EDC 091409 Agendacityofhayward-ca.gov/CITY-GOVERNMENT/BOARDS-COMMISSIONS-… · HAYWARD HEART OF THE BAY EconomicDevelopment Committee ... 4 Development Services Department Overview

C I T Y O F

HAYWARDHEART OF THE BAY

Economic Development Committee

Hayward City Hall 2nd Floor Conference Room 2A

777 B Street Hayward CA 945415007

September 14 2009

400pm

AGENDA

1 Call to Order

2 Public Comments Note Formatters not otherwise listed on the agenda The Committee welcomes publiccomments under thissection but is prohibited by State Law from discussing items not listed on the

agenda Items brought up under this section will be taken under consideration and referred to staff for

followup as appropriate Speakers will be limited to 5 minutes each organizations represented by more

than one speaker are limited to 5 minutes per organization All public comments are limited to this time

period on the Agenda

3 Approval ofAugust 3 2009 SummaryNotes

4 Development Services Department Overview of Building Incentives David Rizk Director of

Development Services Copy ofJune 23 2009 StaffReport to City Council Attached

5 Review ofEconomic Development CommitteeByLaws and Rules Regulations

6 Review of Current Strategic Plan

7 Economic Development Activities Update August 2009

8 Committee Member Announcements

9 Adjournment

Assistance will be provided to those requiring accommodations for disabilities in compliancewith the Americans with Disabilities Act of1990 Please request the accommodation at least 48

hours in advance ofthe meeting by contacting JoAnne DAgostino at 5105834245 or by callingthe TDD line for those with speech and hearing disabilities at 5102473340

Economic Development777 B Street Hayward CA 945415007Te15105834250 Fax 5105833650

C I T Y O F

HAYWARDHEART OF THE BAY

ECONOMIC DEVELOPMENT COMMITTEE

REGULAR MEETING SUMMARY NOTES

AUGUST 3 2009

1 CALL TO ORDER Acting ChairBaines called the meeting to order at405pm

ATTENDANCE

All MeetingsYear to Date

Meetings Mandated

B Resolution

CommitteeMember

Present

80309 Present Absent Present Absent

Landon Baines Acting Chair 1 0 1 0

Chris Lam No 1 0 1 0

Council Member MayBruno 1 0 1 0

Manny Sawit No 1 0 1 0

Avtar Singh 1 0 1 0

Terri Swartz 1 0 1 0

Mayor Sweeney 1 0 1 0

Jim Wieder No 1 0 1 0

Council Member Zermeno 1 0 1 0

August meeting does not count towards attendance

OTHERS IN ATTENDANCEFran David Assistant City ManagerSean Brooks Economic Development ManagerSally Porfido Economic Development Specialist

2 PUBLIC COMMENT None

3 APPROVAL OF JULY 6 2009 SUMMARY NOTES The July 6 2009 Summary Notes

were approved

4 ELECTION OF ECONOMIC DEVELOPMENT COMMITTEE FOR FISCAL YEAR2010 OFFICERS

Hayward Economic Development Committee

Regular Meeting Summary Notes

August 3 2009

Page 2 of 4

Committee members elected Landon Baines as Chair and Jim Wieder as CoChair

5 AGENDA PLANNING FOR 20092010

Committee members discussed Agenda topics and the direction ofthe Committee Member

comments

Mayor SweeneyWould like the Economic Indicator Project to continue as it gives the Committee members

valuable information about Hayward economic trends

Requested Committee assistance in figuring out away to engage the school district to

determine how we are doing academicallyFocus on the importance ofthe industrial area and opportunities to bring majormanufacturers into the area

Council Member Zermeno

Wants more focus on small business outreach

Expressed the importance of business retention and attraction

Council Member MayRecommends reviewing the Economic Development CommitteeByLawsPut guidelines in place before the Community Promotions Application fund

recommendations

Landon Baines

Requests the Committee focus on the ByLaws with emphasis on the language of how the

Economic Development Committee acts as a liaison to City Council

He would like the Committee to look at being an intermediary with the industrial area

Terri Swartz Summarized the previous comments for Committee focus and direction

1 Business Retention and Attraction Diversified tax base and issues related to

manufacturing2 Economic Development CommitteeByLaws and Rules Regulations refresh and

update in order to clarify the Committeesrole and responsibility This would include

development ofCommunity Promotions Applications review guidelines3 Update and review the Economic Indicators reports

6 ECONOMIC DEVELOPMENT ACTIVITIES UPDATE JULY 2009

Staff has selected prospective retailers from lists that Buxton Company has provided that best

fit the purchasing profiles of Haywardspopulation both workforce and residential Buxton will

develop 60 marketing packages targeting the retailers that the City of Hayward selects Staff is

preparing an inventory of available sites for lease in the three project areas Staffwill market

available sites to prospective retail tenants at the September 24International Council of



August 3 2009

Page 3 of 4

Shopping Centers San Diego Conference

Staff is working to update City of Hayward marketing pieces to take to the International Council

of Shopping Centers Conference as part of aretailer attraction package

Staff is reviewing an application package received from ajazzwine bar applicant This facilitywill be located on a central corner of B Street andwill feature jazz concerts music instructionand arestaurant that serves tapas selfserve wine and champagne tasting Applicant is currentlyrecruiting investors to finance the major portion ofthis business

Staff met with three Downtown Hayward restaurants and ayogurt store owner regardingupcoming projects that may require applying for small business revolving loan fund assistance

Five startup business requests were provided information about the Small Business

Administrations SBA and the Lenders for Community Development loan programsAdditionally information regarding the Hayward Chamber ofCommercesfree business

counseling program and handouts regarding other services for startup businesses were

distributed The types ofstartup businesses requesting assistance were a taco stand jazz cluba deli adaycare center and apreschool

Thirteen additional business owners wereprovided assistance in obtaining various City services

Staff is finalizing coordination of Hayward restaurant participation in the City of HaywardChamber Mixer on August 12 2009 To date eleven restaurants have agreed to participate and

will donate beverage and appetizer samples to advertise their respective restaurants

Staff is coordinating abeerwine garden for the first Chabot College Jazz Orchestra 2009

Summer Jazz Series to be held at City Hall Civic Plaza on July 31 Volunteers have been

recruited to assist with this event

Staff attended the Semicon West Tradeshow at the Moscone Center in San Francisco to assist in

staffing the East Bay Economic Development Alliance EDA booth This tradeshow was held

at the Moscone Center on July 14162009 and focused on exhibitors within the semiconductor

industry Over this period over 15000 national suppliers service providers manufacturers and

ancillary service companies and representatives were present In addition this year increasedattention was paid to companies that focused on solar technology Staff visited the ten Haywardbusinesses exhibiting at the Trade Show

Northern Silicon Valley Partnership Fremont Hayward Newark and San Leandro

On Thursday July 16 2009 the Northern Silicon Valley Partnership NSVP ofthe

Cities of Hayward Fremont Newark and Union City hosted their Investor Roundtable

The Changing Landscape ofInvestment at Fremont City Hall There were 42 attendees

at the roundtable which promoted connections between entrepreneurs and investors The

objective ofthis event was to foster introductions conversations briefpitches and



August 3 2009

Page 4 of4

exchanges of contact information between entrepreneurs and investors Three leadingVenture Capital Firms were represented The NSVP committee selected 8 of the 30 pitchapplications and the focus ofthe Investor Roundtable was on companies that featured

Innovative New Green Technologies

The next Northern Silicon Valley Partnership meeting will be held at Hayward City Hall

on August 5 2009 to finalize aCareer Strategy Forum This free event will be

September 26 from 9am to noon at Crowne Plaza Hotel in Union City to assist jobseekers with developing j ob search skills

Staffmet with Veronica Curley Southland Mall Manager to discuss retail opportunities at

Southland as well as an update ofowner General Growth It was decided to continue these

update meetings on a quarterly basis

7 COMMITTEE MEMBER ANNOUNCEMENTS

Business Visitations

Mayor Sweeney reported onhis visit to Xpedx Packaging with Michael Lawson CityAttorney Xpedx Packaging has 165 employees and 30live in Hayward Their labor

force is not skilled and a majority oftheir employees have been with the company over

10 years This business is seasonal They would like to see agood Business Directory as

they are looking for business development leads The company representatives declined

to complete the survey form

Council Member Zermeno reported on his visit to Mohawk Carpet with Matt McGrath Director

ofMaintenance Services The Mohawk Carpet location in Hayward is a large distribution facilityin the industrial area Many oftheir employees are from Hayward There were no immediate

concerns or issues

Landon Baines reported on his visit to Honda of Hayward with Miriam Lens City ClerkThe owner Mr Wondolowski had agreed to this scheduled visit but was not there for the

appointment Therefore the visit was cancelled

Sean Brooks Economic Development Manager informed the Committee of ameeting with

Incito Consulting Group aprofessional services and business advisory firm that aims to

positively impact the economy and society by teaching clients the principles and application ofLean Enterprise Transformation Staff is considering the possibility ofutilizing Incito for an

industrial overview workshop in 2010

Fran David Assistant City Manager invited the Committee to aHayward Business Workshop on

