (Accessed January 2026) Notes: Inbound commuters refer to people who come to the City for work. This does not include the number of resident workers which totals ~18,200. Median and average visit length is unavailable for employees.

Visitor Household Incomes
< $50,000 32.5%
$50,000 - $100,000 32.6%
> $100,000 34.9%
Visitor Ethnicities
Hispanic 62.8%
White 28.4%
Asian 4.0%
Other 3.2%
Black 1.7%
Education Levels
High School or Less 52.5%
Some College/Associates 30.9%
Bachelor’s or Higher 16.6%

10.3 General Business 93 of 128
KOSMONT COMPANIES | 92

CITY OF TULARE
INBOUND COMMUTER ANALYTICS 1/1/25 TO 12/31/25
Top 10 Inbound Commuter Origins (Zip Codes)
Zip Code City / Area
Serviced
# of Visits by Inbound
Commuters
93277 Visalia 1,900
93291 Visalia 1,700
93292 Visalia 1,300
93274 Tulare 1,100
93257 Porterville 814
93230 Hanford 522
93272 Tipton 499
93247 Lindsay 496
93212 Corcoran 390
93256 Pixley 364
Source: Placer.ai (Accessed January 2026)
▪ 67% of inbound commuters come from within 10 miles of the City; another 29% come from between 10 and 30 miles
▪ Just 4% of inbound commuters who work in the City come from beyond 30 miles
▪ Top 10 origins are listed in the table below by zip code

10.3 General Business 94 of 128
KOSMONT COMPANIES | 93

CITY OF TULARE

TOP IN MARKET LOCATIONS BY NUMBER OF VISITS
Source: Placer.ai (Accessed January 2026)
Notes: Visit numbers include out of market visitors, employees, and residents in the last 12-month period.

City of
Tulare
Target
43rd in visits out of 296 Targets in CA

2.1M visits (85th percentile, 94th nationwide)
Walmart
99th in visits out of 208 Walmarts in CA

2.4M visits (52nd percentile, 60th nationwide)
Monte Vista Plaza

2.1M visits
Key Tenants: Smart & Final (596,800
visits, -3% YOY)
Starbucks (424,300 visits, -1% YOY)
The Village

2.2M visits
Key Tenants: Vallarta Supermarket
(872,800 visits, +4% YOY)
Planet Fitness
(483,600 visits, +7% YOY)
Tulare Marketplace

3.1M visits
Key Tenant: Target
(2.1M visits, +1% YOY)
Plaza Del Lago

4.1M visits
Key Tenants: Walmart
(2.4M visits, +1% YOY);
Foods Co.
(1.2M visits, +5% YOY)
Tulare Outlets

3.0M visits
Key Tenant: Galaxy Theatres
(700,200 visits, -1% YOY);
Nike Factory Outlets
(404,000 visits, +1% YOY)
Prosperity Plaza

1.4M visits
Key Tenant: Lowe’s
(551,700 visits, -1% YOY)
Heritage Place

1.4M visits
Key Tenants: Grocery Outlet
(441,100 visits, +6% YOY);
Dollar Tree (292,900 visits, +29% YOY)
Tulare Pavilion Shopping Center

2.1M visits
Key Tenants: Ross (645,800visits, +10% YOY);
Dollar Tree (238,500 visits, -16% YOY)

10.3 General Business 95 of 128
KOSMONT COMPANIES | 94

CITY OF TULARE

TOP VISITED

IN MARKET

LOCATIONS
1/1/25 TO 12/31/25
Residents
Location Total
Visitors
Plaza Del Lago
1110 E. Prosperity Ave. 58,200
Walmart*
1110 E. Prosperity Ave. 53,600
Tulare Market Place
2195 E. Prosperity Ave. 53,000
Tulare Pavilion Shopping Center
1475 Hillman St. 50,800
The Village
621 E. Prosperity Ave. 50,100
Monte Vista Plaza
1089 E. Prosperity Ave. 49,500
Target*
2195 E. Prosperity Ave. 49,400
Tulare Outlets
1407 Retherford St. 48,700
Prosperity Plaza
1019 E. Prosperity Ave. 44,600
Heritage Plaza
170 E. Cross Ave. 43,800
Source: Placer.ai (Accessed January 2026)
Notes: *Walmart is located within the Plaza Del Lago shopping center (thus 53,600 of the 58,200 resident visitors to shopping center are visiting Walmart). Similarly, the Target located at the Tulare Market Place make up 49,400 of the 53,000 resident visitors.

Out-of-Market Visitors
and Inbound Commuters
Location Total
Visitors
Tulare Outlets
1407 Retherford St. 811,000
Love’s Travel Stop
2700 S. Blackstone St. 498,300
Plaza Del Lago
1110 E. Prosperity Ave. 387,200
Pilot Travel Center
979 E. Paige Ave. 352,500
Tulare Pavilion Shopping Center
1475 Hillman St. 340,200
Tulare Market Place
2195 E. Prosperity Ave. 329,900
Walmart*
1110 E. Prosperity Ave. 286,300
Monte Vista Plaza
1089 E. Prosperity Ave. 284,100
In-N-Out Burger
1591 E. Prosperity Ave. 271,500
Galaxy Theatres Tulare
1575 Retherford St. 270,500

10.3 General Business 96 of 128
KOSMONT COMPANIES | 95

RETAIL LEAKAGE
(1/1/25 TO
12/31/25)
Source: Placer.ai (Accessed January 2026)
Note: Numbers in parentheses and in red indicate a negative number (leakage).

Retail categories featuring high retail
leakage and low online sales leakage
potential among Tulare consumers
include: limited- and full-service
restaurants, grocery stores, and building
material and supply stores.

