HomeMy WebLinkAboutResolution 2020-14 Establish-Implmnt Invest PD Economic Development Incentive ProgramSTAFF REPORT
CITY OF PALM DESERT
ECONOMIC DEVELOPMENT DEPARTMENT
MEETING DATE: January 23, 2020
PREPARED BY: Wayne Olson, Senior Development Analyst
REQUEST: Authorize the Establishment and Implementation of the "Invest
Palm Desert" Economic Development Incentive Program
Recommendation
By Minute Motion:
1. Approve Resolution No. 2020-14 authorizing the establishment
and implementation of the Invest Palm Desert Economic Development
Incentive Program.
2. Authorize the City Manager to implement Invest Palm Desert Program
including the execution of agreements required to meet the all program
administrative requirements.
3. Authorize the Finance Director to appropriate $2M from the unobligated
Economic Development Reserve Fund to the City's Economic
Development Fund.
Executive Summary
On January 24, 2019 the City Council approved its 2019 City Goals which included a
goal to develop and adopt economic development incentive programs for targeted
business and properties. The Invest Palm Desert Incentive Program is a targeted,
geographic specific program that provides a menu of incentive options while preserving
Council's ability to review applicants' projects on a case -by -case basis. Approval of the
resolution and accompanying authorizations will allow staff to begin implementation of
the two-year program.
Strateqic Plan Obiective
The establishment of an Invest Palm Desert Incentive Program aligns with the City's
Envision Palm Desert Strategic Plan:
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Economic Development Incentive Program
January 23, 2020
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• Economic Development Priority 1: Expand job and business creation
opportunities,
• Land Use, Housing and Open Space, Priority 4: Create a mixed use City core
integrating shopping, dining, lodging and housing.
• Economic Development Strategic Plan (2018), High Priority (HPI) 2: Business
Retention and Expansion Program, (HPI) 3: Revitalization of Key Commercial
Districts and (HPI) 4: Entrepreneurial Development & Business Incubation
Program.
2019 City Goals:
• #5 — Develop and adopt economic development incentive programs for
targeted businesses and properties.
Background
The City's Envision Palm Desert Strategic Plan, asserts that Palm Desert is a premier
resort destination and attracts innovative employers by virtue of its diverse, highly
qualified workforce and business, civic and educational partnerships. The Invest Palm
Desert Incentive Program builds on that statement by strategically aligning incentives
with targets and geographies that align with the City's General Plan. In addition, the
City's Economic Development Strategic Plan (EDSP) proposes the City build a
meaningful and targeted incentive program to support incoming and existing businesses
and that aims to diversify the City's economy.
Discussion
The basic intent of the Invest Palm Desert Incentive Program (proposed name "Invest
Palm Desert") is to establish a time -limited, targeted and marketable programmatic
source of funds to be directed at the attraction, expansion and retention of economic
development activity within the City. At the April 11, 2019 City Council study session,
staff presented a tool box of recommended development incentives targeted within
General Plan transformative areas to underlying commercial and industrial zoning
districts, along with Desert Willow and the University Park areas. This strategy provides
opportunity to recommend projects from a broad, citywide perspective while still
maintaining equity in application participation.
In addition to the Desert Willow Golf Resort and University Park areas, the following
geographic areas and zoning designations would be eligible for participation in the
Invest Palm Desert Program:
Downtown — "D"
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• Downtown Overlay — "DO"
• Downtown Edge — "DE"
• Planned Commercial — "PC"
• Service Industrial — "S/1"
In the case of the focused San Pablo grant program, Exhibit B provides detail of the
eligible areas where projects must be located to apply for the San Pablo Capital
Improvements Corridor funds.
The proposed Invest Palm Desert Program consists of 6 program "categories":
1. Development and Plan Check Fee Rebate
2. Capital Improvements Grant
3. High Wage "Move In" Incentives
4. Site Specific Revenue Sharing
5. New Development Project Assistance
6. Other
The program has a proposed sunset of June 30, 2022. Projects must commence within
the program's termination. The applicant identifies which program(s) they would like to
participate in using a form -based application (sample attached). Projects will be
reviewed by staff and recommended to the City Manager and to City Council for review
and qualification in the specified programs. (All requests under $25,000 can be
approved by the City Manager not to exceed an aggregated annual total of $250,000-1
whereas, requests above $25,000 are required to seek Council approval).