How to Improve Your Productivity This will be at theEOn Cafe in Hayward on August 20

from 730 to 9am and the speaker is Fran Tarkenton

r

8 ADJOURNMENT Meeting was adjourned at 500pm

C I T Y O F

HRYWRRDHEART O F THE R A Y

DATE June 23 2009

TO Mayor and City Council

FROM Development Services Director

SUBJECT Local EconomicIncentives Stimulus Package to Encourage Green Building and

New Development

RECOMMENDATION

That the City Council reviews and comments on this report

SUMMARY

In 2008 during meetings associated with development ofthe Green Building Ordinance for Private

Development GBO some Council members expressed adesire to develop an economicstimulusincentives package that would encourage developers who werenotrequired to build

green in accordance with the ordinance to do so As the economy and housing markets have

dramatically slowed it becomes necessary to offer similar incentives to all developers until the

economy recovers The number ofbuilding permits issued and finalized for new residential units

during the past three and onehalffiscal years is shown below reflecting the depressed housingmarket and building activity levels

20092006 2007 2008 through

531

NoofSingleFamilyUnits for WhichPermits Were Issued 200 130 88 116

No ofSingleFamily Units for WhichPermits Were Finalized 102 136 137 93

No ofMultiFamily Units for Which

Permits Were Issued 90 4 2 3

No ofMultiFamily Units for WhichPermits Were Finalized 69 9 15 2

In response staff has developed a preliminary set ofrecommendations for Councilsreview andfeedback that would be applicable toany project that is exempt from but complies with the CitysGreen Building Ordinance for Private Development to any development project including those

required to build green for which permits are issued or final inspections conducted through now

and June 30 2012 and might exclude those projects having prior specific negotiated agreements

with the City It is hoped that such measures would encourage some of the approximately 1500entitled units that are exempt from the Green Building Ordinance regulations tobe built green and

would assist developers during this depressed housing market to be better able to absorbcant costs

until the housing market rebounds and sales activity returns to more normal levels

Staff is also recommending the following sets of actions for discussion as detailed later in this

report

1 Deferral ofpayment of certain development impact fees from time of issuance of certificateofoccupancy CO to close ofescrow or one year after CO issuance

2 Revisions to HaywardsInclusionary Housing Ordinance to allow payment ofinlieu feesfor a temporaryperiod oftime to meet inclusionary housing obligations

3 Extension of initial approval period for discretionary approvals4 Enhancements to internal procedures related to development review processing

BACKGROUND

During deliberations at last years October 21 and November 25 City Council public hearingsinvolving discussion and consideration of Haywards Green Building Ordinance GBO for privatedevelopment several Council members expressed a desire to have a set of incentives developed to

encourage green building in Hayward Subsequently in response to lethargic housing activity and a

depressed housing market some Council members have requested that the City Manager developincentives to stimulate new housing construction activity

Related to direction at the GBO hearings staff met with agroup of local developers and the local

Homebuilders Association ofNorthern California representative on January 15 2009 and received

suggestions on what types of incentives could be helpful to them The notes from that meeting are

included as Exhibit A Generally there were three types of suggestions

1 Deferral ofpayment of fees including possibly deferral ofpayment ofall building permitfees from time ofpermit issuance to final inspectioncertificate of occupancy

2 Allow payment of affordable housing inlieu fees by right and

3 Miscellaneous incentives such as allowing plastic piping for plumbing projects extendingtime by which utility connection fees are required to be paid and extending life of

discretionary approvals and building permits

DISCUSSION

Deferral of Payment ofCertain Development Imuact Fees Staff is recommending that for anyresidential unit for which a final inspection is requested prior to June 30 2012 and for projects thatare built at any time in the future in accordance with the CitysGreen Building Ordinance that are

not required to be see list ofmajor entitled projects that are exempt from the Ordinance provisionsExhibit C that payment of the park dedication inlieu fee and supplemental building construction

improvement tax be allowed to be deferred until close of escrow or to ayear past issuance ofcertificate ofoccupancy whichever occurs sooner

Economic StimulusMcentives Package 2 of8June 23 2009

In meetings with developers several attendees expressed adesire to have payment of developmentimpact fees deferred until close of escrow or within some established time frame after issuance ofcertificate of occupancy Although Hayward would not be obligated to do so such deferment is

allowed by 2008 State legislation AB 2604 Torrico Currently Hayward requires payment of

development impact fees such as park dedication inlieu fees utility connection fees supplementalbuilding construction improvement tax etc at time of final inspection issuance ofcertificate of

occupancy Few cities have allowed deferral ofpayment of such fees to close ofescrow as

summarized below and as shown in an October 2008 table from Paul Campos ofthe Homebuilders

Association of Northern California Exhibit B

The two payments proposed for consideration of deferral are 1 the park dedication inlieu fee

nearly12000 for each new singlefamily ownership unit and 2 the supplemental buildingconstruction and improvement tax1200 per single family unit 960 permultifamilyunit As a

general tax the supplemental building construction and improvement tax goes to the Citys General

Fund Approximately 80 of General Fund revenues are used for public safety Since it was

initiated in 1990 aportion ofthe supplemental building construction and improvement tax revenue

has gone into the Transportation System Improvement Fund in the CitysCapital ImprovementProgram and typically is used for various improvements such as new traffic signals or some

intersection improvements

Regarding deferral of the park dedication inlieu fee impacts to parks would not occuruntilunitsare actually occupied eg soon after close of escrow Staff from the Hayward Area Recreation

and Park District has expressed some concerns with such deferral but City staff believes that with a

recommended maximum timeframe ofone year beyond the date of certificate ofoccupancy fundsto support mitigation ofpark impacts will be collected in a timely manner to allow improvements to

be constructed or land to be acquired

These two fees along with the utility connection fees represent the largest development impactfees the City imposes on new residential developments Allowing payment deferral until not laterthan a year after close of escrow will minimize carrying costs of developers on units for which theyhave received certificates ofoccupancy but which they cannot sell A local developer has indicatedthat these two fees represent approximately55ofthe fixed development costs including vertical

construction site improvements and impact fees but excluding land and affordable housing costsfora1500 square foot singlefamily unit To address situations where close of escrow does not

occur within a reasonable time period after apermit is fmaled staff is recommending that such fees

would be required to be paid within one year ofissuance of certificate of occupancy regardless of

sale of property

Ifthis idea is supported by Council staff will return with adetailed summary ofthe program

implementation details which would include a lien and collection process and the anticipatedadministrative costs associated with such aprogram

Fees Not Recommended to be Deferred Staff is not recommending reduction or deferral of

building permit and related fees until final inspection as was suggested by some during the January15 meeting with developers To allow for deferral or reduction is not appropriate in staff s opiniondue to the fiscal emergency associated with the Citys General Fund and the fact that the City would

EconanicStimulusncenivesPackage 3 of8June 23 2009

be incurring costs associated with plan check and inspection services Currently the time between

issuance ofbuilding permit to final inspection for singlefamilyhomes andmultiFamilyattachedunits averages approximately 4 to 6 months and 6 to 8 months respectively Staff is also not

recommending that utility connection fees be deferred any further since they are already only paidat the time actual connections are requested and prior to final inspection rather than when permitsare requested

Revisions to HavwardsInclusionary Housing Ordinance IHO In response to input from the

development community and assuming a detailed analysis supports such allowance staff is

recommending that payment ofinlieu fees to meet inclusionary housing obligations be allowed bydevelopers ofprojects that are approved and not built prior to June 30 2012 and that anexus

studyanalysis be conducted to determine what the appropriate fee amount should be to offset the

impacts on affordable housing ofthose projects

Besides deferral of certain fees the item that garnered the most comments from the developmentcommunity is the negative impacts of Haywards iriclusionary housing ordinance IHO on

development activity Two suggestions were made

1 Amend the Ordinance to allow payment ofinlieu fees by right versus at the discretion of

the City Council with certain findings and2 Possibly reduce the inlieu affordable housing fee amounts currently 80000 per unit

The revised City ofHayward Draft Housing Element submitted to the State indicates that the Citywill consider revising its fee and will consider allowing payment of such fees by right