UNMET RETAIL DEMAND BY RETAIL CATEGORY (TULARE CONSUMER PURCHASES) Retail Category Supply (Sales) $ Demand $ Surplus / Leakage $ Online Sales Leakage Potential
Gasoline Stations 208.6 M 141.9 M 66.7 M Low
Auto Parts / Accessories Stores 39.0 M 27.6 M 11.4 M Low Shoe Stores 16.2 M 7.3 M 8.9 M High
Furniture Stores 11.4 M 12.5 M (1.1 M) Medium
Electronics & Appliance Stores 14.5 M 17.0 M (2.5 M) High Home Furnishings Stores 8.9 M 12.4 M (3.5 M) Medium
Bars / Drinking Places 1.0 M 5.4 M (4.4 M) Low
Department Stores 19.8 M 28.0 M (8.2 M) Varies
Beer / Wine / Liquor Stores 4.0 M 13.2 M (9.2 M) Low
Sporting Goods / Hobby Stores 5.9 M 15.8 M (9.9 M) High Automobile Dealers 256.8 M 267.5 M (10.7 M) Low
Clothing Stores 42.7 M 55.7 M (13.0 M) High
Health & Personal Care Stores 63.1 M 85.7 M (22.6 M) Medium Other Gen. Merchandise Stores 121.4 M 158.8 M (37.4 M) Medium Grocery Stores 116.7 M 169.2 M (52.5 M) Low
Limited-Service Restaurants 47.3 M 103.1 M (55.8 M) Low Building Material & Supply Stores 24.5 M 85.5 M (61.0 M) Low Full-Service Restaurants 36.0 M 100.8 M (64.8 M) Low

10.3 General Business 97 of 128
KOSMONT COMPANIES | 96

RETAIL LEAKAGE
MAP
Source: Placer.ai, ESRI Business Analyst
Online (Accessed January 2026)
The points on the map show the top retail
centers and establishments across retail
categories where Tulare residents shop outside
of the City. Numbers are ordered by the
number of visits made by Tulare residents to
these locations.

Tulare residents do not travel too far to shop
at these locations given most of the shopping
centers in Visalia are within a ten-to-fifteen-
minute drive time just north of the City’s
boundaries (along CA-63/Mooney Blvd.) to
shop. A majority of the top ten areas of retail
leakage are located along Mooney Blvd.

City of
Tulare
1 8
3,6
105
749
2 City of
Visalia

10.3 General Business 98 of 128
KOSMONT COMPANIES | 97
TOP 10 AREAS OF RETAIL LEAKAGE
TULARE RESIDENTS (1/1/25 TO 12/31/25)
Top 10 Areas Where Tulare Resident Sales Are Leaking (by Number of Visits) Rank Location City Anchor Tenants /
Major Retail # of Residents # of Visits Average Distance From Home (mi) 1 Packwood Creek Visalia Target, Lowe’s, Best Buy 48,900 489,200 6.03 2 Costco (Visalia)* Visalia N/A 36,900 283,000 6.12
3 Visalia Pavilion Visalia WinCo Foods 31,700 279,800 6.11 4 Sequoia Mall Visalia Raising Cane’s, Hobby Lobby, Marshalls, Sprouts, Nordstrom Rack 37,900 275,100 6.51
5 Sequoia Plaza Visalia Walmart, Burlington, Dollar Tree, Ashley Store 34,000 239,900 6.30 6 WinCo Foods** Visalia N/A 27,800 236,800 6.12
7 Visalia Mall Visalia JCPenney, Macy’s 41,300 236,100 7.24 8 Orchard Walk Visalia Target, Vallarta Supermarket 18,400 200,500 10.56 9 Gateway Plaza Visalia Dick’s Sporting Goods, HomeGoods, Five Below, Staples 34,100 166,700 6.26 10 Park Place Promenade Visalia Ross, Kohl’s 30,300 165,800 7.28 Source: Placer.ai (Accessed January 2026)
Note: *Costco visits does not include visits to Costco gas station. **WinCo Foods located in Visalia Pavilion.

10.3 General Business 99 of 128
KOSMONT COMPANIES | 98
CITY OF TULARE – EDSP
B – MARKET DEMAND ANALYSIS

10.3 General Business 100 of 128
KOSMONT COMPANIES | 99

MARKET SUMMARY

MARKET TRENDS AND RETAIL MARKET
Market Trends
 Retail: Retail store closures, bankruptcies, and e-commerce has changed economics of retail centers; Retail centers are being reimagined into mixed/blended use developments; Retail is driven by trip-generators like entertainment, experience, and essential  Office: Leasing activity has declined as remote work becomes new normal; shift to suburban offices and integrating office amenities in blended use environments
 Industrial: E-commerce is accelerating growth of industrial; Significant demand for fulfillment, last-mile, flex / R&D, and warehouse facilities  Residential: Home have become live, play, and work environments; Home offices are the new home amenity as single and multifamily housing projects are designed to accommodate work space  Hospitality: The hospitality sector (including conventions and tourism) was hurt significantly by the COVID-19 pandemic; Leisure travel is showing signs of rebounding
Retail
▪ Slightly limited demand for retail space, given e-commerce trends; major available retail space in the City at Tulare Pavilion (64,423 SF), including former Big Lots, however, additional growth in population is spurring interest in additional retail
▪ Retail vacancy is currently higher than both the City of Visalia and the County. Historically, however, retail vacancy remained lower than Visalia and Tulare County. Currently and historically, retail rents in Tulare are lower than both Visalia and Tulare County
▪ Approximately 21 buildings totaling 105,000 SF added to the City’s retail market in the 10-year period between 2014 and 2024; three buildings were removed, yielding a net gain of 18 buildings ▪ 5,000 SF Chick-fil-A opened May 2026 at SEC of Cartmill Ave. and Hwy 99
▪ ~135,000 SF of retail proposed in the City, including the 67,500 SF “The Vineyard” shopping center at NWC Prosperity Ave. and N.