Minimum eligibility criteria include business operations located within the areas
described above, demonstration of financial need and demonstration of public
consideration, and satisfaction of minimum job criteria per $100,000 of incentive funds
provided. Projects then proceed through the City's standard application processes.
Other legal requirements are detailed in the accompanying resolution, described later in
this staff report and will accompany the program roll -out.
Invest Palm Desert Incentive Proqram Cateqories
1. Development and Plan Check Fee Rebate
Applicants may request that certain City -administered development and service fees
listed below be paid from funds appropriated within this program. An applicant's typical
fees will be calculated and then rebated upon project completion. Fees that may be
reduced are:
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• Initial or Expedited Plan Check Fees
• Planning Fees
• Qualifying Development Fees
Examples of projects that would qualify for this incentive include any new tenant
improvements for new or existing retail, restaurant or industrial interior improvements.
Plan review costs vary based on overall project value and therefore fiscal impacts will
vary depending on the project size and types of fees under consideration. Average fees
are problematic to estimate given the wide variety of potential fees across different
building types and project sizes. However, for illustration, a local retailer on El Paseo
that spent $1 M on a complete renovation of an entire store recently paid approximately
$10,500 in fees, excluding planning application fees.
2. Capital Improvements Grant
The Capital Improvements Grant program category is a reprogramming of the
successful Fagade Enhancement Program. Applicants in this program category may
apply for and request 50% of total project costs; such that for every dollar of applicant
money expended within the request amount, the City provides one dollar of incentive
(not to exceed 50% of project cost and with a maximum City contribution of $500,000).
In addition, applications within the San Pablo Commercial Corridor, and within the area
mapped in Exhibit B, may apply for and request 66% of total project costs requested:
such that for every one dollar spent of applicant money, the City provides two dollars of
incentive (not to exceed 66% of project cost and with a maximum City contribution,
$200,000).
Tables 1 & 2 provide examples for illustration:
Tables 1&2. Illustration of grant amounts (examples only)
Citywide program
Total Project Cost $1,000,000
Applicant Contribution $500,000
City Contribution $500,000
Total Sources (private + public) $1, 000, 000
Total Project Cost
Applicant Contribution
City Contribution
Total Sources (private + public)
San Pablo Program
$300,000 j
$100,000
$200,000
$300, 000
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Examples of capital improvements in this program category can include new facades,
expansion of business operations space, new HVAC systems, parking, energy
reduction improvements, restaurant grease traps and other infrastructure
improvements. These projects require approval on a case -by -case basis by the Council
and require regular project approvals from staff and the Architectural Review
Commission if applicable. This program category excludes new construction projects on
vacant sites and targets current and expanding businesses within the City for retention
and expansion.
3. High Waqe "Move In" Incentive
The High Wage "Move In" incentives target Tech companies that relocate their
headquarters (HQ) operations from another City into Palm Desert. Only companies that
move their HQ operations to Palm Desert from another jurisdiction or entities from the
Palm Desert iHub that locate their HQ operations in Palm Desert may apply for this
program category. Company activities must be aligned with iHub goals and must
identify the majority of their business with one of the NAICS codes on the attached list.
Companies meeting this and other program requirements may apply for $25,000 per
employee that receives at least 150% of median salary within Palm Desert ($48,800 x
1.5 = $73,200). The incentive is paid annually and in arrears. The maximum amount of
City contribution will not exceed $500,000 total over five years. To qualify, a company
must have at least 2 employees (excluding CEO). The business' HQ must remain in
Palm Desert for a minimum of five years and must retain and deliver evidence of its
stated job count and salaries for a minimum of five years.
For example, a tech company moves its HQ to Palm Desert with 4 employees that are
paid at least 150% of the median salary within Palm Desert. Following year one and
with proper documentation, the company would qualify for $100,000 for year one and
subsequent years, for a total of $500,000 (i.e., $100,000 for 5 years.) In the event the
company HQ leaves prior to five years, or the employee salary count documentation
changes, the total aggregated amount will be reduced accordingly.
