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Home My WebLink AboutItem 22 - Public Hearing for Five-Year Economic Development Subsidy Report THRIVE Community Development Agency www.santa-ana.org/community-development Item # 22 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report March 4, 2025 TOPIC: Public Hearing for Five-Year Economic Development Subsidy Report for THRIVE Santa Ana, Inc. AGENDA TITLE Public Hearing for Five-Year Economic Development Subsidy Report for THRIVE Santa Ana, Inc. Legal notice published in the OC Reporter on February 21, 2025. RECOMMENDED ACTION 1. Conduct public hearing to consider any written or oral comments on the information contained in the Five-Year Economic Development Subsidy report for THRIVE Santa Ana, Inc. 2. Receive and file report. GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION In March, 2020, the City Council approved a Disposition and Development Agreement (DDA) with THRIVE Santa Ana, Inc., for the development of a micro-farm at 1901 W. Walnut Street and executed a ninety-nine year Ground Lease. Government Code Section 53083 requires that the City Council must hold a noticed public hearing and, prior to the public hearing, provide information to the public through the City's website regarding the proposed economic development subsidy. As part of the approval process, an economic development subsidy report was completed and submitted detailing the structure of the public subsidy, projected tax benefits, and estimated number of jobs that would be created by the subsidy. This report has been available to the public and posted on the City's website until the end date of the economic development subsidy. Government Code 53083 also requires that within five-years of the approval of the subsidy, the City must prepare a new subsidy report that includes the original subsidy information plus net tax revenue and net number of jobs created by the subsidy. Since execution of the DDA, THRIVE has been working to develop a micro-farm to grow Public Hearing Five-Year Subsidy Report THRIVE Santa Ana, Inc. March 4, 2025 Page 2 4 8 6 2 and distribute fresh produce, and host weekly open-air markets and community activities. In partnership with a local food cooperative, items will be sold through a community supported production model, where members pay a monthly subscription to receive a box of produce at their home, or available for pickup. The development will also include a coffee shop, an artisan retail shop, a small conference room, and restrooms. THRIVE has received all necessary permits and is anticipating project completion by April 5, 2025. The City has prepared the Five-Year Subsidy Report (Exhibit 1) which includes the following key points for THRIVE Santa Ana, Inc: •The Ground Lease term is for ninety-nine years (through December 15, 2121) at $1 per month; •Economic subsidy is $817,000, the appraised value of the property; •Upon completion, property taxes are estimated to be at $1,500 annually; •Upon completion, the subsidy will create five (5) full-time jobs, 10 part-time jobs, and 10 temporary positions. Economic Development Division staff continue to oversee compliance ensuring that all requirements are met in accordance with the terms of the agreement. As required by law, a notice of public hearing was published and the Five-Year Economic Development Subsidy report has been posted on the City’s website: https://www.santa- ana.org/subsidy-reports/. A project update was submitted by THRIVE and is attached as Exhibit 3. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Five-Year Subsidy Report – THRIVE Santa Ana, Inc. 2. Proof of Publication 3. THRIVE Project Update Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nuñez, City Manager Five-Year Economic Development Subsidy Report Pursuant to Government Code Section 53083 For a Ground Lease with THRIVE Santa Ana, Inc. Pursuant to Government Code Section 53083, the City Council of the City of Santa Ana must hold a noticed public hearing and, prior to the public hearing, provide all of the following information in written form and available to the public through the City’s website regarding a five-year economic development subsidy provided by the City pursuant to a Ground Lease at 1901 W. Walnut Street, Santa Ana, CA 92703, with THRIVE Santa Ana, Inc. Notice was published on the City’s website for a public hearing to be held on March 4, 2025. The purpose of this report is to provide the information required pursuant to Government Code Section 53083 in regards to the Agreement. This report shall remain available to the public and posted on the City’s website until the end date of the economic development subsidy, as further described in number 2 below. (1)The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable. The Agreement is with THRIVE Santa Ana, Inc., a 501(c)(3) tax exempt California Public Benefit Corporation. THRIVE Santa Ana, Inc. P.O. Box 1935 Santa Ana, CA 92702 (2)The start and end