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HomeMy WebLinkAbout4 - Department Priorities and ReorganizationTO: FROM: SUBJECT: SUMMARY Cit; CITY OF NEWPORT BEACH Mayor and Members of the City Council ncil Meeting July 24, 1995 Agenda Item No. 4. Assistant City Manager, Planning and Building Department Priorities and Reorganization E CITY COUNCIL NEWPORT 3FACH J U 1 2 4 1Ny5 The reorganization of the Planning and Building Departments to incorporate economic development activities is under study. Before hiring a consultant to assist in devising a reorganization plan, staff requests the City Council to affirm priorities. Such a priority list will then be matched with available personnel and resources to accomplish the reorganization. Attached are lists of all planning and economic development tasks accumulated over the past few years. The following represents staff's recommendations for a combined priority list. Highest Priorities. • Process all plans, permits and inspectiotrs in a friendly, efficient, accurate afrd timely mariner. This refers to all day to day activities by both the Planning and Building staffs to provide information at the counter and by telephone and to process all development and building permits both discretionary and non -discretionary. This also includes all Planning Commission and City Council functions related to permitting and entitlements. • Maintain high quality building and zoning code enforcement. This includes not only building inspections and routine code enforcement procedures, but also the on-site inspection activities associated with Residential Building Reports. • Process major projects. This includes the completion the Fletcher Jones project, Bayview Landing, Newport Pavilions, Rockwell and similar projects as they arise. TO: City Council - 2 • Review and revise the entire Zoning Code for consistency, readahiL � _treamlining of administration. This includes not only structural and language revisions but also sub..a=_­m amendments to reduce the need for some use permits, to provide more administrate: a t=– sting and to incorporate a variety of provisions designed to simplify and fac:� 3evelopment procelssing. This will entail a wholesale re -write in strike -out and form of the entire, Code. This process is already underway and will be availab•'.e ter -a-, iew by the Council within the next six to eight weeks. The revisions will also refle•-. Council's policies regarding commercial area revitalization and the Council's cz-� : to reduce bureaucratic rules. High Priorities. • Update the Circulation Element of the General Plan • Review/revise the Traffic Phasing Ordinance. • Update the Land Use Element of the General Plan. • Adopt General Plan policies regarding economic development goals. • Review/revise the Local Coastal Program and pursue certification. • Complete the General Plan Amendment for the CalTrans West residual parcel. • Complete the Coastal Commission Processing of the Central Balboa Specific A -ea PIan. • Complete the Old Newport Boulevard Specific Area Plan. • Complete the work program of the Balboa Peninsula Planning Advisory Committee. • Complete Conference Center feasibility studies. • Establish business improvement districts in all of the City's community commercial areas. • Establish a tourist improvement district for restaurants. • Revise the restaurant grease ordinance. • Continue to enlist businesses in the use tax self -accrual program. • Complete the Cost Recovery and Performance Measurement program. Medium Priorities. • Continue and expand SHOP NEWPORT program. • Update the Recreation and Open Space Element of the General Plan. • Update other elements of the General Plan. • Finalize Fiscal Impact Model. • Expand the Restaurant Review Committee into a Development Review Committee. • Investigate permit streamlining strategies. RECOMMENDATION Review, modify a -desired and approve priorities. Kenneth J. Del CITY OF NEWPORT BEACH Planning Department -Memorandum - June 29, 1995 TO: Planning Commission FROM: Patricia L. Temple, Planning Manager SUBJECT: Proiect and Workload List Following is the project and workload list which is updated three times per year in association with the initiation of General Plan Amendments. These projects are all those items (other than routine case applications) which have been assigned to the department. The items which are boxed are those items on which staff is actively working. General Plan Amendments These amendments have been initiated either at the request of a property owner or by the City for its own interests. Applicant requested amendments are held pending submittal of related planning applications (such as a zone change amendment). City amendments are held pending the receipt of information from affected City Departments, funding allocation or staff availability. GPA 88-2(D) Public Safety Element Update GPA 90-1(I) Air Quality Element Preparation GPA 90-2(A) Santa Ana River Mouth LCP GPA 90-2(E) General Plan and Zoning Consistency and Cleanup Amendment GPA 90-3(B) Review of Recreational & Environmental Open Space and Governmental, Educational and Institutional Facilities Land Use Categories GPA 91-2 407 Bolsa Avenue GPA 91-3(G) Circulation Element Update GPA 92-1(C) Old Newport Boulevard Specific Plan GPA 92-1(D) Regulation XV Facilities Floor Area Amendment GPA 93-2(A) Ford Land/Loral Aerospace Property GPA 93-2(C) Recreation and Marine Commercial Designation GPA 93-3(A) Amlin 's Nursery Property GPA 94-1 C Circulation Element Dover Drive GPA 94-2(C) Cloobeck Property GPA 94-3(B) 424 Old Newport Boulevard GPA 95-1(A) CalTrans West/CalTrans West Residual Parcel 3 TO: F I ig Commission - Page 2. GPA 95-1(B) Revisions to Calculated Density and Intensity Policy GPA 95-1(C) Commercial Policy GPA 95-1(D) San Diego Creek North -Fletcher Jones Mercedes Benz GPA 95-1(E) Ebell Club General Plan and LCP Implementation 1. Review and Update Zoning Ordinance Consistent with General Plan 2. Amend Planned Communities (PC's) consistent with new General Plan 3. Review City Council Appeal, Call -Up, and Automatic Review Procedures 4. Process Zone Changes necessary to implement General Plan 5. Adopt LCP Zoning and Implementing Ordinances Regional Activities Staff' participates in these activities on an as -needed basis. Participation usually involves attendance at meeting or hearings. 1. Participate in preparation of County -wide Congestion Management Plan 2. Santa Ana River Mouth LCP (City/County) 3. SCAG Regional Strategic Plan Monitoring and Implementation 4. Participate Regional Housing Needs Assessment Sub -Committee 5. 2000 Census - Data Needs Identification and Census Tract Boundary Review 6. Participate in Orange County Housing Authority 7. Participate in Orange County Homeless Issues Task Force 8. City/County Coordinating Committee on Homelessness 9. Airport Land Use Plan Consistency 10. Air Quality Management Plan review and development of implementation procedures 11. Orange County Air Quality Technical Advisory Committee 12. Participate in the Regional Advisory and Planning Committee (RAPC) Technical Advisory Committee 13. Review Amendments to OCTC 20 Year Circulation Master Plan 14. Orange County League of Cities/OCTC Traffic Improvement and Growth Management Program 15. Hazard Waste Management Plan Monitoring and Implementation (Tanner) 16. Administration of Federal Entitlement Funds Allocated through the Community Development Block Grant Program Special Projects 1. Complete Central Balboa Specific Plan - Coastal Commission Processing 2. Prepare Old Newport Boulevard Specific Area Plan 4 TO: PIS , Commission - Page 3. rarK 1Jewcation anu rec V VUQte 4. Newport Information System Implementation including Ongoing Mapping and Database Development 5. Review Uses Requiring Use Permits 6. Prepare Comprehensive Reorganization of the Zoning Ordinance 7. Amend Zoning Ordinance and Subdivision Regulations as Recommended by the Economic Development Committee 8. Fiscal Impact Model - Downcoast W ECONOMIC DEVELOPMENT WORK PROGRAM Consistent with the policies and direction of the City Council, the regulatory functions of the Planning Commission and the recommendations of the Economic Development Committee, coordinate and/or perform the below listed tasks. SERVICE ENHANCEMENT AND REGULATORY REFORM Proiects Underway: • Consider the adoption of General Plan policies promoting economic development goals. • Review the entire zoning code for consistency, readability and ease of administration. • Review zoning ordinance to eliminate some requirements for use permit and to increase administrative permitting. • Review/revise traffic phasing ordinance. • Revise restaurant grease trap ordinance. • Investigate establishment of Development Review Committee. • Identify and support projects for fast track permitting. • Publish booklet "How to Do Business in Newport Beach". • Finalize fiscal impact model. Priority Proiects: • Investigate easing of floor area, building bulk and parking requirements in older beach areas. • Investigate additional permit streamlining including inter -departmental 'one contact" permitting and inspection. • Investigate using contractors for overflow permit processing. • Pursue certification of the Local Coastal Program. Project Requests: • Organize Coastal Commission presentation team. • Investigate an Economic Development Element for the General Plan. • Review and promote desired elements of Total Quality Management philosophy and techniques for all City development services. • Continue service enhancement training 0 Publish booklet "How to Do Business in Newport Beach". MARKETING AND BUSINESS RETENTION Proiects Underway: • Expand SHOP NEWPORT program. • Continue to enlist businesses in the use tax self -accrual program. • Develop City promotional materials and an advertising plan. * Coordinate business retention or attraction "red teams" targeting specific revenue producing enterprises. " Establish business recruitment "ambassador" program. * Identify and promote special events to attract visitors. * To be completed by Chamber of Commerce. Priority Projects: • Develop an Economic Development Newsletter. • Identify and promote financing for Economic Development activities and projects Proiect Requests: • Develop and conduct programs to educate residents about economic development benefits. • Develop a City economic profile useful to businesses. • Coordinate with state and regional economic development efforts. RESTAURANTS Proiects Underway: • Consider establishing a Tourist Improvement District for restaurants. • Revise zoning code to expand administrative approvals for restaurants. • Revise zoning code to promote outdoor dining. • Continue the Restaurant Review Committee and promote it by developing an explanatory pamphlet and mailing to all restaurants. Project Requests: • If formed, work with the TID Advisory Board. • Develop benchmark data for restaurants. • Assemble restaurant development/location guide. • Provide single contact for restaurants with the City. BUSINESS DISTRICTS Projects Underway: • Establish Business Improvement Districts in all community commercial areas. • Develop work programs for all BID's. • Conduct or coordinate various marketing, visioning, design or similar studies for each BID area. • Staff the Balboa