4. Site Specific Revenue Sharinq Incentive
This program category allows for applicants to apply for a rebate of certain incremental
revenues generated by a proposed project at a specified development site. Applicants
would be required to state a public benefit and provide evidence of a feasibility gap in
order to minimally qualify for this program category. The amount of rebate is on a case -
by -case evaluation by the City Council.
5. New Development Proiect Assistance
This program category serves as a marketing function to attract larger developers from
outside the region. In particular, types of support that may be introduced could include
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land buy -downs, project feasibility gap financing or other responsible development
assistance tools that lower hurdles for new development projects within Palm Desert. In
addition, this program category allows staff to develop marketing language that provides
more certainty to potential partners. Costs for this program category may vary widely
and depend on the project complexity. This program category is approved on a case -
by -case review by the Council and requires the project receive all appropriate approvals
6. Ongoina & Other Incentives:
In addition to the new programs listed above, the program provides marketing
opportunity to showcase the City's long history of business -friendly relations. The
structure of Invest Palm Desert is such that as new tools are requested for review, they
can be added to the other categories approved now. This offers staff and policymakers
great flexibility in advancing other program ideas as local need dictates.
Other incentives are already underway, but may previously have not been identified
specifically as incentives. For example, the City's project approval application process
has always been viewed as efficient, particularly in comparison to larger, more
urbanized areas. Other examples include strong relationships with community partners
as demonstrated in the partnership with the Coachella Valley Economic Partnership in
building the Hub, a tech incentive in itself that is nearing completion. Current walk-up
development assistance, architectural and development review by commissions and
staff, along with business concierge services in the form of technical assistance and the
business advocate all can be considered ongoing incentives that the City provides to
businesses.
Other items for consideration
Application Process and Eliqibilitv
The attached resolution defines the application process and Incentive Program
applicants' eligibility requirements. An applicant guidelines document will be created
following approval to support applicants through the process. Applicants must identify
financial need and the public purpose for public consideration of their funding request.
Applicants and projects must either currently operate, plan to operate, or otherwise be
located within Palm Desert within the designated areas. Applicants must initiate projects
within a two year window of this program. Applicants fill in the application and send to
the Economic Development Director, who reviews the application for eligibility and
qualification in the program. The applicant is then identified as qualifying for the
incentive program, or is denied (denial may be appealed to the City Manager's office).
Economic Development staff bring a report to Council that will seek approval of
qualification in the incentive program. The Applicant must then secure all other City
approvals, including submitting project applications per Planning and Building & Safety
process.
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Applicants are required to indemnify the City from future liability related to prevailing
wage, as well as provide all the necessary insurance requirements. Government Code
53083 requires recipients of more than $100,000 of public funds to report on a variety of
data related to the contribution, including job growth. In no case will the program stand
in violation of Government Code 53084 and 53084.5. For eligibility, unless a program
category is defined differently, applicants must provide evidence of the number of
employees and retain those employees for a minimum of five years. For certain
program categories, applicants must accept a lien on the property for a minimum of five
years. The applicant agrees to clawback that is prorated based on the number of years
required in the program category ($500,000 of grant =-$100,000/year less than five
years). A sample draft application is attached.
Prevailinq Wage
All economic development incentives are required to pay Prevailing Wage. Costs of
prevailing wage may be partially mitigated by providing enough resources within a
program category to overcome the marginal increase to project costs. In addition, staff
is researching hosting DIR staff to offer prevailing wage training for local contractors
and their back -office staff to decrease perceived fear around the administration of
prevailing wage projects.
Marketinq Plan
Marketing of the Incentive Program will be an important and critical component of its
success. Marketing staff have been involved in the process of the Incentive Program's
development since its inception. Marketing staff will develop an Economic Development
Marketing Plan (EDMP) that reflects the goals detailed in the Economic Development
Strategic Plan.
The EDMP will include the promotion of the Incentive Program locally, as well as to a
larger regional and Southern California business audience through a variety of
channels. The EDMP will be developed more fully in early first quarter 2020. A
separate budget will be identified via Fiscal Year budgeting process, but is estimated to
be approximately $100,000.
Fiscal Analysis
The proposed source of funds for the Invest Palm Desert Economic Development
Incentive program is Economic Development General Fund Reserves. Staff proposes to
appropriate $2M of Economic Development Reserves to create and seed the Invest
Palm Desert Incentive Program.
