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1. |
What are the key elements of the issue? What precipitated it?
This study will identify alternatives for financial and other incentives to enhance the advantages of Sunnyvale as a location to do business and to influence business location decisions. The analysis will include cost to the City to administer an incentive program versus the potential benefits to be achieved. Various approaches would include tax or development credits, thresholds for offering incentives, value of incentives to the company, magnitude of incentives (i.e., dollars needed to provide meaningful incentives), qualifications for accessing state and federal incentive programs and proposed or pending programs that should be supported (e.g., pending legislation, enhanced economic development programs through PG&E). The review will include what is currently allowed by state law vs. current City policy and circumstances where the City might benefit from offering incentive programs for both retention and attraction, how to finance incentives and return on the incentives. It will also look at City policies for Sunnyvale companies who could do business with the City to see what additional priority consideration could be given to them (currently Sunnyvale companies within 1% of the highest bidder are given preference).
Businesses in Sunnyvale are making decisions about where to expand their facilities. Sunnyvale is not currently competitive in Class A office space that is attractive to expanding companies. Retail companies and auto dealers are looking at nearby communities to assess competitiveness. The goal of offering incentives is to ensure that Sunnyvale is competitive with competing markets. Incentives (financial and non-financial) are potential tools that may help keep or attract companies to the community.
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2. |
How does this relate to the General Plan or existing City Policy?
Policy 5.1B.3: Monitor the effect of City policies on business development and consider the effects on the overall health of business within the City.
Policy 5.1C.4 Promote business opportunities and business retention in Sunnyvale.
Policy 5.1C.6 Consider development of a strong business retention program. |
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3. |
Origin of issue: |
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Council Member(s): |
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General Plan: |
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City Staff: |
X |
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Board or Commission (identify name of the advisory body from the list below): |
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(Arts, Building of Code Appeals, BPAC, Child Care, Heritage, Housing and Human Services, Library, Parks and Recreation, Personnel and Planning) |
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Planning Commission ranked this study issue __3T___ of __12_ for 2005.
Board or Commission ranking comments:
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4. |
Multiple Year Project? |
Yes___ |
No X |
Expected Year Completed |
2005 |
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5. |
Estimated work hours for completion of the study issue (use 5 or 8-hour increments): |
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(a) Estimated work hours from the lead department |
120 |
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(b)Estimated work hours from consultant(s): if applicable: |
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(c)Estimated work hours from the City Attorney's Office: |
40 |
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(d)Estimated work hours from Finance: |
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(e)Estimated work hours from other department(s): |
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Department: |
Finance |
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20 |
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Department: |
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Department: |
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Total Estimated Hours: |
180 |
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6. |
Expected participation involved in the study issue process? |
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(a) Does Council need to approve a work plan? |
Yes __ |
No X |
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(b)Does this issue require review by a Board/Commission? If so, please list below: |
Yes _ |
No X |
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(c) Is a Council Study Session anticipated? |
Yes___ |
No X |
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(d)What is the public participation process?
Possible focus group sessions with businesses to determine the importance of incentives in site selection process, and prioritization of incentives from the business perspective. |
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7. Cost of Study: Please mark appropriate item below.
X Costs covered in operating budget – Economic Prosperity
Costs covered by project - N/A
Budget modification needed for study – N/A
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Explain below what the additional funding will be used for:
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8. Potential fiscal impact to implement recommendations in the Study
approved by Council, if any: |
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Mark a range for the items below: |
$500 or none |
$50K or less |
$51K - $100K |
$101K - $500K |
$501K or more |
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Capital expenditure range |
X |
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Operating expenditure range |
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X |
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New revenues/savings range |
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X |
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Explain impact briefly: |