Mooney Blvd.
▪ Some retail currently leaking to Visalia shopping centers

10.3 General Business 101 of 128
KOSMONT COMPANIES | 100
Office
▪ Relatively small office market in the City (1.0M SF). ▪ Within the 10-year period from 2014 to 2024, there has been a net gain in office space (11 buildings added, totaling 107,900 SF, including a 41,100 SF medical office built in 2024)
▪ Office vacancy is lower than that of Visalia and Tulare County; office rents are on par with Visalia and the County
▪ Q1 2026 vacancy decreased to just 1.1%, as new businesses have moved into office space. One new 5,200 SF office building recently opened in Q1 2026
▪ Demand for office space is further limited. Per CoStar, there is no office space currently planned, proposed, or under construction ▪ 39% of overall office space is older than 40 years, half of which (~197,400 SF) could be potentially replaced or reimagined Industrial / Flex
▪ Industrial/Flex is largest commercial land use type in City (6.1M SF) ▪ Industrial vacancy in the City is lower and rents are higher than both Visalia and Tulare County, indicating a strong industrial market ▪ Significant demand for industrial space with 13 new industrial buildings built within the ten-year period of 2014 to 2024, totaling 628,500 SF (including a 544,100 SF distribution facility at 99 Central Logistics Center, built in 2024)
▪ ~61,300 SF was recently added to the industrial / flex market in 2026 (CNS Business Park, opened February 2026) along with two other 5,000 SF industrial warehouse buildings
▪ Another 1.1M SF of industrial distribution facilities are proposed at the 99 Central Logistics Center and an additional 1.1M SF is proposed at 2918 Pratt St.
▪ ~26% of the industrial / flex space in the City is older than 40 years.

An estimated ~400K-800K SF (between a quarter or half of total industrial space) could be redeveloped or upgraded to meet the needs of shifting industrial market in the future

MARKET SUMMARY

OFFICE AND INDUSTRIAL / FLEX MARKETS

10.3 General Business 102 of 128
KOSMONT COMPANIES | 101

MARKET SUMMARY

MULTIFAMILY RESIDENTIAL MARKET
Multifamily Residential
▪ Strong multifamily residential market in the City (3.0% vacancy in Q1 2026), lower than both Visalia and Tulare County. Aside from new construction spikes, multifamily vacancy generally trends lower than the observed geographies
▪ 51% of units are market-rate, 47% affordable, and 2% of units are in a building with a mix of market-rate and affordable units. Senior housing accounts for 9% of housing units
▪ Majority of the City’s units are Class C (57%), followed by Class B (35%) and Class A (8%)
▪ Between 2014 and 2024, a total of 386 units were built across four buildings. The largest project was The Riviera Apartments, a 168- unit market-rate building built in 2019. There has been no new multifamily construction in the City since the Orchards 79 project was built in 2023, adding 87 market-rate, single family home apartments
▪ According to CoStar there are currently no multifamily buildings planned, proposed, or under construction. There was an 82-unit senior market-rate apartment building proposed, but plans have been cancelled
▪ The City may consider allocating greater density to future projects to meet the demand for housing and Regional Housing Needs Assessment (“RHNA”) requirements (4,749 new units, 49% of which are affordable)

10.3 General Business 103 of 128
KOSMONT COMPANIES | 102
B.1 – MARKET TRENDS
CITY OF TULARE – EDSP

10.3 General Business 104 of 128
KOSMONT COMPANIES | 103

MARKET TRENDS SUMMARY
 Key trends in the post-pandemic economy:
➢ Retail
• Retail store closures, bankruptcies, and e-commerce
has driven changes in retail; Retail centers are being
reimagined (e.g., mixed/blended use development)
• Retail driven by trip-generators such as
entertainment, experience, and essentials (e.g., food)
➢ Office
• Office leasing activity dropping as remote work
becomes new normal; Social distancing led to offices
resizing/reconfiguring
• Integrating office in blended use environments;
Possible shift to suburban offices / residential
conversions
➢ Industrial
• E-commerce has accelerated growth of industrial;
• Retail and industrial are merging, with space being
used for Buy Online Pick Up in Store (BOPIS),
fulfillment, last mile and warehousing (including flex) ➢ Residential
• Homes are live, play, and work environments
• Strength in suburban markets; Home office is the
new home amenity as single and multifamily housing
developments are designed to facilitate work
• New residential sites within shopping centers
➢ Hospitality
• Hospitality sector hurt the most by COVID-19
(conventions and business), but leisure travel is
rebounding

10.3 General Business 105 of 128
KOSMONT COMPANIES | 104
Housing is Not a Loss
Leader, it’s a
Growth Driver
Retail is Not Just
Retail Anymore
Telework is
Reconfiguring Office
Industrial /
Distribution is Critical
for the Economy
Housing as Economic
Development
Retail Reimagination as
Economic Development
Office Conversions as
Economic Development
Industrial & Fulfillment as
Economic Development
• New housing can generate
significant new tax revenues and
support local jobs from resident
spending
• Housing is not necessarily a net
negative fiscal impact, especially at
current property values
• U.S. retail over-built and needs
“right sizing;” Covid accelerated
trends; today its about essentials,
experience & e-commerce
• Blended/mixed use projects
integrate multiple uses (housing,
retail, open space, creative office,
hotel)
• Telework and work from home
options are reshaping the needs for
office space and business districts
• Job redistribution tied to housing
• Vacancies can lead to fiscal impact
pressure
• Modern industrial is not “your
father’s industrial” – it is a blend
• Retail can’t thrive without
distribution; Booming demand for
e-commerce, particularly smaller
last-mile delivery facilities
• Flex space (a blend of industrial,
office, research and development
space) is a growing market. Cities
can attract high tech / skill firms
with such space
Key Market and Economic Development Trends

10.3 General Business 106 of 128
KOSMONT COMPANIES | 105
Generate new demand for
commercial and retail uses
Significantly boost new tax revenues
Support local jobs

ROOFTOPS NEEDED
New housing can:

E-commerce will capture 25% of sales within 5 years
(~$9k per CA household)
Housing / hybrid living spaces
Keeping “wallets” in local communities
Townhomes by Landsea Homes in Ontario, CA
HEED®: HOUSING ELEMENT FOR

ECONOMIC DEVELOPMENT

10.3 General Business 107 of 128
105
KOSMONT COMPANIES | 106

E-COMMERCE GROWTH
▪ The share of e-commerce sales
grew to 23% of total retail sales
by year-end 2025.
▪ FTI Consulting’s 2025 Online
Retail Report projections indicate
Online sales will grow 8.5%.
▪ UBS report estimates that 45,000
net retail store closures will
occur in the U.S. by 2028
(approximately 5% of the
total retail store base)
▪ E-commerce sales in the U.S. have increased steadily since 2000. The COVID-19 pandemic saw major increased online retail sales, soaring by 42% compared to 2019. E-commerce sales continued to grow by double-digits into 2021 but cooled to just 6% growth in 2022. 2023 saw an increase in e-commerce sales by 9% Sources: St. Louis Federal Reserve; FTI Consulting “2025 Online Retail Report”; UBS (Accessed March 2026)

10.3 General Business 108 of 128
KOSMONT COMPANIES | 107
B.2 – RETAIL MARKET
CITY OF TULARE – EDSP

10.3 General Business 109 of 128
KOSMONT COMPANIES | 108
Q3 2025
City of
Tulare
City of
Visalia
County of
Tulare
Availability
Market
Asking Rent
$PSF/Yr.
$17.73 $21.19 $19.64
Vacancy Rate 3.9% 3.0% 2.9%
Vacant SF 152,990 255,997 577,762
Net
Absorption (2,759) (14,801) (7,253)
Inventory
Existing SF 3,922,619 8,563,175 20,037,243
 Major available retail space in City
➢ 64,423 SF available at Tulare Pavilion
(1475-1687 Hillman St.), 35,500 SF fmr.

Big Lots; 28,923 SF Ross
➢ 49,348 SF available at Heritage Plaza
(110-294 E. Cross Ave.), including
21,893 SF fmr Rite Aid and 13,272 SF
fmr. Fitness Evolution
➢ 16,100 SF available at 206 N. K St.
 In the last 10 years the retail market
grew by ~105,000 SF, primarily
freestanding retail spaces
 Tulare Outlets (268,000 SF) draws
~4M visits per year
 Retail space proposed:
➢ ~135,000 SF proposed in City including
67,500 SF shopping center “The
Vineyard” at NWC Prosperity Ave. and
N. Mooney Blvd.
➢ Per CoStar, there is no retail currently
under construction or in final planning
Source: CoStar (Accessed December 2025); Note: Vacant space refers to all space that is not occupied by a tenant regardless of availability or lease obligation. Available space is the amount of space currently being marketed as available for lease or sale in a given time period. It includes any space that is vacant, occupied, or available at a future date. Negative net absorption refers to the fact that more tenants vacated retail space as opposed to renewing or expanding.

RETAIL MARKET OVERVIEW
Top: Tulare Pavilion
Above: Tulare Outlets

10.3 General Business 110 of 128
KOSMONT COMPANIES | 109

RETAIL MARKET HISTORY
2014 – 2024

CITY OF TULARE
Year Inventory
SF
Vacant
SF
Total
Vacant
%
Total
Net
Absorp.

SF Total
Market
Asking
Rent PSF
2024 3,922,619 115,051 2.9% (18,238) $17.62
2023 3,922,619 96,813 2.5% (6,770) $17.12
2022 3,918,406 85,830 2.2% 15,538 $16.50
2021 3,905,880 88,842 2.3% 47,514 $15.94
2020 3,899,080 129,556 3.3% 51,586 $15.40
2019 3,853,383 135,445 3.5% (14,615) $15.10
2018 3,838,034 105,481 2.7% 14,961 $14.73
2017 3,835,606 118,014 3.1% 19,623 $14.38
2016 3,820,187 122,218 3.2% 59,903 $14.15
2015 3,820,187 178,621 4.7% 9,980 $13.84
2014 3,817,632 186,046 4.9% 14,736 $13.56

CITY OF VISALIA
Year Inventory
SF
Vacant
SF
Total
Vacant
%
Total
Net
Absorp.

SF Total
Market
Asking
Rent PSF
2024 8,560,276 240,315 2.8% (91,044) $20.98
2023 8,553,425 142,420 1.7% 121,732 $20.41
2022 8,538,027 248,754 2.9% 57,719 $19.62
2021 8,514,393 282,602 3.3% 150,247 $18.94
2020 8,469,005 387,461 4.6% 42,684 $18.31
2019 8,504,870 466,010 5.5% (148,362) $17.94
2018 8,468,676 281,454 3.3% 196,283 $17.45
2017 8,431,752 440,813 5.2% 107,739 $17.07
2016 8,376,119 492,919 5.9% 70,690 $16.78
2015 8,344,940 532,430 6.4% 95,061 $16.45
2014 8,277,518 560,069 6.8% 752 $16.13

COUNTY OF TULARE
Year Inventory
SF
Vacant
SF
Total
Vacant
%
Total
Net
Absorp.

SF Total
Market
Asking
Rent PSF
2024 20,034,344 499,764 2.5% (125,469) $19.47
2023 20,009,493 349,444 1.7% 130,292 $18.97
2022 19,987,082 457,325 2.3% 153,980 $18.26
2021 19,932,744 556,730 2.8% 268,973 $17.63
2020 19,868,018 760,977 3.8% 86,990 $17.03
2019 19,852,797 832,746 4.2% (117,100) $16.69
2018 19,789,153 652,002 3.3% 296,536 $16.25
2017 19,740,510 899,895 4.6% 243,974 $15.87
2016 19,596,256 999,615 5.1% 58,392 $15.59
2015 19,564,847 1,023,098 5.2% 69,144 $15.26
2014 19,480,127 1,007,522 5.2% 135,589 $14.98
Source: CoStar (Accessed December 2025);
Note: Numbers in parentheses and in red indicate a negative number.