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It is anticipated this funding will be fully subscribed during the two year program window.
Projects seeking funding will be analyzed for fiscal impact on a case -by -case basis and
presented to the City Council for review at the time of application.
In the event program dollars are fully subscribed, staff may return to Council for
additional funding to expand program participation or to continue an incentive program
beyond the proposed two-year window.
DEPT. REVIEW 'FINANCIAL REVIEW ASSISTANT LEGAL REVIEW
CITY MANAGER
Martin Iv"a?"e�
Robert Hargreaves Direct r of Economic net M. Moore A d Firestine
City Attorney Development Director of Finance s tant City Manager
[CityM nager Lauri Aylaia .
ATTACHMENTS: Resolution No. 2020-14
(includes Map of San Pablo Area and NAICS Code List)
Draft sample application
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RESOLUTION NO. 2020-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, APPROVING "INVEST PALM
DESERT" THE CITY OF PALM DESERT INCENTIVE
PROGRAM
WHEREAS, since the elimination of redevelopment, which provided
numerous tools and strategies to further the elimination of blight and stimulate
economic growth, cities throughout California have struggled to find creative ways of
stimulating economic development within their jurisdiction;
WHEREAS, the State Legislature approved SB 470 (Chap 659, Wright) in
2013 which states it is the intent of the Legislature to (a) promote economic
development on a local level so that communities can enact local strategies to
increase jobs, create economic opportunity, and generate tax revenue for all levels
of government; (b) give local governments tools, at no cost to the state, that allow
local governments to use their funds in a manner that promotes economic
opportunity; and (c) cities need to continue certain powers afforded to
redevelopment agencies that were critical to economic development.
WHEREAS, SIB 470 declared to be the policy of the state: (a) to protect and
promote the sound development of economic opportunity in cities and the general
welfare of the inhabitants of those communities through the employment of all
appropriate means; and (b) that whenever the creation of economic opportunity in
cities cannot be accomplished by private enterprise alone, without public
participation and assistance in the acquisition of land, in planning and in the
financing of land assembly, in the work of clearance, and in the making of
improvements necessary therefor, it is in the public interest to advance or expend
public funds for these purposes, and to provide a means by which economic
opportunity can be created.
WHEREAS, SIB 470 explicitly authorizes a city to establish a program under
which it loans funds to owners or tenants for the purpose of rehabilitating
commercial buildings or structures.
WHEREAS, the City of Palm Desert, like many other communities in
California, has struggled to find innovative strategies to further economic growth
within the City, which has seen a decline in staff, services, and other resources;
WHEREAS, the City has also experienced ever-increasing rates of vacancies
in commercial and retail establishments along major corridors of the City, as existing
businesses, once thriving and benefitting from the use of tax increment financing,
face dwindling economic activity and depressed conditions;
WHEREAS, the City believes that retaining and improving the tax base of the
city is critical to the economic growth of the City and provides a clear benefit to
residents who utilize city services and programs;
Resolution No.
WHEREAS, on January 24, 2019 the City Council of the City of Palm Desert
adopted their 2019 Annual Goals that included direction to the City Manager to
establish and promote a business incentive program that would stimulate economic
development in the City of Palm Desert;
WHEREAS, the City Manager, in conjunction with various departments within
the City, has determined that a more targeted program fueling economic
development for the City enhances the public benefit by ensuring continued services
for residents;
WHEREAS, the City of Palm Desert General Plan identifies transformative
Focus Areas which call for redevelopment and reinvestment to create a town with
great neighborhoods, anchored by a true and vibrant downtown;
WHEREAS, the City Council of the City of Palm Desert wishes to use its
authority and power in order to provide any number of incentives, including but not
limited to, fee moratorium, loans, grants, and other various financial and non-
financial incentive programs for the benefit of Citywide community and economic
development, which will, in turn, increase its tax base and serve the economic well
being of the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Palm Desert as follows:
SECTION 1. That the City Council of the City of Palm Desert approves the
"Invest Palm Desert — the City of Palm Desert Incentive Program" (the "Incentive
Program") as described in Exhibit A, and accompanying Exhibits.
SECTION 2. This Resolution shall take effect immediately upon its adoption
by the City Council, and the Clerk of the Council shall attest to and certify the vote
adopting this Resolution.