Peninsula Planning Advisory Committee, Priority Projects: • Conduct or coordinate public participation or other programs to involve residential areas with business district activities. • Establish funding programs through grants and Community Reinvestment Act activities. • Investigate and implement district -wide parking standards and parking solutions such as new structures, metering, land acquisition, and parking management programs. Proiect Requests: • Develop or revise Specific Area Plans for each BID area as necessary. • Devise capital improvement programs for each BID area as necessary. • Administer a variety of revitalization programs such as facade improvement, business loans, landlord/tenant relations, business training, tenant recruitment, etc. • Provide single contact liaison between BID areas and City. • Compile benchmark data for each BID area (see attachment). BOATS AND HARBORS Proiects Underway: • Organize an industry -wide task force. Priority Projects: • Identify constraints and opportunities for this industry. Project Requests: • Conduct or coordinate an economic impact study of this industry. • Implement or coordinate desired programs or projects e.g., guest docking, pump out stations, water quality regulations compliance, marine services, etc. • Develop a harbor marketing and special events program. Mo • HOTELS Projects Underway: • Conduct conference center market feasibility study. • Work with Conference and Visitors Bureau on hotel related activities and promotions. Proiect Requests: • Conduct a conference center site selection study. • Investigate zoning incentives for expanded conference and banquet facilities. GENERAL OFFICE/COMMERCIAL TASK FORCE Priority Proiects: • Investigate zoning incentives to stimulate reuse of older commercial/manufacturing areas. Project Requests: • Compile benchmark data • Identify constraints and opportunities for this class of business. • Identify areas in transition and reevaluate planning and zoning. 11 City of Newport Beach Economic Development Committee July 24, 1995 The Honorable John Hedges, Mayor Members of the City Council City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Dear Mayor and Members of the Council: The purpose of this letter is to transmit to you the July 24, 1995 Activity Report of your Economic Development Committee. This report consists of the text of my remarks delivered at the Council's Study Session on July 24,1995, supported by the following documents: • July 24, 1995 EDC Recommendations • City Council Economic Development Policy • December 9, 1994 Statement of EDC Mission, Vision and Goals • Summary of Economic Development Activities 1993-1995 • Current EDC Membership and Organization Chart • EDC Enabling Resolution • November 22, 1993 Findings and Recommendations of the EDC Thank you for the opportunity to share our current recommendations and thoughts towards the future. As you will note from the text, we believe 1995 will be a significant year of achievement for economic development activities. I ran across an interesting quote yesterday that seems tremendously appropriate for my feelings about our EDC efforts: "One of my jobs is to be wildly enthusiastic about the progress we've made and eternally disappointed at the rate we're making it. " Philip Condit, President, Boeing Government never seems to change as fast as those of us from the private sector would like. Yet we are changing and City Staff, from the City Manager down, are truly making a difference in how Newport Beach does its job. We have much to do, yet we can be proud of our accomplishments to date and of how we are going about our task. The team effort being exhibited by Staff, EDC members, The Newport Harbor Area Chamber of Commerce, The Newport Beach Conference and Visitors Bureau and all of the supporting businesses located in Newport Beach is impressive and worthy of mentioning. Most importantly, the EDC appreciates the support the Council has given us. We look forward to continuing to pursue the economic revitalization of our tremendous City with the sense of urgency we all share. Sincerely, ---Gt JEWPORT BEACH ECONOMIO DEVELOPMENT COMMITTEE Q 'i Rush N. Hill, ll, ,SIA Chairman City of Newport Beach Economic Development Committee Activity Report 'ext of remarks by July 24, -1995 SDC Chairman gush N. Hill, AIA Mr. Mayor and members of the City Council. I consider it an honor to come before you today to provide an update on our EDC activities. I believe it mportant to set the stage for where we are by first offering a brief overview of how we began, commenting on the three phases we have matriculated through n order to reach our current level of activity. Introduction During the fourth quarter of 1992, the City Council recognized the need to change the path of declining city revenue and property values in Newport Beach. in January of 1993, the City Council established The City Council Ad Hoc Economic Development Committee (EDC) and in March of 1993, adopted an Economic Development Policy. The EDC began "Phase 1 " activity related to developing a focus on where City revenue was derived, what elements of our rules and regulations blocked or slowed access to revenue and the evaluation of how to best market our community to both residents and visitors. A Phase 1 report was made to the City Council on November 22, 1993. Over 25 recommendations were made by the EDC. The City Council accepted the report and requested staff to begin the process of implementation. January 24, 1994, the City Council reaffirmed the economic Development Policy, thereby further -encouraaing staff to proceed with a sense of urgency in achieving EDC recommendations. Phase 2 of EDC activity began in January of 1994 immediately following the City .,,unci) order to implement. EDC efforts were channeled to focus on tracking molementation. The EDC felt very strongly that insuring implementation of the Arial recommendations was the most effective way to work with staff at that time. n December of 1994, information highlighting the EDC VISION, MISSION and uOALS was presented by the EDC to the City Council for their use in the anuary 1995 planning retreat. The EDC requested permission to restructure and the addition of consultants to gather more technical data so as to facilitate further, more specialized change. 11VJ th the Council's passage of our revised enabling resolution and general aareement of the direction for the EDC, Phase 3 activities began in January of 1995. This work effort has focused on continuing to work with staff on imolementation AND identify additional opportunities for change. This increased EJC activity level has consumed a lot of staff and EDC committee volunteer time, often raising differences of opinion on how best to accomplish a task. The REMARKS BY EDC_ AIR RUSH N. HILL, II, f July 24, 1995 Page 2 Committee and Staff team, however, consistently reach consensus opinion and get the job done. During Phase 3, EDC activities have been divided into two main categories: Services and Marketing. n addition, we have stepped up our activity on Restaurant/Hospitality issues, called for increased activity in the Boats/Harbor arena and Business Improvement Districts and have created a new task force effort in the Professional Services area. It is true, the ribs of the "old ship Newport" have been creaking and moaning a lot lately, but she is starting to turn and the sails are still full of wind. If we can stay the course, 1995 will be a significant year of change for the City. It will be a year of putting into place our best efforts of improving city revenue and increasing property values. It will be a year of accomplishing the goals as outlined by the EDC during the Council's January 95 planning retreat. ACCOMPLISHMENTS TO DATE I would like to take just a few moments to highlight some of the EDC recommendations that have been accomplished to date. The following list consists of activities and tasks that have been achieved in a large part because of the qualitative and creative efforts that City Staff continues to undertake while implementing the intent of the City's Economic Development Policy. With City Council support and Staff hard work, we have: • Appointed a senior staff member as economic development coordinator • Eliminated duplicate reviews by Planning Commission and City Council of tract maps • Reduced appeal periods for Planning Commission items from 21 to 14 days • Made minor adjustments in our Traffic Phasing Ordnance • Accomplished service enhancement training for Planning, Building and Public Works personnel • Promoted and accomplished our first Business Improvement District • Begun the process of creating a city-wide Restaurant Improvement District • Created a multi -departmental restaurant review committee to facilitate processing • Expanded our specialty food use ordinance • ntroduced an outdoor dining ordinance with more flexible parking requirements • produced a city-wide restaurant guide • implemented a use tax accrual program • Began a SHOP NEWPORT campaign • Participated in the Rockwell retention effort • Participated in securing the Senior Tour PGA golf event at NBCC • Created red teams for fast track construction assistance and • Completed the first step in a City retail market research study mese accomplishments nave the combined effect of moving us closer to achieving our Vision and Mission. They are successes that remind us of the complexity of our work. now much remains to be accomplished and of the sense cf urgency we must retain as we continue. REMARKS BY ED( AIR RUSH N. HILL, II, i July 24, 1995 Page 3 A more complete listing of� activities from 1993 to 1995 is included in the Appendix of our report. CONGLETON STUDY As you learned earier today, we now nave in our possession the comments and recommendations of the Congleton study providing an overview general assessment of on -street retail conditions in our City with a more in-depth review of the Central Balboa area. While I have not had a great deal of time to review the information, nor discuss the content with its author, I offer the following highlights of the findings: Although our City's median and average household incomes are high when compared to national averages, the general buying habit of the Newport Beach resident is not as strong as one might think. The study notes, "A number of Newport Beach's structural demographic conditions constrain the amount of future retail spending the City can expect to capture from local residents." • Factors that contribute to this are average age of household, no growth in the number of households and housing costs so high that they often discourage young growing family occupancy. The square footage of on -street retail and restaurant space we have far exceeds the amount that is supportable solely by local residents. The reality of Newport Beach being in the visitor serving business is highlighted by the comment from the report, "If the City were to adopt a policy that discouraged visitation from out-of-towners, and encouraged only retail uses supported by immediate residents, most of the City's existing retail and dining businesses would require demolition because the resident spending potential is insufficient to support all the square footage that currently exists. " Our