Council Special Meeting

MINUTES CITY COUNCIL SPECIAL MEETING CITY OF MONTEREY Wednesday, March 26, 2025 4:00 PM COUNCIL CHAMBER, 580 PACIFIC ST., MONTEREY, CALIFORNIA AND TELECONFERENCE LOCATION: MCCULLY–MO’ILI’ILI PUBLIC LIBRARY, 2211 S. KING ST., HONOLULU, HI Councilmembers Present: Barber (left at 5:27 p.m.), Garcia, Rasch, Smith, Williamson* Absent: None * Attended remotely pursuant to Gov. Code sec. 54953(b). City Staff Assistant City Manager, City Attorney, Community Development Director, Present: City Clerk, Conference Center General Manager, Intern (City Manager's Office) TELECONFERENCE NOTICE This meeting was held with a combination of in-person and teleconference attendance, pursuant to the Ralph M. Brown Act, Calif. Gov. Code sec. 54953(b). CALL TO ORDER Vice Mayor Garcia called the meeting to order at 4:00 p.m. City Clerk Klein called the roll with the Council present as indicated above. On question from Vice Mayor Garcia, Mayor Williamson confirmed that he could hear the meeting proceedings, that the agenda had been posted at least 24 hours prior to the meeting at the remote location listed above, and that he was providing public access from the same location, pursuant to GC 54953(b)(3). He stated that no member of the public was present with him at the teleconference location wishing to speak. PLEDGE OF ALLEGIANCE Councilmember Smith led the Pledge. STUDY SESSION 1. Receive Draft 2025 Economic Development Strategy and Provide Feedback on Economic Development Roadmap (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Received draft strategy and provided feedback Assistant City Manager Rojanasathira gave the staff presentation and answered Councilmembers' questions. He asked the Council to provide feedback on the recommended Economic Development Roadmap, wherein during Spring /Summer 2025 the City would conduct focus group and town hall meetings with business associations and industry partners to gather information and feedback for the final Economic Development Strategy, and would engage with an economic development firm to refine specific financing strategies such as tax City Council Minutes March 26, 2025 increment financing; and during Fall 2025, would present a final Economic Development Strategy to the City Council for adoption. Public comment was received from: Monica Lal of the Monterey Peninsula Chamber of Commerce, who said that the area needed to diversify its economy and mentioned that there was an opportunity to connect aging business owners with entrepreneurs; Janine Chicourrat of the Portola Hotel and Spa, who encouraged the Council to bring in an economic developer with a vision, and who identified Heritage Harbor, Alvarado Street, and Wharf II as opportunities; Rob O'Keefe of See Monterey, who said that his organization looked forward to collaborating with the City; Rick Aldinger of the Monterey County Hospitality Association, who asked that the City bring residents into the discussion about economic development and the benefits of tourism; Bryan Rosen, who said that economic growth needed to be done in a socially and environmentally responsible way; Nina Beety, who suggested that the City reduce non-sales tax generating businesses, tax the Aquarium and second homes, and encourage shopping locally; and Lorna Moffat, who expressed concerns about pollution from tourism and said that protecting the local environment and nature should be the top priority. During public comments, Councilmember Smith left the Chamber at 5:17 p.m. and returned at 5:19 p.m. The Council discussed the matter. Support was expressed for approaching economic development with a focus on environmental and social responsibility, for improving the downtown area, for encouraging residents to shop locally, and for developing a Business Retention and Attraction Program. It was stated that economic development was complex and worked in both directions: with businesses' revenue supporting City amenities and in turn the City's amenities able to attract and inspire more business growth. It was requested to learn how much of the City's overall budget came from visitors and how much came from the City's residents. It was stated that the City should look beyond hospitality and existing business corridors and explore ways to diversify the economy through pursuing military installations, education, and healthcare as economic drivers. It was stressed that the diversification of Monterey's economy may need to be the subject of a specific strategic planning discussion. It was stated that workforce development should be a priority. It was stated that the City had an opportunity to dig deeper into matters including zoning and land use, infrastructure, and pension and financial management, to further its economic development. It was stressed that the City needed to identify how to leverage its natural, cultural and historical assets to attract responsible tourism. It was urged to think about ecotourism and focus on the attraction that outdoor activities present, and explore opportunities related to the National Marine Sanctuary. It was suggested that the City's history could be presented more interactively, and that public art should be more of a focus. Regarding outreach, it was stated that residents and neighborhood associations needed to be included in focus groups and town halls, because residents' buy-in would be important due to concerns about environmental and traffic impacts from tourism. For outreach regarding wayfinding signs, it was stated that more stakeholders needed to be included other than just the State, such as businesses in the area. It was stated that the community needed to be included and feel that that their participation was part of the City's process, and have their suggestions and thoughts heard regarding areas where the City could improve and become more economically vibrant. It was suggested that a monthly joint newsletter with the Chamber of Commerce would enhance collaboration between the two sectors. 