The stated purposes ofthe IHO are

a Enhance the public welfare by ensuring that future Residential Development Projectscontribute to the attainment ofthe affordable housing goals set forth in the Housing Element

ofthe General Plan of the City of Haywardb Increase the production of residential units in Hayward that are affordable to very low low

and moderateincomehouseholds

c Ensure that units affordable tovery low low and moderateincomehouseholds are

distributed throughout the Citys various neighborhoodsd Comply with the requirements ofHealth and Safety Code section 333413bwithin the

redevelopment project area and elsewhere in the community as applicable

Amending the IHO in response to some developers requests to allow for payment ofinlieu fees byright through June 30 2012 is certainly apolicy issue worthy ofCouncils careful considerationincluding in regards to current obligations Allowingpayment ofthe inlieu fee by right an

assessment ofthe appropriateness ofthe inlieu fee and analysis of other ordinance provisions willbe included as part of a comprehensive assessment ofthe IHO which is scheduled for the upcomingfiscal year The inlieu fee amount is supposed to at least equal the cost ofconstructing an

affordable unit per the IHO

EconomicStimaGsncentives Package 4 of8June23 2009

The IHO currently allows payment ofthe inlieu fee for affordable forsale projects provided the

Council determines on acasebycase basis that there are overriding conditions impacting the

project that prevent the Applicant from meeting the requirement to construct Affordable Units and

that payment ofthe inlieu fee will further housing opportunities Therefore in order to allow

opportunity for developers to pay the fee by right for aspecified period oftime would require an

ordinance amendment and related studyanalysis

Paul Campos ofthe Home Builders Association ofNorthern California recently submitted a letter

outlining the benefits of establishing ahousing trust fund in developing affordable housing seeattached Exhibit F Exhibit F indicates a trust fund has several benefits related to leveraging fundsflexibility efficiency and sustainability The Citys IHO currently states that inlieu fees collectedwould be deposited in an Affordable Housing Trust Fund

Allowing payment ofinlieu fees and establishment of a trust fund could provide opportunity for

development ofmore affordable units Currently the IHO indicates ownership projects must

include units affordable to moderate income households where an inlieu fee payment and trust

fund could be used to support development bynonprofit agencies ofunits affordable to low and

very low income households However allowingpayment ofinlieu fees would reduce the numberof affordable units integrated into market rate projects resulting in affordable projects being stand

alone and separated from market rate developments Also allowing for payment ofinlieu fees mayresult in fewer numbers ofaffordable units that are constructed dependent on the appropriateness of

the established inlieu fee amount

If Council is supportive ofallowing for a limited period oftime the ability of developers to meet

their inclusionary housing obligations through payment ofinlieu fees staff will return to Council

with a recommended Code change and associated studyanalysis Such analysis would also

determine the appropriate amount ofthe inlieu fee which may increase as a result of such analysis

Extensions of Initial Approval Period for Discretionary Approvals Given the difficulty some

developers are experiencing in proceeding to construction as aresult of the market conditionsstaff is recommending that for projects for which discretionary planning approvals granted will

expire in 2009 and 2010 that the Code be changed to increase the initial approval period by two

years and that such approvals be valid as long as any associated tentative map is valid

Currently discretionary planning approvals such as variances use permits and site plan review

approvals that are not associated with a tentative map are valid for one year after the approvaleffective date unless a either abuilding permit has been issued or abuilding permitapplication has been submitted for processing and said application has not expired or bbusiness operations have commenced in accordance with all applicable conditions of approvalApprovals associated with a tentative map are valid for two years

The Zoning Ordinance allows amaximum of two oneyear extensions for such approvals by the

Planning Director or on appeal by the Planning Commission or City Council Factors to be

considered when granting an extension are a the cause for delay in submittal of the buildingpermit and b whether the proposal is in conformance with existing development regulations

EconomicSiinnGsncenivesPackage 5 of8Jnne 23 2009

As shown in Exhibit D a few project approvals will expire this year or next year if extensionsare not granted or building permit applications are not submitted including the mixed use projectat C and Main one extension already granted the mixed use project along Mission Boulevard

Mission Paradise and the South Hayward BART station mixed use project

Staff would return with recommendations for ordinance amendments as appropriate shouldCouncil support this recommendation

Tentative MannStaffrecommends that Haywards Subdivision Ordinance be amended to allowthe initial life of tentative maps to be increased from 24 to 36 months which would require a Codeamendment

The State has recognized the difficulty some developers have experienced in proceeding with

developments during depressed economic times through previous amendments to the StateSubdivision Map Act SMA that granted automatic extensions to tentative maps in the pastThe latest such law Senate Bill 1185 SB1185 amended the SMA by automatically extendingcertain tentative maps and vesting tentative maps Because it was adopted as an urgency billSB 1185 went into effect the moment Governor Schwarzenegger signed it on July 12 2008 As a

result all tentative maps and vesting tentative maps that had not expired as of July I5 2008 andwill expire before January 1 2011 are automatically extended by 12 months from their

expiration dates

Below is a summary ofthe life oftentative maps per the SMA including those associated with

projects entailing substantial offsite improvements

For projects entailing For projects entailing178000 in offsite public 178000 in offsitepublicimprovements in 2005 dollars improvements in 2005 dollars

Initial life 2 ears 2 yearsAutomatic extension if Up to 1 year Up to 1 yearallowed b local ordinanceLocal agenc extensions U to 6 ears U to 6 yearsAutomatic Extensions per the

State Ma Actna Up to 7 years

Allowed via SBI 185 1 year 1 ear

TOTAL U to 10 ears U to 17 yearsextension recommended by staff that requires a Code amendment

As indicated above the SMA allows an initial 12month extension as prescribed by local ordinancefor a total initial life for tentative maps of 36 months As shown in Exhibit E some tentative

maps associated with approved projects are going to expire in 2010 and 201 I unless extensions are

granted

Enhancements to Internal Procedures Related to Development Review Processing Based on inputfrom local developers staff has amended its procedures regarding processing certain projects

EconomicSrmduJncentives Package 6oJ8June 23 2009

Specifically associated with Planned Development PD Zoning District projects staff will no

longer require submittal and approval ofPrecise Plans typically associated with buildingarchitecture and design and landscaping prior to submittal of Improvement Plans which typicallyaddress infrastructure and common area landscaping improvements Instead staff will allow

submittal ofboth plans for concurrent processing This will reduce the time and cost to developersofthe development review process between approval of a tentative map and approval of a final mapand improvement plans

Staffwill also be revising handouts and checklists which will reduce the number of planningreviews andresubmittals from applicants with the goal ofhaving projects ready for decision in a

shorter period oftime which will further help reduce costs to developers

FISCAL AND ECONOMIC IMPACT

The deferral ofthe park dedication inlieu fee and supplemental building construction improvementtax to close of escrow or within one year after issuance of certificate of occupancy whichever is

sooner will result in adelay in the collection of such fees which could negatively impact projectsthat are supported by such funds such as parkland acquisition or park improvements Howeverstaff is of the opinion such delays would be unlikely to do so given the limited amount oftime such

fees could be delayed maximum ofone year after certificate of occupancy issuance and givenimpacts on parks associated with those new developments would typically not occur until units are

actually occupied

The more impacting fiscal effect is the staff time that would be required to establish aprocess thatwould allow deferral ofpayment of such fees to close of escrow while ensuring such fees would be

paid Such process would likely entail establishing a lien or special assessment on the property andif necessary collecting such fees through that process Staffwill provide more details of such cost

at a future meeting should Council indicate support for such process

The fiscal impacts on the general fund of allowingpayment ofaffordable housing inlieufees byright would be expected to be minimal since staff would not be required to process inclusionaryhousing agreements though some staff time would be required to administerthe housing trust fund

More importantly the outcome ofsuch Code amendment could be areduction in the number ofaffordable housing units built in the City and certainly areduction in the number ofsuch units

integrated into developments

Direct fiscal impacts to the Citys funds related to extensions ofinitial approval period for

discretionary approvals and revisions to the internal development review processes would be

negligible though savings would be realized by developers due to the elimination of the need to

pay for processing extension requests and due to reduced processing timeframes for certain projects

PUBLIC NOTICE

A notice of this work session was sent to the developers group who participated in discussions in

January of this year to Eden Housing Inc staff to Paul Campos as well as to the Hayward AreaRecreation and Park District staff

EconomicSYimrdusncentives Pockage 7 of8June 23 2009

NEXT STEPS

Per Councilsfeedback staffwill return in the fall with aset ofrecommendations for Councilsconsideration for adoption which may entail ordinance amendments and analyses

Prepared by

74David Rizk AICP

Development Services Director

Exhibit A Summary of comments from January I5 2009 meeting with developersExhibit B Local impact fee deferral matrix from Paul Campos ofthe Homebuilders

Association ofNorthern California dated October 27 2008Exhibit C Summary table of status ofmajor entitled residential projects in HaywardExhibit D Projects for which planning approvals will expire in 2009 and 2010

Exhibit E Projects for which tentative map approvals will expire in 2010 and 2011

Exhibit F Potential City of Hayward Housing Trust Fund Issue Paper

EconanicSLnuluslncenivesPackageJune23 2009

8 aj8

Approved by

EXIIIBIT A

Summary of Comments from January 15 2009 MeetingWith Developers Regardinglncentives