parking practices, including meters and pay as you leave lots, discourage access to our retail and dining establishments. You can immediately identify something to fix when you read, 'The City's parking policies for central Balboa do not reward shoppers and diners who spend money within shops and restaurants, and the metered spaces most convenient to the retail businesses are not managed in a manner that would discourage their use by non -spender beach -goers." With respect to Balboa's pay -as -you -leave lot, the report comments. " ... a shopper or diner wishing to stay only two to three hours must pay _36.00 to 57.00 - r,7e same price a beach -goer pays for staying all day. " Competition for retail and dining has greatly increased throughout the inland area of the county, making it far easier for neighboring residents to stay in their local town to enjoy quality goods and services. This competition gap widens further when you compare new inland retail/entertainment/dining facilities with our often older, less current merchandised activities. Reality hits home when you realize the truth in the fact that, "As competitive recreational choices have proliferated for affluent Orange County baby boomer families, the families' entertainment expectations have increased. diminishing the overall appeal of older water -oriented specialty venues., such as those found along the Balboa Peninsula. that have not kept up with contemporary retailing, dining and entertainment mercnandisina." REMARKS BY ED(' 41R RUSH N. HILL, II, f. July 24, 1995 Page 4 I would summarize the recommendations for improvement contained in the report as: • Create parking management plans in our business districts • Get involved in creating incentives for re -merchandising, re -tenanting and re- habing our older business areas and • Create marketing implementation action plans for our business districts The information contained in the Congleton report will be very helpful as we undertake the education and policy making activities that will be required to achieve our goal of returning our older business districts to the quality front doors and revenue producing assets of our community we so desperately want and deserve them to be. EDC RECOMMENDATIONS I would now like to share with you the EDC's Phase 3 recommendations which have been formulated over the past six months. Some items are new thoughts, while others are continuations of previously highlighted needs for change. All are in support of the City's Economic Development Policy . We believe our recommendations are consistent with our VISION that municipal revenue is increased by adding value to our business community, and MISSION to achieve a nationally recognized, business friendly city that generates adequate municipal revenue to provide quality services to our residents and visitors. The EDC's Services Committee continues to focus on making the development process faster and more user friendly, while seeking incentives to encourage quality, private sector redevelopment of our older areas. They recommend: • Within the framework of Staff's decision to accomplish a comprehensive rewrite of the City's zoning code, we believe you should add to our list of previously requested zoning changes the need to re-examine the definitions and restrictions related to floor area ratio's, building bulk and mass, and commercial district land use regulations as they relate to non -occupiable space, equipment and generator rooms and building areas considered to be support to but not income producing or traffic generating building components. • Enact a code section to provide for a Variance process to be achieved through discretionary action of the Planning Staff, Planning Commission and/or City Council. • Prepare and process an amendment to the City's General Plan, Land Use Element that adds an Economic Development Policy specifically identifying the goal of creating an economically healthy business environment within the City. • Establish Parking Districts and create specific parking management plans for appropriate business districts. • The continuation of the re-engineering of Building and Planning department functions/staff working with consultant(s) that utilize staff empowerment processes to achieve lasting and meaningful change. We further recommend the following areas be explored as part of the re-engineering processes: • The creation of a Development Review Committee similar to our Restaurant Review Committee • Clearly defined, consistently applied procedures and standards for planning and building processing REMARKS BY EDC 4IR RUSH N. HILL, il, Duly 24, 1995 Page 5 • Utilization of privately contracted services for overload or peak activities in plan check, grading engineering services, E!R review, etc. and • The creation of a centralized. one contact permit processing function • The approval of an outdoor aining ordnance related to restaurant and specialty food use • Review and further refine the City's Traffic Phasing Ordnance • Review and revise the Local Coastal Plan, seeking certification by reaching a political solution to our special and unique requirements • Explore land use changes in the airport and older industrial areas of the city The EDC's Marketing Committee continues to believe that business should join together to achieve the maximum impact on area marketing. The ultimate goal is to capture a larger share of the Southern California retail and hospitality market. We recognize that successful efforts in selling our strengths can make the pie bigger. The Marketing Committee recommends: • The continued development of our business districts into formal BIDs • The creation of a City wide Restaurant Improvement District • Expansion of the use tax self -accrual program • Expansion of the Shop Newport program • Evaluation of the financial feasibility of a Visitors and Conference Center • Continued involvement with consultant(s) to identify appropriate business district personalities which would allow individual BID's to play to the strengths of their unique area. • The retention of consultant(s) to identify and secure the best possible tenants for our vacant retail space BENCH MARK REPORTS Of special interest to the EDC is the creation of a Bench Mark reporting process so as to be able to judge the progress we are making in encouraging business activities that will lead to improving city revenue and increasing property value. Staff is working with City Council and EDC members to develop a simple reporting too! that will provide us with regular updates on key measurement statistics. EDC PRIORITIES ollowing this cresentation, you will view the work priorities of the Planning and Building Departments. Staff has worked with us in an attempt to incorporate our recommendations into the priority system. Should you wish to add or delete an item, or change a priority, you will have that opportunity. As you will see, the workload is substantial. OUR NEXT PHASE As part of the EDC's continuing program working to achieve our identified 1995 goals, the EDC is ready to begin Phase 4. Under your direction, we see our next era as a continuation of Phase 3 activities (monitoring of implementation and generation of more in-depth recommendations for Services and Marketing activities) along with tackling the tough "quality" issue of how to increase economic activity while retaining and in many instances, achieving an improved, REMARKS BY EDC VR RUSH N. HILL, il, A.. July 24, 1995 Page 6 higher profile, spending -visitor and resident appealing business. district environment. As the City's policy setting body, the City Council must establish an incentive based concept of desirable land use, tenant mix and level of aesthetic that can be achieved while restoring economic vitality to our city. At the center of `his task will be the need to define the concept of quality. It is this quality quantified policy City Staff will be called upon to promote and interpret for compliance. The EDC, with support of staff and consultants, is now ready to tackle this issue, placing before the Council recommended policy. Policy that balances property rights issues, economics and desired levels of aesthetics with common sense and flexibility in a political achievable solution. Three years ago, at the inception of the EDC, most of us probably hoped that by now the challenging economic environment and municipal budget wrestling exercises would be behind us! But of course it isn't, and in fact there is little we see on a National, State or County level to say we are not in for more of the same. We now know with more certainty, that the City must be proactive to create a healthy business environment which will in turn generate sustainable revenue sources for City services. It is with this in mind that the EDC will approach this next phase of our work. ADDITIONAL SUPPORT DOCUMENTATION As part of this EDC update, you will find additional information relating to our recommendations and support documents as follows: • July 24, 1995 EDC Recommendations • City Council Economic Development Policy • December 9, 1994 Statement of EDC Mission, Vision and Goals • Summary of Economic Development Activities 1993-1995 • Current EDC Membership and Organization Chart • EDC Enabling Resolution • November 22. 1993 Findings and Recommendations of the EDC THANK YOU On behalf of the Economic Development Committee, I thank you Mr. Mayor and members of the City Council, for your continued support. We look forward to continuing to work with you and City Staff, meeting the challenges ahead. City of Newport Beach Economic Development Committee Activity Report July 24, 1995 EDC RECOMMENDATIONS The EDC was expanded and reorganized in January of 1995. Since this point in time, our activities have been divided into two main categories: Services and Marketing. The Services Committee has been chaired by Tom Redwitz and the Marketing Committee by Richard Luehrs. The following recommendations represent a "reporting out" of the topics discussed and conclusions reached by these two committees. Some items are new thoughts, while others are continuations of previously highlighted needs for change. All are in support of the City's Economic Development Policy. Ne believe our recommendations are consistent with our VISION that municipal ,evenue is increased by adding value to our business community, and MISSION �o achieve a nationally recognized, business friendly city that generates adequate Municipal revenue to provide quality services to our residents and visitors. SERVICES COMMITTEE -he EDC's Services Committee continues to focus on making the development orocess faster and more user friendly, while seeking incentives to encourage cuality, private sector redevelopment of our older areas. They recommend: Within the framework of Staff's decision to accomplish a comprehensive rewrite of the Citv's zoning code, we believe you should add to our list of previously requested zoning changes the need to re-examine the definitions and restrictions related to floor area ratio's, building bulk and mass, and commercial district land use regulations as they relate to non - occupiable space. equipment and generator rooms and building areas considered to be support to but not income producing or traffic generating