SECTION 3 This Resolution shall authorize the City Manager to implement
the Incentive Program and all of its administrative requirements
SECTION 4 This resolution shall authorize the Finance Director to
appropriate funds from Reserves# to Econ Dev# for the use
of the Incentive Program.
PASSED, APPROVED, and ADOPTED this
Resolution No.
EXHIBIT A
City of Palm Desert
Incentives Program
In order to encourage community and economic development that meet specified
criteria, the City of Palm Desert establishes the following program: "Invest Palm
Desert — The City of Palm Desert Incentive Program" (the "Incentive Program").
The Incentive Program is established to enhance the City's ability to promote
economic development, facilitate the growth of Palm Desert businesses and housing
that provide high quality jobs and a strong economic base to support services to its
residents, aid in the diversification of the City's economy, and promote an improved
quality of life within the City.
Questions regarding this program should be directed to the City's Economic
Development Director at 760-776-6467.
A. Minimum Eligibility Criteria
In order to be eligible for the Incentive Program, an applicant must meet the
following criteria:
1. Be a business, business owner, lessor, developer or real property owner
within the boundaries of the City of Palm Desert, and in good standing with
the City of Palm Desert. Improvements must be of architectural significance
or must add a minimum of 20% of the current square footage of an existing
location, or 1,000 square feet.
2. The business, project or development must be located or provide evidence
that it will locate within the Desert Willow Golf Resort, University Park or the
following zoning districts within the boundaries of the City of Palm Desert;
Downtown ("O"), Downtown Overlay ("DO"), Downtown Edge ("DE"), Planned
Commercial ("PC") or Service Industrial ("SI").
3. Demonstrate financial need and offer a clear state of public purpose for
participation and consideration to the City in the Incentive Program, including
documentation demonstrating a feasibility gap analysis, project shortfalls or
other evidence stating the public purpose for participation in the Incentive
Program. The applicant must recognize that participation in the program will
trigger prevailing wage.
4. Satisfy at least one of the two of following criteria (and meet program
category criteria):
a. 1 new permanent full-time jobs with salaries equal to or greater than
100% of the most recently published Area Median Income (AMI) for a 1-
Resolution No.
person household in Riverside County, as reported by the California
Department of Housing and Community Development (HCD) per
$100,000 of incentive; or
b. 2 new permanent full-time jobs with salaries equal to or greater than
90% of the most recently published AMI for 1-person household in
Riverside County as reported by HCD per $100,000 of incentive.
5. Applicants must receive their entitlements and associated permits after the
date of adoption of this resolution by the City Council.
6. Applicants must agree to commence their improvements by March 1, 2022.
In the event an applicant is approved for an incentive and does not
commence improvements prior to that time, the applicant forfeits the entirety
of the awarded incentive.
B. Incentives (subject to "Requirements and Limitations" in Section E.)
1. Development & Plan Check Fee Rebate. -
Applicants may request a rebate of certain City -administered development
fees in an amount not to exceed 100% of the total City development fees
typically required by the applicant and depending on the character of the
project. The amount of applicant's fees to be rebated will be calculated
rebated to the applicant upon completion of the project. Fees that may be
reduced are:
a. Initial or Expedited Plan Check Fees
b. Planning Fees
c. Certain Development Fees
2. Capital Improvements Grant. -
Applicants may apply for a matching grant of 1:1 from the City up to a dollar
amount that totals 50% of the requested hard costs of permanent capital
improvements or rehabilitation. Permanent capital improvements can include
elements such as fagade enhancements, interior capital improvements, or
other hard costs associated with rehabilitation, renovation or redevelopment
of a commercial or industrial building or structure. The improvements must be
constructed within the zoning districts defined in Section A, herein. Approval
of participation and terms of the Capital Improvements Grant program is at
the sole and case -by -case discretion of the City Council.
a. The San Pablo Capital Improvements Grant: For properties located
along the San Pablo commercial corridor improvements (within in zoning
districts Downtown ("D"), Downtown Edge ("DE") and Downtown Overlay
("DO") Hwy 111 and Fred Waring Drive, and with a portion of site
frontage along San Pablo Avenue and located within attached map,
Exhibit B, a matching grant of 2:1 up to a dollar amount that totals up to
IZCSOIIItion No.
