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UPDATE ON ADAPTIVE REUSE OF DOWNTOWN BUILDINGS
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RECOMMENDATION
It is recommended that the City Council receive an informational update on the advancement of the “18-Hour Downtown Development Activities” presented in the recent 3-Year Economic Development Action Plan. Staff will be joined by two local developers who have been acquiring and rehabilitating buildings in the greater downtown area, as well as the Executive Director from the Downtown Stockton Alliance (DSA), who will share a summary of the recent activities of his organization.
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Summary
This is an informational item to share with City Council as an update to the recent 3-Year Economic Development Action Plan (Action Plan) presented on September 1, 2026. Over the course of the next several months, staff will provide Council with regular updates on “key achievements” completed or in progress in accordance with the Action Plan and expect to return in September 2027 with a formal update.
The Director of Economic Development will be joined by two of the most active downtown developers in Stockton and the Executive Director for the Downtown Stockton Alliance (DSA). The presenters will include:
• Tom Romeo, Founder & CEO, BEARPAW, Founder, Stockton Innovation District
• Joe Michael, President, Pacific Development Group
• Michael Huber, Executive Director of the Downtown Stockton Alliance
The two developers will provide a summary of their development projects, and the DSA Director will share recent business-related activities undertaken in the area.
DISCUSSION
Background
On September 1, 2026, City Council approved the 3-Year Economic Development Action Plan. As part of the Plan’s implementation, staff will be providing periodic updates on various components throughout the year.
Present Situation
A key component of the 3-Year Economic Development Action Plan is the advancement of Downtown Development and the creation of an 18-Hour Community. As outlined in the Action Plan, Downtown Development requires close coordination with property owners to restore, upgrade, and reactivate existing buildings, many of which are historic. The Director of Economic Development will be joined by two active downtown developers in Stockton, as well as the Executive Director for the DSA.
The two developers will provide a summary of their development projects, and the DSA Director will share recent business-related activities undertaken in the area. Presented here is a snapshot of their activities which are leading toward a more vibrant Downtown Stockton (18-Hour Community):
Highlights of the Adaptive Reuse Activities Include:
- Focus on acquiring historic buildings
- Developers own a total of 8 buildings downtown
- Invested more than $26M in private capital in their buildings
- Have spent nearly $18M to acquire and $9M to renovate
- Rehabilitated 85 units and all are occupied
- 230 office tenants and 450 workers
- 17 retail tenants and 45 workers
- 50 charter school staff and students
Highlights of DSA’s Recent Accomplishments Include:
- Funded 3 Murals: Stockton Ports, Stockton Kings and Coca Cola mural restoration
- Provided 6,000 hours of Community Ambassador patrols yearly
- Installed armed services branch banners around Civic Auditorium in 2025
- Installed over 100 “Downtown Stockton” banners along Weber Avenue, Channel Street and Miner Avenue, with larger banners to be installed on El Dorado Street.
Staff anticipate returning to Council in early 2027 with associated items to advance the Downtown Revitalization efforts, including:
1. Approval of the Downtown Master Plan
a. Exploration of the large-site, mixed-income housing development exemption for City-owned properties under the Surplus Land Act (Government Code Section 54221(f)(1)(H).
2. Implementation Strategy for the Opportunity Zone 2.0
3. Enhanced Infrastructure Financing District (EIFD) planning process with the selection of a consulting firm (proposed)
FINANCIAL SUMMARY
There is no foreseeable fiscal impact on this adaptive reuse item. However, with the acquisition and rehabilitation of formerly vacant properties, the City can anticipate increased property tax revenues for the City and new jobs created as a result of new businesses opening in restored buildings and increased restaurant and retail patronage resulting from an increased resident population and employment market.
Attachment A - 2025-2026 Accomplishments