Update on Legislative
Advocacy Priorities
Presentation to Vallejo City Council
Susan Lent, Partner
May 23, 2023
© 2023 Akin Gump Strauss Hauer & Feld LLP.
All rights reserved. Attorney advertising.
Prior results do not guarantee a similar outcome.
Development of Legislative Advocacy Priorities
• Meet with City Council Members, City manager and staff. • Update Platform
• Takes into account emerging issues in Washington and Sacramento. • Provides clarity regarding City priorities and positions on issues. • Provides direction regarding whether City should support, oppose or monitor issues. • Living document that enables City Manager and staff to update City Council on emerging issues and seek input and approval regarding future actions not accounted for in Platform.
2 Key Advocacy Priorities
• Oppose infringement on local control and unfunded mandates. • Ensure legislation and federal and state administrative actions do not negatively impact Vallejo.
• Advocate for funding for housing (e.g., low to moderate, workforce and homeless), public safety and emergency response, health care, infrastructure and economic development. • Support human rights protections.
3 Funding for Vallejo Programs and Projects
• Brief members of Congress and State Legislators on Vallejo Priorities • Identify funding opportunities
• Grants
• Member-designated projects
• Form partnerships with stakeholders (e.g., business community, non-profits, labor) • Secure support from federal and state legislators
4 State of Play in Washington
• Debt ceiling resolution?
• Fiscal year 2024 funding of federal government
• Community Projects:
— Mare Island dredging feasibility study
— Vallejo Ferry Terminal Reconfiguration
— State Route 37 and Fairgrounds Drive
• Notices of Funding Opportunity
• Health
• Housing
• Law enforcement
• Infrastructure (e.g., transportation; water; energy)
• Economic Development
5 Questions?
6 Mare Island Cemetery
Transfer
Terrance Davis
Assistant City Manager
Background
• Mare Island Cemetery
– 1856 through 1921: Burials were
conducted at the Cemetery
– 1975: Added to the National Register
of Historic Places
• Mare Island Naval Shipyard Closure
– 1996: State claimed a right of
reversionary interest to the land
– 2002: State and City executed the
Mare Island Property Settlement and
Exchange Agreement
• National Defense Authorization Act
– 2021: Congressman Thompson,
Federal bill allowing the City to
transfer the Cemetery to Veterans
Administration
Amendment to State Lands
Settlement Agreement
• Amendment to Settlement Agreement
Required:
– February 28, 2023, State Lands
Commission approved
• Once the State has received the Grant
Deed of the Cemetery, the City can convey
to VA
1. City will accept a Trust
Termination Patent from the State
to extinguish public trust claims
for the Cemetery
2. City will execute a Quitclaim Deed
to convey the Cemetery to VA
Environmental
Considerations
• Transactions are subject to three
categorical exemptions under
California Environmental Quality
Act (CEQA):
– Class 1: minor alteration of
existing public facilities…
– Class 25: transfers of
ownership of interests in land to
preserve historical resources…
– Class 31: maintenance,
rehabilitation, restoration,
preservation, of historical
resources…
Staff Recommendations
• Authorize a series of land use
transactions between:
– State Lands
– Veterans Administration
– National Cemetery
Administration
– NAVY
– City of Vallejo
Future Steps
• State Lands will seek signature
from Governor (required for Public
Trust terminations)
– 8 weeks expected
• Execute various land use
transaction with State Lands/VA
• Work with NCA to complete in-kind
contributions
– Utility upgrades and access
agreement with Navy
– Parking
• Develop long-term funding strategy
for improvement and operation of
Preserve
Contact/Questions
Terrance Davis
[email protected]
26 Economic Development
Department and Planning &
Development Services
Department May 2023 Update
• Gillian Hayes, Assistant City Manager
• Michael Nimon, Economic Development
Director
• Christina Ratcliffe, AICP , Planning &
Development Services Director
How Are We Doing?
Vallejo Indicators 2020-21 2021-22 2022-23
Annual
Change
Population* 125,791 124,410 123,190 -1.0%
Employment 48,300 50,600 51,200 1.2%
Unemployment rate 10.7% 6.4% 4.9% -23%
Taxable sales (q4) $348.0M $401.7M $405.8M 1.0%
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 (q1) 6.2% 5.1% 4.9% -4.0%
Office vacancies (q1) 9.7% 9.3% 9.7% 4.3%
* Updated annually or semi-annually
** Updated annually with a 2-year lag
How Are We Doing (continued)?
