03.01.22 Work Session - Laserfiche WebLink

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City Council Meeting Minutes March 1, 2022 at that meeting was to have Staff research other incentive tools outside of Chapter 380 agreements and find ways to keep San Marcos competitive and adaptive in the attraction and retention of businesses and jobs. Emphasis was also given to find avenues to support existing businesses as well as our smaller businesses. At Council's direction, staff worked with the Economic Development San Marcos Board, Greater San Marcos Partnership, and the San Marcos Area Chamber of Commerce on incorporating feedback and best practices into a proposed update to the incentive policy. The enclosed policy that will be discussed this evening takes Council's direction to evaluate other incentive tools and create opportunities to support legacy, existing, and small businesses in San Marcos — creating jobs for our citizens and adding to the vibrant culture of the city. It is one more tool to facilitate intentional growth in our community. It's also important to remember this policy needs to have the flexibility to accommodate a variety of projects without needing constant revisions. With Council's feedback and direction to move forward, staff will bring back an item for a future City Council meeting to formalize these tools. Mrs. Reyes introduced Kelsee Jordan Lee, Economic and Business Development Manager, to provide the presentation. Mrs. Jordan Lee, stated this work session is to provide an overview of proposed updates and receive City Council feedback to incorporate into a new policy for economic development incentives. The first question is why have a policy for incentives? She stated this is a best practice and a policy provides formal guidance on incentives, supports growth and a stable tax base through economic diversification through the types of projects that are recruited and retained by offering assistance, provides consistency and sets expectations to the process when a business makes requests, and it sets guidelines for the process that the decision-making bodies can follow. Mrs. Jordan Lee provided background and stated the current economic development policy was adopted in December 2013, was amended in January 2016 to add a criterion for living wage, and amended in February 2016 to add the Economic Development Supplemental Fund. Changes in the community and the overall economic climate necessitated giving this policy a thorough look. Staff presented in a work session last year and received high-level feedback on items to research further and consider bringing back. The City Council also expressed a desire for the City to work with different boards and business leaders representing the community for feedback a new policy was developed. Multiple meetings and discussions were held with the Economic Development San Marcos Board (the Board also passed a recommendation City of San Marcos Page 2