Parking/TDM Plan and
In-Lieu Fee for VMT
Reduction
Ellen Poling, Fehr & Peers
Vallejo City Council, February 14, 2023
Project Purpose
• Provide tools to reduce vehicle-miles of travel
generated by new development and existing
residents and workers
• Facilitate compliance with MTC’s requirements
for Connected Communities Priority
Development Areas
Priority Development
Areas
• Priority Development Areas (PDAs) are
places near public transit that are planned
for new homes, jobs and community
amenities.
• There are two types of PDAs:
– Transit-Rich PDAs have high-quality
transportation infrastructure already in
place to support additional growth in
their communities
– Connected Community PDAs offer
basic transit services and have
committed to policies that increase
mobility options and reduce
automobile travel
What is VMT?
• VMT = Trips X trip length
• VMT measures the effect of
driving on the environment
• Level of Service (LOS)
measures the effect of traffic
on drivers
• LOS analysis can still be used
to assess roadway system
performance, and can be a
part of development review
Vallejo VMT Analysis
for Development
Projects
• Developed with staff and
Planning Commission
input
• Began using in October
2020
• Several development
projects have used these
guidelines since October
2020
Two Components of the
VMT Reduction Strategy
• Parking/Travel Demand
Management Plan
• In-Lieu Fee for VMT
Reduction
Parking/Travel Demand
Management Plan
• Presents development site
measures that can reduce VMT
• All development projects would be
expected to implement a certain
minimum level of measures
• Additional measures could be
added to reduce or eliminate a
significant CEQA VMT impact
• Measures based on CAPCOA
Handbook – research-based
estimates of VMT reduction
effectiveness
In-Lieu Fee for VMT
Reduction
• Fee funds citywide projects
which can reduce VMT
• Bicycle and pedestrian system
projects
• Fee would be paid by
development projects which
cannot mitigate a CEQA impact
to less-than-significant level
with on-site measures alone
• Not a traditional development
impact fee (AB 1600)
Fee Capital
Improvement
Program
In-Lieu Fees
CONTACT(S)
Ellen Poling | Senior Associate
Fehr and Peers
[email protected]
Margaret Kavanaugh-Lynch| Planning Manager
[email protected]
Questions
Economic Development
Department and Planning &
Development Services
Department February 2023
Update
• Gillian Hayes, Assistant City Manager
• Michael Nimon, Economic Development
Director
• Christina Ratcliffe, AICP , Planning &
Development Services Director
Economic Development 2023
Policy Formation
Development and Redevelopment
Grant Implementation / Business Support
Neighborhood Revitalization and Business Attraction
Commissions and Boards
How Are We Doing?
Vallejo Indicators 2020 2021 2022
Annual
Change
Population* 125,791 124,410 123,190 -1.0%
Employment 48,500 49,300 51,200 3.9%
Unemployment rate 11.7% 8.8% 4.6% -48%
Taxable sales (q3) $414.5M $474.9M $472.5M -0.6%
Median household income** $66,606 $69,405 $73,869 6.4%
Median home value* $452,500 $520,000 $550,000 5.8%
Net taxable property value* $12.0B $12.5B $13.3B 6.4%
Residential vacancies* 4.4% 4.9% 4.9% 0%
Retail vacancies 16.0% 18.1% 23.9% 32%
Office vacancies (q4) 1.0% 0.5% 0.7% 40%
* Updated annually or semi-annually.
** Updated annually with a 2-year lag
Top Employers
• Kaiser Foundation
• USDA Forest Service
• Sutter Solano Medical Center
• Cal Maritime University
• Meyer Corp US
• Risk Management Solutions
• Touro University - California
Distribution of Jobs in Vallejo
Construction Retail Trade
Educational Services Health Care and Social Assistance
Accommodation and Food Services Public Administration
Other
Distribution of Households by Income in
Vallejo
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
Less than
$10,000
$10,000 to
$14,999
$15,000 to
$24,999
$25,000 to
$34,999
$35,000 to
$49,999
$50,000 to
$74,999
$75,000 to
$99,999
$100,000
to
$149,999
$150,000
to
$199,999
$200,000
or more
Vallejo California
Historic Home Price Growth
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Jan-00
Sep-00
May-01
Jan-02
Sep-02
May-03
Jan-04
Sep-04
May-05
Jan-06
Sep-06
May-07
Jan-08
Sep-08
May-09
Jan-10
Sep-10
May-11
Jan-12
Sep-12
May-13
Jan-14
Sep-14
May-15
Jan-16
Sep-16
May-17
Jan-18
Sep-18
May-19
Jan-20
Sep-20
May-21
Jan-22
Sep-22
Vallejo California
How Are We Doing (continued)?