10.3 General Business 111 of 128
KOSMONT COMPANIES | 110

RETAIL MARKET HISTORY
2014 – 2024
Source: CoStar (Accessed December 2025)
Vacancy Rates Market Asking Rent PSF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City of Tulare City of Visalia County of Tulare
$12.00
$14.00
$16.00
$18.00
$20.00
$22.00
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City of Tulare City of Visalia County of Tulare

10.3 General Business 112 of 128
KOSMONT COMPANIES | 111
B.3 – OFFICE MARKET
CITY OF TULARE – EDSP

10.3 General Business 113 of 128
KOSMONT COMPANIES | 112
 Major office space in City
➢ 41,100 SF medical office at 1134 E.

Cartmill Ave. (built 2024)
➢ 35,600 SF office at 4175 Laspina St.
(occupied by SoCal Edison)
 Largest vacancy (5,100 SF) in the City
is at Del Lago Professional Center
(1186 E. Leland Ave.). Limited
vacancy in other office buildings
 According to CoStar, there is no
office space currently planned,
proposed, or under construction
 In the last 10 years there has been a
net gain in office space with 11 new
buildings totaling 107,900 SF,
including a 41,100 SF medical office
building at 1134 E. Cartmill Ave.
(built 2024)
 39% of the overall office space is 40
years or older. Roughly half of the
space (~197,400 SF) could be
potentially replaced/reimagined
Q3 2025
City of
Tulare
City of
Visalia
County of
Tulare
Availability
Market
Asking Rent
$PSF/Yr.
$23.67 $23.14 $22.77
Vacancy Rate 2.0% 3.6% 2.8%
Vacant SF 20,185 174,494 215,974
Net
Absorption 4,841 37,047 36,248
Inventory
Existing SF 1,018,460 4,789,608 7,717,891

OFFICE MARKET OVERVIEW
Source: CoStar (Accessed December 2025); Note: Vacant space refers to all space that is not occupied by a tenant regardless of availability or lease obligation. Available space is the amount of space currently being marketed as available for lease or sale in a given time period.

It includes any space that is vacant, occupied, or available at a future date.

Top: 1134 E. Cartmill Ave.

Middle: 4175 Laspina St.

Above: Del Lago Professional Center

10.3 General Business 114 of 128
KOSMONT COMPANIES | 113

OFFICE MARKET HISTORY
2014 – 2024

CITY OF TULARE
Year Inventory
SF
Vacant
SF
Total
Vacant
%
Total
Net
Absorp.

SF Total
Market
Asking
Rent PSF
2024 1,018,460 24,010 2.4% 66,717 $23.46
2023 969,378 41,645 4.3% (11,014) $22.80
2022 967,518 28,771 3.0% 1,385 $22.33
2021 967,518 30,156 3.1% 18,503 $21.57
2020 956,196 37,337 3.9% (3,846) $20.67
2019 951,376 28,671 3.0% (11,385) $19.78
2018 951,376 17,286 1.8% 39,998 $19.31
2017 916,716 22,624 2.5% 19,371 $19.08
2016 910,574 35,853 3.9% (1,558) $18.32
2015 910,574 34,295 3.8% 324 $17.62
2014 910,574 34,619 3.8% 1,137 $16.63

CITY OF VISALIA
Year Inventory
SF
Vacant SF
Total
Vacant
%
Total
Net
Absorp.

SF Total
Market
Asking
Rent PSF
2024 4,785,708 216,195 4.5% (58,178) $22.97
2023 4,785,708 158,017 3.3% 4,607 $22.39
2022 4,780,428 157,344 3.3% 17,571 $21.90
2021 4,756,950 151,437 3.2% 10,433 $21.20
2020 4,733,487 138,407 2.9% 63,874 $20.37
2019 4,636,097 104,891 2.3% 41,503 $19.74
2018 4,621,834 132,131 2.9% 43,332 $19.17
2017 4,591,234 144,863 3.2% 111,640 $18.99
2016 4,582,130 247,399 5.4% 225,819 $18.14
2015 4,494,172 385,260 8.6% 4,919 $17.71
2014 4,494,172 390,179 8.7% 107,392 $16.73

COUNTY OF TULARE
Year Inventory SF Vacant SF
Total
Vacant %
Total
Net
Absorp.

SF Total
Market
Asking Rent
PSF
2024 7,713,991 266,739 3.5% 10,335 $22.58
2023 7,664,909 227,992 3.0% (22,357) $21.98
2022 7,657,769 198,495 2.6% 19,658 $21.52
2021 7,634,291 194,675 2.6% 40,424 $20.81
2020 7,599,506 200,314 2.6% 117,119 $19.98
2019 7,451,433 169,360 2.3% 20,063 $19.29
2018 7,437,170 175,160 2.4% 99,853 $18.77
2017 7,367,680 205,523 2.8% 140,806 $18.58
2016 7,353,861 332,510 4.5% 248,331 $17.79
2015 7,260,336 487,316 6.7% 24,766 $17.29
2014 7,252,150 503,896 6.9% 114,972 $16.32
Source: CoStar (Accessed December 2025);
Note: Numbers in parentheses and in red indicate a negative number.

