Council delays decision on Stockton Economic Stimulus Program after heated debate over $94 million in fee waivers

The Stockton Economic Stimulus Program (SESP), a city policy that has waived public‑facilities fees to spur development, was the subject of a detailed staff presentation and extended council debate on Aug. 12.

Community Development Director Stephanie Ocasio told the council that SESP—established in 2015 and amended in later years—has waived $94,009,668 in public facilities fees through Dec. 31, 2024, including about $76.9 million for single‑family residential projects and roughly $17.08 million for non‑residential projects. Staff outlined four options for council consideration: maintain the program as is (fees expire upon adoption of new PFFs), grandfather and phase down waivers for some projects, a citywide gradual phase-out, or full elimination.

Council members questioned the program’s equity and long‑term fiscal effects. Vice Mayor Jason Lee and other members said they had met developers who relied on the waiver; Council Member Veil Pudua and others pushed for stronger local‑hire requirements and more geographic balance in how waivers were applied. John Beckman, a consultant, said developers rely on the ordinance remaining in place until a new nexus study is adopted; he supported a phased approach that avoids surprising investors while ending perpetual waivers.

After public comment and internal discussion, Council voted to continue the item to the Aug. 26 meeting to allow staff to produce additional analysis, including property‑tax and nexus data, and to permit more stakeholder engagement (motion carried 6–1).