building components. COMMENTS: As we have often seen, the zoning code does not allow for the application of common sense. A comprehensive rewrite should yield a readable and more concisely presented code. More administrative flexibility will allow logical adaptations, saving applicant and staff time. Most of the previous, yet to be accomplished, technical recommendations of the EDC relating to the zoning code can be achieved in this comprehensive rewrite. Enact a code section to provide for a Variance process to be achieved through discretionary action of the Planning Staff, Planning Commission and/or City Council. COMMENTS: Newport Beach is one of the few cities that does not have a Variance process as part of its zoning code. There are often compliance deviations that are necessary or desirable to insure a quality =DC RECOMMEND ')NS . wy 24, 1995 :Daae 2 project. Without a Variance process, complex "games" are played in order to arrive at an interpretation to our codes that a straight forward variance provision would make easier and often less costly to achieve. Prepare and process an amendment to the City's General Plan, Land Use Element that adds an conomic 3evelopment Policy specifically identifying the goal of creating an economically healthy business environment within the City. COMMENTS: The City's Economic Development Policy should become a part of our Land Use Element. It is important that all who deal with the use of land and the regulations of buildings have a common understanding of the City's economic goals. This is an important base of intent that can be called upon to assist in making sometimes tough subjective decisions. µ. Establish Parking Districts and create specific parking management plans for appropriate business districts. COMMENTS: The Congleton study has clearly established the need to create parking management plans in our on -street retail and dining areas. This activity is an integral part of turning around the declining economic condition of our older business districts. We believe this need to be most critical in the Peninsula Area. The continuation of the re-engineering of Building and Planning Department functions/staff working with consultant(s) that utilize staff empowerment processes to achieve lasting and meaningful change. We further recommend the following areas be explored as part of the re- engineering processes: • The creation of a Development Review Committee similar to our Restaurant Review Committee. • Clearly defined, consistently applied procedures and standards for planning and building processing. • Utilization of privately contracted services for overload or peak activities in plan check, grading engineering services, EIR review, etc. • The creation of a centralized, one contact permit processing function. COMMENTS: The Planning and Building Departments are faced with the same tough economic reality of the 90's as is the rest of the City and as the private sector has been for over five years. They are called on to improve on what is already often noted as good service, doing it faster and with fewer members of the staff. Doing more with less is a phenomenon experienced by every organization in existence today. In order to survive, re-enaineerina of the total process and down-sizing/out- sourcing of activities must be accomplished. These changes can be dictated from the top down or can be designed from the bottom up through a management process of empowering. Substantial change - - and re-engineering change to the order of magnitude required to provide city building and planning services within the budget constraints that will exist throughout the balance of the 90's must be defined as substantial - - will be more acceptable to staff and therefore longer lasting if the empowering process us used. Outside consultants, who specialize in this type of management practice should be utilized to lead in this most important and long term change of the City. This task will be one of the most important adjustments we make, in how we do business in Newport Beacn we will make. If it is done well we will reap the benefits for years into the future. The approval of an outdoor dining ordnance related to restaurant and specialty food use. EDC RECOMMENt, -)NS July 24, 1995 Page 3 COMMENTS: We have one of the nicest climates in the nation along with a water oriented environment filled with outside activities. Yet we have little outdoor dining associated with our restaurants and specialty food uses. We are missing a marketing opportunity and the ability to bring our building scale down to people by not providing outdoor dining opportunities. We believe this condition should be corrected. Increasing outdoor dining opportunities will yield a more "village" atmosphere in our older areas enhancing the ambiance of our city. i . Review and further refine the City's Traffic Phasing Ordnance. COMMENTS: The TPO has been a major deterrent to renewal of our older areas of town and to new growth in the few infill sites that remain in Newport Beach. The TPO slows projects down and greatly increases cost, often placing unrealistic and unfair financial burdens on projects that would be in the best interest of the City. Elements of the TPO should be identified for change that can allow the type of development we seek while retaining the quality aspects of the ordnance that provide for proper traffic flow throughout the City. a. Review and revise the Local Coastal Plan, seeking certification by reaching a political solution to our special and unique requirements COMMENTS: By not having a Certified Local Coastal Plan, we add at least two months onto the approval process for any project that requires local coastal compliance. The City has decided not to pursue certification based on a few Coastal Commission conditions that are simply not acceptable to our citizens. We believe the political climate will never be better than it is now to gain certification - on our terms. We are recommending that exploratory meetings be conducted with Coastal staff and Board in order to access our opportunities. 9. Explore land use changes in the airport and older industrial areas of the City with the goal to improve area aesthetics and generate more City revenue COMMENTS: It appears neighboring cities have been more successful than we have in using non-residential / heavier commercial areas as significant revenue producers. We believe we have the opportunity to establish the highest and best use for many of these areas that will offer improved aesthetics and generate greater municipal revenue. MARKETING COMMITTEE The EDC's Marketina Committee continues to believe that business should join together to achieve the maximum impact on area marketing. The ultimate goal is to capture a larger share of the Southern California retail and hospitality market. We recognize that successful efforts in selling our strengths can make the pie bigger. The Marketing Committee recommends: 1. The continued development of our business districts into formal BIDs. COMMENTS: BID's are the most logical organization that allows individual businesses and property owners in a business district to join forces for the common goal of improving the area. 2. The creation of a City wide Restaurant Improvement District. COMMENTS: We believe a City wide RID would provide resources for our local dining establishments to organize and implement an ongoing promotional campaign needed to increase our market share of the highly competitive dining industry throughout Southern California. EDC RECOMMEND -'DNS Duly 24, 1995 Page 4 3. Expansion of the use tax self -accrual program. COMMENTS: This program has the potential of capturing additional sales tax revenue by changing the point of sale accounting practices of major businesses located in the City. We are recommending the development of a list of potential participants and the scheduling of meetings to encourage involvement. 4. Expansion of the Shop Newport program. COMMENTS: We believe this internally directed program should be reinforced with additional mailers in the City utility bills and added as an awareness topic on all of the City meeting agendas. General awareness of this opportunity to increase local sales tax revenue can make a difference in total dollars collected. 5. Evaluation of the financial feasibility of a Exhibit and Conference Center for Newport Beach. COMMENTS: The hospitality industry is our largest non -property tax revenue producing activity in the City. We are of the belief that the occupancy of our existing hotel properties and restaurants can be increased by having a larger venue for exhibit and conference activity than now exists in the City. We request staff, in concert with the EDC and our Conference and Visitors Bureau, conduct a financial feasibility analysis and if justifiable, proceed with spatial program, sighting, financing and operational recommendations. >. Continued involvement with consultant(s) to identify appropriate business district personalities which would allow individual BID's to play to the strengths of their unique area. COMMENTS: We believe further study should be conducted so that we can provide BID's with a better understanding of how they can achieve their own coordinated identity involving positioning, merchandising, and programmatic activities unique to their area while still taking advantage of City wide, synergistic opportunities. We believe this kind of information important to our BID's as they prepare to promote their individual areas. Achieving strong business district personalities allows residents to take pride in our environment while becoming a stronger visitor serving focal point. The retention of consultant(s) to identify and assist in securing the best possible tenants for our vacant retail space COMMENTS: We believe it important to have resources to call upon to identify possible tenants to fill our existing commercial vacancy in a pro- active manor. The alternative of relying on each individual building owner that may or may not have the ability to seek top quality tenants places us at too hign a risk of perpetuating non -state-of-the-art merchandising/marketing/sales and service oriented operators. The above recommendations are presented to the City Council for your review and comment. If you agree with the above, we urge you to direct Staff to proceed with the necessary activities to accomplish the tasks as soon as possible. As with all of our previous recommendations, we share your sense of urgency in acnieving implementation as we believe these actions necessary to stop the decline of municipal revenue and local property values. F-17 ECO OMIC DEVELOPMENT POLICY The City Council recognizes that the C:iv's ability to deliver quality municipal services :s dependent on adequate tax revenues derived primarily from the property and Businesses located within the City. -=eaithv, thriving businesses not oniv increase sales and bed taxes, but also enhance the vaiue of commercial property and hence property :axes. Residential property values also increase commensurate with employment opportunities. The City Council seeks to promote economic activity within the City to increase the revenues available to provide municipal services. The goal of the City Council is to