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CITY OF SAN LEANDRO <br /> MEMORANDUM <br /> DATE: September 9, 2010 <br /> TO: Business >md Housing Development Committee <br /> FROM: Jeff Kay, Business Development Analyst <br /> SUBJECT: Industrial Competitiveness Program Update <br /> The Redevelopment Agency initiated an Industrial Competitiveness Program (ICP) in the West San <br /> Leandro /MacArthur Boulevard Redevelopment Project Area in FY2008/09 to provide a financial <br /> incentive to encourage energy - efficiency improvements at industrial facilities. The Program is designed <br /> to further City goals regarding the reduction of greenhouse gas. emissions by encouraging and <br /> facilitating more efficient operations. The Program also meets the objectives of the project area by <br /> offering energy cost savings for industrial businesses, thus increasing the likelihood that those <br /> businesses will remain and thrive in San Leandro. Achievement of this objective contributes to <br /> economic development and the elimination of blight within the Redevelopment Project Area. <br /> ICP funding can help business by providing up to 50% of out -of- pocket project costs (after accounting <br /> for utility rebates) up to 550 for qualifying projects. Funds are awarded in the form of a forgivable <br /> loan, and the balance owed is forgiven provided the improvements are maintained in good condition for <br /> one year. <br /> Initial program outreach conducted through The Chamber of Commerce's Industrial Roundtable <br /> revealed that many businesses needed a better sense of the range of available projects before they could <br /> fully assess their options. To address this need, the Office of Business Development held an Energy <br /> Efficiency Resource Fair on October 8, 2009 where businesses were able to network with vendors from <br /> a variety of fields including solar, lighting, HVAC, cogeneration, compressed air, boiler/heater /chiller <br /> optimization, and automated demand response. <br /> A second effort to inform businesses of the Program's benefits was the sponsorship of a Sustainability <br /> Circle run by Natural Capitalism, Inc. The Sustainability Circle brought together companies from a <br /> diverse range of industries to work together to share resources and tips on how to improve the energy <br /> efficiency of their buildings and operations. The Office of Business Development funded 50% of the <br /> participation costs (for a total of 518,000) for six San Leandro companies - Ghirardelli Chocolate, Mi <br /> Rancho, Scandic Springs, Alameda County Industries, OSlsoft and Alco Iron and Metal. In addition to <br /> fostering an industrial community based upon principles of sustainability, the City's hope is that the <br /> Sustainability Circle will help companies identify energy - efficiency improvement projects that are <br /> consistent with the goals of the ICP. <br /> Although the ICP took several months to gain traction within the industrial community, staff is now <br /> confident that local businesses are beginning to take advantage of the program on a more consistent <br /> basis. A handful of new applications were submitted in the spring and summer of 2010, and the <br /> completion of the Sustainability Circle this month is likely to generate additional project proposals. <br /> G: \OBD \Files RDA \WSL - MacArthur Area \Industrial Competitiveness Program\Report to BH &D 9- 9- 10.docx <br />