Title
Planning and Building Department, Economic Development Division, recommending the Board approve minor revisions to Board of Supervisors Policy J-7, Economic Development Incentives, and to update the sunset review date.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
In accordance with Board of Supervisors Policy A-1, Policies, the sunset review date for Board Policies is four (4) years from the approval date or last update. The Planning and Building Department, Economic Development Division (Department), staff have reviewed Board of Supervisors Policy J-7, Economic Development Incentives, and are proposing minor revisions in order to clarify certain criteria and procedures.
At the December 17, 2013 Board of Supervisors meeting (File No. 13-1579, V1, Item No. 7), the Board directed staff to prepare an Economic Development Incentive Policy to include incentive tools designed to attract, support and expand economic development within the County of El Dorado. The use of incentives is referenced in the Economic Development Element of the 2004 General Plan and is a common economic development practice.
On February 11, 2014, (File No. 14-0171, V1, Item No. 33), the Board approved Policy J-7, Economic Development Incentives. The J-7 Policy is an overall statement of intent that the County will consider economic development incentives as part of a broader strategy of business attraction. The policy indicates that detailed procedures to implement the policy will be developed.
On February 10, 2015 (File No. 14-0171, V2, Item No. 6), the Board extended Policy J-7, Economic Development Incentives, with an expiration of the policy at the end of nine months (November of 2015). Due to the drafting of the County's Economic Development Strategic Plan and the need for greater policy research, the J-7 Policy was allowed to expire in November of 2015, its adopted sunset date.
On April 19, 2016 (File No. 14-0171, V3, Item No. 31), the Board reinstated Policy J-7 with a new sunset date of April 18, 2017.
On April 11, 2017 (File No. 14-0171, V4, Item No. 3), the Board revised Policy J-7 and extended the policy through April 18, 2020.
On April 14, 2020 (File No. 20-0467, Item No. 17), the Board revised the sunset date of Policy J-7, Economic Development Incentives, from April 30, 2020 to April 30, 2022. This revision was made in an effort to continue the County’s investment in Economic Development, to further implement the County’s General Plan, and to maintain economic development tools to soften the economic impacts from COVID-19.
Both the County’s Strategic Plan and General Plan include Economic Development Elements. The Economic Development Element of the County General Plan, adopted by the Board on July 19, 2004, includes policies to encourage economic development and specifically provides for the development of incentives to encourage development of particular business sectors.
The purpose of policy J-7, Economic Development Incentives is to:
• Identify targeted business sectors that have the highest potential for growth and will offer the highest economic impact through the use of incentives.
• Identify economic incentive options.
• Establish a formalized analysis, fair process, and transparent review of economic development incentives for businesses starting in, expanding in, or relocating to El Dorado County.
• Ensure any and all incentives offered to job-creating firms in El Dorado County offer benefit to the goals of the County as well as the business.
Proposed revisions to the current Board Policy J-7 include minor text revisions, with no substantial changes to the purpose, criteria, or procedures.
ALTERNATIVES
The Board may choose not to approve the recommended changes, direct staff to make additional modifications, or take no action.
PRIOR BOARD ACTION
See Discussion/Background above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no change to net County Cost associated with this revised Policy. The purpose of the policy is to identify and analyze economic development incentives, which would undergo a thorough cost-benefit analysis and consideration by the Board prior to implementation
CLERK OF THE BOARD FOLLOW UP ACTIONS
Upon approval of the revised Policy, the Clerk of the Board will publish the updated Policy to the Board of Supervisors Policy Manual webpage.
STRATEGIC PLAN COMPONENT
Good Governance and Economic Development - This action furthers the Strategic Plan goal of retaining, developing and attracting businesses that provide economic sustainability and quality job creation.
CONTACT
Kyle Zimbelman, Economic and Business Relations Manager
Planning and Building Department