HomeMy WebLinkAboutResolution 2019-136 N.C.S. 08/05/2019Resolution No. 2019-136 N.C.S.
of the City of Petaluma, California
ADOPTING A REVISED POLICY AND PROCEDURE FOR THE PREPARATION,
REVIEW AND USE OF FISCAL AND ECONOMIC IMPACT ASSESSMENTS
FOR SPECIFIED DEVELOPMENT PROJECTS IN THE CITY OF PETALUMA
WHEREAS, General Plan 2025 ("General Plan"), includes a chapter on economic health
and sustainability (Chapter 9); and,
WHEREAS, Goal 9-G-1 of the General Plan is to "establish a diverse and sustainable
local economy that meets the needs of the community's residents and employers"; and,
WHEREAS, Policy 9-P-2 seeks to ensure that new commercial development has a net
positive impact on the community; and,
WHEREAS, Program "A" of General Plan Policy 9-P-2 recommends that the City
consider the need for a "fiscal/economic analysis, as a component of the project's entitlement
process, of the impacts on Petaluma's economy, existing businesses; local workforce and city
finances" when reviewing commercial development proposals; and,
WHEREAS, on October 6, 2008 the City Council approved Resolution No. 2008-189
N.C.S. establishing a policy and procedure for the preparation of Fiscal and Economic Impact
Assessments (FEIA) for specified projects as part of the development review process to
implement General Plan policies as discussed above; and
WHEREAS, Resolution No. 2008-189 N.C.S. required preparation and review by the
City Council of a FEIA for projects with 25,000 square feet or more of "General Retail",
"Grocery", "Hotel", and/or "Building and Landscape Materials"; and
WHEREAS, since adoption of Resolution No. 2008-189 there have been three FEIAs
required for new hotel development within the City of Petaluma, all of which showed a general
increase in both annual and one-time revenues, nominal increase in retail sales, and increase in
both temporary and permanent jobs.; and
WHEREAS, the findings of each FEIA prepared for a hotel project have demonstrated a
net fiscal benefit to the City of Petaluma due to the nature of the hotel market and the limited
associated retail sector with most hotel projects; and
WHEREAS, proposed modification to definitions and review procedures herein replace
Resolution 2008-189 N.C.S. but maintains the intent and purpose as outlined in the original
resolution; and
Resolution No. 2019-136 N.C.S. Page I
WHEREAS, elimination of the requirement for preparation of an FEIA for hotel projects
maintains the desired oversight of potential fiscal impacts associated with large retail, grocery,
and building and landscape material uses as part of the entitlement process and to ensure that
Petaluma remains a healthy economy for local commercial businesses; and
WHEREAS, the revised elements of the FEIA policy and procedures as outlined below
continue to provide oversight and due consideration for specific projects to ensure the continued
growth and health of the local economy, consistent with General Plan Policy 9-P-2; and
WHEREAS, these modifications to Resolution No 2008-189 N.C.S. have been reviewed
for compliance with the California Environmental Quality Act (CEQA) and are considered
categorically exempt pursuant to CEQA Guidelines Section 15061(3) (General Rule) in that it is
a minor modification to the applicability of a previously approved policy to require fiscal
analysis for specific project types and does not have the potential to cause an impact on the
environment.
WHEREAS, on August 5, 2019, the City Council considered the recommended
modifications to Resolution No. 2008-189 N.C.S. at a duly noticed public hearing; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma
as follows:
1. Recitals Made Findings.
The above recitals are hereby declared to be true and correct and incorporated in this resolution
as findings of the City Council of the City of Petaluma.
2. Revised Fiscal and Economic Impact Assessment Policy.
The City Council of the City of Petaluma hereby revises its policy and procedure for the
preparation, review and use of Fiscal and Economic Impact Assessments ("FEIAs") for specified
development projects within the City of Petaluma ("City"). The purpose of this policy and
procedure is to provide an objective evaluation of the potential economic impacts of specified
retail/commercial projects within the City. Such evaluation, together with all other available
information in the public record, is intended to help the decision making body determine project
consistency with General Plan economic goals, policies and programs, including Policy 9-P-2 to
ensure new commercial development will have a net positive impact on Petaluma's economy,
existing businesses, city finances, and quality of life.
