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| Information |
| TITLE: |
| Consideration and Adoption of Resolution No. 2023-25: A resolution of the Flagstaff City Council providing for the Economic Incentive Programs, providing for delegation of authority, repeal of conflicting ordinances, and establishing an effective date. |
| STAFF RECOMMENDED ACTION: |
1) Read Resolution No. 2023-25 by title only
2) City Clerk reads Resolution No. 2023-25 by title only (if approved above)
3) Adopt Resolution No. 2023-25
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| Executive Summary: |
| This resolution provides administrative authority to staff to make minor changes to existing economic development incentive programs. Some proposed changes include provisions that the funding to be used within twelve months of award. Other proposed changes allow a dealership to provide a rebate directly to the consumer, then the dealer would submit the rebate reimbursement to the City of Flagstaff. |
| Financial Impact: |
| Delegating authority will allow staff to better manage and deploy the funding. |
| Policy Impact: |
| Economic development incentives are designed to attract to, retain, and expand industry in Flagstaff. The delegation of administrative authority allows staff to make necessary adaptations to the programs without the requirement and related time and effort to bring each adaptation to Council. The delegation of administrative authority facilitates good governance as staff achieves the overall mission of the programs in a manner consistent with the execution of their broad range of activities and duties. |
| Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan: |
Priority Based Budget Key Community Priorities and Objectives
High Performing Governance:
- Enhance the organization’s fiscal stability and increase efficiency and effectiveness.
Safe and Healthy Community:
- Ensure the built environment is sage through the use of consistent standards, rules and regulations, and land use practices.
Robust Resilient Economy:
- Maintain and enhance equitable and effective business recruitment, retention and expansion programs throughout the community.
- Attract employers that provide high quality jobs and low impact on infrastructure and natural resource.
Livable Community:
- Support diverse employment opportunities that provide residents with a living wage.
Environmental Stewardship:
- Implement Sustainable building practices, enhance waste diversion programs, alternative energy programs and multi-modal transportation options.
- Increase the private sector’s participation in environmental stewardship efforts.
Carbon Neutrality Plan
CR-2: Strengthen existing community systems to create resilience to both short-term shocks and long-term change.
EM-3: Support residents, businesses, and institutions in the transition to electric vehicles.
SC-2: Encourage sustainable consumption.
EP-1: Accelerate the transformation to a low-carbon economy that minimizes emissions and spurs innovation.
EP-2: Support the adaptation efforts of local businesses as the climate changes and the economic landscape shifts.
Regional Plan
Policy CC.2.9. Strengthen the City’s historic preservation and adaptive reuse programs by increasing funding for further inventories, grants to property owners, and education campaigns, especially, where the underlying Zoning for the historic resource put it at risk.
Policy CC.2.10. Educate the community and developers on the benefits of adaptive reuse and create policies to incentivize the reuse of historic buildings to maintain their integrity
Policy CC.2.11. Assist businesses and residents, who are caretakers of historic resources, maximize the economic value of their property without damaging the integrity of the historic resource.
Support Small Businesses Growth
Goal ED.3. Regional economic development partners support the start-up, retention, and expansion of existing business enterprises.
Policy ED.3.1. Encourage regional economic development partners to continue proactive programs to foster the retention and expansion of existing enterprises and home-based businesses in the community.
Policy ED.3.3. Support plans, programs, and capital expenditures to stimulate the investment of private capital in existing commercial areas for all industry sectors.
Policy ED.3.5. Advocate the economic sustainability and growth of businesses with opportunities for transitional commercial space, leased space, and property ownership.
Policy ED.3.6. Foster entrepreneurialism and start-up businesses with incubator and accelerator programs in sectors that demonstrate considerable growth potential.
Policy ED.4.4. Identify and support community resources that assist new businesses, such as workforce development, marketing, building processes, venture capital, financing, and management.
Promote Infill
Goal LU.1. Invest in existing neighborhoods and activity centers for the purpose of developing complete, and connected places.
Policy LU.1.1. Plan for and support reinvestment within the existing city centers and neighborhoods for increased employment and quality of life.
