City of Clovis Stimulus and Revitalization Strategy

EXECUTIVE SUMMARY

APPROACH

This document is the result of the Business Roundtable meeting that was held on December 15, 2008 as well as staff research and City Council input. The primary purpose of the Local Economic Stimulus and Revitalization Strategy is to provide an action plan for assisting existing businesses and encouraging new businesses within the City.

CONCLUSION

The actions that will be taken are as follows:

1. EXPAND MARKETING EFFORTS

Enterprise Zone

• Inform Clovis businesses of the benefits and provide application assistance.
• Provide one informational seminar.

Special Events/Promotions

• Hold special events/promotions
• Pursue "Shop Clovis" Opportunities
• Explore a City-wide shopping rewards program
• Educate Clovis residents about the benefits of shopping in Clovis.
  
• Encourage Clovis resident to shop in Clovis.

2. PROVIDE ECONOMIC ASSISTANCE

Amendments to the Development Fee Structure

• Prepare an amendment to the City development fee structure.

Streamline Process for Business Start-up and Expansion

• Provide business start-up information to potential entrepreneurs
  
• Provide a one-stop-shop for assisting businesses through the process

Develop Strategies to Provide Assistance to New or Expanding Businesses

• Work with the development community to utilize CCDA resources to create business opportunities.
  
• Educate other City departments on the importance on new or expanded businesses in the community.

3. MAKE REGULATORY CHANGES

• Provide a one-time two-year City of Clovis Business License fee rebate (after attending a designated class) for any home-based business or newly created fictitious business not currently located in Clovis wishing to move into a commercial unit.
• Provide home-based businesses with annual gross revenues less than $5,000 a business license at a base fee of $50.00.

4. PROVIDE NETWORK ASSISTANCE

Organizations to Assist Business

• Coordinate with the Economic Development Corporation (EDC), the Small Business Development Center and the Central Valley Business Incubator (CVBI) to create a referral and resource promotion process.

Business Roundtable

• Facilitate a business roundtable twice a year to engage the business community in discussion.

IMPLEMENTATION OF ACTION ITEMS

1. EXPAND MARKETING EFFORTS

Enterprise Zone

Issue

Work with Clovis businesses to take advantage of the Enterprise Zone status. The Enterprise Zone is a partnership between local governments and private companies to generate new private sector investment and growth. Under this program, companies are eligible for exclusive tax incentives and programs which include tax credits for sales tax paid on qualified machinery, tax credits for hiring new employees and accelerated expense deductions. The Enterprise Zone promotes the hiring of a target group of individuals to provide a federal tax credit to employers who hire these individuals.

Scope of Work

1. Market program to Clovis businesses with direct mail and contact.

2. Visit businesses informing them of the program and assisting with application.

3. Conduct workshops for Clovis businesses regarding the Enterprise Zone.

Recommended Action

• Promote the Enterprise Zone on the City of Clovis website.
  
• Mail Enterprise Zone brochure to 50 businesses per month.
  
• The Economic Development Corporation (EDC) will visit nine businesses per month informing them of the Enterprise Zone and assisting with the application process.
  
• EDC will hold one Enterprise Zone workshop for Clovis businesses. The workshop with be advertised through media sources.

Cost

Use existing resources.

Responsibility

• Community and Economic Development and EDC Staff
• Special Events/Promotions

Issue

With the economy in decline, there has also been a decline in consumer spending and in business and consumer morale. Hosting special business events or business promotions helps to reverse the downward cycle by improving morale and providing consumers with an extra benefit for shopping in Clovis. Special business events or business promotions also foster a good relationship between the business community and Clovis city government.

Scope of Work

Develop at least one special business event or business promotion per year (Big Wins Day, December 2008).

Recommended Action

• Research for new special business events or business promotion activity.
  
• Explore potential events.
  
• Involve business community in event planning.
  
• Formulate plan for special business event or business promotion.
• Include service and civic organizations and business community.
  
• Hold one event per calendar year.
  
• Promote event through the media via press releases and interviews.

Cost

Use existing resources and secure donations as needed.

Responsibility

Community and Economic Development Department

Pursue "Shop Clovis" Opportunities

Issue

Sales tax revenue is one of two major sources of revenue available for funding City services such as public safety, park maintenance, street lighting and maintenance, senior services and recreation. Sales tax revenue is generated by local merchants selling taxable goods to consumers. Since sales tax is local revenue the local portion that is paid in Clovis stays in Clovis. It is important to Clovis' fiscal well-being to keep Clovis citizens shopping in Clovis as well as attracting consumers from outside Clovis.

Scope of Work

1. Facilitate a city-wide shopping rewards program.

2. Educate Clovis residents about the community benefits of shopping locally.

3. Encourage Clovis residents to shop in Clovis.

Recommended Action

• Explore development of a city-wide shopping rewards program.
  
• Develop a consumer oriented shopping website.
• Create educational material to inform about the community benefits of shopping locally.
  
• Distribute educational material once a year in City of Clovis utility bills.
  
• Create a program to provide no cost building permits home rehabilitation projects by residents/contractors in southwest Clovis who purchase their construction materials at Clovis businesses.

Cost

Use existing resources for program development.
Council will need to allocate $10,000 for Building Permit Program.

