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8E Consent 2019 0106
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8E Consent 2019 0106
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2/5/2020 2:31:18 PM
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12/23/2019 11:26:50 PM
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CM City Clerk-City Council - Document Type
Agenda
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1/6/2020
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Reso 2020-002 San Leandro Industrial Hub Area as a Priority Production Area
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File Number: 19-663 <br />community. Approximately 19% of San Leandro’s land area, over 1,300 acres, is zoned <br />industrial. Between 2014 and 2017, an estimated $52 million was contributed to the San Leandro <br />economy from the industrial and manufacturing sector. While some businesses are closing, new <br />ones continue to arrive, with 30 new manufacturing businesses and 213 new manufacturing jobs <br />between 2014 and 2017. Approximately 32% of San Leandro’s jobs, over 14,400, are in the <br />Production, Distribution, and Repair (PDR) sectors. PDR jobs have historically been the <br />cornerstone of the local economy, providing good living wages to persons with a diversity of skill <br />and education levels. The average wage in the PDR sectors is over $68,000, which is above the <br />per capita income for the community. <br />San Leandro is home to three predominant industrial clusters: <br />·Food Processing (Ghirardelli Chocolate Company, 21st Amendment Brewery, Coca-Cola, <br />and Torani) <br />·Metals & Machining (PCC Structurals Inc., Scandic, Applied Fusion, Inc., Production <br />Robotics, and Halus Power Systems) <br />·Instruments and Process Controls (Energy Recovery, Pasteurization Technology Group, <br />American Underwater Products, and the Kaiser Permanente Health Care Innovation <br />Center) <br />San Leandro’s catch-phrase “We Make Things” builds on San Leandro’s deep manufacturing <br />history, with innovative companies working on solutions for business, environmental, and social <br />problems. San Leandrans are proud that this is is a city that makes things and take pride in the <br />City’s transformation into an innovation and advanced-manufacturing hub. <br />San Leandro has taken a number of steps to support and encourage production in the industrial <br />area. Recent Zoning Code updates in conjunction with the Next Generation Workplace District <br />study from 2013 included measures to deter large-facility/low-employee-count businesses, by <br />requiring Conditional Use Permits for warehouse and distribution uses. With the same goal in <br />mind, the City also updated its Business License structure via a ballot measure, determining the <br />license fee for warehouses based upon square footage rather than employee count. In this way, <br />the tax is more closely correlated with the physical size of the business and the impact it will have <br />on roads and services due to truck traffic. <br />Analysis <br />The City’s goal is to promote and support the growth of new and emerging industries, especially <br />industries requiring work space that is consistent with San Leandro’s building stock and <br />industries with the potential to provide quality jobs at all skill levels and wage levels for San <br />Leandro residents. Furthermore, the character of PDR activities will change as land values rise <br />and amenities like high-speed internet attract value-added businesses. Advanced manufacturing <br />in sectors such as food processing, metals and machining, and instrument and process controls <br />may lead the transition to a more technology-focused economy. <br />The total number of jobs in San Leandro’s manufacturing sector has declined since 1998. <br />However, the number of manufacturing businesses has declined at a much slower rate. The <br />average manufacturing business size in the city dropped from 39 employees in 1998 to 28 <br />Page 2 City of San Leandro Printed on 12/23/2019 <br />37
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