balance the needs for Economic Development with other City polices and ordinances relating to health and safetv, environmental protection, and infrastructure maintenance. Consistent with this goal, the Citv Manager under the general direction of the City Council Ad Hoc Economic Development Committee shall insure that appropriate City departments conduct the following activities. Data and Analvsis Data shall be compiled and analysis conducted to: o Identify those businesses and activities which comply with other City plans and colicies and which also generate substantial municipal revenues. o identify, where possible, specific addresses and owners of businesses and economic activities which generate municipal revenues. o estimate taxes, fees and other municipal revenues from various land use ,ategories including residential densities. o Display geographic distributions or revenue generators within certain areas and etailcenters within the Citv. o Maintain a fiscal impact analysis system to assess the fiscal impact of land use `onversions and development. o Estimate the time required to issue various permits, entitlements and licenses ,,vithin the Citv. o assess cost/revenue aspects of tourism within the City. o Assess potential of City property and assets to promote those businesses and activities that generatemunicipal revenues. F-17 o Provide, when necessary, assistance to the City Council and City staff to accomplish the purposes of,this Policy. provide an overview of City revenues and expenditures to enable the public to ritique the City's budget practices. Regruiatory and Land Use actions Based upon the data and analysis referenced above, all major planning, development, zoning, regulatory and permitting decisions made by the City shall include a review of the economic implications of such action. Toward that end, the following shall be accomplished. o -Major development projects, and General Plan amendments shall include an economic development component. o All major zoning, subdivision and development permits considered by the City Council or Planning Commission shall be accompanied by an economic analysis uescribing the cost and revenues to the City associated with the actions. Land use conversions shall be accompanied by a before and after cost/revenue analysis. o Cost estimates of City imposed conditions on development projects that are provided by project sponsors shall be reviewed by the City Council or Planning Commission at the time such conditions are considered. o 11 amendments proposed by the Citv to building, construction and utilitv codes/ regulations shall be accompanied by an analysis of the costs associated -.vith compliance with such amendments. o-'roject proposals shall be evaluated as early as possible in the permitting process `o determine their potential to generate substantial municipal revenues and to etermine what measures, if any, may be employed to fast track the proposal. Business Relations and 'Marketing It is the policy of the City Council that developers, business persons and other private individuals shall be consulted on the economic cost of various decisions made by the Citv. 7urther, the Citv Council desires that efforts be made to attract and retain those businesses and economic activities which serve to increase municipal revenues in a manner consistent with other City plans and policies. To further this policy, the following shall be accomplished. 2 F-17 o Citv representatives shall meet periodically with the various Chambers of Commerce, business groups and individual business owners to assess the i_conomic impacts of City reguiations, 'o explore areas of financial mutual ::,terest and to provide, where possible, City assistance to retain in the City those ^,usinesses which generate murucipai revenues. o the City shall provide a forum for groups and individuals seeking relief from City regulatory actions as a means to increase profitability. o The City shall consider the appointment of a staff economic development coordinator who may also serve as a business development facilitator or a project ombudsman. o The City shall consider actions to assist priority economic development projects obtain approvals from other regulatory agencies. o The City shall consider ordinances or other means to provide financial incentives such as sales tax rebates to attract revenue generating businesses and activities to the City. o The City shall consider actions to promote land use conversions and improvements such as redevelopment, assessment districts, loan programs, etc. o The City shall develop a comprehensive marketing and public relations program to attract and retain revenue generating businesses and activities. The program shall: a) Create and maintain a comprehensive market -related data base (e.g. labor pool, land/housing cost, community assets, etc.) for distribution to businesses. �) Develop and update professional marketing materials including advertisements, promotionai brochures, Citv exhibits, media kits, videos, and maps, perhaps incorporating a promotional theme and logo in all such materials. (c) Develop a prospect response system including reception team, tour and materials. d) Consider a public relations plan including advertising and editorial placement, participation in conferences and trade shows, media campaign, direct mail and special events. 3 F-17 (e) Encourage joint marketing efforts with outside groups such as real estate brokers, developers, utilities, Visitors and Convention Bureau and other economic development groups. !f) increase local and regional business and citizen awareness of economic development goals and activities. Adovted March 2-2, 1993 Reaffirmed Januar, 24, 1994 Formeriv F-28 4 City of Newport Beach E omit Development Committ December 9. 1994 ne rionoraole john Heoces Mayor and Memoers of the City Council City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Dear Mayor and Members of the Council: As you retreat in January to focus on the priorities of our city, I offer you the following thoughts with respect to the direction of your Economic Development Committee. OUR VISION Municipal revenue is increased by adding value to our business community. "Adding Value'' is the kev. To the extent the city can help our business community prosper (even if it is just omitting the unnecessary red tape), additional revenue will flow. OUR MISSION To achieve a nationally recognized. business friendly city that generates adequate municipal revenue to provide quality services to our residents and visitors. ^uaii " is the Key. Even in tough economic times, we must provide residents and visitors with quality services and environments. Decaying business distracts and a lack of funds to address the top onorities of the City Council for life safety, cleanliness and cacitoi maintenance does not represent the level of quality we ail seek. Basea upon the aoove Vision and Mission. the EDC has specific goals that we believe are acnievable in the next r.veive months through cur efforts supportea by creative and excenencea consultants. Cur goals are as follows: • n the area of marketing • o define the audience. message ano media aooroonate to promote our assets for Local residences Visitors. Goth indivicuai ano grout Businesses • -o coordinate marKeting efforts between the Chamber of Commerce. Visitors and Convention Bureau. :^e City and our new BID's • 'n the area of city staff organization • To continue pursuing the cnange in city staff attitude to ail levels and departments • o continue to identifv and recommend removal of over restrictive regulations • 7o recommend a more effective staffing pattern to address priorities of the City Council, provide/ccordinate service to residences and visitors and process customer reduest • -,) oversee the commetion of a useful and believable financial modeling tool to be pole to evaluate lana use impacts on the city's general fund. ,qty Council Lecember 9. 1994 ?age 2 ,n the area of community benipfits To promote business district imorovements through BID's • To keep active our Restaurant and Harbor groups To identify ano support keyiimoortant projects that will expand our quality of life opportunities and increase city revenue To ce successful. we must have your continued support. With economic development as one of your top priorities, we reouest that you direct staff to identify funding that can assist in addressing our marketing ano organizationai goals. I suggest you consider allocating a portion of the funds that wail be generated by the new business cooperation program on sales tax accrual that we recommended take place with the economic development effort. We too will be involved in generating funds by conducting fundraising events such as the planned "Mayor's Cup" golf tournament with the Chamber of Commerce. If we are able to retain consultants to lean in the creation of marketing and organizational programs at the first of the year ano fund their implementation, by mid year of 1995 we will require the assistance of additional staff to coordinate local business district efforts, a city wide marketing program and evaluation of the effectiveness of change in the city's ability and willingness to achieve a business friendly environment. Our belief is that additional staff time should be made available from existing staff positions now used to address projects/tasks that are not as high a priority to the City Council as economic deveiopment. We will also need your support, Mr. Mayor, in filling our vacant and non-performing positions so as to arm us with the most experienced and talented of individuals who live or work in our city so as to achieve the most effective program possible in the shortest of time. ThanK you for your continued support and sharing of the sense of urgency we all have for :, -,e economic recovery of our great city. My cest wishes. Sincereiy, CITY COUNCIL AD HOC C DEVELOPMENT COMMIT77c Rusn N. Hill. ll� AIA Ci' -,airman CITY OF. NEWPORT BEACH SUMMARY OF ECONOMIC DEVELOPMENT ACTIVITIES 1993-1995 GENERAL Com leted -Reduced appeal periods for Planning Commission items - 14 days from 21 days. -Eliminated mandatory City Council review of tentative tract maps. -Eliminated mandatory Planning Commission review of final tract maps. -Raised the traffic phasing ordinance trigger to 300 ADT from 100 ADT (avoids an expensive traffic study for dozens of projects each year). -Simplified and eased somewhat the requirements for fire sprinklers. -Completed service enhancement training for Planning, Building and Public Works personnel. -Formed Central Balboa Business Improvement District and commencing downtown revitalization activities. -Participated in Rockwell retention effort. -Ad Hoc red teams for fast track construction (e.g. Rockwell Chip Manufacturing facility, Pavilions Market). -Enlisted Hoag Hospital in use tax accrual program. -Conducting SHOP NEWPORT campaign. -Completed City retail market research study. -Reviewed Noise Ordinance for business impacts. -Produced City advertising in regional business journals. Page 2 Underway -Forming multi -departmental Development Review Committee. -Further amendments to the traffic phasing ordinance. -Forming Business Improvement Districts on Balboa Island, Corona del Mar and Mariner's