Vallejo Indicators 2020-21 2021-22 2022-23 Change
Business attraction prospects na 5 10 100%
Business retention visits na na 12 na
Active businesses 6,621 7,654 8,943 17%
Grant funding deployed 43 14 80 471%
Hotel occupancy 67.8% 52.4% 50.3% -4.0%
Hotel average daily rate $72.67 $86.42 $91.40 5.8%
Economic Development Strategic Plan
– Recently completed the community outreach
– Held 3 events across town and collected surveys
– Input is affecting the vision for the City’s
economic strategy
Economic Development Strategic Plan
Economic Development Strategic Plan
Economic Development Strategic Plan
Next steps:
1. Finalize incorporating public input and data
2. Present update to EVC in June
3. Finalize recommendations
4. Finalize pilot projects
5. Complete Strategic Plan
6. Present to City Council for adoption in July
Development Projects – Mare Island
• North Mare Island (NMI)
– New Mare Island Specific Plan and Infrastructure Plan is being developed (2024), community outreach and
meetings continue
– Nine existing buildings are demolished
– Connelly Corridor will be the first phase (to be
developed within 54 months, application expected in Q3
‘23)
– A new boutique market is going in Quarters N
Development Projects - Waterfront
– Northern – disposition and development agreement
expired in Dec. ‘22, title was cleared, and payments
were made to close out the agreement
– 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,
currently in due diligence
- Waterfront Specific Plan forthcoming later this year
Development Projects - Other
• Blue Rock Springs
• Cooke/Fairview
• Solano 360
• Downtown
New Restaurants
Grant Implementation
Current:
• Economic Development Administration $960,000 Mare
Island infrastructure assessment
– Data collection on water, sewer, stormwater, roads and dry utilities completed. Site assessments 50%-90% completed. Next Steps:
Technical report with final technical report completed in early 2024 • Environmental Protection Agency $600,000 brownfield
cleanup grant
– Assessment of 3 brownfield properties completed with 15 targeted Estimated completion of 9 additional properties this summer Pending:
• National Park Service grant for $750,000 for Officers’ Quarters B historic restoration
Land Disposition and Acquisition
• City owns hundreds of assets
• Phase 1 Surplus Land Act disposition:
– 485 Santa Clara
– former parking lot located on Broadway near
Tennessee
– a 4.2-acre portion of a larger site located off of
Columbus Pkwy
• Identify development for surplus lands and deploy
additional sites (Phase 2)
• Implement council direction on potential site
acquisitions. School surplus properties completed
Phase 1 and expected to be in escrow
Commissions and Boards
• Economic Vitality Commission
• Arts Commission – work plan implementation
• McCune Commission Central Core Restoration Corp
Board
• Vallejo Chamber of Commerce Board
• Solano County Economic Development Corporation
Board
• Remediation Advisory Board (RAB)
Other Special Assignments
• Implement ED Strategic Plan (once adopted)
• Manage the City’s economic development website
• Inter-departmental coordination
• Business retention program (with EVC)
• Mare Island conveyance, administration, and special
assignment implementation
• Attendance of community events
• Inclusionary housing ordinance
• Development impact fee update
• Data brokerage and tracking
• Business attraction
• Existing business support and resources
Planning & Development
Services
Ongoing Work Moving Forward
A Look at the Numbers
Projects in Process
Ongoing Work
• 3EU: 3 Element Update
• Updated Permitting Software
• Staffing Public Counter and
• Five Commissions/Boards
• Grants
• Over 1,400 dwelling units in the
Planning pipeline
• Growing Code Enforcement
Ongoing Programs
and Projects
• Recruit, Train and Retain the
best people
– Current Needs:
– Planning Division: 4
– Building Division: 4
– Code Enforcement
Division: 6
• Continuing Challenge: Attract and
Retain Quality Staff
Moving Forward in 2023
• To better serve the Community:
– Code Enforcement has joined
the PDS Team, working with
NLP
– Re-thinking the Public Counter
Space
– Finalizing the 3Element
Update
– Updating VMC to adhere to
new State Legislation
Moving Forward in 2023
– On the Horizon:
– Connolly Corridor Project
Submittal-expected within the
month
– Mare Island Specific Plan
Workshops. Expected Q-1,
2024 Submittal
– Solano 360 Updated Specific
Plan (Q3)
– Inclusionary Ordinance
– Waterfront and Downtown
Specific Plan RFPs Q4
Quarter 3 Building & Planning Permit
Comparison
Building Planning
Q3 FY 19-20 918 57
Q3 FY 20-21 907 92
Q3 FY 21-22 935 77
Q3 FY 22-23 860 117
918
57 907
92 935
77 860
117
0 100
200
300
400
500
600
700
800
900
1000
Q3 FY 19-20 Q3 FY 20-21 Q3 FY 21-22 Q3 FY 22-23
Quarter 3 Code Enforcement Case
Comparison
CODE ENFORCEMENT
Q3 FY 19-20 532
Q3 FY 20-21 541
Q3 FY 21-22 271
Q3 FY 22-23 392
532 541
271
392
0 100
200
300
400
500
600
Q3 FY 19-20 Q3 FY 20-21 Q3 FY 21-22 Q3 FY 22-23
Fiscal Year Building & Planning Permit
Comparison as of 03/31/2023
Building Planning
FY 19-20 3469 304
FY 20-21 3916 380
FY 21-22 3052 212
FY 22-23 2941 303
3469
304
3916
380
3052
212
2941
303
0 500
1000
1500
2000
2500
3000
3500
4000
4500