66% requested hard costs of permanent capital improvements or
rehabilitation will be considered.
b. A lien will be placed upon the real property associated with the
project. In addition to the other requirements listed herein, the applicant
must continue to own and operate the project for a minimum of five
years from the date of Certificate of Occupancy. In the event the
applicant does not perform in accordance with the stated terms of the
Incentive Agreement, the property owner will be required to refund the
City an amount prorated to the number of days deficient of the Incentive
Program requirements.
c. In no case shall the City's contribution exceed $500,000 to an
individual project within the Capital Improvements Grant, and in no case
shall the City's Contribution exceed $200,000 within the San Pablo
Capital Improvements Grant.
3. High Wage "Move In" Incentive. -
The City may consider on a case -by -case basis providing assistance to
business that relocate their headquarters operations into Palm Desert from
outside the City or to entities from the Palm Desert iHub that locate their HQ
operations in the City. The City may provide assistance:
a. In the form of moving assistance of $25,000 per employee (in no
case shall the amount of incentive exceed $500,000). The tech
business must relocate its headquarters operation in its entirety and
remain in operation as a headquarters in its entirety for a minimum
of five years. The business will retain its count of employees for a
minimum of five years. Payments will be paid in arrears after
providing documentation of the following:
i. Jobs must pay 150% of average wage in Palm Desert as of
January 1, 2020 ($48,880 x 150% _ $73,200). Applicant is
required to provide evidence of such salaries) in the form of an
anonymized salary roll certified by a third party accountant and
delivered for review to the City Finance Director.
Applicant for Tech invocation incentives must provide evidence of business
operations matching NAICS code(s) in the list in Exhibit C herein. Applicants
that operate a business with a NAICS code not listed must provide a
statement of purpose which clearly identifies the business as tech -based.
Approval of participation and terms of the tech innovation incentive is at the
sole and case -by -base discretion of the City Council.
4. Site Specific Revenue Sharing. -
Applicants may apply for a partial rebate of new incremental revenue
generated by the Applicants business at a specified development site.
Resolution No.
Rebates will be conditioned on City's receipt of the new incremental tax
revenue and will be calculated based on the actual revenues for the
Applicant's business received by the City. Approval of participation and terms
of the Site Specific Revenue Sharing program is at the sole and case -by -case
discretion of the City Council.
5. New Development Project Assistance
The City may consider on a case -by -case basis providing assistance with
new development projects that include, but are not limited to, land purchase
assistance, gap financing, and other public infrastructure investments that
create, support or enhance the public uses of the project. Approval of
participation and terms of the New Development Project Assistance program
is at the sole discretion of the City Council.
6. Ongoing & Other Incentives:
The City may provide additions and subtractions to the Incentive Program
from time -to -time, the terms of which will be provided at the time of approval.
C. Application Procedures and Review Process:
1. Any existing Palm Desert business, real property or building owner, lessor
(with owner approval) meeting the minimum eligibility qualifications identified
in Section A, may submit an Incentive Application along with a written
proposal to the Economic Development Director. The proposal shall:
a. Highlight the public purpose and
elimination of hazardous condition,
finance gap, if present.
consideration to the City (i.e., jobs,
etc.) and clearly identify the project
b. Provide a general description of the proposed project, type of business,
location, number and type of jobs existing and to be added, projected tax
revenue generation (see Section B for qualifying revenue sources), and
any other criteria the City may use to evaluate the public benefit of the
proposed project. This may include both financial benefits as well as
enhancements to the community's overall quality of life and diversification
of the City's economic base.
b. Financial summary of the project including, total cost of project,
including separate identification of hard costs and soft costs and any other
costs associated.
c. A preliminary financial plan, whether the project is funded by equity, or
debt, or a combination of both.
d. Address of the required qualifications of Section A that are being
proposed.
Resolution No.
e. Identify the incentives requested and the estimated value of each
requested.
2. Upon receipt of the proposal, the City Manager will review the request and
forward a copy of the application to the Economic Development Director for
review. The Economic Development Department will complete a fiscal
analysis and review the application and proposal along with the requested
incentives.
3. Based upon the fiscal analysis and review of project by the Director of
Finance, City Attorney and various other City staff, negotiation with the
applicant, and consideration of the overall public benefit of the proposal and
proposed incentives the Economic Development Director shall prepare a
proposed incentive package qualification report for City Manager or City
Council consideration and approval.