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KOSMONT COMPANIES | 114

OFFICE MARKET HISTORY
2014 – 2024
Source: CoStar (Accessed December 2025)
Vacancy Rates Market Asking Rent PSF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City of Tulare City of Visalia County of Tulare
$16.00
$18.00
$20.00
$22.00
$24.00
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City of Tulare City of Visalia County of Tulare

10.3 General Business 116 of 128
KOSMONT COMPANIES | 115
B.4 – INDUSTRIAL / FLEX MARKET
CITY OF TULARE – EDSP

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KOSMONT COMPANIES | 116
 Major available industrial / flex
space in City
➢ Largest industrial building in the
City is Bldg. 1 of 99 Central
Logistics Center, 544,077 SF
available, not currently leased
➢ Smaller industrial spaces totaling
~27,000 SF across seven buildings
(ranging from 1,300 to 7,500 SF)
 Over the last 10 years, 628,500
SF of industrial space over 13
buildings has been built, including
a 544,100 SF distribution facility
(Bldg 1 of 99 Central Logistics
Center, Class A, built 2024)
 60,000 SF flex space currently
under construction at 704-822
Industrial Ave. (CNS Business
Park, expected 2026); 1.13M SF
of industrial distribution facilities
proposed (99 Central Logistics
Center, expected 2026);
Additional 1.1M SF proposed at
2918 Pratt St.

Source: CoStar (Accessed December 2025); Note: Vacant space refers to all space that is not occupied by a tenant regardless of availability or lease obligation. Available space is the amount of space currently being marketed as available for lease or sale in a given time period. It includes any space that is vacant, occupied, or available at a future date. Negative net absorption refers to the fact that more tenants vacated retail space as opposed to renewing or expanding.

INDUSTRIAL / FLEX MARKET OVERVIEW
Top: 99 Central Logistics Center (Bldg. 1)
Above: CNS Business Park
Q3 2025
City of
Tulare
City of
Visalia
County of
Tulare
Availability
Market
Asking Rent
$PSF/Yr.
$11.17 $8.71 $8.89
Vacancy Rate 9.5% 16.3% 12.3%
Vacant SF 574,396 3,736,501 5,481,469
Net
Absorption (11,325) (149,111) (179,946)
Inventory
Existing SF 6,053,114 22,981,239 44,468,059
 26% of industrial / flex space in
the City is over 40 years old. We
estimate between a quarter or
half of this space (~400K-800K
SF) could be redeveloped /
reimagined in the near future

10.3 General Business 118 of 128
KOSMONT COMPANIES | 117

INDUSTRIAL / FLEX MARKET HISTORY
2014 – 2024

CITY OF TULARE
Year Inventory
SF
Vacant
SF
Total
Vacant
%
Total
Net
Absorp.

SF Total
Market
Asking
Rent
PSF
2024 6,048,154 724,046 12.0% (93,748) $11.21
2023 5,504,077 86,221 1.6% (80,821) $10.91
2022 5,504,077 5,400 0.1% 45,404 $10.42
2021 5,487,217 33,944 0.6% 60,679 $9.79
2020 5,459,407 66,813 1.2% 32,081 $9.20
2019 5,459,407 98,894 1.8% (70,765) $8.76
2018 5,455,807 24,529 0.4% 27,639 $8.33
2017 5,430,339 26,700 0.5% 23,118 $7.85
2016 5,419,639 39,118 0.7% (33,424) $7.38
2015 5,419,639 5,694 0.1% 122,085 $6.94
2014 5,419,639 127,779 2.4% 36,155 $6.54

CITY OF VISALIA
Year Inventory
SF
Vacant
SF
Total
Vacant
%
Total
Net
Absorp.

SF Total
Market
Asking
Rent
PSF
2024 21,400,459 1,557,766 7.3% 5,250 $8.67
2023 20,172,018 334,575 1.7% 1,354,885 $8.40
2022 19,105,558 623,000 3.3% 696,523 $7.87
2021 18,356,172 570,137 3.1% 1,809,694 $7.21
2020 16,726,795 750,454 4.5% 636,131 $6.69
2019 15,910,676 570,466 3.6% (39,409) $6.28
2018 15,781,368 401,749 2.5% 381,224 $5.93
2017 15,580,351 581,956 3.7% 142,957 $5.54
2016 15,271,886 417,625 2.7% 13,383 $5.22
2015 15,274,213 433,335 2.8% 87,507 $4.95
2014 15,339,213 585,842 3.8% 729,499 $4.67

COUNTY OF TULARE
Year Inventory
SF
Vacant
SF
Total
Vacant
%
Total
Net
Absorp.

SF Total
Market
Asking
Rent
PSF
2024 42,882,319 3,391,350 7.9% (387,057) $8.88
2023 41,084,801 1,206,775 2.9% 1,180,952 $8.61
2022 39,998,341 1,301,267 3.3% 424,912 $8.13
2021 39,191,316 919,154 2.3% 2,259,326 $7.52
2020 37,534,129 1,521,293 4.1% 834,935 $7.00
2019 36,718,010 1,540,109 4.2% (293,690) $6.60
2018 36,573,102 1,101,511 3.0% 325,249 $6.25
2017 36,342,835 1,196,493 3.3% 318,952 $5.85
2016 36,023,670 1,197,457 3.3% (17,570) $5.51
2015 36,021,160 1,177,377 3.3% 69,468 $5.21
2014 36,086,160 1,311,845 3.6% 747,503 $4.91
Source: CoStar (Accessed December 2025);
Note: Numbers in parentheses and in red indicate a negative number.