2 City Council Minutes March 26, 2025 In terms of retaining an economic developer, skill and breadth of knowledge were stated to be of utmost importance. It was noted that this could include knowledge of, and facility with, funding opportunities (such as through California Proposition 4, the Parks, Environment, Energy, and Water Bond Measure of 2024); issues such as pension and financial management; and working with various City departments to identify new additional opportunities. On question from the City Council regarding the timeline for filling this role, Assistant City Manager Rojanasathira said that one option would be to have the person work with the City from the beginning of its economic development strategy, and another option would be to identify the City's goals and priorities and then find the right developer with that skill set, with the downside would be that they would not have been part of the full process. There was some interest expressed by the Council in getting the process started sooner than the budgeting process for the next fiscal year. Regarding transportation and accessibility, interest was expressed in enhancing pedestrian travel instead of vehicular travel. It was suggested that in looking into ways to increase pedestrian access, the City also think about how to incorporate such improvements, and other redevelopment in business corridors, with its Americans with Disabilities Act ("ADA") Transition Plan to accomplish its goals. Interest was expressed in seeing train access return to the Monterey area though it was noted this might not be practical. Addressing the loss of sales tax from gasoline stations, it was stated that the City could respond by becoming more aggressive with adding charging stations for electric vehicles in Monterey. Interest was expressed in making Alvarado Street pedestrian-only, and it was noted that a trial period could test the concept without changing infrastructure. On the subjects of zoning and building, it was stated that during a time when creating housing was a struggle, the City should not create further barriers, and that some level of caution should be used when considering higher density zoning to ensure it could be accomplished without killing a development project. It was stated that to counteract the rising cost of infrastructure and public services, the City should make attempts to streamline efforts to add accessory dwelling units ("ADUs") to properties, such as by offering modular ADU plans. Regarding additional ideas and opportunities, it was stated that the development of an adult behavioral health center in the Ryan Ranch area would be beneficial. It was stated that the City would benefit from activating temporary uses of vacant spaces, such as pop-up events and art shows, and that the City be as liberal as possible in supporting businesses that were trying to develop new and creative ideas. It was stated that in the strategy document there should be greater emphasis on the City's State-approved Housing Element and its connection to affordable workforce housing solutions. It was requested to spell out acronyms so that everything was clear to the public. During the discussion, Councilmember Barber left the meeting at 5:27 p.m. Regarding the City's infrastructure, it was noted that the City dedicated an unacceptably low percentage of the general fund to capital improvements. It was stated that this was a concern considering the significant deferred maintenance needs, and it was stressed that addressing these needs would benefit the City's residents and business community. It was stated that a portion of any public dollars managed by the City should be required to be set aside for the future rehabilitation and long term sustainability of its public infrastructure. The financing of economic development was discussed and it was stated that it would be necessary to fully investigate options including Enhanced Infrastructure Financing Districts (EIFDs), Community Revitalization and Investment Authorities (CRIAs), and Climate Resilience 3 City Council Minutes March 26, 2025 District (CRDs). It was requested that the Council consider a vacancy tax to ensure that the community would receive some benefit instead of only impacts. ADJOURNMENT Councilmember Smith left the Chamber at 6:04 p.m. and due to the resulting lack of a quorum of the governing body physically present in the Council Chamber, the meeting was adjourned. Respectfully Submitted, Approved, Clementine Bonner Klein Tyller Williamson City Clerk Mayor 4