Vallejo Indicators 2020 2021 2022 Change
Business attraction prospects na na 5 na
Business retention visits na na 12 na
Active businesses 6,621 7,654 8,630 13%
Grant funding deployed 43 14 80 471%
Hotel occupancy na 65.1% 60.4% -7.2%
Hotel average daily rate na $83.51 $56.89 -32%
Economic Development Strategic Plan
– Last update in 2012
– Funded through American Rescue Plan Act (ARPA)
– Under contract with Dr. Eyler
– Communication strategy and baseline conditions
analysis underway
– Spring plan drafts forthcoming to City Council
Development Projects
• North Mare Island (NMI)
– Disposition and Development Agreement Approved
March 2022
– Signed and Recorded May 2022
– Initial Transfer of 125 acres closed in October 2022
– Main Developer Obligations Upon Close:
• NMI demolitions (due 24 months from closing)
• Beautification plan and work (due 8 months from
closing)
• New Mare Island Specific Plan and Infrastructure Plan submittal (due 24 months from closing)
Connolly Corridor
• 3-acre major mixed-use commercial
development on South Mare Island
• Will include 45,000 sq.ft. of retail, 29,000 sq.ft. of office, 194,000 sq.ft. of open space, up to 373
multifamily and townhome units, and an up to
200-room hotel
• To be developed within 60 months of closing
• Submittal in early Q2 '23
Development Projects
• Blue Rock Springs
– Ownership transfer completed Dec. 2022
– Deal parameters:
• Upfront fair market value payment
• City continues to operate course
• Additional land value after entitlements
• Right of rescission
• City right to select golf course operator
– Staff and Developer are negotiating agreements for Q2:
• Participation
• Performance
• Staff reimbursement
• Golf course lease
Waterfront Development Projects
– Northern – disposition and development
agreement expired in Dec. '22
– Southern
• PGE Clean up – Commenced 21/22
• Visioning ‘23
• Remediation complete ’23
• Restoration (new boat launch, restrooms, EV
charging stations, new parking lot) ‘24
• - Central - Seka Hills lease signed Dec. ‘22
• Entitlements within 24 months
Seka Hills
Other Development Projects
• Solano 360 (fall '23)
• Waterfront RFP (Q2 '23)
• Downtown RFP (Q2 '23)
• Cooke/Fairview (spring '23)
• Settlement agreement completed
– Financial agreement in process
Grant Implementation
Awarded:
• Economic Development Administration $960,000
Mare Island infrastructure assessment
• Environmental Protection Agency $600,000
brownfield cleanup grant
Pending:
• National Park Service grant for $750,000 for Officers’ Quarters B historic restoration
Grant Deployment
• Distributed over $720,000
• ARPA Funds Implementation
– Grant for Small Business Micro Grants - $440K to
81 awardees
• Restaurant Resiliency – $100K
– 22 participants
• Arts Commission – $90,000 distributed to 11 arts
and culture non-profits
Restaurant Resiliency Program
Asset Management and Disposition
• Lease negotiations
• Cultivating relationships with tenants
• Maximizing revenue
• City owns over 35 revenue-generating properties
• Dispose of 3 surplus lands sites identified by Council (Phase I)
• Identify development for surplus lands and deploy
additional sites (Phase II)
Neighborhood Revitalization and
Business Attraction
• Coordinate PG&E cleanup of the 26-acre southern
waterfront site
• Promote Vallejo as a premier destination for doing
business
• Continue to provide business support and resources
to existing businesses
Commissions and Boards
• Economic Vitality Commission
• Arts Commission – work plan implementation
• McCune Commission – work plan implementation
• Central Core Restoration Corp Board
• Vallejo Chamber of Commerce Board
• Solano County Economic Development Corporation
Board
• Remediation Advisory Board (RAB)
