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STOCKTON ECONOMIC STIMULUS PROGRAM (SESP) UPDATE: BUILD (BUILDING UNITY, INDUSTRY, LABOR & DEVELOPMENT) STOCKTON
recommended action
RECOMMENDATION
It is recommended that the City Council:
1. Receive an update on the City’s ongoing efforts to advance the workforce and community development objectives identified in the 2015 Stockton Economic Stimulus Program (SESP) framework, including the roles described for the Building Industry Association (BIA) and the National Association for the Advancement of Colored People (NAACP);
2. Receive an update on BUILD Stockton (Building Unity, Industry, Labor & Development), a proposed City-convened, partner-driven framework to strengthen workforce pathways, local employment opportunities, accountability, and community wealth building for Stockton residents; and
3. Support continued coordination with workforce organizations, educational institutions, labor, community-based organizations, developers, contractors, employers, and other partners to advance the first phase of BUILD Stockton, including measurable outcomes and quarterly progress reporting.
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Summary
In 2015, the City established SESP to encourage residential development while expanding employment and economic opportunities for Stockton residents, with particular attention to disadvantaged residents and the African American community. The framework identified roles for the BIA and NAACP in connecting residents to jobs generated by development and construction activity.
More than a decade later, the purpose remains clear: Stockton residents should have meaningful access to the jobs, careers, contracts, and economic opportunities created by investment in their own community.
Over the past several months, staff has revisited the original framework and engaged community, workforce, education, labor, and industry stakeholders. Those discussions have informed BUILD Stockton, a coordinated approach that connects existing resources to actual opportunities and makes progress visible. Employment and local hiring remain the first-tier priority, with contractor development supporting a broader pathway to community wealth building.
The City holds the table. Partners build the pathway. The community builds the legacy.
DISCUSSION
Background
Adopted in 2015, the SESP is an incentive-based program to promote economic development through residential construction through the reduction of certain Public Facilities Fees (PFF). It was hoped at the time that the economic benefits of home construction would offset lost PFF revenues.
Via approval of Resolution No. 2015-11-17-1602 (Attachment A), the City Council established SESP’s framework, including a Disadvantaged Requirement (Section 7) that directs participating projects (i.e. developers) to “…work with the BIA to coordinate the hiring of disadvantaged Stockton residents to appropriate positions matching skills and experience to job requirements and staffing needs. In order to facilitate the inclusion of disadvantaged communities, the BIA entered into an agreement with the NAACP.” (See Attachment A).
Per the SESP resolution, disadvantaged is defined as an individual or firm being a member of one of the following groups:
1. African American
2. Asian Pacific American
3. Native American
4. Women
The SESP program also references that the “BIA shall provide opportunities to youth from SJCOE YouthBuild, Lincoln High School's Engineering Construction Academy, SUSD Edison's woodworking and construction, and Jane Fredrick's masonry program.”
Further, the adopting resolution included an attachment that stated the following:
“To facilitate the hiring of disadvantaged Stockton residents, the BIA will collaborate with the NAACP and other such organizations to match workers to jobs. All projects participating in this program shall submit to the BIA all vacant positions and all new positions to be filled for the project prior to any other type of solicitation or recruitment efforts by the project general contractors and each and every subcontractor working on the project. All job vacancies and openings will be submitted to the NAACP, and others as requested, for their use in matching up jobs to workers. The NAACP will create and maintain a list of workers desiring a job with one or more projects, contractors or subcontractors utilizing this program. The information about each worker shall include standard employment information enabling a prospective employer to determine the proper skills, licenses and experience of each worker. The BIA its members and their contractors and sub-contractors will use their best efforts to hire from the lists provided for positions at all levels.”
This original language was developed during a period when Stockton was seeking to encourage economic development during a time of economic recession while ensuring that local residents benefited from new investment and construction activity. As staff reviewed the Resolution, it was confirmed that it did not provide specific guidelines for, or the enforcement of, the coordination and implementation of the Disadvantaged Requirement (Resolution Section 7).
