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Jobs, Jobs, Jobs:
Planning and the Future of
 Economic Development

    Joseph Horwedel
    City of San Jose
APA Divisions

20 divisions established to advance the
           planning practice.

   They give members opportunities to
discuss ides, contribute to national policy
  work, build partnerships and develop
          conference sessions.

        $25 per year per division.
City Planning and Management
            Division
    Mission to “advance the practice of
    city planning and management in the
    large-city setting."
     • a focus upon planning agency
       management,
     • an orientation toward big cities, and
     • an emphasis upon the practical over the
       theoretical.
    Supports the New Director Institute each year.
•10th largest US City
•3rd largest CA City
•Almost 1 million people
•180 square miles
San Jose's Economy Context
            
                Strong diverse local
                economy.
            
                Desirable location.
            
                General city practice
                not to offer
                incentives.
            
                Redevelopment
                Agency offered
                incentives.
Projected Job Growth (2040)

   329,000 new jobs in
   Santa Clara County
                                                     172,000 in
                                                     San José


                                            52%
                                          San Jose



      157,000 in rest
      of County (48%)

Source: Center for the Continuing Study
        of the California Economy
Cities that can’t attract young
professionals and immigrants
          will shrink
Young professionals preferring
      central city locations

1980: 10% more likely


1990: 12% more likely


2000: 33% more likely
Change in Share of Regional Population
Talent battles
Stamen Design's research
estimated that the buses
transport roughly 7,500 tech
employees a day, Monday
through Friday, and concluded
that the unmarked buses ferry a
third as many commuters as
ride on Caltrain, a commuter
train that travels between San
Francisco and San Jose.
Business Insider Oct 12, 2012
Role of Planners in Economic
          Development: San Jose

    Envision San Jose 2040 General Plan
    
        Fiscal health of City foundation of new plan
    
        Jobs first strategy

    San Jose Green Vision
    
        Create 25,000 new green jobs
    
        Build or Retrofit 50 million square feet of green
        buildings

    Economic Development Strategy
    
        Grow employment
    
        Move at the Speed of Business
Improving our Economic Fortunes

Goal to build new office
 buildings in tech hub.
Activity occurring to
the north of San Jose.
Concern economy
would crash before
arriving in San Jose.
Improving Our Economic Competiveness
Encourage job growth in North San Jose
  Offset loss of Redevelopment Agency tools
  Maintain Area Development Policy Design
    • Lower traffic impact fee for office $13 to $5 sq. ft.
    • Lower construction related taxes 4.5% to 1%
    • Set and deliver schedule for key projects
Communicate what you want
            Get out of the office and
            talk to people.


            Meet with brokers, land
            owners, developers.


            Their money builds your
            plans.
Get out in the trenches
            Spend time with the
            people who can help
            you.


            Spend time with the
            ones that could hold
            you back.
Eliminate Barriers
Review your zoning
 code
  Use separations
  Parking requirements
  Setbacks
  Permit processes
Playing for the singles…
Special Tenant Program
        Industrial Tool Program
                                                                       6 months 2012

                                                                       1.7 million square
                                                                       feet approved

                                                                       Construction
                                                                       valuation of $65.4
                                                                       million.


                                                                       3 months 2013

                                                                       .45 million square
                                                                       feet approved
Goal is to walk into plan review meeting and walk out with a permit.
•Our staff and project design team review plans and resolve issues.    Construction
•Decision makers are required in the room.                             valuation of $24.7
                                                                       million.
Tech Companies Served by Expedited Permit Process in 2012
Playing for the home run…




Traffic fee reduction for 400,000 sq. ft.   Facility stayed in California
50% Utility tax rebate 5 years              $200 million investment
Equipment rebate $500,000 max               $2 million Tax Increment yearly
Guaranteed permitting schedule              $250,000 utility tax growing to $.5 mil
2012-13 Work Plan Priorities

Leading by Example
• Village Plans and
  Zoning Ordinances
• Electric vehicle charging
  stations
• “Smart” LED streetlights
• Trails and on-street bike
  network
Planners in Economic Development
  •Everyone’s job is economic development
  •Plan for economic development
  •Beat the bushes
  •Put skin in the game appropriately
  •Make the process the solution
  •Look for partnerships
  •Try a crazy idea
Jobs, Jobs, Jobs:
     Planning and the Future of
      Economic Development

          Joseph Horwedel
          City of San Jose

http://www.slideshare.net/joehorwedel

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APA 2013 Jobs, Jobs, Jobs: Planning and Economic Development (S447)