D. Value of Incentives and Approval Process:
1. The total value of the incentives offered to the applicant will depend on the
particular attributes of each proposal, and shall be determined on a case -by -
case basis, with importance placed on the public economic benefits that will
accrue to the City by expansion of the existing business or employees. The
City retains the right in its sole discretion to reject any proposal.
2. After review of the application by the the City's Economic Development
Department shall perform an analysis of the applicant's requested incentives.
Applicants are encouraged to provide economic impact studies or analysis for
the City's consideration. The City may undertake those studies or analyses at
the City's or, with consent of the applicant, applicant's cost (to be deducted
from the amount received by the applicant and/or reimbursed to the applicant
from the City).
3. After review by the Economic Development Director, recommendations will be
provided to the City Manager or City Council for further qualification
consistent with the Incentive Program and any applicable laws. If the
applicant meets the criteria established by Section A of Incentive Program
and sufficient information is gathered to justify the City's provision of an
incentive package, the Economic Development Director shall cause to be
prepared an Incentives Funding Agreement that shall be signed by the City
Manager, or Mayor, as applicable.
4. Applications requesting less than $25,000 may be approved by the City
Manager. However, the City Manager may require City Council approval of
any applications, including those less than $25,000. Any incentive listed as
case -by -case or combination of incentives requested that include those listed
as case -by -case will require review and approval by the City Council. City
Manager approvals will not exceed $250,000 in aggregate for any given year
of the Program (however, no one applicant will be approved for more than
$25,000 without the City Council's approval).
Resolution No.
5. Any incentive valued at $100,000 or more must be approved consistent with
the requirements of Government Code 53083 (effective January 1, 2014). In
no case shall the City provide incentive in violation of 53084 and 53084.5.
6. The applicant must receive all other project entitlements and permits as
required.
E. Requirements and Limitations:
1. Incentives are offered on a case -by -case basis and at the sole discretion of
the City Council.
2. Incentives will be offered and based upon the availability of City funds as
appropriate by Council on a year-to-year basis. Applications that qualify when
funds are no longer available may be placed on wait list for future fund
availability, but are not guaranteed funding.
3. Applicants must commence the project as described not later than March 1,
2022. In the event an applicant receives entitlements after the date of
adoption and does not commence the project before March 1, 2022 the
applicant is no longer eligible for the incentives and agrees to forfeit any and
all incentives awarded
4. The incentives herein may not be applied retroactively except for when
allowed as described herein.
5. Incentives and/or incentive packages may trigger a requirement to pay
prevailing wages. Applicants are required to abide by prevailing wage laws,
which apply to construction projects funded in whole or in part with public
funds, by State law. Applicants will be required to agree to indemnify, defend
and hold the City harmless for any claim that prevailing wage was applicable
and not adhered to. Applicants should seek professional advice regarding
prevailing wages requirements.
6. City reserves the right to reject any or all proposals.
7. Applicants are highly encouraged to seek legal representation to pursue an
incentive under this Program.
F. Required Aqreement Provisions:
1. To receive an incentive under the Incentive Program, Applicants will be
required to enter into an agreement with the City.
2. Agreements prepared in furtherance of Incentive Program may include the
following provisions and others in the discretion of the City:
Resolution No.
a. Terms and Conditions of the incentive package, including timelines for
payment due, reimbursements to be made, etc., as may be applicable
to the incentive package.
b. Annual Monitoring: Sufficient monitoring of the applicant's continued
eligibility of the incentives offered under the Incentive Program. For
example, for applicants receiving incentives for the creation of
additional jobs, paycheck stubs or other proof that individuals continue
to be employed will be required, for a length of time deemed
appropriate for the parties. Data provided can support reporting under
Government Code 53083 requirements, however, a separate and
annual report must be filed with the City and are the responsibility of
such report lies solely with the applicant. Failure to report can result in
forfeit of incentives. Applicants seeking Capital Improvements agree to
regular inspections by City staff and will require review upon
completion that the design agreed upon was constructed.
c. Records Open to Inspection: The City will have a right to inspect, upon
a minimum of 48 hour advance notice, financial records maintained by
the applicant pertaining to incentives under the Incentive Program.
d. Indemnification: Applicant shall indemnify the City for claims related to
implementation of the agreement.
e. Security for any loans, grants or deferrals or other incentive.
f. Contractually agree to continue operation for the duration of the
incentive(s) or be required to return the value of the incentive(s)
provided or per terms of the mutually negotiated Incentives Agreement.
g. Applicant shall comply with all local and state regulatory requirements..
e.g. California Environmental Quality Act, local zoning requirements,
etc.