There were generally three areas proposed for the City to consider

1 Deferral of Fees

a Deferral of development impact fees park dedication inlieu fee and supplementalbuilding construction improvement tax to close ofescrow versus current point of final

occupancycertificate of occupancy with an end date identifiedb Deferral of building permit fees from issuance of permit to final inspectioncertificate of

occupancy

2 Allow Payment of Affordable HousinglnLieu Fees by RightPoints were raised thatthe currentmarket hasresulted in marketrates being affordable to

moderate or less incomers which is more effective than any ordinance it was indicatedthat the median sales price in Hayward in December was 327000Some expressed an opinion that allowing for processes other than existing ones such as

paying inlieufees gets the Citymore affordable units than does the current inclusionaryordinance ownershpprojects dontresult in units for very and low income householdswhich is a result of the current inclusionary housing ordinance pros and cons were

discussed about having stand along affordable projects eg Eden Housing versus havingaffordable units integrated into projects

3 Other Incentives most suggested by Paul Campos of the Home Builders Association of Northern CAAllow PVC pipeExtend time when utility connection fees are required to be paidExtend life of approvals both for discretionary approvals and for building permits Statealready mandated extension ofTentative Map approvals

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SUMMARY OF STATUS OF MAJOR ENTITLED RESIDENTIAL PROJECTS IN HAYWARD

Project Name Developer

Date Planning Applicationsandor Tentative Map

Approved for projects not

under construction

Vesting Tentative MapDevelopment

AgreementUnit Type

Number of Bldg Permit

orMaster Plan

Applications Submitted

as of 1108

Number of Units

Constructed

Total Number

of Units

Approved to

be Built

Expiration Date of Tentative Map or

Planning Approval

for those projects for which final maps

have not been recorded

Green Building Ordinance

Compliance Date based on

when applications for

building permits ormaster

plans are submitted

Oak Hills II Zaballos 7222008 YES NO Townhomes 0 0 307222010 ExemptMission Paradise Samah Construction 6122008 no map approved NO Condominiums 0 0 826122009 Site Plan Review 812009475 Berry Ave BKBC Architecture 11152007 NO NO Townhomes 0 0 711152009 812009

South of 92 TBD Legacy 10232007 no map approved Yes TownhomesSFHomes 0 0 167 10282014 per Development Agreement 112011Mohr Dr MoJanda 9112007 YES NO SingleFamily Homes 0 0 59112009 ExemptC Main Mattesen Realty Services Inc 9112007 no map approved NO Condominiums 0 0 445272009 Use Permit Site Plan Review ExemptAshwood Place Citation Homes 6262007 YES NO SingleFamily Homes 0 0 806262009 ExemptGarin Vista Garin Vista LLC 2212006 YES Yes SingleFamily Homes 0 0 1265312016 per Development Agreement Exempt

Highland Villas Bijan Mashaw 1112005 YES NO SingleFamily Homes 0 0 14 1112010 ExemptLa Vista DeBilva 7192005 YES Yes SingleFamily Homes 0 0 1795312016 per Development Agreement ExemptStonebrae Village B 12798 YES Yes SingleFamily Homes 0 0 1502262013 per Development Agreement ExemptStonebrae Village C 12798 YES Yes SingleFamily Homes 0 0 652262013 per Development Agreement ExemptStonebrae Village D 12798 YES Yes SingleFamily Homes 0 0 862262013 per Development Agreement ExemptStonebrae Village E 12798 YES Yes SingleFamily Homes 0 0 512262013 per Development Agreement Exempt

TOTALS 786 773 0 0 1086 Not exempt 300

Cannery Parkhurst Citation Homes YES NO TownhomesSFHomes 171 8 171 Exempt

Eden Point Mt Eden KB Home of South Bay NO NO

SingleFamily Homes

detached and attached 149 16 149 Exempt

Kelly Estates Kelly Estates LLC NO NO SingleFamily Homes 5 2 5 Exempt

Crossings at Eden Shores Standard Pacific YES NO SingleFamily Homes 139 38 139 Exempt

Bridgeport at Eden Shores Standard Pacific YES NO Condominiums 122 34 122 ExemptCross Creek BraddockLogan NO NO Townhomes 112 20 112 ExemptStonebrae VillageA Standard Pacific YES YES SingleFamily Homes 61 44 61 Exempt

Warmington Homes YES YES SingleFamily Homes 51 51 51 ExemptToll Brothers YES YES SingleFamily Homes 102 65 102 Exempt

Hillcrest Estates Ron Esau NO NO SingleFamily Homes 7 4 7 ExemptGarden Walk Olson Co YES NO Townhomes 56 27 56 Exempt

Cryer Ranch Cryer Street Partners LP YES NO SingleFamily Homes 12 7 12 Exempt

TOTALS 714 214 987 316 987 Exempt

GRAND TOTAL 987 316 2073

orwhen California Energy Commission and Building Standards Commission approve ordinance whichever date is later

PLANNING APPROVALS THAT WILL EXPIRE IN 2009 AND 2010

PL20080149SPR

28000 Mission Blvd Mission ParadiseMixedUse Project with 13804 Square Feet of Retail Area and 82 Residential Units

Expires62409

PL20070225CUP

22696 Main Street a C Street

MixedUse Project with2000 Square Feet of Retail Area and 44 Residential Units

1 Extension expires91109

PL20080436SPR

Southeast Corner of Industrial Bivd Marina Dr

43586squarefootfitness facility operated by 24 Hour Fitness

Expires 121709

PL20080547ZC

South Hayward BART Station WittekMontana projectPD consisting of 772 residential units grocery store and910space BART parking garage

Expires31710

EXFIIBIT D

EXHIBIT E

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EXIIIBIT F

HOMEBUILDERSASSOCIATION

Potential City of Hayward Housing TrustFund Issue Paper

OF NORTHERN CALIFORNIA

The home Builders Association supports aprogressive and sustainable policy for providingmore affordable housing for more needy Hayward families in the most efficient and equitablemanner According to thenonpartisan Center for Community Change Housing trust funds

are the single most impressive advance in the affordable housing field in the United States over

the last several decades Housing trust funds are extremely flexible and can be used to supportinnovative ways to address many types of housing needs These funds are also very efficient

Many trust funds report highly successful track records addressing a wide variety ofcritical

housing needshttplwwwcommunitychaneeorg

The advantage of azi affordable housing trust fund is clear

S A trustfund can leverage signifecantstate andfederal dollars Sorne local trust funds

are able to secure 20 for every 1 local dollar

A trustfund can reach tke neediest Hayward householdsincluding the homeless and

extremely low income households In fact the federal governmentsrecently created

National Housing Trust requires that asubstantial portion ofits grazits go toward servingextretely low income households A local trust fund will allow Hayward to maximizeaccessto these federal funds

A trust fund isJlexible so that it canfinance a broad range ofaffordable housingactivities to meet avariety ofneeds A trust fund enables programs such as purchasingand rehabilitating existing foreclosed and blighted properties and malting them

permanently affordable Again this meshes well with a new federal program the

Neighborhood Stabilization Program that will make 4billion available to state and local

govermments for affordable housing efforts including acquiring foreclosed propertiesoffering mortgage relief down payment assistance and redevelopment assistance

A trustfund is efficient As the Center for Community Chazige confirms trust funds

deliver more units more efficiently and without the need fox extensive city overhead to

find and qualifybuyers for inclusionazy units arrange financing for them and the largeexpense ofmonitoring required prevent the widespread risk of fraud associated with IZ

A trustfund is equitable Properly crafted a trust fund draws on abroad base of fundingsources so that asocietal obligationproviding adequate housingisborne by the

community at largeMailingAddres A trustfund is sustainable By allocating the burden ofproviding affordable housingRo ua sGO across the public andprivate sectors a trust fund avoids forcing anarrow sector of the

SanRnon economynewhousingrombearing a disproportionate and ultimately economicaily

caiirnia4sa3siGO unviable burden A healthy housing industry is necessary for the local state and national

economies to be healthy Especially in the current economic climatewhichshows no

zoo rorrer wive sign of near or mediumterm recovery

azao

Snn Rvmon

Glifornia 94583

riz RzoaGZCHBANC Housing Trust Fund Issue Paper Page 1

Fax 925820729G

Wcbsise 66anaorg

INSTITUTE FOR

LOCALC7VERNMENT

Types of Housing Trusts Most local agencies have some form of an account or fund

that is dedicated to affordable housing The creation of such funds is astandard

practice for commercial linkage fees inclusionazy housing and redevelopment areasIn addition some communities aze beginning to develop publicprivate housing trust

funds

Best Practices Public housing trust funds are managed in a variety of ways

depending on the local programs in each agency The key is to have a clear set of

goals and then tailor the programs that flow from the trust in a way that assures thatthe goats are met while retaining enough flexibility to adapt to changes

TIt3pSlJ1QIe1T17MBitbiHO7SINGfi1tSTS

The term local housing trust ismot tightly defined and can mean different things indifferent communities There are two types of public agency funds that are generallyconsidered adedicated account or trust