Mile. -Reviewing entire Zoning Code for readability, ease of administration and streamlined processing, including director's exemption and reduced use permit requirements. -initiated policy amendments to the land use element promoting commercial districts. -Expanding use tax accrual program. -Conducting Conference Center feasibility study. RESTAURANT Completed -increased size of specialty food use permitted in retail space from 1200 square feet and twelve seats to 2000 square feet and 20 seats and eliminate Modification Committee review. -Created multi -departmental restaurant review committee to speed processing. -introduced outdoor dining ordinance and more flexible parking standards. -Produced City-wide restaurant guide. Underway -Amending grease interceptor ordinance to provide alternatives solutions in hardship cases for existing restaurants. -Forming Tourist Improvement District to promote restaurants. ECONOtniC DEVELOPMENT COMMITTEE ROSTER Reoresentina dam Occupation Telephone No. Mayor John W. Heo es 9 Airline Pilot 644-3004 W 675-9333 FAX City Council John C. Cox Marketing Consultant 721-8660 W 644-4002 FAX City Council Norma Glover Councilmember 548-3212 H 650-1713 FAX Planning Commission Newport Harbor Chamber of Commerce Richard Luehrs 1470 Jamboree Rd. Exec. Director 729-4400 W Newport Beach 92660 NHCOC 729-4417 FAX Newport -Mesa Assoc. of Reactors Gil Foerster 2011 Kings Rd. Owner 645-4496 H Newport Beach 92663 Waterfront Homes 631-1400 W 631-1442 FAX Conference & Visitors Bureau Rosalind Williams Director 644-1 i 90 W 366 San Miguel, #200 644-1180 FAX Newport Beach 92660 Building Industries Association Tom Redwitz 550 Newport Center Dr. Vice President 720-2332 W Newport Beach 92660 Development Entitlement 720-2657 FAX The Irvine Company Community Marketing Harold Parker 2700 Cove Marketing 675-3198W Corona gel mar 92625 Consultant 675-2168 Strategic Organizational Management Michael Stephens CEO - Hoag 640-7727 H 900 Aider Place 760-2240 W Newport Beach 92660 760-5746 FAX Public/Private Financing David Blankenhom '00 Exec. V.P. 818-915-4424 N. Barranca St. Calif. State Bank 818-915-4706 ,Vest Covina 91791 FAX I Page 2 Boating Industry Gary Hill Owner, Hills 675-0740W P. 0. Box 660 Boat Service 675-9950FAX 814 E. Bay Avenue Balboa 92661 Restaurant Industry Bill Hamilton Owner 675-5777W 3010 Lafayette Cannery Rest. 675-2510 FAX Newport Beach 92663 Member At Large Christy McDaniel Manager 895-0311 W 7333 Bolsa Ave. Edison Co. 895-0188 FAX Westminster 92683 Member At large Edward Selich Owner 640-8834H 110 Newport Center Cr Edward D. Selich 760-6562 W Suite #200 Land Development & 759-1853 FAX Newport Beach 92660 Management Member At Large Donald Glasgow Owner 786-8576 H 31 Whitecloud Minuteman Press 640-6525 W irvine 92714 640-0934 FAX Airport Area Harry Woloson President 497-5407 W i 1603 Emerald Bay The Woloson Co. 494-6402 FAX Laguna Beach 92651 Balboa Island Lee Sutherland Proprietor, 675-9300W 322 Marine Avenue B.I. Coffee Shop 675-9327FAX Balboa Island 92662 ,annery Marie Schock Co -Owner 645-4978 H 2900 Lafayette Schock Boats 673-2050 W Newpon Beach 92663 673-6945 FAX central Balboa Bob Black General Manager, 673-3014W »00 Main Street Balboa Pavilion 673-8340 Balboa 92661 Corona dei Mar Bon Yeo Architect 644-8111 W 500 Jasmine Avenue Architect, Inc. 644-0449 FAX -orona del Mar 92625 Page 3 Mariners Mile Newport Pier Area Newport Center/ Fashion Island Old Newport Blvd Lido District Steve Sutherland Principal 722-7055 H 2101 15th St., #4 `�ewport Sutherland & Co. 757-1662 W Beacn 92663 250-1795 FAX gush Hill '15 Chairman 675-5430 W Twenty -Second St. The Hill Partnership 675-4543 FAX Newport Beach 92663 Jerry King '.0. Box 7992 Principal J. King Assoc. 644-5194 H 759-0669 Newport Beach 92658 W 759-0157 FAX Gregg Schwenk Sr. Research Assoc. 646-5444H 238 Tustin Ave. Geneva Corp. 756-2200 Newport Beach 92663 , Ext. 2506W 756-1779FAX Pat Galvin Vice President 723-7100 W 14471 Via Lido, #207 Fritz Duda Co. 723-1141 FAX Newport Beach 92663 Economic Development C Marketing Consultants Marketing Committee Richard Luehrs (Chair) John Cox Gil Foerster Rosalind Williams Harold Parker Don Glasgow Bill Hamilton Bob Black David Blackenhorn Steve Sutherland Pat Galvin Gregg Schwenk Lee Sutherland EDC mbr's: 13 MtQs: Monthly Staff: Ken Delino .nittee - Organization Overvi, City Council Economic Development Committee Executive Board Hill, R (Chair) Cox Glover EDC mbr's: 9 Mtgs: Monthly Staff: Ken Delino Restaurant / Boats / Hospitality Harbor Task Force Task Force Rosalind Williams* Gary Hill* Steve Sutherland Marie Schock Bill Hamilton Jerry King *Chair *Chair EDC rm s: EDC mbr's: Mtgs: Quarterly Mtgs: Quarterly Staff: Staff: King (V -Chair) Luehrs Redwitz Williams Galvin Hill, G Business Improvement Districts Task Force Pat Galvin* Ron Yeo Bob Black Harold Parker David Blackenhorn Ed Selich Harry Woloson Dan Glasgow *Chair EDC mbr's: Mtgs: Quarterly Staff: Professional Services Task Force EDC mbr's: Mtgs: Quarterly Staff: Local Area Business Service Consultants City Services Committee Tom Redwitz (Chair) Norma Glover Michael Stephens Ron Yeo Gary Hill Christy McDaniel Ed Selich Marie Schock Jerry King Harry Woloson EDC mbr's: 10 Mtgs: Monthly Staff: Ray Schuller July '95 RESOLUTION NO. 95- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING RESOLUTION 93-3 REGARDING THE CITY COUNCIL AD HOC ECONOMIC DEVELOPMENT COMMITTEE. WHEREAS, the City Council recognizes that the City's ability to deliver quality -^unicipal services is largely oeoendent on tax revenues derived from the properties :--no businesses located within the City; and WHEREAS, the City Council desires that ail large scale development and ,egulatory decisions made by the City include a review of the economic implications of �ucn action; and WHEREAS, the City Council desires that developers, business persons and trier private individuals snail be consultea on the economic cost of various decisions -naae by the City; and WHEREAS, the City Council desires to retain and attract those businesses and economic activities which generate municipal revenues; and WHEREAS, the City Council Ad Hoc Economic Development Committee was established oy Resolution No. 93-3. NOW, THEREFORE BE IT RESOLVED that Resolution 93-3 is amendea to -9aa as follows: MEMBERSHIP: The Committee shall include the following who shall be nominated ny the Mayor and confirmed by the City Council: A. From City Organizations: Two C;tv Council Members _. A Planning Commissioner 3. From Local Organizations: _. A representative from the Newport Mesa Association of Realtors A representative from the Newport Harbor Area Chamber of Commerce :. A representative of the Building Industries Association who conoucts business within the City _. A representative from the Newport Beach Conference and Visitors' Bureau From Areas of Special Expertise: An incividual with special knowledge in community basea marketing An inowidual with special knowledge in strategic organizational management _. An individual with special knowledge in financing public/prorate business ventures including capital and operational activities An individual with special knowledge in the restaurant industry ". An individual with speciai knowledge in the boating and harbor industry ' 2. A memoer at large A memoer at large A memoer at large 0. From City Business Districts. A member of the Advisory Board of Business Improvemeril Districts, the Board of Directors of an Association, or member of other organizations representing the following areas: airoon Area 3alboa islana Cannery 3. Central Balboa ' 9. Corona del Mar -70. Newport CentenFasnion islano 21. Newoon Pier Area 22. Manners Mile 23. Old Newoon Boulevaro Area 24. Lido District ORGANIZATION: -he Mayor snail name the Chairman of the Committee from the list of approvea nominees. 'he Chairman shall then organize the Committee into appropriate executive/overview and sub -committees as necessary to accomplish the assigned functions and duties. Specie! interest groups may also be called upon or created by the Committee from time to time to assist in caring out the duties of the Committee. FUNCTIONS AND DUTIES: Review and monitor the activities of staff as outlined in the City Council Economic Development Policy. _. Recommend the selection of marketing consultants and work with them to develoo a marketing program for the City that would coordinate the activities of the City, the Conference and Visitors Bureau, the Newport Harbor Area Chamber of Commerce and our business village BID's into a comprehensive marxeting and public relations orogram to attract and retain revenue generating businesses and activities. Make recommendations to all of the involved parties for acoroonate implementation activities. _. Recommena activities to assist in oemetuating the business friendly attitude of City staff to streamune permitting processes, ana identify other efficiencv/etfectiveness coportunities. Meet oenoeically witn representatives of the business community to assess the economic imoacts of C;ty regulations. to explore areas of financial mutual interest ana to provide. wnere oossiole. City assistance to retain in the City .hose ousinesses wrncn generate murnctow revenues. 'dentity aria su000rt orciects for fast track permitting, if it is determined by the Committee that the crolect has the ootenval to and to the quality of our Community ano increase municioal revenues. _. Make recommendations reaaroing a000intment of aopropriate staffing levels for --nomc Cevelooment acnvities. Make recommendations to the City Council to further the goals of the City's Economic Cevemoment Policy. TERM: The Committee snail ,continue in existence until further action of the City Council. STAFFING: -^e Committee wui be staffed pnmaniv ov the Assistant Citv Manager/ conomic Ceveiopment Coordinator. with assignment of additional full time and part ..me support from other ceoartments as necessary. ADOPTED this gate of MAYOR ATTEST: CITY CLERK W11,44 EXECUTIVE SUMMARY FINDINGS AND RECOMMENDATIONS ECONOMIC 'DEVELOPMENT COMMITTEE NOVEMBER 22, 1993 Introduction Declining municipal revenues stem largely from declining business activity. Consistent with the City Council Economic Developoment Policy, this report aims to reverse this trend and to increase business activity as a means to increase municipal revenues. A. Reorganize and reorient -Appoint and empower an economic development coordinator/facilitator. -Provide staff with training to learn customer service. •Introduce true one-stop processing by: ••Increasing interdepartmental coordination on projects. --Processing applications in parallel instead of sequentially through each department. --Assigning a single coordinator to projects. B. Promote and retain those businesses which most add to municipal revenues. -Hotels (each 1 "o of occupancy generates 575,000). -Restaurants (each 1 'c of patronage generates S24,500). -Boat and auto dealers. -Off-price retail. C. 111 Amend overly restrictive regulations. •Raise TPO threshold to 300 ADT and eliminate du and sq.ft thresholds. •Increase seating and floor area limit for specialty food use. •Allow specialty food uses in retail space deficient in parking. •Allow more intensive use of non -conforming buildings. •Modify LCP marine incentives. •Modify