3. Any other agreements required by the incentive package shall be approved
by the City Council and shall be prepared based on the agreement negotiated
by the parties, including but not limited to, deferral and loan agreements, the
Incentive Agreement.
F. General Provisions:
1. This Program will expire March 1, 2022. No additional incentives will be
offered unless a Resolution continuing the Incentive Program is adopted by
the City Council.
2. This Program will provide funds as long as they are available and subject to
appropriation by the City Council year-to-year and as applications are
deemed eligible by the City. In no case is the City obligated to provide funding
to applications it does not deem in the public benefit, nor for any application
Resolution No.
that exceeds the fund balance. The City, in its sole opinion, reserves the right
to reject any application for any reason.
2. The Incentive Program may be modified by the City Council at any time.
Resolution No.
EXHIBIT B
Map of San Pablo Capital Improvements Grant Area (to be updated)
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Resolution No.
EXHIBIT C
NAICS Code - for Qualification in Tech Innovation Grant Program
The following list contains those NAICS codes which most directly involved in the "High
Tech" sector. It is not exhaustive of all possible high tech industries.
NAICSN
NAICS_LAB
333295 Semiconductor machinery mfg
333315 Photographic and photocopying equipment manufacturing
334111 Electronic computer mfg
334112 Computer storage device mfg
334113 Computer terminal mfg
334119 Other computer peripheral equipment mfg
334210 1 Telephone apparatus manufacturing
334220 Broadcast and wireless communications equip.
334413 Semiconductor and related device manufacturing
334511 Search, detection, navigation, guidance, aeronautical, and nautical system and
instrument manufacturing
421430 Computer & peripheral equip & software whsle
421690 Other electronic parts & equipment whsle
423430 Computer and computer peripheral equipment and software merchant
wholesalers
423690 Other electronic parts and equipment merchant wholesalers
443120 Computer and software stores
511140 Database and directory publishers
511210 Software publishers
514210 Data processing services
518210 Data processing, hosting, and related services
519130 Internet publishing and broadcasting and web search portals
541330 Engineering services
541511 Custom computer programming services
541512 Computer systems design services
541513 Computer facilities management services
541519 Other computer related services
541710 R&D in physical, engineering & life sciences
541711 Research and development in biotechnology
541712 Research and development in the physical, engineering, and life sciences
(except biotechnology)
Resolution No.
City of Palm Desert
Economic Development Department
INCENTIVE PROGRAM
73-510 Fred AVaring Drive . Palm Desert . California . 92260 e (760) 346-6 1 e F .x (760) 776-6417
Applicant (person/firm proposing the project):
Mailing Address:
City: State: Zip
Property Owner (land owner):
Mailing Address:
City: State: _ _2,,
Representative (if different from appli, .nt):
XWling Address:
City: State: Zip:
Please send correspondence to (check one): :applicant
_, elephone:
- x number:
L. ail:
Telephone:
Fax number:
Email:
Telephone:
Fax number:
Email:
Property Owner Representative
Please mark the programs applied for and complete questions on separate page(s):
c Development Plan Cheek Fee Rebate
o Capital Improt ement Grant
o High Wage `Move In" Grant
o Site Specific Revenue Sharing
o Development Assistance (describe request in narrative)
a Other (describe request in narrative)
2. Attach a project narrative, including type of business, whether the applicant or the
applicant's property rill by the recipient of the funding (i.e., broker is applicant, propert-,
where funding ir-ill be spent), what public benefit the applicant believes is being met.
3. In the case of capital improvements, or grant dollars thatwill be used for relocation or
location assistance, attach project rendering(s). In the case of other, provide tear sheets of
proposed equipment, P.O.
4. Describe 4 of proposed jobs retained or expanded, along with average annual salary.
"Legal detail and Signature block to be included`