Dedicated Revenue Funds A housing fund or account is merely a public agencyfund receiving dedicated revenues for affordable housing The fund must bededicated to affordable housing purposes

Local Housing Trust Fund Under Proposition 46 aLocal Housing Trust Fundmust 1 receive ongoing dedicated revenues such as taxes fees loan repayments or

private contributions and 2 be established by formal act such as legislationordinance or resolntiont

t Bill Higgins and Shana Graham prepared this issue brief specifically for the League Board of Dhectors as

part of the work program ofthe Institute for Local GovernmentsHousing and Land Use Program Formore information on housing trusts visitwwwcaileorahrc

See Cal Health Safety Code 50843c3

Affordable Housing Trusts in California

Classifications and Best Practices Page 2

ROP 46 RECIPIENTS

nard SanMaeoCoutttyIoPato SantgClaraCourtlysadena CatypfanaCruz

cramento GiiyofSantaRosa t

niego SotioinaCountynJose ayofWeStHollywood

NKAGEFEEPROGRAMSomifainYrew A CttyofSanlliegomy CityCounty ofSan Francisco

tlc7and C1typfSantalvlonlcailo Atto at Ztyof Sunnyvaletazuina Sonoma County

easanton CiyofWalnutCreektbramegio CitpofWestHOllgwoodto County

zINTERFORCOMMIJNITXCIIANG

anHill SaripiegoCountyAlto QitylCourty oT San Francisco

mento Santa Clara County 2ounry ityoTSantaMonicaTiego CltyofWestHOllywood

Several sources indicate that most agencies in the state have some kind of fund or

account that is dedicated to affordable housing

23Iinitage Fees on Commercial Development The 231oca1 agencies listed abovethat impose linkage fees should meet the Proposition 46 definitiolt because the fiords

are typically included in the establishing ordinance

X25 Xnclusionary Housing Ordinances Most programs allow developers to pay fees

into a local housing account in lieu of building affordable unitss

Approximately 370 Active Redevelopment Agencies Redevelopment setaside funds

meet the Proposition 46 definition of local housing trust fund

In addition other local agencies have established funds that accept periodic grants or

other sources of funding that are dedicated to affordable housing Staff wasnot able to

locate acentral list

s bast updated in 2002

The most recent formal survey 30 Years ofInclustonary Ilousing Nonprofit Housing Associatiott 2002identifies 107 inclusionary ordinances Staff conservatively estimates that at least 18 new ordinances have

been identified since that publication was released

Those funds aze authorized by state legislation see Cal Health Safety Code 333342a

Affordable Housing Trusts in CaliforniaClassifications and Best Practices Page 3

IzBGICI2IAQ7INCI12156y j t r

Publicprivate housing trusts aze also eligible underProposition 46 s These trusts are less

common The most successful to date is the Silicon Valley Housing Trust jointly formed

by public agencies business and advocacy groups and afoundation The Trust has raised

more than 30 millionb Program successes include the creation of1200 rental units and

distributing 1200 grants at6500 each to first time homebuyers Organizers claim theyleverage 40 worth of affordable housing for every grant dollar While local agencieshave made significant contributions to the Trust often from their own housing trust

funds they share representation on the Trust board of directors with corporationsnonprofit housing developers and housing advocates

ssTYSFtliIPNr1xI1G13IIPSs7INrS

Housing trusts can be very flexible tools Trust funds can be used to finance affordable

housing development home purchase assistance preservation of existing housing stock

supportive housing land banking agency capacity and rehabilifation The key is to have

a clear set of goals and then tailor the procedures and programs that flow from the trust in

away that assures that the goals are met while retaining enough flexibility to assure that

the fund can adapt to changes in the market It is important not to exclude potential uses

of fundsunless policy goals are clears

Governance Structure Governing policies set forth sources of acceptable fundingcontrol and management conventions Most funds have a recurring source of

funding but can accept additional or occasional sources In addition most cities

retain maximum control over their funds But some elect to cede adegree of control

or create a separate fund if additional funds may be available by partnering with

other organizations Finally some agencies impose management limitations on the

fund such as limiting the amount that can be used for administration or specifyingspecific types of housing in which the funds should be invested

Eligible Benefdciaries Cities should define eligible borrowers and grantees based on

the targeted use of the funds Borrowers and grantees often typically include

nonprofit affordable housing developers forprofit affordable housing developers

s See Cal Health Safety Code 50843c3e Sue McAllistar Housing grouphaay to 0million Coal San Jose Mercury News July 8 2005

Id Adobe Systems Advanced Micro Devices AppliedMaterials Cisco Systems HewlettPackazd Intel

and Knight Ridder each conMbuted 1million to theTmst

s This section summarizes a much more detailed report Ciy ofLong Beach Housing Trust Fund StudyPolicy Guidelines Practices and Program Administration prepared by David Rosen and Associates for

the city of Long BeachThe report in its entirety is posted on the citys website

AffordableHousing Trusts in California

Classifications and est Practices Page 4

joint ventures between nonprofit andforprofit developers service providersindividuals and other governmentagencies or affiliates

Leveraging Cities should develop strategies to leverage theh housing trust funds in

order to increase state federal and other funds coming into the community

Capital Planning Alongterm capital plan is a key tool that acity can use to

develop housing program priorities and a framework for housing trust fund spendingA capital plan assists in making program decisions based on pzojected revenues and

sources of leverage financing A capital plan typically provides three tofiveyearprojections revised annually based on revenue projections program costs and thenumber of households to be assisted

Asset management Cities must develop asset management systems to ensure that

developers and homebuyers meet their obligations The city must be assured that

developers are renting their units at affordable rates eligible households occupy unitsand resale restrictions are managed properly Procedures should guard against the

loss of funds through defaults and assure that the citys regulatory requirements are

met

lYome Purchase Assistance Programs Cities should record documents that protectthe agencys equity in the unit Lending institutions do not always recognizeaffordability restrictions Second mortgages in particular are aproblem because

lenders sometimes issue the line of credit on the mazket value of the unit not the

ownersrestrictedequity Cities should consult with an expert real estate attorney to

draft resale restrictions or equity share agreements disclosure statements and

performance deeds of trust

10112005

Menlo Park approves purchasing foreclosed homes Inside Bay Area

Menlo Park approves purchasingforeclosed homes

By Mike RosenbergMediaNews

Posted 05082009032700PM PDT

Updated 0510820090327OLPM PDT

Menlo Park officials will spend 2million in

developers fees to help restore neighborhoodsravaged by house foreclosures

Tha City Council earlier this weekapprovedspending the money to buy and renovate 10 to 15

foreclosed homes in the city most of them in thelowincome Belle Haven neighborhood east of

Highway 101

The city will then sell the homes to residents on ftsaffordable housing wall list families who earn 60to 110 percent of the areas median income The waitlist currently has more than 200 names on it

In a separate action the council authorized giving500000 to Habitat for Humanity which willleverage the money to also buy renovate and sellforeclosed homes

That program is expected to acquire flue Menlo Park

homes of100000apiece and will be aimed at

lowerIncomefamilies on the affordable housingwait list

To bankroll the two home acquisition programs the

city will withdraw25million from its affordablehousing fund which developers pay in Iteu of

installing belowmarketTale residential units The

money can only be used for affordable housingprojects

Page 1 of2

Council members also expressed support for a

foreclosureprevention program designed to lowerhomeowners mortgage payments and keep them outof foreclosure although they will need to approvethe plan in July

Under thatplan the city would invest 1million in10 to 12 homes in danger of being foreclosed Thecity essentially would take an equity stake in thehomes and be reimbursed when they are soldallowing it to invest in more houses

It is still unclear how the foreclosurepreventionproposalwould be funded however as the city maynot be able to legally tap into ifs affordable housingmoney for ft

The three programs were modraled after the federalgovernmentsNeighborhood Stabilization ProgramHousing Manager Douglas Frederick said Thegovernment passed the program in2008 as part ofits economic recovery plan end expanded it as partof the 2009 stimulus bill

Frederick said there are about 9D properties inMenlo Park in some stage df foreclosure 21 of themvacant Council members and city oficials said thevacant properties lower surrounding home valuesattract crime and vermin and provide havens forsquatters and drug users

Ifs heartbreaking to see a taw houses that reallyere a detriment to the neighborhood and everybodysuffers because of thatCouncilman KellyFergusson said Notjust that neighborhood butMenlo Park as a whole

The proposals originally introduced byCowicilman Andy Cohen and developed through the

citys housing commission pleased some

members of the Belle Haven neighborhood

httpwwwinsidebayareacomsatlmateocountytimeslocalnewsci12328220 5112009

Print Powered t3y FYirrralytZatnics

VCI u G tvtJYx vxai

43 Continue to work tvit6 nmtnofit housing organizntions to benefit from their

expertise is And rrsourcts for develolngmtd supporting nffordnblt housvtg

aarlr al of the affntdabehousing projects Yn the ciryhnva 6aaia davaopertin ymnrarshrp with nonyrofrr orgrmizarivns sncras BrnGakHousing