To date, SESP participants have reported 3,117 unduplicated local hires. Distribution includes all areas of the City with the majority in Zip Codes 95205 and 95206 (see table below and Attachment B for distribution).
|
Zip |
2016-2025 |
% of Local |
|
95202 |
54 |
1.7% |
|
95203 |
120 |
3.8% |
|
95204 |
135 |
4.3% |
|
95205 |
509 |
16.3% |
|
95206 |
454 |
14.6% |
|
95207 |
244 |
7.8% |
|
95209 |
125 |
4.0% |
|
95210 |
210 |
6.7% |
|
95212 |
71 |
2.3% |
|
95215 |
221 |
7.1% |
|
95219 |
63 |
2.0% |
|
Other* |
911 |
29.2% |
|
TOTAL |
3,117 |
100% |
*Unable to determine zip code due to house number error/omission.
Given that the SESP program does not require demographic reporting, and in an effort to estimate local hire demographics, the figures above were applied to the specific ethnicity distribution ratios of each zip code area, resulting in the following:
|
Ethnicity |
Local Hires |
% Distribution |
|
Hispanic |
1,690 |
54% |
|
White |
473 |
15% |
|
African American |
282 |
9% |
|
Native American |
11 |
0% |
|
Asian |
507 |
16% |
|
Native Hawaiian/Pacific Islander |
19 |
1% |
|
Other |
12 |
0% |
|
2 or More |
122 |
4% |
|
TOTALS |
3,117 |
100% |
2024 US Census American Community Survey
Present Situation
Staff has convened discussions with organizations representing workforce development, education, labor, community services, youth development, construction, and employment (see Attachment C for participating organizations). These discussions demonstrate the strength of Stockton’s existing resources and the need to connect them more consistently to workforce demand.
The City’s proposed role is to convene partners, establish shared expectations, identify barriers, connect resources, and maintain a consistent reporting process. Participating organizations would contribute to recruitment, education, training, apprenticeship access, mentorship, supportive services, contractor assistance, employment connections, and data support according to their capacity and confirmed commitments.
Developers, employers, prime contractors, and subcontractors are essential to this work. Workforce development cannot occur independently of workforce demand. Early information about upcoming projects, occupations, skill requirements, hiring schedules, internships, apprenticeships, and bid opportunities will help partners prepare residents and local businesses before opportunities become available.
BUILD Stockton Framework
BUILD Stockton has organized the work around four actions: Map, Prepare, Connect, and Measure.
1. Map
Identify existing workforce organizations, schools, community colleges, career technical education programs, unions, apprenticeship and pre-apprenticeship programs, community organizations, employers, developers, contractors, and support services. Document eligibility, enrollment schedules, referral processes, and project demand. Identify barriers such as transportation, childcare, tools, equipment, and required certifications.
2. Prepare
Connect residents to the education, readiness, training, certifications, supportive services, and apprenticeship opportunities needed to compete for employment. Preparation should include young people exploring careers, adults seeking work or advancement, and residents returning to the workforce after incarceration. Local businesses and contractors may need assistance with licensing, insurance, bonding, estimating, and readiness to bid.
3. Connect
Link qualified residents and prepared businesses to actual employment and contracting opportunities. Early communication between industry and workforce partners should align preparation with hiring schedules and project needs. The goal is a pathway that leads to employment, sustainable careers, and business participation.
4. Measure
Use shared definitions, baseline data, and quarterly reporting to determine whether residents and businesses are moving forward. Track participation and completion alongside employment, retention, advancement, and contracting outcomes. Identify barriers and the actions needed during the next 90 days.
Pathway to Opportunity
The resident pathway begins with career exposure and preparation, continues through training and connection to employers, and leads toward employment, advancement, and long-term economic stability. For young people, entry may begin through mentorship, internships, or career technical education. Adults may enter through readiness services, certification, apprenticeship, or direct employment.
A parallel contractor pathway would connect local businesses to technical assistance, bid preparation, prime contractor relationships, and subcontracting opportunities. Success should reflect whether residents secure and retain work, increase earnings, and advance, and whether local businesses gain the capacity to compete and grow.
Staff anticipates using data from the San Joaquin Data Co-Op, together with partner information, to establish a baseline and develop key performance indicators. Numerical targets will be proposed after data availability, definitions, and partner reporting capacity are confirmed.