10.3 General Business 119 of 128
KOSMONT COMPANIES | 118

INDUSTRIAL / FLEX MARKET HISTORY
2014 – 2024
Source: CoStar (Accessed December 2025)
Vacancy Rates Market Asking Rent PSF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City of Tulare City of Visalia County of Tulare
$3.00
$6.00
$9.00
$12.00
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City of Tulare City of Visalia County of Tulare

10.3 General Business 120 of 128
KOSMONT COMPANIES | 119
B.5 – MULTIFAMILY RESIDENTIAL MARKET
CITY OF TULARE – EDSP

10.3 General Business 121 of 128
KOSMONT COMPANIES | 120

MULTIFAMILY MARKET OVERVIEW
Q3 2025
City of
Tulare
City of
Visalia
County of
Tulare
Availability
Asking Rent
Unit/Mo. $1,315 $1,556 $1,279
Avg. SF 943 880 900
Asking Rent PSF $1.39 $1.77 $1.42
Vacancy Rate 3.6% 9.9% 6.0%
Total # of
Vacant Units 75 549 876
Net Absorption 3 66 66
Inventory
Total # of Units 2,106 5,535 14,515
 Major multifamily buildings in City
➢ The Riviera Apts. (2311 N. Hillman Ave., 168-
unit, market-rate, Class B apartments, built
2019; 17 du/ac)
➢ Valley Oaks (351 N. West St., 151-unit,
affordable, Class A apartments, built 2008, 12
du/ac)
➢ Oak Valley (2001 E. Cross Ave., 109-unit,
market-rate, Class C apartments, built 1987,
15 du/ac)
➢ Orchards 79 (2325 Wagon Wheel Ave., 87-
unit, market-rate, Class B, for-rent singlefamily home apartments, built 2023, 5 du/ac)  According to CoStar, there was one apartment
building proposed (Grand Oak Apts.,
Retherford St., 82 units, senior market-rate
apartments), however plans were recently
scrapped
 In the last 10 years, a total of 386 units were
built across four buildings. The largest building
was The Riviera Apartments
 Consider higher densities to meet RHNA
requirement of 4,749 total housing units
(including 2,319 affordable [low and very-low
income units])
Source: CoStar (Accessed December 2025); Notes: Data represents the average asking rents across all unit types (studio, 1BR, 2BR, etc.). Inventory includes buildings that contain 5 or more units but does not include dormitories, mobile homes, condos, or co-ops. Negative net absorption refers to the fact that more residents vacated as opposed to moving into residential units. Numbers in parentheses and in red indicate a negative number.

Top: The Riviera Apartments
Middle: Valley Oaks aerial
Above: Orchards 79

10.3 General Business 122 of 128
KOSMONT COMPANIES | 121

MULTIFAMILY MARKET HISTORY
2014 – 2024

CITY OF TULARE
Year Inventory
Units
Vacant
Units
%
Vacant
Net
Absorp.

Units
Asking
Rent /
Unit
Asking
Rent
PSF
2024 2,106 97 4.6% 70 $1,401 $1.49
2023 2,106 166 7.9% 57 $1,358 $1.44
2022 1,938 56 2.9% (20) $1,351 $1.49
2021 1,938 36 1.9% (9) $1,306 $1.44
2020 1,938 27 1.4% 29 $1,215 $1.34
2019 1,938 56 2.9% 199 $1,190 $1.32
2018 1,720 37 2.2% 7 $1,178 $1.32
2017 1,720 45 2.6% (2) $1,166 $1.31
2016 1,720 44 2.6% 12 $1,177 $1.32
2015 1,720 55 3.2% 7 $1,168 $1.31
2014 1,720 62 3.6% 42 $1,162 $1.30

CITY OF VISALIA
Year Inventory
Units
Vacant
Units
%
Vacant
Net
Absorp.

Units
Asking
Rent /
Unit
Asking
Rent
PSF
2024 5,100 206 4.0% 202 $1,561 $1.81
2023 5,034 343 6.8% 88 $1,536 $1.78
2022 4,784 181 3.8% (56) $1,516 $1.77
2021 4,784 125 2.6% (37) $1,510 $1.77
2020 4,784 88 1.8% 104 $1,332 $1.56
2019 4,744 151 3.2% 19 $1,273 $1.49
2018 4,604 171 3.7% 52 $1,232 $1.44
2017 4,604 222 4.8% 130 $1,186 $1.38
2016 4,428 176 4.0% (3) $1,152 $1.36
2015 4,392 137 3.1% 24 $1,099 $1.30
2014 4,392 162 3.7% 6 $1,045 $1.24

COUNTY OF TULARE
Year Inventory
Units
Vacant
Units
%
Vacant
Net
Absorp.

Units
Asking
Rent /
Unit
Asking
Rent
PSF
2024 14,032 589 4.2% 328 $1,274 $1.42
2023 13,966 851 6.1% 214 $1,240 $1.38
2022 13,360 458 3.4% (148) $1,214 $1.37
2021 13,260 311 2.3% 3 $1,188 $1.34
2020 13,260 314 2.4% 216 $1,089 $1.23
2019 13,189 459 3.5% 276 $1,055 $1.19
2018 12,831 516 4.0% 154 $1,029 $1.16
2017 12,673 513 4.0% 175 $1,002 $1.13
2016 12,497 511 4.1% 138 $983 $1.11
2015 12,436 589 4.7% 239 $949 $1.07
2014 12,188 580 4.8% 113 $930 $1.05
Source: CoStar (Accessed December 2025);
Note: Numbers in parentheses and in red indicate a negative number.

10.3 General Business 123 of 128
KOSMONT COMPANIES | 122

MULTIFAMILY MARKET HISTORY
2014 – 2024
Source: CoStar (Accessed December 2025)
Vacancy Rates Asking Rent PSF

0.0%

2.0%

4.0%

6.0%

8.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City of Tulare City of Visalia County of Tulare
$1.00
$1.20
$1.40
$1.60
$1.80
$2.00
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City of Tulare City of Visalia County of Tulare

10.3 General Business 124 of 128
KOSMONT COMPANIES | 123
CITY OF TULARE – EDSP
C – STAKEHOLDER OUTREACH

10.3 General Business 125 of 128
KOSMONT COMPANIES | 124
 Strong Momentum and Proactive Leadership
➢ Stakeholders emphasized the City is going in a positive direction ➢ City is viewed as more responsive and easy to work with ➢ Clear vision, more accountability, and greater willingness to pursue new ideas  Strong Long-Term Economic Assets (Ag and Logistics)
➢ Location along Highway 99, rail access, airport, and central location were listed as major advantages ➢ Many stakeholders noted Tulare is well-positioned for further industrial and logistics growth over the long term ➢ Ag-processing base and cold storage were described as key economic strengths ➢ International Agri-Center is seen as a major regional anchor with significant visitor and economic impact. City investments should complement, rather than compete with Agri-Center facilities and programming