This policy and procedure implements General Plan Program 9 -P -2(A), regarding the need to
consider the potential fiscal/economic impacts on Petaluma's economy, existing businesses, local
Resolution No. 2019-136 N.C.S. Page 2
workforce and city finances as a component of the specific commercial project's entitlement
process. FEIAs required pursuant to this resolution may also be used as appropriate by project
applicants, the City Council, the Petaluma Community Development Commission, and City staff
to assist in identifying projects that may merit City and/or Commission assistance, such as
through negotiation of development agreements, direct Commission assistance for eligible
projects, and other assistance.
3. Covered Projects and Time for Submission of FEIAs
Any applicant for a "General Retail," "Grocery," or "Building and Landscape Materials" use, as
defined by the City of Petaluma Zoning Ordinance, as amended from time to time, that standing
alone, or in combination with other uses, has a total floor area (including, where applicable, the
area used for outdoor sales) of 25,000 square feet or more of "General Retail," "Grocery," and/or
"Building and Landscape Materials" uses shall be required to prepare and submit an FEIA to the
City for consideration in accordance with this resolution. To the maximum extent permitted by
law, this requirement shall apply to any new development or any redevelopment, as defined in
California Health and Safety Code Sections 33020 and 33021 as amended from time to time, that
meets the use and size requirements specified in this section. Subject to applicable law, FEIAs in
accordance with this resolution must be submitted to the City for consideration prior to the
granting of any required land use entitlements for the project.
If current economic impact assessment information already exists for a project, and that
information analyzes and discusses one or more of the FEIA factors identified in Section 6(g) of
this resolution, then that existing information may be used by the City or its consultants in the
preparation of the FEIA. The City may elect. to obtain peer review of existing economic impact
assessment information. The source for all data and studies relied upon by the FEIA shall be
identified, including materials submitted by the applicant and/or the public.
4. Preliminary Information Required from Applicants
Prior to commencing preparation of an FEIA, applicants for projects subject to this resolution
shall submit to the City the following information in a form acceptable to the City:
a. Complete applicant and project manager contact information.
b. Descriptions of proposed uses, where those uses are known, by area (square footage),
owner(s), and tenancies. Where owner(s), tenancies and/or users are not known,
reasonable assumptions regarding proposed types of retail users (e.g., home
electronics, furniture, clothing, etc.) may be substituted.
Resolution No. 2019-136 N.C.S. Page 3
5. FEIA Costs
Applicants for projects subject to this resolution shall be responsible for all costs associated with
the preparation, administration, and processing of the FEIA, including the cost of consulting
services, noticing, and any subsequent analysis in accordance with this resolution. Applicants
shall file with the City a deposit against Consultant costs for the preparation of the FEIA and the
City's administration and processing costs in an amount to be determined by the City. To avoid
delayed FEIA preparation and processing, applicants must update deposits when and as directed
by the City.
6. FEIA Contents
FEIAs shall analyze and discuss each of the factors outlined below in sufficient detail to assist
City officials and bodies responsible for project review and entitlement determinations in
assessing project consistency with General Plan economic goals, policies and programs,
including whether the project will have a net positive impact on Petaluma's economy, existing
businesses, City finances and quality of life in accordance with Policy 9 -2P -of the General Plan
and this resolution.
FEIAs shall include a separate section on each of the following factors and a summary
discussion on potential impacts to the local economy. For each factor, FEIAs shall analyze
project impacts for a five-year period from the estimated completion of the project. FEIAs
required pursuant to this resolution may analyze and discuss in addition to the following factors,
any additional factors or information an applicant deems important or relevant for a meaningful
assessment of the project's economic impact.
a. The existing local retail market conditions for market sectors proposed for the project,
including project primary and significant secondary market sectors, leakage of sales
to other communities in those market sectors, regional market competition in the
project market sectors, and population, demographic and related data for the project
market sectors.
b. Estimated retail sales by project retail sectors or merchandise categories per square
foot, including estimated captured leakage.
c. Current and estimated retail supply and demand for each project retail sector or
merchandise category.
d. The following estimated employment characteristics:
Resolution No. 2019-136 N.C.S. Page 4
i) the estimated number and type of jobs, including construction related,
permanent, part-time and full-time of the proposed project for the period
covered by the FEIA;
ii) whether the proposed project will result in significantly increased or decreased
permanent part-time jobs (3.5 hours or less per week), or permanent full-time
jobs (more than 35 hours per week), or a combination of permanent and
fulltime jobs compared to or using applicable local or regional employment
projections, such as those from the Association of Bay Area Governments
("ABAG") for Petaluma for the: period covered by the FEIA;
iii) estimated employee wages, benefits, and employer contributions for the
proposed project compared with or using relevant data for the Petaluma
community, such as living wages established in the Petaluma Municipal Code,
or California Employment Resolution Development Department occupational
wage data for the Santa Rosa -Petaluma. Metropolitan Statistical Area for the
period covered by the FEIA.
