Stockton reports nearly $7 million in 2024 economic development subsidies; council accepts annual report

City staff presented the 2024 economic development subsidy report required under Assembly Bill 562 and the council accepted the report June 3.

Stephanie Ocasio, director of community development, summarized the programs that qualified under AB 562 for the 2024 reporting year: the Stockton Economic Stimulus Plan (CESP), public facility fee reductions for nonresidential projects (absorbed into CESP in prior years), a citywide affordable housing development fee-exemption program, and an office-and-industrial sales-tax incentive program. Staff reported the city provided roughly $6,950,000 in subsidies during 2024 comprised of fee waivers, fee reductions and sales tax rebates.

Staff broke down the totals: CESP provided approximately $2,400,000 in fee waivers to four recipients; the nonresidential program totaled about $563,000 to two recipients; the citywide affordable-housing exemption program provided about $1,900,000 to two recipients; and the office-and-industrial sales-tax incentive program reported roughly $2,060,000 in rebates to two recipients (the program had sunset but existing agreements remain reportable).

Ocasio also reported workforce outcomes tied to the Stockton Economic Stimulus Plan: 825 unduplicated workers employed by participating projects in 2024, with 478 reported as Stockton residents; staff noted that some programs do not require workforce reporting and therefore data are incomplete for those items.

During public comment Mary Elizabeth raised concerns that subsidies primarily incentivize housing developments that are not affordable to many Stockton residents and asked for more granular nexus and job-hour information. The council accepted the report by motion (6-0, Villapudua absent). Staff said detailed recipient lists and program attachments are included in the report packet.