dates and schedule, if applicable, for the economic development subsidy. Upon City Council approval of a Disposition and Development agreement, and if certain conditions for the development of the site are met, a proposed 99-year Ground Lease agreement is estimated to commence on April 1, 2021, and end on March 31, 2120. (3)A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy. The economic development subsidy is in the form of a subsidized 99-year ground lease for 1901 W. Walnut Street, Santa Ana, CA, 92703. The estimated amount of lost revenue is estimated at $817,000, the appraised value of the property. No expenditure of public funds is anticipated by this agreement. EXHIBIT 1 (4) A statement of the public purposes for the economic development subsidy. The property at 1901 W Walnut has been vacant for over 15 years. Development of the site as a microfarm would bring positive community benefits to the area that include: 1) making organic produce and other healthy options more available in the local neighborhood, 2) implementing a membership-based model to provide monthly baskets of vegetables, fruit and other garden products to members at a low cost, 3) creating worker cooperative jobs, 4) encouraging participation from local residents which can contribute to the local neighborhood economy, civic engagement, and prevention of costly health conditions including obesity and mental health illnesses. (5) The net tax revenue accruing to the local agency as a result of the economic development subsidy. Property tax revenue to the City is anticipated to be approximately $1,500 per year. No sales tax revenue would be generated as a result of the economic development subsidy as the sales for a microfarm with organic produce would not be subject to sales tax. (6) The net number of jobs created by the economic development subsidy, broken down by full-time, part-time and temporary positions. Upon completion of the micro-farm, the project will create approximately 5 full-time jobs, 10 part-time jobs, and 10 temporary positions within the next five years. EXHIBIT 1 This space for filing stamp only OR #: O R A N G E C O U N T Y R E P O R T E R ~ SINCE 1921 ~ 600 W. Santa Ana Blvd., Suite 205, Santa Ana, California 92701-4542 Telephone (714) 543-2027 / Fax (714) 542-6841 PROOF OF PUBLICATION (2015.5 C.C.P.) State of Calif ornia ) County of Orange ) ss Notice Type: Ad Description: I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the ORANGE COUNTY REPORTER, a newspaper published in the English language in the City of Santa Ana, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of Orange, State of California, under date of June 2, 1922, Case No. 13,421. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: Executed on: 10/10/2004 At Los Angeles, California I certify (or declare) under penalty of perjury that the foregoing is true and correct. Signature O R A N G E C O U N T Y R E P O R T E R ~ SINCE 1921 ~ 600 W SANTA ANA BLVD STE 812, SANTA ANA, CA 92701 (714) 543-2027 (714) 542-6841 OR 3897770 JENNIFER HALL CITY OF SANTA ANA/CITY CLERK 20 CIVIC CENTER PLAZA M-30 SANTA ANA, CA - 92701 HRG - NOTICE OF HEARING PH Notice - THRIVE Santa Ana I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the ORANGE COUNTY REPORTER, a newspaper published in the English language in the city of SANTA ANA, county of ORANGE, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of ORANGE, State of California, under date 06/20/1922, Case No. 13421. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: 02/21/2025 02/21/2025 ORANGE !A000007031736! Email NOTICE OF PUBLIC HEARING BEFORE THE SANTA ANA CITY COUNCIL OF THE CITY OF SANTA ANA NOTICE IS HEREBY GIVEN- The City Council of the City of Santa Ana will hold a public hearing to consider a Five-Year Economic Development Subsidy Report for THRIVE Santa Ana Inc. in conformance with California Government Code, Section 53083. THRIVE Santa Ana Inc. Project Description:The economic development subsidy is in the form of a subsidized 99- year ground lease for 1901 W. Walnut Street, Santa Ana, CA, 92703. The estimated amount of lost revenue is estimated at $817,000, the appraised value of the property. No expenditure of public funds is anticipated by this agreement. The subsidy report will be made available online before the scheduled Public Hearing at: https://www.santa-ana.org/cd/economic- development-subsidy-reports Meeting Time and Date - This public hearing will be held on Tuesday, March 4, 2025, at 5:30 p.m.,or as soon thereafter as the matter may be heard, in the City Council Chamber, 22 Civic Center Plaza, Santa Ana, CA 92701. Members of the public may attend this meeting in-person or join via Zoom.For the most up to date information on how to participate virtually in this meeting, please visit https://www.santa-ana.org/agendas- and-minutes/. Written Comments:If you are unable to participate in the meeting, you may send written comments by e-mail to eComment@santa-ana.org (reference the Agenda