FY 19-20 FY 20-21 FY 21-22 FY 22-23
Fiscal Year Code Enforcement Case Comparison
as of 03/31/2023
Code Enforcement
FY 19-20 2420
FY 20-21 2723
FY 21-22 1507
FY 22-23 991
2420
2723
1507
991
0 500
1000
1500
2000
2500
3000
FY 19-20 FY 20-21 FY 21-22 FY 22-23
Fiscal Year Building, Planning and Code Enforcement
Revenue Comparison as of 03/31/2023
Building Planning Code Enforcement
FY 19-20 $2,121,671 $350,312 $625,463.00
FY 20-21 $2,174,152 $593,750 $505,116.00
FY 21-22 $2,786,495 $629,186 $413,503.00
FY 22-23 $3,061,008 $609,954 $199,562.00
FY 22-23 Proposed $3,652,061 $673,580 $498,687.00
$2,121,671
$350,312
$625,463.00
$2,174,152
$593,750 $505,116.00
$2,786,495
$629,186
$413,503.00
$3,061,008
$609,954
$199,562.00
$3,652,061
$673,580 $498,687.00
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 22-23 Proposed
Code Enforcement:
Before and After
Code Enforcement:
Before and After
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]
CITY OF VALLEJO
ECONOMIC DEVELOPMENT
STRATEGIC PLAN – DRAFT
May 23, 2023
• Michael Nimon – Economic
Development Director
• Gillian Hayes, Assistant City
Manager
Overview
• Planning phases and tasks:
reminder of planning path
• DRAFT Goals to 2029
• The DRAFT plan: two cycles to
2029
• DRAFT Data and Key Findings and
Considerations
• Closing thoughts/questions
2 Phases and Tasks
• Phase 1 (EFA): hire subcontractor (Chabin
Concepts)
• Phase 2 (EFA and Chabin)
– Task 1: Data and City of Vallejo overview and
tracking for Econ Dev
– Task 2: Communications and Outreach
– Task 3: Drafting plan and assembling
documents, short list of pilot projects
– Task 4: final plan with recommended pilot
projects and presentation to City Council
• Phase 3 (City of Vallejo Econ Dev): post
June 2023
– Pilot Projects launched, beginning of Cycle 1
3 Goals
1. Increase Econ Dev funding sources to support
Vallejo businesses;
2. Use consistent and honest communications to
increase Vallejo’s visibility as a place to do
business;
3. Increase business activity downtown/waterfront
as linked to other parts of Vallejo and reduce
commercial space blight and vacancy where
possible;
4. Partner with employers in Vallejo by facilitating
solutions for local businesses and shaping
Vallejo’s industry mix;
5. Link local residents to local jobs through
expanding workforce development partnerships
with employers.
4 Action through Cycles:
Vallejo has Grit
• Build foundation through
partnerships and new resources
• Work to mitigate general issues and
pave pathways
• Prepare for more commercial
activity across Vallejo
• Create a new narrative about doing
business in Vallejo
Cycle 1: 2023-2026 Cycle 2: 2026-2029
• Engage marketing Vallejo as a
place to do business
• Spread economic impacts to all
points in Vallejo
• Expand workforce development
connections and efforts
• Continue/augment
communications
5 Data Points: Jobs for Residents, Vallejo
Jan 2011 to March 2023, Seasonally Adjusted
6 40,000
42,000
44,000
46,000
48,000
50,000
52,000
54,000
56,000
58,000
60,000
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
Oct-22
Jan-23
Apr-23
Number of Workers
Labor Force Residential Employment
Sources: California EDD and EFA
Data Points: Jobs for Residents, Solano County
Jan 2011 to March 2023, Seasonally Adjusted, Monthly
7 150,000
160,000
170,000
180,000
190,000
200,000
210,000
220,000
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
Oct-22
Jan-23
Apr-23
Number of Workers
Labor Force Residential Employment
Sources: California EDD and EFA
Data Points: Population in Vallejo and Solano County
2010 – 2022 (Year-End Estimates). Number of Residents
8 121,000
122,000
123,000
124,000
125,000
126,000
127,000
390,000
400,000
410,000
420,000
430,000
440,000
450,000
460,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Solano County Vallejo
Sources: California Department of Finance
Data Points: Taxable Sales per Resident
Current Dollars
9 $9,516
$12,479
$13,697
$23,205
$16,422
$24,152
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
2015 2022
Taxable Sales Per Person
Vallejo Solano County California
Sources: California Department of Tax and Fee Admin and California Department of Finance Meant to normalize
comparisons across
places of different size
Different sales tax rates,
but all here is volume of
taxable sales
Also a reflection of local
incomes (and tourism)
Inflation driving some of
the gains in 2022
Retail Leakage, Current Dollars by Industry, Q4 2022
Where Income Growth Can Add Support
10 $(60,000,000) $(40,000,000) $(20,000,000) $- $20,000,000 $40,000,000 $60,000,000 Auto Repair Shops
Grocery Stores
Home Furnishings
Fast-Casual Restaurants
Transportation/Rentals
Used Automotive Dealers
Automotive Supply Stores
Department Stores
Variety Stores
Family Apparel
Specialty Stores
Drug Stores
Contractors
Electronics/Appliance Stores
Light Industrial/Printers
Leisure/Entertainment
Convenience Stores/Liquor
Cannabis Related
Heavy Industrial
Casual Dining
Service Stations
Quick-Service Restaurants
Building Materials
New Motor Vehicle Dealers
Discount Dept Stores
Surplus (Leakage)
Taxable Sales Industry
Steps:
• Quarterly model to drop in
HdL data on taxable sales
• Change parameters annually
on demand side of residents
• Seeking “gaps”: where does
demand > supply?