FAR and building bulk limits for beach commercial. — Streamline processing •Adopt Planning Director's exemption procedure. •Eliminate requirement for use permits for variety of uses. •Eliminate mandatory Council action on tentative maps. •Eliminate mandatory Plan Comm action on final maps. •Allow Mod Comm to approve parcel maps. •Reduce appeal period from three to two weeks. •Remove Mod Comm review of specialty food uses. •Allow staff approval of restaurant operational changes. E Advocate and promote business •Develop business retention plan including: ••Ongoin4 communications ••Business outreach programs --Automated business license renewal •Develop business marketing plan including: ••City profile publications, slides, etc. ••Diplomat Corps •Commence SHOP NEWPORT campaign •Involve entire City community(City Council, Boards, Commission, Committees, staff, etc.) City of Newport Beach Economic Development Committee Interim Report Number One November 22, 1993 Introduction The City Council Ad Hoc Economic Development Committee ("EDC") was established January 25, 1993 based upon the realization that the nation wide economic recession had impacted Newport Beach and was contributing to an erosion of traditional municipal revenues. The committee membership was drawn from a broad base of local business organizations in order to access firsthand evidence of the impact of the recession, and to learn what remedies business people may prescribe to the City family. The Committee is assisted by City Council members to provide continued representation of the electorate and City staff to benefit from technical advise. There is also input provided by Municipal Resources Consultants of Westlake Village ("MRC"), a firm retained by the City in January 1993 to develop a Fiscal Impact Model, and to assist in restructuring the business license tax. The EDC uses as its directive the Economic Development Policy adopted by the City Council, March 22, 1993. Based upon interviews with City officers, inspection of the MRC research data generated to date and consultation among Committee members and their own business experiences, the EDC has developed initial findings and recommendations to deal with revenue erosion. The following pages address the basic issues of: • Reorganization and reorientation of City staff to better facilitate business retention and growth • Where to focus our efforts for improving City revenue • What overly restrictive City regulations we have identified to date that impede economic growth • Opportunities considered to date for streamlining the development process • Advocacy and promotion techniques aimed at retaining and expanding the City's business/revenue base. Following our recommendations are remarks about the next steps anticipated by the EDC as we continue to fulfill the functions and duties assigned by the City Council in our enabling resolution. Page 2 Reorganize and Reorient If the City of Newport Beach is to compete nation wide with business retention and growth, we must dedicate a position to coordinate and implement our economic development activities and we must increase the customer orientation of City staff. An Economic Development Coordinator/Facilitator would facilitate desirable projects, serve as a central source of assistance (if not compassion) for businesses that are being frustrated by, or are lost in the system, and would coordinate the implementation of City Council approved recommendations adopted from this and future reports of the EDC. An important part of this Economic Development Coordinator/Facilitator position would be pursuing an organizational change throughout City government that would provide a strong orientation to interdepartmental coordination on projects. We further believe that this position should be filled with existing staff by reassigning work loads. We do not see the need to increase City staff, and in fact, feel someone from the inside who knows all of the existing idiosyncrasies, would be more effective in implementing the desired changes. The position should report directly to the City Manager and be empowered to coordinate the activities within the City required to achieve the Economic Development Policy. The EDC also believes that a much more customer oriented service attitude should be established throughout the City staff. Attitudes need to change from: "Here's what you need to do." to "What can I do to help you?" The EDC believes the existing City "culture" of departmental fiefdoms allows for development and licensing surprises all through the approval process. The lack of "one- stop" processing causes project delays and often causes the business community to expend funds towards an activity only to find out "down the line" that they cannot financially achieve what they are attempting to do because of City regulations. This irritates the business community and adds to the perception of a negative business attitude in the City. A business friendly, cooperative local political climate is a vital ingredient in promoting solid economic growth. In summary, to best achieve the City's Economic Development Policy, the EDC recommends the following: • Appoint and empower an Economic Development Coordinator/Facilitator Introduce true one-stop processing by: •• Increasing interdepartmental coordination on projects •• Processing applications in parallel instead of sequentially through each department •• Assigning of a single project coordinator for important development projects to provide maximum assistance and communications. • Provide staff with necessary training to better understand the importance of and methods to achieve a customer service orientation. Page 3 Promote, Retain and Solicit Those Businesses Which Add to Municipal Revenues With the assistance of staff and MRC, the EDC analyzed City revenues based upon geographical point of origin, type of business, and to some extent cost of collection. A complete cost -revenue system able to assess the fiscal impact of land use conversions and development is not yet available. It is anticipated MRC will have such a system on line for the City during 1994. An overview of many of the statistics we reviewed have been summarized in the attached table and maps. We are sensitive to the unique environmental resources of Newport Beach. The refreshing climate, the beautiful harbor, the fine neighborhoods, the smart shops, the service -minded institutions all combine to make the Newport Beach address among the most coveted in the Western United States. But Newport Beach residents expect high quality municipal services, and there are obvious cost implications to such expectations. In addition, the unique topography and exacting development standards means that not all types of businesses can be accommodated here, regardless of the municipal revenue potential. Heavy industry, for instance, has no place here, except for the specialized recreational marine component. Another super shopping mall is improbable given the amount of land set aside for such uses. There are uses, however, that are compatible, welcome here, and generate solid municipal revenue. The EDC has worked with MRC to form a list of the business for promotion and retention that stands the best chance for success. By working with this more focused list, efforts can be targeted at specific businesses. Our recommended "short-list", in order of economic importance, is as follows: • Hotels • Restaurants • Recreational boat dealers and automobile dealerships • , off-price retail stores • Small retailers • Professional office, other than insurance and banking • Business -to -Business sales organizations Given the above targets for economic development, we believe it is important for the City to focus on the following types of business priorities: • Encouraging retention of existing businesses • Pilling vacant or under-utilized facilities and resources • Developing new businesses that can support or expand the capabilities of existing businesses in Newport Beach • Exploring and inviting new business that would expand the revenue base for Newport Beach Page 4 It is important to note that tourism has long played a dominate role in our municipal revenues. In addition to sales tax dollars from visitors who shop and dine in Newport Beach, the Uniform Transient Occupancy Tax is also an important source of revenue paid by those who stay in our Hotels, Motels, Bed and Breakfast Inns and other forms of short term lodging. Even if new lodging establishments are not built, a simple increase in room occupancy for existing establishments here can result in enhanced revenues. For instance, it is estimated that for each 1 % increase in occupancy rates for local lodging facilities, an additional $75,000 in occupancy tax will be generated, to say nothing of the potential for the generation of additional sales tax. It is estimated that for each 1 % of restaurant patronage in Newport Beach, we generate $24,500. This additional revenue can be realized without any additional development or infrastructure. When constructed these establishments provided for 100% capacity. Amend Overly Restrictive Regulations The EDC worked with the Planning Department to identify and review City regulations that are overly restrictive when compared to the reality of economic conditions, actual property/area functioning or surrounding cities. The identified regulations were then categorized into recommendations for immediate, short term or longer term change. The summary of EDC recommendations are as follows: Immediate Implementation: • Increase thresholds for mandatory traffic studies from 130 ADT to 300 ADT, and eliminate the dwelling unit and square footage thresholds. (Experience indicates projects within this level do not trigger the ordinance. This change would eliminate a large percent of unnecessary traffic studies benefiting both business and the City.) • Increase the floor area and seating limitations for specialty food from 1,200 sq. ft. and 12 seats. (This would better relate to retail standards.) • Allow specialty food uses in existing non -conforming retail buildings. (Specialty food uses by definition are to be treated as retail.) • Allow more intensive use of non -conforming buildings. (Current standards discourage economic reuse of older structures.) Longer Term • Modify FAR, parking and building bulk limits in beach and tourist -oriented commercial areas. (Low density damages economics and does not decrease traffic in these areas.) • Reduce the LCP marine incentive use provisions. (Current standards unduly interfere with the rental market.) Page 5 Streamline Processing The EDC held strategy sessions with Planning Staff in order to identify areas where project processing time could be reduced or where unnecessary task could be removed from the system. The identified opportunities for change were classified into Immediate, Short Term and Longer Term recommendations. Immediate Implementation • Eliminate mandatory City Council action on tentative tract maps • Eliminate mandatory Planning Commission review of final tract maps • Allow Modifications Committee to approve parcel maps • Reduce appeal period from three to two weeks for discretionary permits • Remove the Modification permit requirement for specialty food if