Responsibility

Community and Economic Development Department

2. PROVIDE ECONOMIC ASSISTANCE

Amendments to the Development Fee Structure

Issue

City staff and Council Members have received complaints that development fees for certain development project types are high compared to other local agencies (specifically, the City of Fresno). The result, according to the non-residential development community, is that non-residential development that is not tied to residential uses (such as shopping centers that depend on small trade areas) is discouraged by the "high" fees. In order to address this, Staff is looking at the entire structure to determine the magnitude and validity of the "problem" and to seek ways to address the problem without compromising the infrastructure needs of the City.

Scope of Work

Prepare an amendment to the City development fee structure to help Clovis be more competitive in attracting new business.

Recommended Action

• Complete a direct comparison with the City of Fresno development fee structure.
• Evaluate various options for reducing the amount of street infrastructure paid for by the fees.
  
• Evaluate and recalibrate the formula for calculating units on non-residential projects.
• Complete a Police Facilities Fee nexus study.
• Evaluate how to define and incentivize "infill" development.
• Evaluate fee structure(s) for non-residential development.
• Develop a methodology and implementation of a state highway impact fee
• Reevaluate the fees for FMFCD facilities.
• Reevaluate park fees for non-residential development.
• Return to Council with recommendations.

Cost

Use existing resources, and depending on Council direction, funds to hire a consultant.

Responsibility

Planning and Development Services (subject to staff availability)

Streamline Process for Business Start-up and Expansion

Issue

Start-up and expanding businesses are important to the City for the jobs, taxes and economic vitality this brings. It is important to encourage and nurture businesses that are beginning or expanding as they are especially vulnerable to setbacks or failure at that time.

Scope of Work

1. Provide business start-up information to potential entrepreneurs.

2. Provide a one-stop shop for assisting businesses through the process.

Recommended Action

Distribute "So You Want to Start a Business" guide.

• Distribute "So You Want to Start a Business" guide.
• Work with City departments to create a single point of contact to assist business through the process.
• Create a "DRC" style process to aid in business start-up and expansion.
• Continue to partner with the Small Business Development Center, Central Valley Business Incubator, and the Economic Development Corporation.
• Partner with Cargo Bay, Office Bay and Venture Bay to promote opportunities and services for small business start-up and expansion.
• Promote "Tools for Business Success" on City website.

Cost

Use existing resources.

Responsibility

Community and Economic Development Department

Develop Strategies to Provide Development Assistance to New or Expanding Businesses

Issue

The goals and objectives of CCDA as stated in the Redevelopment Implementation Plan are to encourage economic development, eliminate blight, and maintain an attractive appearance throughout the project areas. The development of property along the corridor as proposed in the various master plans will facilitate job generation, increase the sales and property tax base, and eliminate blight. Development projects often need financial assistance to make installation of infrastructure financially feasible.

Scope of Work

Work with the development community to utilize CCDA resources to create business opportunities.

Recommended Action

• Actively search for opportunities to assist businesses within the redevelopment project areas.
• Participate in the Statewide Communities Infrastructure Program (SCIP) to provide a funding source for long-term payment of development fees.

Cost

Use existing resources for marketing and project negotiations, Council approval for proposed capital projects, or business assistance.

Responsibility

Community and Economic Development Department

3. REGULATORY CHANGES

Business License Cost Reduction

Issue

Amend the Business License Ordinance to clarify specific sections and to add sections to encourage small businesses to get business licenses and to grow from home based businesses to business in commercial space.

Scope of Work

1. Provide for any home-based business or newly created fictitious business not currently located in Clovis wishing to move into a commercial unit to be eligible for a one-time, two-year City of Clovis Business License fee rebate if a class at CVBI is attended.

2. Provide home based businesses with annual gross revenues less than $5,000 a business license at a base fee of $50.

Recommended Action

• Request Council approval for the business license ordinance amendment.
• Amend the business license ordinance to provide for business license waiver and base fee of $50.
• Market the ordinance amendments to the business community.

Cost

Use existing resources for administrative work. The changes to provide a basic fee of $50 for home-based businesses and to waive business license fees for the first two years for qualified start-up businesses would cost the city approximately $30,000 in reduced revenue.

Responsibility

Finance Department to amend the business license ordinance.
Community and Economic Development Department to conduct marketing

4. PROVIDE NETWORK ASSISTANCE

Organizations to Assist Business

Issue

There are several organizations with the mission to assist the business community with start-up, retention, and expansion. It is important that Clovis businesses are aware of and receive the benefits the organizations have available. The City has the ability to coordinate and market programs.

Scope of Work

Coordinate with the Economic Development Corporation, the Small Business Development Center and the Central Valley Business Incubator to create a referral and resource promotion process.

Recommended Action

• Continue participation with EDC - Bear Action Network.
• Increase level of referral to the Small Business Development Center.
• Continue participation with the Central Valley Business Incubator.

Cost

Use existing resources for coordination and partnership, Council authorization for agreements with EDC and CVBI.

Responsibility

Community and Economic Development Staff

Business Roundtable

Issue

It is important that the City of Clovis have an understanding of the issues and challenges facing the business community. Regular meetings between the City Council and representatives of Clovis business will help to facilitate an improved relationship and service.

Scope of Work

Facilitate a business roundtable twice a year to engage the business community in discussion.

Recommended Action

• Conduct a 2009 business survey to obtain information on strengths, weaknesses, opportunities and threats.
• Schedule a business roundtable for May 2009.
• Invite members of the business community to attend.
• Council to host the business roundtable.

Cost

Use existing resources.

Responsibility

Community and Economic Development Staff