• Positive = gap filled and
more
• Negative = gap exists
Sources: HdL, California Department of
Tax and Fee Administration, Bureau of
Labor Statistics, and Census Bureau.
Data Points: Hiring by Employers, Number of Workers,
Vallejo Employment in 2011 and 2022 (Est.)
11 11,747
1,325
4,843
- 2,000 4,000 6,000 8,000 10,000 12,000 14,000
Health Care and Social Assistance
Public Sector (not including Public Education)
Retail Trade
Education
Hotels and Restaurants
Construction
Other Personal Services
Transportation and Warehousing
Professional and Scientific Services
Arts and Entertainment and Events
All Others
Number of Workers
2011 2022
Sources: California EDD and EFA
Top 5 Industries
2011 - 2022:
• Health care (private and
public)
• Government otherwise,
except education
• Retail
• Public and Private
Education
• Hotels and restaurants
• Construction
Looks more like rural than
urban CA in jobs mix
Data Points: Forecasts for Jobs, % Growth
Vallejo and California, 2019-2026
12 Status Quo Forecast
2019 – 2026 (end of Cycle 1),
growth largest in Vallejo for:
• Transportation (last-mile
delivery);
• Tech (maybe work from
home);
• Health care (aging
population);
• Professional services
(biotech to lawyers);
• Consultants;
• Admin workers.
Historically Vallejo has followed
CA forecast, though at slower
pace.
Sources: California EDD, Census Bureau, LightCast, and EFA -12.9%
-1.9%
22.3%
-15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Mining, Oil and Gas Extraction
Accommodation and Food Services
Arts, Entertainment, and Recreation
Wholesale Trade
Utilities
Public Sector (not including Public Education)
Retail Trade
Other Services (excluding Public Sector)
Finance and Insurance
Real Estate
Manufacturing
Farm and Natural Resources
Education
Construction
Admin and Waste Support
Management Consulting
Professional and Scientific Services
Health Care and Social Assistance
Information
Transportation and Warehousing
Forecasted Percent Growth of Jobs, 2019-2026
California Vallejo
Phase 2, Task 1.2: Targeted Industries
13 Construction Advanced Manufacturing
Software/Film Tourism
Transportation/Logistics Wholesale Trade
Why these industries?
Criteria (in order of importance):
• Primarily export market
• Potential commercial space in
Vallejo to support
• Forecasted growth for CA and US
• Wages higher than state average
• Jobs Multiplier greater than 1.25
• Location Quotient > 1
• Tax-enhancing business?
• Workforce Development links: can
this industry find training for
workers locally?
What we learned:
Themes from Communications Plan
14 Residents Businesses and Chambers
Bottom Line From Our Interviews, Surveys and Residential Groups:
• More safety and change in terms of perception of Vallejo needed; • Vallejo has great potential based on its location and available assets; • Vallejo’s diversity is its strength: need to lean into that asset in terms of workforce and economic development; and
• Residents want economic change across city, not just on Mare Island or north Vallejo or Downtown.
Bottom Line
• Vallejo has issues that are general in nature
– Economic development cannot solve these alone
• Regional partnerships needed
– Federal, state, and non-profit/foundation funding
for economic development activities
• Recognize and lean in to Vallejo’s “grit”
– Sell Vallejo as a place that needs help, but has
unique places, people and potential for this region
(Bay Area)
• These activities will need:
– Focused investment;
– Honest and consistent communications; and
– Internal and external resource commitments.
15 CONTACT(S)
Michael Nimon - Economic
Development Director -
[email protected]