SUMMARY OF STAKEHOLDER OUTREACH

10.3 General Business 126 of 128
KOSMONT COMPANIES | 125
 Downtown
➢ Stakeholders acknowledged visible progress downtown and positive reinvestment efforts ➢ Need for more restaurants, nightlife, date-night options, better mix of tenants, and improved lighting / landscaping / signage  Newer Investments are Long-Term Catalysts
➢ Stakeholders viewed the amphitheater, downtown programs, and related investments as positive, but it was emphasized that these efforts will take time to reach a full impact and will require stronger programming and more local support  Infrastructure
➢ Stakeholders warned that growth may outpace infrastructure if the City does not continue planning and investing ahead of demand. Water, roads, lighting, utilities, and essential services came up repeatedly across interviews  Site Readiness
➢ Tulare can compete for development, but needs more shovel-ready sites, utilities, and entitlements in place ➢ Brokers and business leaders suggested Tulare’s opportunities improve significantly when sites are prepared in advance SUMMARY OF STAKEHOLDER OUTREACH (CONT’D)

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KOSMONT COMPANIES | 126
 Westside Needs
➢ West and Southwest Tulare was described as underserved in terms of commercial amenities and basic infrastructure ➢ Concerns regarding neighborhoods falling further behind while growth and private-sector investment is concentrated elsewhere
 Workforce Readiness / Educational Attainment
➢ Tulare has a young labor force, but workforce preparation and education levels can limit industry attraction ➢ Newer workforce education programs and the business accelerator were seen as steps to address this education gap  Retail Leakage
➢ Tulare still lags behind Visalia in terms of shopping, dining, and sales tax capture ➢ Stakeholders emphasized the need to strengthen commercial base so new residents spend more money locally  Community Perception
➢ Stakeholders noted community skepticism, apathy, and risk-aversion tied to past disappointments and failed projects ➢ Several stakeholders mentioned the City needs to do a better job telling its story and explaining the value of current / future investments
SUMMARY OF STAKEHOLDER OUTREACH (CONT’D)

10.3 General Business 128 of 128
Item #: 10.4
General Business
Staff Report
City Council
Date: July 7, 2026
Department: City Manager
Submitted by: Marc Mondell, City Manager on behalf of Vice Mayor Harrell Agenda Title: Placement of National Motto in the Council Chamber

RECOMMENDED ACTION
Discuss the proposal to display the national motto, “In God We Trust,” on the wall directly behind the mayor’s seat in the Council Chamber and provide direction to staff thereto.

ALIGNMENT WITH STRATEGIC PRIORITIES
Not Applicable

SUMMARY
At the June 16, 2026 Council meeting, Vice Mayor Harrell presented a Council Item Request form proposing that the City display the official motto of the United States, “In God We Trust,” in the Council Chamber. The City Council voted 3 to 2 to place this item on a future meeting agenda for discussion and possible action.

Should the Council wish to proceed, staff would need direction regarding:
• Preferred design (lettering style, size, material, color). • Exact placement (as requested: wall directly behind the mayor’s seat). • Whether to solicit design options or quotes from vendors. • Any budget constraints or funding sources.

Staff can return with cost estimates, design mock-ups, and implementation options at a subsequent meeting if directed.

FISCAL IMPACT & FUNDING SOURCES
To be determined. Costs will vary depending on materials, fabrication, and installation method. Staff can obtain quotes once direction is provided.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act (CEQA).

POTENTIAL CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

LEGAL REVIEW
This item does not require legal review.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the agenda.

ALTERNATIVE ACTION

1. Approve with changes

2. Deny

3. Table

10.4 General Business 1 of 3

ATTACHMENTS

1. Council Item Request Form
Reviewed/Approved:

10.4 General Business 2 of 3

COUNCIL ITEM REQUEST FORM
The Council Item Request Form is for members of the City Council to submit written requests to the City Clerk’s Office for inclusion of an item on a future City Council meeting agenda. At the meeting where the initial written request is heard, discussion shall be limited to whether the item should be added to an agenda and a date, not the merit of the item. A majority vote of the City Council is required for the item to be added to a future Council meeting agenda for action. No more than 10 items may be submitted collectively for consideration by all councilmembers at any regular meeting of the Council, and in that regard, no individual councilmember may submit more than three items for consideration at any regular meeting of the Council. In the event more than 10 items are submitted collectively, no more than two items shall be accepted for consideration from any one councilmember.

NAME OF REQUESTING COUNCILMEMBER TODAY’S DATE AGENDA DATE

ITEM TITLE

BRIEF DESCRIPTION/BACKGROUND INFORMATION OF ITEM
Item #: 10.1
Future Agenda Item
Stephen C. Harrell 6/6/2026 6/16/2026
Place the official motto of The United States of America, "In God We Trust," on the wall directly behind the Mayor's seat.

Given that we are approaching the 250th year as a nation now would be the time for us as a council to display those four words "In God We Trust" in the people's chamber. Numerous local governments in the valley like Clovis, Fresno, Porterville, Delano as well as many others have utilized the federal designation to justify displaying the motto in City Council chambers.

In 2011 Congress reaffirmed this status via H,Con.Res.13, which specifically "supports and encourages the public display of the national motto in all public buildings, public schools, and other government institutions. The 9th Circuit Court of Appeals has ruled that the motto is "ceremonial and patriotic" and not a government-sponsored religious exercise, adhering to the principle that it has "nothing whatsoever to do with the establishment of religion." The Pilgrims in 1620, the war of 1812, the civil war all relied on "Divine Providence to sustain them. "In God We Trust",is a reflection of America's heritage and symbol of unity as a "declaration of faith and national identity," aimed at promoting unity and encouraging residents.

10.4 General Business 3 of 3