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APPROVE BY MOTION THE 3-YEAR ECONOMIC DEVELOPMENT ACTION PLAN: 2026-28
recommended action
RECOMMENDATION
It is recommended that the City Council approve by motion:
1. The 3-Year Economic Development Action Plan for the City of Stockton; and
2. Authorize the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of the motion.
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Summary
The Economic Development Action Plan encompasses several projects and programs, proposed and planned to be implemented over the three-year period of 2026-2028. The Plan will be periodically revised and updated on an annual basis. The implementation of the Plan is dependent upon several factors, including market conditions, sites available, and Council objectives.
Current market conditions in California - particularly in the San Francisco Bay Area - are not conducive to expansion in several economic sectors, including life sciences, technology, hospitality, and office. Other sectors, such as advanced manufacturing, medical device, aerospace and clean technology offer more opportunities for growth and Stockton’s ability to attract such industries. Stockton maintains a healthy and robust industrial district and strategically considers annexations to support new and expanding businesses.
As it relates to retail, aside from a few large parcels in South Stockton, the City’s retail market is built out. Opportunities exist to recruit retailers to fill vacant supermarket and big-box locations, such as the former Sears Department store and REI. As it relates to Downtown, there are numerous opportunities to support infill new construction and adaptive reuse of existing buildings. Construction costs for new buildings as well as adaptive reuse of office buildings converted to residential are very costly. Additionally, the current City Council has prioritized economic development in the top tier of its Strategic Planning and Goal Setting. However, a future Council may take a more conservative approach to economic growth. Therefore, for the reasons cited above, it is important to update the Economic Development Action Plan on an annual basis.
DISCUSSION
While some cities prepare 5- and 10- year Economic Development Action Plans, they often become outdated and irrelevant long before the term ends due to changes in the market, sites available, and Council’s objectives. The Office of Economic Development has prepared a 3-year Plan (Attachment A), which is more realistic and flexible.
This Plan consists of ten (10) components. Each component consists of several individual projects which can be implemented over a short-, medium-, or long-term or require an ongoing commitment, which means the City must continue to plan and implement for the foreseeable future in order to achieve success. It should be noted that some projects may be dropped from further consideration for the reasons cited above and new ones may be added.
Present Situation
Highlights of the 10 Components in the Plan
1. Image Enhancement & Promotion of Community. Establishing a positive image both internally and externally is key toward achieving economic success. Local residents and regional visitors, developers, and investors need to be made aware of the various positive attributes of the city. This is achieved through continual promotion of activities taking place or available, such as: waterfront activities, sporting events at the Adventist Health Arena and Stockton Ballpark, University of Pacific’s new medical school, expansion of St. Joseph’s Hospital, updating the City’s economic development website, and preparation of an electronic quarterly newsletter to share the positive activities taking place across the city.
2. Revenue Enhancements. One of the key elements of economic development is to help foster growth of the City’s tax base to support much-needed city services. Strategically pursuing those types of industries which generate significant revenues is key to fostering a healthy economy and balancing the City’s budget.
3. Attraction & Diversification of Employers in Industrial District. Maintaining a diverse economy with a mix of industries enables the City to withstand changes in the market. For example, both the life science and technology sectors are currently facing adverse conditions due to a variety of reasons.
4. Downtown Development (18-Hour Community; 6 am - Midnight). Several cities across the State of California are seeking to establish what is defined as an “18-Hour Community”; one that functions from 6 am until midnight. While many cities tend to function from a traditional office environment market (7 am - 5 pm), more cities such as Sacramento, Livermore, Pleasanton and Walnut Creek, are creating programs where a mix of residents, entertainment, and industry can flourish. When office uses such as city hall close for the day, entertainment uses such as restaurants, bars and sporting events come to life, offering after work activities for locals and visitors alike.
5. Retail/Restaurant Attraction & Shopping Center Enhancement. Stockton is home to several retail centers across the city. However, there is competition from centers outside the city in Lodi, Lathrop, Manteca, and beyond. When Stockton residents patronize retailers and restaurants in neighboring cities this has an adverse impact on the local retail market and results in “sales tax leakage”, which hurts the local economy and may eventually result in closure of select businesses.
6. Auto Dealerships. Staff will conduct regular business visits with auto dealerships in an effort to retain, expand, and attract more. Auto dealers represent one of the highest sales tax generators in the city.
7. Partnerships with Educational Institutions & Job Training Agencies. Form partnerships with educational institutions and job training agencies such as San Joaquin County WorkNet Program to create good-paying jobs for local residents.
8. Small Business Development. Coordinate corridor revitalization efforts, establish virtual technical workshops, form partnerships with local Chambers, coordinate preparation of business plans and counseling services with several partner agencies involved in the delivery of technical services to start-ups and existing businesses.
9. Targeted Services. Recruit a full service supermarket to South Stockton, recruit commercial uses to former Kmart and intended Walmart sites in South Stockton, recruit a full service supermarket along the 8-Mile Road Corridor.
10. Incentives & Services. Explore the establishment of an Enhanced Infrastructure Finance District (EIFD) to help finance new construction and renovations to support industry, mixed-use, market rate, affordable housing and infrastructure improvements in select areas of town and downtown; and promote the new Opportunity Zone 2.0 Program.
FINANCIAL SUMMARY
This Economic Development Action Plan has been prepared by internal staff. With Council’s approval, staff will move forward on its implementation. Approval of the Plan will have no fiscal impact on the City’s budget. The $150,000 which Council approved to support an update of the Economic Development Strategic Plan will be utilized for business attraction and marketing efforts; staff attending targeted conferences focused on recruitment of market rate multi-family developers and select industries such as medical device, aerospace and other industries which create good paying jobs.
Attachment A - 3-Year Economic Development Action Plan