Deveinynieru Caryoration Eden Honsing and Pamlrann Ecrnnwtina

Ropar9des Nmlprofit yrojecrs that nare nready boon eanrpered duringtce

yiarming ymiod include Snlishmr Aymurtonts jintago Charemr Senior

Apmmnmtrs Edith Sheaf Sonior 4yrn9ntetxs and Old Enr Vage Projects

tinder CvnstrucRion incude liaLr Senior Ayarrutenrs Ayyrored yrojecrsincluda LnirnlourrAirerAynlYruenls

Responsibility Housing Division

fiwding Oenanl Fund

Schedule 7nnimly 1 1999 June 30200G

Policy 42d5Sig11 n ShAIY Of 1112teSp01151b1hty f01 pr041d1i1g nffOrdflbl2 110L1SIng YO the

developers of mnrhettote housing and nonresidentiAL projtets

Programs

44 Continue to require residentiAl projects of five armore units to contribute To

the provision ofbelottanarYet rnte housing in one of the following ways

n provide li percent of the units in n rang housatg project at i2uts

nffordable to very Iow and losincoute householdsanti 15 percent of the

twits ht n forsale project at prices Affordable to low and modernf2

income households fm A mininunn period of30 years

b Dedicnte aportion of the ptrojectsitt wr property tlsetvhcre to the City or A

nunyanfit organization for use AS n site for nffordnbCe housing This optionis Allowed only if the City oc anonprofif agalcy bas n pending project

e Mnlce en inlieuynnueut to the Citys Honsing Faad

d Use nltenmtive methods to tu2et the intent of the inelusimmty cegnhentent

subject ionpprovat by fhe Ctity Council

Respauihihig Honsing Division Citp Council

Funding Housing Fund

Schedtle Ongoing

43 Increase ffit inlieu honshtg fee to a level that generates enough fontling to

develop nffordnble amts presavr their affotdAbility and ensure their

susminability

Responsibility Hoasina Drrision City Council

Fmuliug Honsing Fuud

Schedule December 3l002

7999200iNousing Element Page 71

Petaluma California Coalition for Rurai Housing

California Coalition for Rural Housing

Developer OptionsConstruction Alternatives

1 conversion to affordable housingcredit transfer

inlieu fee

1 land dedication

offsite construction

InLieu Fee Structure formula

No fee schedule available

incentives

rS clustering of IH units

delayed buliding of IH

units

In density bonus

fasttrack processingn fee deferral

fee reduction

fee waiver

tlexlble design standards

growth control extension

subsidies

tax abatement

R2 other

Page d of2

RequirementsRental Units Ownership Units

IH Requirement 5 units 3 units

Threshold

Production variable formula 15 30 variable formula 15 30

RequiredTargeted Groups extremely low income extremely low income

D very tow income very low income

Js low income D low income

moderate Income moderate income

c abovemoderate income abovemoderate income

senior senior

Length of 30 years 30 years

Affordability

Production Data

Inclusionary Development Units Produced 587

1999 2006

InLieu Fee Umts Produced 1999 2008 570

httpwwwcalruralhousingorghousingtoolboxinclusionaryhousingpolicysearchpolici5262009

Petaluma California Coalition for Rural Housing

Total Inclusionary Units Produced 1899 1157

2008

o aadihrritactivifv 5 vsars before and after adoption of ordinance

California Coalllion for Rural Housing916 4434448

717 K Slreet Suite 400

Sacramento CA 95874 USA

Page 2 of2

httplwwwcalruralhousingorghousingtoolboxinclusionaryhousingpolicysearchpolici5262009

last updated July 52007

email us about this policy

Housing Trust Fund Main Page Page 1 of I

Addlnonal information

Wanted housing developers

Affordable Housing Fund

The San Diego Affordable Housing Fund has two primary sources the HousingTrustFund and Inciusionary Housing inlieu fees tyk here to view Affordable

ous Fund reoortsl

The San Diego Housing Trust Fund created by the San Diego Cfty Council in 1980

was one of the first programs of its kind and has became a model for other cities

Historically the Housing Trust Fund benefited from four primary revenue sources

Curtently its only source is a Commercial Linkage Fee a tae that is levied on

a square footbasis on commercial and industrial buildings The nexus is that such

new buildings or expansions typically generate new jobs and therefore the need For

housing for Individuals who fill those positions

Inciusionary housing Intieu fees are a source of revenues for theAffordable

Housing Fund In 2003 the City of San Diego enacted acitywide Inciusionary

Housing Ortlinahca one which allows developere the option of paying fees Ih lieu of

providing ten percent of the homes In any development at affordable rates for modest

inwme families These fees are coileded by the City and released on a quarterlybasis to the San Diego Housing Commission to leverage against other funds to helpbuild affordable housing preferably in the community plan area from which fhe funds

came

In 2006 the City of San Diego adopted anewinlieu fee assessment procedure This

new assessment procedure provides developers more certainty as to what the level

of their inlieu feeshall be upon theirprojectsapproval To see how this assessment

procedure works please citck hQe

Affordable Housing Pund key to creating more affordable housing

San Diegos Affordable Housing Fund helps expand affordable housing by assisting

developer partners As developers respond with proposals to the Housing

CommissionsNotices of Funding Avallabllity NOFAs a variety of funding sources

Including the Affordable Housing Fund are explored as options to help subsidize the

construction ofbelowmarketrate homes

Another key attribute of the Affordable Housing Fund la In its flexibility Because if is

designed without stale or federal Intervention the fund can be shaped to address

locatneeds conditions and prlodtfes

This flexibility allows the Affordable Housing Fund to provide a variety of housng

opportunities in addition to rental housing development Transitional Housing

programs serve the areasmost needy persons In need ofshelter and food

Neighborhoods are revitalized and public safety is enhanced through housing

rehabilitation loans and grants The fund alsoassists firsttime homebuyers achieve

the American dream of homeownership

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httpwwwsdhcnetdbwantdev3shtml 8122008

Housing prices in San Diego

What is a housing impact foe

A housing impact fee also known as a linkage fee is a city fee assessed on

commercial or industrial development

What is the reasoning for such a fee

Commercial and industrial development usually results in new jobs and additionaljobs often create the need for atldftional housing including housing affordable to non

professionals The fee is used to help produce that affordable housing

Why should more homes especially at affordable sales prices or rentalrates bebuilt Because for years San Diego has faced a housing crisis and It is worseningbecause housing development is not keeping up with job growth More and morepeople who fill jobs that keep our economy strong from new teachers to healthclinicians store clerks and restaurant workers are finding it difficult to afford to livehere

The housing impact fee is designed to help address the need for workforce housingThe fees go into the San Diego Housing Trust Fund

What is the San Diego Housing Trust Fund

Many cities and even states around America have housing trust funds revenuesfrom linkage fees and other sources thatare used to subsidize housing so it can beaffordable to lower and moderateincome families The San Diego Municfpai Codethat created a sing Trust Fund wasenacted In 1990 Since inception theHousing Trust Fund has assisted with the development rehabilitation or purchase ofover6500 belowmarket rate unfts and it supports approximately A55 transitionalhousing beds annually

As housing Impact fees are collected by the City they are disbursed into the fundwhich the San Diego Housing Commission manages The Commissionsollcitsproposals from private public and nonprofit developers for projects that will createnew or preserve existing affordable housing leveraging trust fund dollars againstprivate investment dollars Annually the Commission reports on how much moneywas collected and how It wasused

Where does the money go

The fund is used to build new affordable housing goes to rehabilitate and preserveolder housing to support firsttime homebuyer programs and to provide transitionalhousing By law at least 60 percent of the fund is used to create housing for lower

Income households most with incomes at 50 or less ofthe median Income for San

Diego Other percentages go to those earning less and those earning more than 50area median income A portion of the fund is used for administration and some isused to strengthen the capacity of nonprofit developers

Housing trust funds are used to augment pdvate investments and loans This

Page 1 02

httpwwwsdhcneUdbwantdev8shtml 8122008

City of San l7iego Housing impact Fee

Housing prices in San Aiego

leverage allows the fund to serve more families

Who pays

Whether youre building a20story hotel orenlarging afiveperson laboratory youare subject to housing impact fees which are charged for all new commercial or

industrial construction additions or interior remodeling that changes a structuresuse The current fee schedule Is

106per square foot for office and comparable uses

80 cents per square foot for research and development space64 cents per square foot for hotels retail and manufacturing27 cents per square foot for warehouses

The fee amounts above are supported by a nexus study prepared in 1989 thatdemonstrated the need for housing based on new jobs associated with commercial

development In December 2004 the nexus study was updated in anticipation ofconsidering updated fee amounts Click here to read the 2004 Housing impactFaeNexe nalvslsprepared by Keyser Marston Associates Inc for the City of SanDiego