Implementation
Staff proposes a phased first 90 days, beginning after coordination responsibilities and partner capacity are confirmed. The sequence below is a proposed work plan rather than a commitment to launch services before resources are available.
First 30 Days
• Confirm City coordination responsibility, partner leads, priority populations, and initial scope.
• Complete the initial asset map and inventory of available project and workforce demand.
• Agree on referral procedures, baseline information, reporting definitions, and appropriate data-sharing practices.
Days 31 through 60
• Confirm partner commitments and align resident and contractor referrals with available services.
• Identify initial employment and contracting opportunities and the preparation each requires.
• Draft the Community Workforce Scorecard and identify resource gaps requiring further review.
Days 61 through 90
• Begin feasible coordinated referrals and initial pathway activities with confirmed partners.
• Review early participation, barriers, and employer or contractor connections.
• Prepare the first quarterly progress report and priorities for the next 90 days.
Subsequent phases may expand pathways as project demand, partner capacity, and resources support them. A resource guide and a potential State workforce demonstration concept may support this work, however timing, scope, funding, and any State participation require further development. Larger financing, facility, and governance proposals would require separate evaluation and any necessary approvals.
Accountability
Commitment alone is not sufficient. Sustainable implementation requires named responsibilities, measurable outcomes, consistent communication, and follow-through. BUILD Stockton proposes quarterly partner check-ins and a Community Workforce Scorecard submitted to the NAACP, with progress reporting to the City Council and community. Staff and partners will confirm the reporting lead, submission process, and schedule during the first phase.
The scorecard should be understandable and focused on outcomes. Proposed measures include partner commitments and deliverables; resident referrals and training completion; certifications and apprenticeship entry; job placements, retention, and advancement; contractor readiness and bid participation; subcontracting outcomes; developer and prime contractor participation; unresolved barriers; and the next 90-day priorities.
BUILD Stockton establishes a structure for tracking commitments and addressing barriers. It does not guarantee employment, contract awards, or outcomes the City cannot independently control. Reporting should distinguish confirmed results from proposed actions and protect individual participant information.
Next Steps
Following Council’s receipt of this update, staff will continue working with participating organizations to finalize the asset map, partner responsibilities, initial performance measures, and first-phase priorities. Engagement with developers, contractors, labor, educational institutions, employers, and community organizations will align available resources with current and anticipated opportunities.
Staff will also evaluate reporting and coordination arrangements for consistency with existing agreements, City policies, procurement requirements, and applicable legal requirements. Any proposed new expenditure, agreement, or policy action requiring approval will return through the appropriate City process.
The immediate purpose is to begin with what Stockton already has, connect it more effectively, measure whether residents benefit, and report the results.
Conclusion
BUILD Stockton provides an opportunity to move a commitment established more than a decade ago into a structure that supports action and accountability. Many of the people, programs, educational institutions, employers, developers, and community leaders needed to advance this work are already here. Our responsibility is to connect them around a common pathway, set clear expectations, and remain focused on the residents the original commitment was intended to serve.
The City holds the table. Partners build the pathway. The community builds the legacy.
FINANCIAL SUMMARY
As the framework develops, partners may identify grants and apply as one coalition to enhance the existing programs and ensure the success of BUILD, outside resources, public-private partnerships, or other funding opportunities to support workforce preparation, training, supportive services, and contractor development. These possibilities are not confirmed funding commitments. Any future City expenditure or agreement requiring approval will be presented through the appropriate process.
SESP Summary
As of December 31, 2025, the total amount of fees waived by SESP was $103,507,138.00.
Total Fees Waived by PFF category
|
Category |
Total Amount |
|
City Office Space |
$ 3,014,092 |
|
Community Recreation Centers |
$ 2,526,640 |
|
Library |
$ 4,979,772 |
|
Police Stations |
$ 3,758,188 |
|
Street Improvements |
$69,381,707 |
|
Fire Stations |
$ 4,430,906 |
|
Parkland |
$11,656,556 |
|
Administrative Fee (3.5%) |
$ 3,759,277 |
|
Grand Total |
$103,507,138 |
Total Residential Unit Counts and Fees Waived by Council District
Attachment A - Resolution No. 2015-11-17-1602
Attachment B - Zip Code Distribution of Local Hires
Attachment C - Participating Organizations and Businesses