Policy LU.1.6. Establish greater flexibility in development standards and processes to assist developers in overcoming challenges posed by redevelopment and infill sites.
Policy LU.1.7. Consider creative policy and planning tools (such as transfer of develop rights or transfer of development obligations) to incentivize redevelopment and infill.
Policy LU.5.2. Promote infill development over peripheral expansion to conserve environmental resources, spur economic investments, and reduce the cost of providing infrastructure and services.
Goal ED.9. Promote redevelopment and infill as a well-established means to accomplish a variety of community economic, planning, and environmental goals.
Goal LU.13. Increase the variety of housing options and expand opportunities for employment and neighborhood shopping within all suburban neighborhoods.
Policy ED.1.7. Establish policy and tools to consider the impacts of redevelopment on local residents.
Vacant commercial and office spaces
Policy LU.1.3. Promote reinvestment at the neighborhood scale to include infill of vacant parcels, redevelopment of underutilized properties, aesthetic improvements to public spaces, remodeling of existing buildings and streetscapes, maintaining selected appropriate open space, and programs for the benefit and improvement of the residents.
Policy LU.10.5. Consider vacant and underutilized parcels within the City’s existing urban neighborhoods as excellent locations for contextual redevelopment that adds housing, shopping, employment, entertainment, and recreational options for nearby residents and transit patrons.
Connect Business Owners with Design Professionals
Goal ED.1. Create a healthy environment for business by ensuring transparent, expeditious, and predictable government processes. |
| Has There Been Previous Council Decision on This: |
Each incentive identified has been in front of and approved by Flagstaff City Council. This resolution delegates the administrative authority necessary to adapt to changes in conditions and to trends over time.
Resolutions and the programs are the following:
Res. 2020-07 Adaptive Reuse
Res. 2020-28 Business Retention and Expansion Incentive
Res. 2020-43 Sustainable Automotive Sales Tax Rebate
Res. 2021-19 Job Creation Incentive
Res. 2021-20 Development Reinvestment Incentive
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| Options and Alternatives: |
Council may approve the proposed resolution to delegate authority to modify Economic Development incentives to support high-performing governance, and to receive annual updates on the incentives.
Council may reject the proposed resolution requesting that staff bring each modification to the Economic Development incentives to Council for consideration. Staff still recommends approving the currently proposed changes to the associated incentives. |
| Background/History: |
Flagstaff City Council has discussed, supported, and unanimously approved Economic Development Incentives to enhance the local economy. Approved resolutions and programs are as follows:
Res. 2020-07 Adaptive Reuse
Res. 2020-28 Business Retention and Expansion Incentive
Res. 2020-43 Sustainable Automotive Sales Tax Rebate Program
Res. 2021-19 Job Creation Incentive
Res. 2021-20 Development Reinvestment Incentive |
| Key Considerations: |
| Each incentive was created to support various elements of the economy. Conditions certainly change. In order to best serve the community, minor edits must be made to adapt to changes in the local economy. Staff seeks to be effective and timely in serving the community. The delegation of authority does allow staff to respond to changing conditions and to have any proposed changes addressed by the City of Flagstaff Economic Vitality and the Attorney Offices. |
| Expanded Financial Considerations: |
| Delegation of authority to staff to make minor changes to existing economic development incentive programs streamlines processes and facilitates high-performing governance. |
| Community Benefits and Considerations: |
| The community benefits by having staff available to make modifications as necessary without the expense of time to bring minor edits to Council. |
| Community Involvement: |
This administrative effort has been initiated by staff in order to better serve the community. Proposed language changes have been articulated to staff through various users and businesses that benefit from this incentive.
Ex) Dealerships and purchasers have made several comments to City staff to allow the rebate incentive to be supplied directly from the dealership to increase efficiency. |
| Expanded Options and Alternatives: |
- Council may approve the proposed resolution as is to delegate authority to modify Economic Development incentives to support high performing governance, and to receive annual updates on the incentives.
- Council may approve the proposed resolution with modifications of Council's direction to delegate authority to modify Economic Development incentives to support high performing governance, and to receive annual updates on the incentives.
- Council may reject the proposed resolution requesting that staff bring each modification to the Economic Development incentives to Council for consideration.
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