the development meets the criteria set forth in the Zoning Ordinance Short Term • Allow staff approval of restaurant operational changes • Eliminate requirement for use permits for a variety of uses, if the development meets Zoning Ordinance criteria Longer Term • Adopt PlannLng Director's exemption procedure These recommendations eliminate many ministerial and often duplicate reviews without reduction of control or authority. Advocate and Promote Business For a business to survive and thrive, it requires an atmosphere within the community that nurtures and supports its needs. This could include adequate infrastructure, an available work force, assistance with marketing their products or services, or simply easy filing for a business license with the City. Newport Beach must both encourage new businesses and find businesses that will supplement the needs of other already existing businesses. Efforts should be focused on forging alliances between the public and private sectors, and expanding the effectiveness of institutions and resources that help business retention and expansion. The EDC believe the first priority for the City of Newport Beach is to address the needs of existing businesses with helpful solutions, positive options, accurate information, and prompt and efficient processing of requests that will affect their desire and interest to remain within the City of Newport Beach. More specifically, a business retention and advocacy program developed in concert with the Conference and Visitors' Bureau and the Chamber of Commerce should include the following: Page 6 1. Send a letter to all businesses over the signature of the Mayor and City Council thanking them for their contributions to the business community in the City and how much their business is important to maintaining the quality of life and the financial health of the City of Newport Beach; include a response card on which business owners can indicate how the City could assist their establishment. 2. Stage a series of "Talk to the Mayor' breakfasts for business executives to share their concerns relating to business in Newport. Try to involve Council Members and seek underwriting from corporate sponsors. 3. On a quarterly basis, mail to each business in Newport Beach a newsletter that contains timely and useful information about doing business in the community, announces new businesses, expansions, or new acquisitions, contains standard information abut rules and regulations, key telephone numbers and other pertinent information the City needs to share with its business -revenue generating community. Underwrite costs through business sponsorships. 4. Seek to have the local newspapers carry similar information on behalf of the City as a "public service" for the business community, that nurtures and encourages communications with and among residents and the business community. 5. Develop a slide show that can be taken to service clubs and chamber functions that outlines the new climate for business retention and development. Topics the slide shows should explore include (but not limited to) the following: a. economic impact of business on the community b. service attitude of City personnel C. progress in retention and business development d. how residents can assist with business retention and development 6. In cooperation with the Newport Harbor Area Chamber of Commerce and the Corona del Mar Chamber of Commerce, hold an annual recognition dinner that recognizes several businesses, small, medium and large, which have made significant contributions to the City of Newport Beach (e.g. expanding, relocating to, longevity in City, type of product or service, etc.). Several levels of awards could be developed from financial commitment to the use of community personnel and/or volunteers. 7. Develop a "Shop Newport Beach" program that would be inexpensive but informative to the residents of the City (e.g., special underwritten flyers in gas and/or water bills, bumper stickers on all City -owned vehicles, etc.). 8. Develop "Weekend in Newport", "Dine in Newport", "Vacation Newport" or similar programs to promote hotels and restaurants to Orange County residents. Page 7 9. Involve entire City community including Council, Commissions, Boards, Committees and staff through their own networks of business contacts to invite businesses to consider Newport Beach for their conferences, relocation or expansion. Supply them with appropriate marketing materials for distribution to their colleagues and business contacts. 10. Complete the automation of Business Licenses. This would facilitate the City's tracking of business licenses similar to a sales account, renewal dates, dates at which time letters should be sent to encourage renewal, plus allow the process to be completed through the mail. a. 45 - 60 days prior to the expiration of a business license, the business is sent a specific thank you letter for doing business in Newport Beach; this should proceed any formal renewal billing and serve as a reminder of what will be coming in 45 - 60 days. b. During the same 45 - 60 day time period, the top ten revenue producers in each Council district get a personal call from their specific Council representative. C. During the same 45 - 60 day time period, the top ten revenue producers in the City receive a personal call from the Mayor. d. Any business who has not renewed their license within 30 days can also be easily identified and an appropriate call made by the Economic Development Specialist or a selected "team" member. 11. Develop a comprehensive City profile that highlights the strengths of doing business in Newport Beach including demographics, phsychographics, geographic and financial statistical information and the advantages of living, working, and playing in Newport Beach. This comprehensive guide should include: a. Transportation networks (services, distances, land, air, etc.) b. Communication networks C. Available site locations/zoning d. Work force characteristics 12. Develop a "Business Assistance Guide" providing useful information to all businesses whether old or new regarding City procedures and policies that affect businesses including outside agencies (e.g. Coastal Commission). This guide would be an abbreviated version of the comprehensive booklet suggested above. Page 8 13. Develop a "hotline" to respond to business and residential questions/problems, tied to the office of the Economic Development Specialist. Broad distribution of the hotline number could be distributed through water bills. This same issue needs to take into consideration a 24-hour line that allows planners access to City information that might expedite acquiring planning, building or similar information that can be maintained in an accessible database. 14. Initiate district meetings that correspond to the Council districts, "town hall meetings", at which time business owners could dialogue with the City's Economic Development Specialist and selected other "team" members about their concerns and issues that would improve the business atmosphere in Newport Beach. 15. Establish a "diplomat" corps of selected business leadership who are willing and committed to make calls on other businesses during their travels, the intentions being to solicit their relocation or expansion to Newport Beach. These would be targeted, selected and pre -arranged calls by Newport Beach executives who have been selected to be part of this diplomatic corp. Annual recognition could also be provided during the annual recognition of businesses. Continuing Work Effort The above recommendations represent the first level of discovery by the EDC. In compliance with our enabling resolution, we will be continuing our discovery and recommendation process as we communicate with Building, Traffic, Utilities, Public Works and Fire Department staff. As time of individual Committee members will allow, we will be pleased to participate in any of the Advocacy or business retention programs that are implemented by the City Council. Of special importance is the EDC's continued involvement with MRC and staff in creating a useful and accurate economic development model. The proposed fiscal impact analysis system will be valuable to the City if the underlining assumptions used to identify income and expense data are credible and consistent. We believe the EDC has had a positive impact on the development of this tool to date. Special Thanks The EDC would like to give special thanks to Mayor Turner, City Council members Debay and Hedges, Planning staff members Hewicker, Temple and Bluell, City Manager Murphy and Deputy City Manager Delino for their continuous support and information. Without their attendance at meetings and special efforts, we would not have been able to make as many recommendations as we have, in this Interim Report Number One. V J !V r~ 1� `y QQ V �YY �l .r r� Q z t— >- f-- " F^ V V a G Z 5 O r Q N C x w a Z N< Z r in il"� z a N a � Q q p F- � a � V) vt sn a w's < p p N 4 J rJ O C� a> Z Ll t- < N w 0= `� V Z w x w n 4 a Q C 4 O Z -- v_ s J G' V a a w Q - a g w I $13,378,058 $17 260 000 2 $4.225,314 52,473,291 S11.180000 GKd— n 520,076,863 NEWPORT REACH FY34 81100ET GENERAL REVENUE RESIDENTIAL BUSINESS OCCUPANCY TAX — AREA 1 AIRPORT AREA 51,596.502 31.534,358 sEe fdoR+pte 2) 51,009.779 54,141,937 AREA 2 NEWPORT CENTER $1.369,721 2.208.835 $2.008,445 $0,587,001 tsEe PoplNOTe 31 $5.830.000 ........... f:•r.:NH;,:..�, ,.uxz:;.: . AREA 3 CORONA DEL MAR MIX) 5532 159 $0 5621.190 4 AREABALBOA ISLAND $37.900 $112.511 LESS 7F -M 51,000 $151,411 �� 5 CENTRAL BALBOA $67,870 $175,324 LESS TIM $60,000 5303.191 AREA NEWPORT PIER $126,657 $170.053 SM,025 5349,736 AREA? UDOICANNERY VIL1A(3ELESSTHAN WZ907 5404.811 $40,000 5537,718 AREA8 MARINERS MILE $183,433 5690,453 $185,460 $1,069,318 AREA INDUSTRIAL WEST 5312,912 $120,184 $0 3436.066 $13,378,058 $17 260 000 2 $4.225,314 52,473,291 S11.180000 GKd— n 520,076,863 NEWPORT REACH FY34 81100ET GENERAL REVENUE RESIDENTIAL BUSINESS 3's RESIDENTIAL r: BuslNEss PROPERTY TAX TZ $11,260,000 x % COMMUNITY COMMUNITY SALESN,SETAX $11,180,000 73% 27% 512,590,800 $4,1M0,200 TRANSIENT OCCUPANCY TAX $5.830.000 �* 53,354,000 $7,828,000 1 BUSINESS LICENSE $1,920.000 10700% $O $$,830,000 FRANCHISES $1.200.000 0% IOD% SO $1,920,000 DOCUMENTARY TRANSFER TAX $380.000 �% � $600,000 $600.000 STATE SUBVENTIONS $ 0.000 84 5320.063 $59,947 USE OF MONEY. PROPERTY, FINES d FORFEITS $10,600.000 � 0% S2 430,000 $0 BUSINESS S RESIDENTIAL MISC. GENERAL REVENUE $4,380,000 L1s8C 0% $10,800,000 SO RESIOENT`SLICENSE dPERMITS 5990.000 50% 50%S2,195,000 52,195,000 "OTAL 356.180 000 100% couc 0% 5990.000 $0 Fools tee to Table 1 - Table 1 contain onry revenue based on very preliminanv information from the Cdys Fiscal Impact/Economic Bass Study. Cost data, more accurate revenue data aro net revenue orator wit be available by the and of the first Ouaner 1994. 2- Trans+snt O=upancy tax utdudes only the 20 Larger hoWWmotels. ReSKWK al transient occupancy tax till not included in area Oats However it is included M balance of C v and City total. Values shown as less than' is done 10 D1`000 oonklermauty. 3- Fashion KUM , highlighted separately, mctuded in Newport Center. 4- City total taken from 1953.94 budget ccU 01R��emen��5 to c1I10CAtioNs Page 1