Whereto pay

When applying for a building permit

Where to go for help

For an estimate of the Housing Impact Fee for a specific project call Facilities

Financing at8195335950

To determine a fee for a specific project call 8192368270

For more information on the San DiegoHousing Trust Fund call 6195787582

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CITY OF HAYWARD


BYLAWS

ARTICLE 1

PURPOSE

SECTION 100 PURPOSI The purpose of this Committee is to advise the CityCouncil on local economic development policy drawing upon the experience and skillsof councilmembers and business and community leaders to supplement the work oflocal government officials to increase the tax base and improve employmentopportunities for local residents and to serve as a review mechanism for ongoing Cityeconomic development efforts

SECTION IOt RESPONSi81LIT1ES The principal responsibilities of this Committeeare advisory to the City Council in economic development The Committee shah makepolicy recommendations regarding but not limited to the Economic DevelopmentProgram administered by the Department of Community and Economic Development

ARTICLE pPOWERS AND DUTIES

SECTION 200 POWERS DUTIES The Economic Development Committee as an

advisory body to the City Council shall have the power and duty to

Adopt rules and regulations for the conduct of its business for the timeand place of its meetings and any such rules and regulations shall bepublished and be made available to the public

rn tt L fhir nnrnmenittiieornnnmir iiergln 1lrnnIcLj lJtlUllll UlellisGives v u vvuunyv uvvawvr5tpe e 5

and activities

3 Assist in updating objectives and strategies for the ongoing economicdevelopment program

i4 Perfiarm other related duties as directed by Council

SECTION 2iEVLUATiON RESPGNSBBILiTY

1 Evaluate the effectiveness of the City economic development programin addressing the eCGCiomiCdevelCjrmeitGbjectlVeS adopted by COUriCllin Resolution No 86052

12 Prepare and deliver annual progress reports to Council or she economicdevelopment program

A

Economic Development Committee SyawsPage 2

3 Make programmatic and budget recommendations to Council regardingsennnnmir ieyalnnmant nrnnram

u v ti r r

SECTION 202 OUTREACH GOAL5

1 Use community contacts to increase local business and communityawareness of City economic development activities

2 In cooperation with City staff pursue opportunities for obtaining privatesector involvement in the Citys economic development efforts

ARTICLE 111MEMBERS

SECTION 300 MEMBERSHIP The Hayward Economic Development Committee shallconsist of nine 9 members three 3 of whom shall be sitting City Councilmembersand six 6 of whom shall be members of the local community

SECTION 301 CITY COUNCILMEMBERS The Mayor in his or her discretion shallappoint the three 3 CounciJmembers who will serve on the Committee

9ECTlON 342 CITiZEN MEMBERSA Eligibility ofMembers The six 6 citizen members of the Committee

shall be persons who have shown themselves qualified by evidence of previousexperience and involvement in activities pertaining to the economic health of thecommunity In nominating and appointing these mem7ers the City Council shall makeevery reasonable effort to insure that a cross section of the business and residentuiuiifiiiity iS represented

in order to be eligible for appointment to the Committee a person shalleither be a resident of the City of Hayward or do business in the City of HaywardThe citizen members of the Committee shat be appointed by the entire City Council

B Term Limitation A term limitation of not more than two and onehalfconsecutive full terms of four years apiece is established for the citizen members ofthe Committee

SECTION 3Q3 ATTENDANCE

1 DECLARING VACANCIES if a member of this Committee absents himor herself from three consecutive regular meetings or is absent for morethan 25 percent of regular meeings or is convicted of a crime involving

moral turpitude or ceases to be a resident of the City or to do businessin the City or ceases to be a City Councilmember his or her office shall

Economic Development Committee BylawsPage 3

become vacant and shall be so declared by the Council

2 EXCUSED ABSENCE This Committee shall not excuse or otherwisegrant permission to its members to be absent from any regular meetingexcept for military leave for the purpose of military duty

3 ATTENDANCE Unless extraordinary conditions exist the City Councilshall remove all Committee members who have not attended at least 75percent of the meetings of the Committee After two consecutiveabsences or three nonconsecutive absences from regular meetings a

letterwill be sent by the City Clerk warning the absent member that one

more meeting missed will be cause for removal from the Committee fthere is no response by the following meeting the Chair will send a letterto the City Council recommending the membersoffice become vacant

and an appointment be made to fill the vacant office

ARTICLI IVOFFICERS

SECTION 400 ELECTION OF OFFICERS The Committee will elect a Chair and a

ViceChair at the last meeting of every fiscal year to serve a term of one year or untiltheir successors have been elected The Chair and ViceChair will be installed at thefirst meeting of every fiscal year Elected officers may succeed themselves once

ARTICLE VDUTIES OF OFFCERS

SECTiuiv 5vu Dt1TiES uF TiiE CHtaiii The Chair Shall preside at all the II1CC41lg fthe Committee and shaft repot directly to the City Council on all recommendations ofthe Committee He or she shall perform ai duties incident to his or her office andsuch other duties as may be required by the Hayward City Charter Hayward MunicipalCode City Council Resolution and these bylaws The Chair shall appoint allsubcommittees and shall be an exofficio member of ail subcommittees

SECTION 501 DUTIES OF THE VICECHAIR The ViceChair in the absence of the

Chair or in the event of his or her inability or refusal to act shall perform all theduties of the Chair and when so acting shall have all the powers of and be subjectto all the restrictions on the Chair

ARTICLE Vi

MEETINGS

SECTIORI 601 REGULAR ME1TNGS The regular meeting of this Committee shaft be

held monthly These meetings shall follow such rules ard regulations as shall be

y


established by the Committee in order to comply with the Brown Act and other state

or iazal regiiieinenis

SECTION 602 SPECIAL MEETINGS A special meeting may be called at any time bythe presiding officer of the Committee or by a majority of the members of the

Committee by delivering personalty by telecopier fax machine or by mail writtennotice to each member of the Committee and to each local newspaper of generalcirculation radio or television station requesting notice in writing Such notice shallbe delivered personally or by mail and shall be received at least 24 hours before thetime of such meeting as specified in the notice The call and notice shall specify thetime and place of the special meeting and the business to be transacted No otherbusiness shall be considered atsuch meetings by the Committee Such written notice

may be dispensed with as to any member who at or prior to the time the meetingconvenes files with the City Cterk a written waiver of notice Such waiver may be

given by telegram Such written notice may also be dispensed with as to any member

who is actually present at the meeting at the time it convenes Notice shall be

required pursuant to this section regardless of whether any action is taken at the

special meeting

SECTION 603 QUORUM A quorum for a regular or special meeting shall be a

majority of the entire membership of the Committee

SECTION 604 VOt1NG Except to adjourn the affirmative or negative vote of a

majority of the membership present at either a regular or special meeting shall be

necessary far it to take any action provided however that a majority of the entire

membership is present at the meeting Each member of the Committee shall be

entitled to one vote on all matters brought to a vote during a regular or specialmeeting at vhich the member is present

ARTICLE VtAMENDItIl1bNT

SECTION 701 AMEiVDMENTS TO BYLAWS Proposed amendments of these bylawsmay be submitted in writing by any Committee member by mail or at a regular ar

special meeting A copy of the proposed amendments shall be furnished to each

Committee member at least 20 days prior to adoption or rejection Approval by a

twothirds 23 affirmative vote of the entire membership of the Committee shall

constitute adoption of the amendment

ARTICLE V111

SUBCOMMITTELS

SECTION 861 1V0lVI1tVATING SUBCOMMITTEE The Nominating subcommittee shall

consist of three Committee members The Nominating subcommittee shall present to


the Committee its recommendations for Chair and ViceChair for the next fiscal year

SECTION 802 OTHER SUBCOMMITTEES As deemed necessary other Ad Hocsubcommittees may be appointed These committees shall consist of three to fivemembers

Adopted February 7 1994

a

RIILES AND REGIIIATIONS OF THE


Adopted to Zuipleaent Certain Remcements

of the Brown Act

1 Agendas of the Economic Development Committee shall be posted at least 72hours before each regular meeting at the doors to the Council Chamber22300 Foothill Boulevard Hayward CA

2 A log indicating the time each agenda was posted shall be kept by theDepartment of Community and Economic Development

3 All persons wishing to address the Economic Development Committee duringthe public input portion of its meetings shall limit their comments tothree minutes

4 The total time devoted to the public input portion of the meetings of theEconomic Development Committee shall not exceed fifteen minutes anyperson wishing to speak at a meeting but unable to do so because of thelimit set forth above shall be accorded first right to address the EcanomicDevelopment Committee at its next meeting

5 Consistent with the Brown Act the Economic Development Committee shalltake no action on any matter not appearing on its posted agenda unless itmakes one of the findings authorizing it to do so Thus unless anemergency exists or the need to take action arose after posting the agendathe Economic Development Committee will not discuss or vote on any itemraised by any member of the public or any of its own members unless theitem appears on its posted agenda An item raised during a meeting of theEconomic Development Committee that does not appear on its posted agendawill automatically be referred to staff for any action staff regards asnecessary and placed on it next agenda for action