Other Special Assignments
• Manage the City’s economic development website
• Inter-departmental coordination
• Business retention program (with EVC)
• Attendance of community events
• Inclusionary housing ordinance
• School district properties acquisition
• Data brokerage and tracking
1. Economic Development Strategic Plan
2. Development and redevelopment
-Development projects
-Surplus Land Act conveyance of city-owned sites
3. Continued grant implementation
4. Continued neighborhood revitalization and business
attraction
-Waterfront Specific Plan
-Downtown Specific Plan
-School district properties
5. Continued involvement with key stakeholders and with special assignments
Next Steps
Planning & Development Services
(Planning, Building and
Code Enforcement Divisions)
Continuing Work
Sample Projects being Built
Pipeline Projects
Code Enforcement Transition
Continuing Work
• Housing, Safety
and Environmental Justice
Element Update
• New Housing Legislation
• New Building Code as of January
1st
• Updated Permitting Software
• Staffing Public Counter and
• Five Commissions/Boards
Continuing Programs
and Projects
• Recruit, Train and Retain the
best people
– Current Needs:
– Planning Division: 2
– Building Division: 2
– Code Enforcement
Division: 5
• Major Task: Build and Train Code
Enforcement Staff
Moving Forward in 2023
• To better serve the Community:
– Code Enforcement Joins the
PDS Team
– Re-thinking the Public Counter
Space
– Finalizing 3Element Update
– Completing Permitting
Software Transition
– Updating VMC to adhere to
new State Legislation
Moving Forward in 2023
– On the Horizon:
– Connolly Corridor Project
Submittal
– Mare Island Specific Plan
Workshops and Submittal
– Solano 360 Specific Plan (Q3)
– Northern Gateway Projects
beginning Environmental
Review process
What Code Enforcement
does:
• Addresses exterior property
maintenance violations on
private properties, with the goal
of beautifying Vallejo as a safe
and clean City in which to live,
work and do business.
– Unhoused encampments on
private property
– Vacant Lots
– Vacant Residential and
Commercial property
Code Enforcement Next
Steps:
Recruit 5 positions:
Manager
Accounting Clerk
Secretary
2 Code Enforcement Officers
Bring on CE Consultant to evaluate
processes/best practices: Q2
Metrics at next Quarterly Update
Quarter 2 Building & Planning Permit
Comparison
Building Planning
Q2 FY 19-20 972 61
Q2 FY 20-21 1058 83
Q2 FY 21-22 887 74
Q2 FY 22-23 1025 77
972
61 1058
83 887
74 1025
77 0
200
400
600
800
1000
1200
Q2 FY 19-20 Q2 FY 20-21 Q2 FY 21-22 Q2 FY 22-23
Fiscal Year Building & Planning Permit
Comparison as of 12/31/2022
Building Planning
FY 19-20 3519 304
FY 20-21 3586 380
FY 21-22 3615 286
FY 22-23 2085 186
3519
304
3586
380
3615
286
2085
186
0 500
1000
1500
2000
2500
3000
3500
4000
FY 19-20 FY 20-21 FY 21-22 FY 22-23
Fiscal Year Building & Planning Revenue
Comparison as of 12/31/2022
Building Planning
FY 19-20 $2,121,671 $350,312
FY 20-21 $2,174,152 $593,750
FY 21-22 $2,786,495 $629,186
FY 22-23 $1,870,592 $336,897
FY 22-23 Proposed $3,267,061 $673,580
$2,121,671
$350,312
$2,174,152
$593,750
$2,786,495
$629,186
$1,870,592
$336,897
$3,267,061
$673,580
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 22-23 Proposed
5190 Sonoma
Dutch Bros, 1598
Fairgrounds
765 Sereno: 185 Market
Oakwood Apartments Corner of
Sonoma and Magazine
Blue Oak Landing: 2118
Sacramento
5 Below 129 Plaza Drive
Mazda Service Center
301 Auto Mall Pkwy.
Crumbl
Cookie
764
Admiral
Callahan
Lane
CONTACT(S)
Gillian Hayes, Assistant City Manager
[email protected]
Michael Nimon, Economic Development Director
[email protected]
Christina Ratcliffe, AICP , Planning &
Development Services Director
[email protected]