03.01.22 Work Session - Laserfiche WebLink

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City Council Meeting Minutes March 1, 2022 resolution for suggested updates which are included in the packet). Staff also did a presentation to the Chamber of Commerce board of directors, has had discussions with the Greater San Marcos Partnership team as they are our key partners in implementing parts of the policy, and staff members from different city departments who are involved in the development and growth of the city. The proposed framework for a policy that came out of these discussions with the previously mentioned parties include a more robust policy at the direction of the City Council, exploring different types of incentives that can be used for new or existing, and large or small businesses. The intent is to have something that can support the spectrum of business types in the community. There has been discussion that the City should find ways to remove barriers to growth, particularly for expansion opportunities and for smaller companies and many of these additions can be tools to help those businesses. A comprehensive listing of changes is in the packet presentation and the enclosed redline version. Ms. Jordan Lee covered notable proposed changes. She stated the ultimate intent is to have a policy that is easier to understand, reflects the values of the community, and makes a positive impact on the businesses and people who have made San Marcos home. There are additional incentives beyond Chapter 380s which is what is the primary tool in the current policy. Specifically, the BIG Grant, Legacy Business Program, Small Business Retention Incentive, and Sustainable Resources Grant are proposed to offer assistance for small or existing businesses, and businesses can also be eligible for the Downtown Co -Marketing Fund and Main Street Incentive. The scoring matrix allocates points for economic & fiscal impact, sustainability, labor force practices, and quality of life considerations. There is also the opportunity for some additional points for extraordinary items. As discussed at the last work session, administrative approval has been included for some incentives. Having administrative approval for certain levels of incentives increases the timeliness of the requests and reduce burden or unintended barriers especially for small businesses to go through what could seem like to them an arduous process shuffling between different EDSM and City Council meetings. Definitions were updated or added to ensure that there is a clearer understanding of what all the involved parties are talking about when applying for or considering assistance requests. The most impactful change is the proposal that tax -based incentives such as Chapter 380 agreements for businesses or speculative buildings would only be for the Maintenance & Operations (or M&O) portion of the tax rate. This is something that would be unique to the area as none of our surrounding cities are currently limiting incentives to this portion of the tax rate within their policies. This topic was discussed later in the meeting. City of San Marcos Page 3