6 Any person including any member of the public or of the EconomicDevelopment Committee may request that an item be placed on the agenda forthe next meeting by writing to the Department of Community and EconomicDevelopment Room 615 22300 Foothill Blvd Hayward CA 94541 no laterthan 500 pm on the sixth day preceding the next regularly scheduledmeeting Items are placed on the agenda at the discretion of the chair

7 The regular meeting of the Economic Development Committee shall ordinarilybe held on the third Friday of the following months February MaySeptember and November and shall be held in Room b15 City Center 22300Foothill Blvd Hayward but the precise dates for regular meetings shallbe those shown in the notice provided by the Department of Community andEconomic Development in July of every year or as the Committee may laterrevise from time to time during the year The most current notice of thefiscal year calendar of the Committee is available from the Hayward CityClerk or the Department of Community and Economic Development

es415

C I T Y O F

HEART O F THE B A Y

Economic DevelopmentStrategic Plan

February 2007

C I T Y O F

H RYXIR R DHEART O F THE B A Y

Economic Development Strategic Plan

Table of Contents

Page

1 Introduction 3

2 Community Economic Indicators 4

3 Prioritized Economic Development Goals Strategies and Evaluation Measurement

Indicators 5

4 Attachment Business Classifications 7

F

Y

Page2of8

C I T Y O F

H AYXIR R DHEART O F THE B A Y


Introduction

The Citys General Plan includes an Economic Development Element which providesa statement of the economic development policies and goals adopted by the HaywardCity Council The City ofHayward Economic Development Committee EDC made

up of local business leaders workforce representatives and members of the HaywardCity Council serves as an advisory body to the City regarding the development of

local business and employment opportunities that will improve the local economic

climate within the context of the Citys economic development policies and goals

The EDC together with City staff developed this Economic Development StrategicPlan Strategic Plan It is built upon and intended to be used as an extension of the

Economic Development Element in the Citys General Plan

The Strategic Plan provides a structured framework to further guide the economic

development activities of the City The Plan specifies prioritized economic goals and

strategies tobeundertaken by the City Indicators for evaluating the extent to which

the identified goals have been achieved are also provided City staff in concert with

the EDC will be responsible for implementing evaluating and adjusting as is

appropriate the Strategic Plan

Page 3 of8

C I T Y O F

HRYXIRRDHEART O F THE B A Y


Community Economic Indicators

The community economic indicators provided below are intended to measure the

Citys overall economic climate as well as the longterm impact of the Cityseconomic development activities

1 General Community Economic Health indicators

A Hayward demographic information includinga Populationb Number ofHouseholds

c Household Size

d Income Level

B Level of sales tax revenue generated by Economic CategoryC Rate ofemployment by skill level required by business sectorD Housing affordability ex Average price ofhousing level ofhome ownershipE JobHousing Balance

2 Business Development Indicators

A Average cost ofcommercial space per square foot Ex for industrial office and retailB Total vacant industrial and office space as apercent oftotal rentable spaceC Productivity Ex OutputInput ratios for specific business sectorsD Rate of Investment

3 Workforce Development Indicators

A Job trends ex Numbertypeof positions by business sector and required knowledge and

skill sets needed from workforce

B EducationTraining leveloffuture Hayward workforce exSATtest scores

number of high school graduates number ofcollege trade school and workforce

development program graduates level of acquired knowledge and skill sets etc

C Innovative Workforce Development Opportunities ex EmployerTrainer PartnershipsExperiential Learning Opportunities etc

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i

C I T Y O F

HAYWRRDHEART O F THE B A V


Prioritized Economic Development GoalsStrategies and Evaluation Measurement Indicators

Given the limited time and resources available the Hayward Economic Development Committee

EDC along with City staff were tasked with prioritizing the different economic goals and

strategies outlined in the Economic Development Element of the Citys General Plan The

prioritized goals and strategies which are to be the initial focus of this Economic DevelopmentStrategic Plan are provided below The other economic goals and strategies listed in the CitysGeneral Plan while equally important are seen as supportive of these goals and strategies and

therefore will be addressed as is appropriate in future periods One overarching policy outlined in

the Citys Economic Development Element encompasses many other economic goals and strategies

Policy Create a sound local economy that attracts investment increases the tax base creates

employment opportunities for residents and generates public revenues

The following prioritized economic goalsand strategies were developed and refined in accordance

with the above policy

Goal 1 Increase the Citys tax revenue through a diversified local economic base and optimizethe balance between increased revenues and the need for City services

Strategies

A Identify high tax revenue generating businesses currently in the City and determine

the factors that were most influential in the decision of these businesses to locate in

Hayward Utilize the informationobtained as appropriate to attract other businesses

to the City

B Ensure that there is adequate infrastructure including streets and roads energy

water sewer fiberoptic networks telecommunication services etc to supportexisting and new development

C Ensure that an adequate supply ofland is zoned for industrial business park and other

uses as needed Limit uses that will erode the integrity of the community and

encourage the use ofenvironmentallyfriendly designs and materials

Evaluation Measurements

A Level of tax revenue generated by business classification

B Number and types of new businesses established in Hayward during reporting period

Page 5 of 8

C I T Y O F

H RY XIR R DH E A R T O F THE BAY


Goal 2 Increase the number of Hayward residents that are well educatedhighly skilled for

higher paying j obs in avariety of fields

Strategies

A Develop higher paying employment opportunities for Hayward residents byidentifying target employer groups with higher paying jobs and attract them to

Hayward

B Promote the use of high standards of academic excellence to enable students to

graduate with the knowledge and skills necessary to achieve gains in productivity andinnovation

1 Facilitate partnerships between companies seeking skilled workers and Haywardbased publicprivate secondary and post secondary educational institutions and

workforce development programsie experiential learning opportunities use of

uptodate curriculum equipment and teaching methodologies practicalinternships etc

2 Identify the resources needed to assist Hayward residents access to available

postsecondary educational and training programs

3 Coordinate with employment placement services ie outplacement headhunter firms university career centers etc to optimize both the training and jobplacement of Hayward residents in high paying jobs

Evaluation Measurements

A Education level attained by Hayward residents

B Skill level attained by Hayward residents

C Average salary levels paid by targeted Hayward businesses

D Number ofHayward residents employed by targeted Hayward businesses

E Average salary levels paid by new businesses that moved to Hayward during the

reporting period

F Median and Mean household income levels ofHayward residents

G Number of innovative workforce development programs in Hayward

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Page 6 of 8

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ej

C I T Y O F

H RYXIR R DHEART O F THE 8 A Y


Conclusion

Many institutions and organizations have a significant impact on the Citys economic climateincluding Haywardsschools postsecondary educational institutions park and recreation servicesand private business and community groups Consequently the partnerships developed over time

between these entities that help ensure the economic health of the community may result in other

goals strategies and measures that are later incorporated into the Plan

In order to determine the longterm impact of the Plan an analysis of the evaluation measurements

described for each goal as well as an analysis of the Community Economic Indicators described

earlier will be conducted The information derived from this analysis will also help guide the Cityin its future economic development efforts

Page7of8

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FUTURE ECONOMIC DEVELOPMENT TOPICS

July 6 2009

1 Appointments to EDC Nominating Committee

August 3 2009

1 Election of20092010 EDC Committee Officers

2 Agenda Planning

JULY 2009 THROUGH JUNE 2010

September 14 2009

1 Development Services Department Building Incentives Update by David Rizk Director of DevelopmentServices

2 Review Current Strategic Plan

October 5 2009

1 Presentation and Discussion Buxton Update Guest Speakers Lisa Hill Buxton Company

November 2 2009

1 Presentation and Discussion Invite HUSD CSUEB and Chabot Jr College Everest College Healdand Life Chiropractic Student Leaders for a discussion on what retail students want

December 7 2009

1 Economic Development Strategy Update by Sean Brooks

2 Buy Hayward First Campaign and small business discussion

January 4 2010

1 Presentation Discussion CommercialIndustrial Market Update Jim Morris

February 1 2010 Open

March 1 2010

1 Presentation Discussion Alameda County Workforce Investment Board Review new trainingprograms employee assistance programs

Apri15 2010

1 Review Community Promotions Applications Requests for Funding

May 3 20010

1 Appointments to EDC Nominating Committee2 Presentation and Discussion Retail Update

Speaker Christine Firstenberg Managing Director Metrovation Brokerage

June 7 2010

1 Election of20102011 EDC officers

2 Agenda Planning

Other Topicso Airport Updateo Schools

o Industrial Area Discussion

Dated August 24 2009

EDC 091409 Agendacityofhayward-ca.gov/CITY-GOVERNMENT/BOARDS-COMMISSIONS-… · HAYWARD HEART OF THE BAY EconomicDevelopment Committee ... 4 Development Services Department Overview

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