In February 2022, the City Council received a presentation regarding the 2022-2025 Economic Development Strategy (Strategy), and provided direction to staff to begin implementation. The Strategy is focused on identifying and leveraging the strengths of the City of Rocklin and its public and private partners in order to foster a thriving business environment that is conducive to business growth, attraction and creation. These efforts are an investment in public resources that can result in a strong and diverse business community by increasing employment opportunities, higher wage jobs, and securing tax revenues that fund the City’s high-quality public services.
The 2022-2025 Strategy consists of several components, including:
- Data Application
- Business Retention and Expansion
- Business Attraction
- Fostering Local Entrepreneurship and New Business Formation
- Workforce Development
- Establish and Promote Incentives
- Marketing, Promotion and Communication
Significant progress has already been made in all areas of the Strategy, as will be discussed during the staff presentation, and as detailed in the attached report (Exhibit 1). However, one area that warrants additional City Council consideration is that of economic incentives. Economic incentives are financial rewards provided to alter consumption and production patterns. Common incentives include subsides, tax credits, rebates, and discounts.
One way the City can support local businesses is through the promotion of Governor’s Office of Business Development programs including:
- California Competes Tax Credit
- Advanced Transportation and Manufacturing Sales and Use Tax Exemption
- California State Trade Expansion Program (STEP)
- California Dream Fund
At the City level, the City Council may wish to consider developing its own incentive program. Across the region, and State, several jurisdictions have done some aspect of implementing incentives, including:
- City of Roseville – Administers a Downtown Roseville Façade improvement program that provides financial assistance to cover the cost of materials and City permit fees in the form of a rebate.
- City of Auburn – Provides Business Improvement Grants of up to $3,000. Eligible uses include façade improvements, technical assistance, manufacturing, and business features.
- Placer County – Administers a TOT rebate program for new hotel properties in the north Lake Tahoe and unincorporated areas of Auburn.
- City of Citrus Heights – Administers an Economic Development Support Fund, funded annually at $150,000/year.
- City of Rancho Cordova – Administers a Community Investment Fund, funded through Measure R, a ½ cent voter-approved sale tax measure.
- City of Elk Grove – Partners with the California Statewide Communities Development Authority (CSCDA) and the California Municipal Finance Authority (CMFA) to provide financing to fund infrastructure improvements and development impact fees.
- Regional SAN – Businesses receive a 15%-50% reduction of their connection fee for creating new full-time jobs.
Possible incentives to consider for the City Council to consider include:
- Reasonable Business License Fees
- Expedited Entitlement and Permit Processing
- Downtown/Quarry District Façade Improvement Grant Program
- Development Impact Fee Deferral Program
- Increase funding toward the Economic Development Reserve Fund to provide low interest loans, grants, or fee off sets to companies that would generate new jobs and/or new sales tax revenue.
- Completion of or participation in off-site public improvement projects that are generally expected of private development.
Next Steps
Based on direction received from the City Council, staff will continue to implement key element of the Strategy and report back to the City Council in six months.