Item # in the subject line) or mail to Jennifer L. Hall, City Clerk, City of Santa Ana, 20 Civic Center Plaza – M30, Santa Ana, CA 92701. Deadline to submit written comments is 4:00 p.m.on the day ofthe meeting. Comments received after the deadline may not be distributed to the City Council but will be made part of the record. Where To Get More Information - All staff reports regarding any item on this agenda are available for public inspection in the City Clerk's Office during regular business hours and posted on the City's website the Tuesday prior to the Council meeting at: www.santa-ana.org/agendas- and-minutes. Who To Contact For Questions - Should you have any questions, please contact Marc Morley at (714) 647-5477 or you can send an email to mmorley@santa- ana.org. Si tiene preguntas en español, favor de llamar al 714-647-6520. N u c n liên l c b ng ti ng Vi t, xin i n tho i cho Kristie Ha s (714) 667- 2206. If you challenge the decision on the above matter, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council of the City of Santa Ana at, or prior to, the public hearing. Jennifer L. Hall, CMC City Clerk 2/21/2025 2/21/25 OR-3897770# EXHIBIT 2 “La Colmena” Walnut and Daisy Micro-Farm Update THRIVE Santa Ana, Inc. February 24, 2025 I.Highlights II.Milestones III.Operators IV.Long-term goals EXHIBIT 3 I. Highlights •THRIVE is currently working with City of Santa Ana staff to schedule ﬁnal inspections and to set a date for the Grand Opening — tentatively set for early April. All are welcome to attend. •As this project comes to a close, it has provided over 35 Prevailing Wage construction jobs, 3 permanently affordable commercial spaces, and paid over $50,000.00 in permit fees to the City of Santa Ana. •The State of California awarded La Colmena as a Pilot Project for the “Community Economic Resilience Fund,” now known as Jobs First Initiative. •70+ community members participated in creating three community murals on La Colmena’s new storage container units. •Valley High School after-school A.C.E. program (Architecture, Construction, Engineering) site visit •Marketing Team launched lacolmenacoop.com EXHIBIT 3   EXHIBIT 3 II. Milestones ●February 2025 - La Colmena is powered up by Southern California Edison ●January 2025 - Offsite improvements completed ●January 2025 - Walk-in cooler installed ●December 2024 - Paved Parking lot and light posts, light bollards and micro-farm in full swing ●September 2024 - All container units installed ●July 2024 – The Walnut and Daisy Micro- Farm gets renamed La Colmena, Spanish for The Beehive ●April 2024 - First Container Unit Installed EXHIBIT 3 EXHIBIT 3 III. Operators Santa Ana Locally Supported Agriculture (SALSA) is a worker-owned urban agriculture cooperative located within La Colmena, dedicated to building a local food system through democratic land stewardship and workspaces that nourish our bodies, minds, and spirits. Farm Stands every Saturday. Anticipated operational date (COO): March 17, 2025 La Milpa Cafe is a cooperative and welcoming space for Santaneros to drink a cup of coffee, relax and gather as a community, as a family. Offering seasonal, artisanal ice creams, delicious desserts, and ethically sourced coffee from around the world, La Milpa Café brings people together while celebrating the rich flavors from our land and roots. Every meal supports the dream of building a fair economy where neighbors work together, share resources, and succeed together. Anticipated operational date (COO and Health Department Approval): March 25, 2025 Duugich Art - Tradition meets community from Santa Ana del Valle, Oaxaca, learned the art of wool weaving as a child. Using his traditional loom and ancient techniques, Don Gelacio shares his work and knowledge with the community, offering unique rugs, bags, and other woolen art pieces. He’s sharing the Oaxacan heritage with Santa Ana.with Don Gelacio Mendez,For Duugich Art, La Colmena provides a platform for preserving Oaxacan heritage through art, empowering local artisans like Don Gelacio to share their ancestral weaving techniques with the community. This fosters cultural exchange and supports traditional craftsmanship. Anticipated operational date (COO): March 17, 2025 Visit lacolmenacoop.com For more info about La Colmena, Operators, and their work! EXHIBIT 3 IV. Long-Term Goals ●La Colmena seeks to be self-sufficient and free from grant subsidy and debt-free in 2-3 years so as to provide affordable rents to local worker- owned businesses. ●Surplus rent revenue will be reinvested into La Colmena’s operating costs. ●THRIVE will carry out program tracking, asset management, and property management, including rent collection, maintenance requests, security, and liaising with City officials. ●THRIVE has expressed interest to the City of Santa Ana to purchase the Walnut and Daisy site. ●La Colmena will serve as a model project for urban farms, affordable commercial spaces, and community-driven economic development EXHIBIT 3