e. The estimated impacts of the proposed project on existing retail businesses, including
the potential for opportunities for business renewal and growth due to new businesses
locating in the Petaluma community; as well as the potential for negative impacts
such as reduced sales or closures.
f. The estimated project impacts on current and projected public revenues, including:
sales tax, use tax, base property tax, tax increment, transient occupancy tax,
development fee proceeds, benefit assessments, land dedication, exactions, developer -
funded improvements, and other public revenue benefits.
g. The estimated cost of public contributions, services and infrastructure required by the
project, including: tax rebates or refunds, land right -downs, below market or
contingent loans, site acquisition or preparation costs, fee waivers or payments, and
unfunded infrastructure and public improvement costs, and whether the estimated
project public revenues will equal or exceed estimated project public contribution,
services, and infrastructures costs.
7. FEIA Preparation
Consultants preparing FEIAs must be designated or approved by the City. Project applicants may
propose FEIA consultants. City staff will coordinate with project applicants and FEIA
consultants to avoid conflicts among FEIAs that are being prepared at the same time, or that
involve related or overlapping market studies, or that otherwise could conflict.
Resolution No, 2019-136 N.C.S. Page 5
8. Treatment of FEIA and Other Project Information
The contents of FEIAs, and other project information supplied in accordance with this resolution,
will be available to members of the public, except to the extent such information is exempt from
disclosure or the disclosure of such information is prohibited pursuant to the California Public
Records Act. and/or other applicable law.
9. Notice of FEIA Availability and Council Hearing on FEIA
Upon receipt of the completed FEIA, the Community Development Department shall provide a
public notice of its completion and availability for public review. Notice shall be provided in the
form of a one-eighth page display advertisement in the City's adjudicated newspaper of general
circulation, and by mail to all property owners and residents within 1,000 feet of the project site
and to all others that have requested such notice in writing. Additional information shall be
provided on the City's website and at designated City facilities.
The public notice shall appear at least thirty days prior to the City Council hearing on the FEIA.
The notice shall contain the time and place of the City Council hearing on the FEIA.
10. City Council Hearing and Use of FEIAs
Before a project subject to this resolution is granted any required land use entitlements, the City
Council will hold a public hearing, noticed in accordance with Section 9, to consider and discuss
the FEIA and the project, and to permit project applicants, FEIA consultants, and the public to
comment on the FEIA and the project. The FEIA hearing before the City Council is not intended
to require or result in separate findings, conclusions or approvals regarding a project. The
purpose of the Council FEIA hearing is to have public discussion of project FEIAs with the City
Council, applicants and the public before required project land use entitlements are granted.
The City officials and/or bodies responsible for project review and entitlement determinations
shall, in the normal course of their project review and entitlement determination responsibilities,
use the FEIA to assist them in determining project consistency with General Plan economic
goals, policies and programs, including whether the project will have a net positive impact on
Petaluma's economy, existing businesses, city finances and quality of life. In the normal course
of their project review and entitlement determination responsibilities and after due consideration
of the information, analysis and conclusions contained in the FEIA, the City officials and/or
bodies responsible for project review and entitlement determinations may accept and adopt the
information, analysis, and conclusions of the FEIA as findings of the officials or bodies in
support of their action concerning the project. However, nothing in this resolution requires
reviewing bodies to make findings concerning project consistency with the General Plan
Resolution No. 2019-136 N.C.S. Page 6
economic goals, policies .and programs separate from or in addition to findings required by law
or that are part of the City's existing entitlement process.
11. No Private Right of Action
Nothing in this resolution creates or shall be construed as creating a private right of action.
REFERENCE:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Under the power and authority conferred upon this Council by the Charter of said City
I hereby certify the foregoing Resolution was introduced and adopted by the
Council of the City of Petaluma at a Regular meeting on the 51h day of August 2019,
by the following vote:
Mayor Barrett; Fischer; Healy; Kearney; King; Miller
None
Vice Mayor McDonnell
None
V-O,4�
Deputy City Clerk
Mayor
City
as to
Resolution No. 2019-136 N.C.S. Page 7