  • 1. Jobs, Jobs, Jobs: Planning and the Future of Economic Development Joseph Horwedel City of San Jose
  • 2. APA Divisions 20 divisions established to advance the planning practice. They give members opportunities to discuss ides, contribute to national policy work, build partnerships and develop conference sessions. $25 per year per division.
  • 3. City Planning and Management Division Mission to “advance the practice of city planning and management in the large-city setting." • a focus upon planning agency management, • an orientation toward big cities, and • an emphasis upon the practical over the theoretical. Supports the New Director Institute each year.
  • 4. •10th largest US City •3rd largest CA City •Almost 1 million people •180 square miles
  • 5. San Jose's Economy Context  Strong diverse local economy.  Desirable location.  General city practice not to offer incentives.  Redevelopment Agency offered incentives.
  • 6. Projected Job Growth (2040) 329,000 new jobs in Santa Clara County 172,000 in San José 52% San Jose 157,000 in rest of County (48%) Source: Center for the Continuing Study of the California Economy
  • 7. Cities that can’t attract young professionals and immigrants will shrink
  • 8. Young professionals preferring central city locations 1980: 10% more likely 1990: 12% more likely 2000: 33% more likely
  • 9.
  • 10. Change in Share of Regional Population
  • 11. Talent battles Stamen Design's research estimated that the buses transport roughly 7,500 tech employees a day, Monday through Friday, and concluded that the unmarked buses ferry a third as many commuters as ride on Caltrain, a commuter train that travels between San Francisco and San Jose. Business Insider Oct 12, 2012
  • 12. Role of Planners in Economic Development: San Jose  Envision San Jose 2040 General Plan  Fiscal health of City foundation of new plan  Jobs first strategy  San Jose Green Vision  Create 25,000 new green jobs  Build or Retrofit 50 million square feet of green buildings  Economic Development Strategy  Grow employment  Move at the Speed of Business
  • 13.
  • 14. Improving our Economic Fortunes Goal to build new office buildings in tech hub. Activity occurring to the north of San Jose. Concern economy would crash before arriving in San Jose.
  • 15. Improving Our Economic Competiveness Encourage job growth in North San Jose Offset loss of Redevelopment Agency tools Maintain Area Development Policy Design • Lower traffic impact fee for office $13 to $5 sq. ft. • Lower construction related taxes 4.5% to 1% • Set and deliver schedule for key projects
  • 16. Communicate what you want Get out of the office and talk to people. Meet with brokers, land owners, developers. Their money builds your plans.
  • 17. Get out in the trenches Spend time with the people who can help you. Spend time with the ones that could hold you back.
  • 18. Eliminate Barriers Review your zoning code Use separations Parking requirements Setbacks Permit processes
  • 19. Playing for the singles…
  • 20. Special Tenant Program Industrial Tool Program 6 months 2012 1.7 million square feet approved Construction valuation of $65.4 million. 3 months 2013 .45 million square feet approved Goal is to walk into plan review meeting and walk out with a permit. •Our staff and project design team review plans and resolve issues. Construction •Decision makers are required in the room. valuation of $24.7 million.
  • 21. Tech Companies Served by Expedited Permit Process in 2012
  • 22. Playing for the home run… Traffic fee reduction for 400,000 sq. ft. Facility stayed in California 50% Utility tax rebate 5 years $200 million investment Equipment rebate $500,000 max $2 million Tax Increment yearly Guaranteed permitting schedule $250,000 utility tax growing to $.5 mil
  • 23.
  • 24.
  • 25.
  • 26. 2012-13 Work Plan Priorities Leading by Example • Village Plans and Zoning Ordinances • Electric vehicle charging stations • “Smart” LED streetlights • Trails and on-street bike network
  • 27.
  • 28.
  • 29.
  • 30. Planners in Economic Development •Everyone’s job is economic development •Plan for economic development •Beat the bushes •Put skin in the game appropriately •Make the process the solution •Look for partnerships •Try a crazy idea
  • 31. Jobs, Jobs, Jobs: Planning and the Future of Economic Development Joseph Horwedel City of San Jose http://www.slideshare.net/joehorwedel

Editor's Notes

  1. 2,000 planning applications (minor and major) per year
  2. At the heart of the Plan is that the intent that San Jose become a city made up of many great places.   By building a city of many great places, San Jose can be vibrant and fiscally sustainable into the future.  We can become an even better place to live.  We can generate more and better jobs.  We can be a greener and healthier community.  
  3. And certain businesses will still require light and heavy manufacturing facilities.  San Jose will have advantages as a location if we can offer employers a lot of options.
  4. As mentioned previously, the Envision 2040 General Plan update was adopted by Council in 2011. This year staff will focus on preparing Village Plans and revising the Zoning Ordinance to facilitate sustainable urban development in identified focused Growth Areas. Additionally, staff plans to develop a Council Implementation Policy for the Greenhouse Gas Reduction Strategy. In 2012, we plan to install 52 electric vehicle charging stations primarily in downtown. We will be installing 2,100 LED streetlights with smart adaptive lighting controls and launch the first year of PG&E dimmable streetlight tariff pilot In regards to Goal 10, we will be paving the Lower Guadalupe River Trail and the Highway 237 Bikeway Trail , expanding the on-street bike network by 10 miles , and installing 500 public bike parking spaces. Photo Captions: ABOVE: Village Concept Drawing