City Makes Life Easier for Developers

As Rohnert Park struggles with a 42 percent commercial vacancy rate citywide, the City Council and City Manager Gabe Gonzalez say could further cripple plans to aggressively draw new businesses to Rohnert Park — and make it harder to fill the vacancies.

“In a worst case scenario, if the governor’s proposed plan succeeds, it will have significant impacts on the city,” Gonzalez said. “That tax increment revenue is the one funding source we use to undertake significant infrastructure projects, promote economic development, fund local nonprofits and provide social services to the community.”

So, the city is speeding up new legislation that would offer cheap loans to developers — subsidized by the redevelopment agency — who want to renovate their dilapidated shopping centers or office parks, 11 percent of which are vacant, according to John Dunn, interim assistant city manager.

If passed, the Commercial Rehabilitation Loan Program will be the fourth piece of legislation in three months OK'd by the City Council that lifts requirements for developers who want to bring business to Rohnert Park. Here are the three others:

• Last week, the Council voted four-to-one to lift the Affordable Housing Linkage Fee, which required developers to set aside funds for any commercial, retail or industrial project that resulted in additional employees. The fees, enacted in 2006, set aside funds for affordable housing projects. Only one project triggered the fee citywide, and $25,000 was collected, according to Darrin Jenkins, city engineer and director of development services.

• The council also voted last week to repeal the 1 percent Public Arts fee, which would have required developers to pay into a fund for arts projects around town. Councilmember Jake Mackenzie was the sole “no” vote on both fees. Jenkins called the fees taxes on job creation.

• The Council in November amended the municipal code to allow sewer capacity charges, which every developer is required to pay for the improvement and expansion of the sewer treatment plant and disposal system, be paid over time instead of all at once. The fees are particularly high for high water users, such as restaurants, and that could deter developers from opening up shop in Rohnert Park, the Council said.  The new code says “the City Council may, in its sole discretion, enter into a deferred payment agreement or other similar financial arrangement with developers for the payment of sewer capacity charges." 

The commercial loan program is intended to eliminate vacancies, increase the attractiveness of commercial space and stimulate job growth, Dunn said. 

“Right now, our staff is urgently moving it towards Council for approval,” Gonzalez said. “We’re doing business as usual until we receive an official, formal [word] from the state.”