HomeMy WebLinkAboutRES 93-044 RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the Economic Development Element of the Comprehensive Plan, attached
hereto as Exhibit "A", be and it is hereby re-adopted.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the
day of , 1993.
- Mayor -
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ECONOMIC
DEVELOPMENT
POLICY PLAN
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CONTENTS
Preface . . . . . . . . . . . . . . . . . . . 1
Definition of Economic Development . . . . . . 2
Introduction . . . . . . . . . . . . . . . . . 3
Summary of Research Findings . . . . . . . . . 5
Goal Statement . . . . . . . . . . . . . . . . 12
Objectives and Policies . . . . . . . . . . . . 14
Long Range Strategies . . . . . . . . . . . . . 24
Development of an Action Plan . . . . . . . . . 25
PREFACE
On April 5, 1986, Beaumont's voters approved a major update
of the City Charter. Most of the Charter revisions were
intended to improve the way the City Government carries out
its responsibilities to the public.
One important change was a requirement for a new component
to the City's Comprehensive Plan. The Comprehensive Plan
provides, in written and graphic form, goals, objectives,
policies and proposals for Beaumont's future physical
growth and development. Elements of the Plan address land
use, transportation, parks and open space, utilities and
housing.
In the Charter election, the citizens voted to add an
Economic Development element to the Comprehensive Plan.
The new element was proposed by the City staff for two
major reasons. First, most of the physical development
policies and proposals contained in the Comprehensive Plan
are closely tied to the related trends of employment and
population growth. The physical development goals of the
Plan cannot be achieved without expansion of Beaumont's
economy. Second, the state of the economy is the most
important development issue in Beaumont in terms of its
direct effects upon the present and future quality of life
of the citizens. It is only appropriate that the
Comprehensive Plan should address the most important local
issue of the 1980's and 19901s.
With its adoption, the Economic Development Policy Plan
will serve two major purposes; it . will provide general
policy guidance to the Planning Commission, City staff, and.
City Council, and it will set the stage for development of
an Action Plan of specific; immediate steps to be taken to
improve Beaumont's economy.
The Action Plan will include a number of actions to be
taken by the City, but it will not be limited to the City.
The City's elected and appointed officials will work with
a wide array of citizens and organizations to implement a
strategy which will create jobs.
DEFINITION OF ECONOMIC DEVELOPMENT
Economic development is a widely discussed, but often
poorly understood, concept. Economic development is often
seen as the attraction of new industries. While attraction
of new industry is certainly a worthwhile goal and should
be an important part of any comprehensive economic
development program, an economic development program should
also include activities designed to retain and expand
existing businesses and industries and to create entirely
new businesses. Research indicates that most industrial
relocations involve moving to a new site within the same
metropolitan area and that the number of organizations in
the United States actively soliciting industrial prospects
greatly exceeds the number of new industrial plants built
each year. Most economic development practitioners agree
that efforts at industrial retention/expansion and
development of new small local businesses and industries
often offer the greatest potential for successful economic
development. Economic development also involves strategic
planning: setting goals, determining the competitive
strengths and weaknesses of the area economy and devising
a course of action to achieve the desired goals.
For the purpose of this plan, economic development is
defined as follows:
. ECONOMIC DEVELOPMENT IS THE PROCESS OF USING
PUBLIC AND PRIVATE RESOURCES TO CREATE NEW JOBS.
THIS IS DONE THROUGH INDUSTRIAL ATTRACTION,
EXPANSION OF EXISTING BUSINESSES AND INDUSTRY,
AND CREATION OF NEW BUSINESS ENTERPRISES. THE
SUCCESS OF THE ECONOMIC DEVELOPMENT EFFORT IS
MEASURED IN TERMS OF NEW JOBS CREATED.
2
INTRODUCTION
The economic problems Beaumont faces are very real and very
serious. Regardless of when or whether the oil industry
revives, things will never be the same.
We must also realize, however, that we have some very real
strengths which we can use to rebuild our economy and put
our community back on track. If our city is going to
progress, we must make a truly heroic effort to develop a
competitive edge in the worldwide economy of the 21st
century.
To provide City Council with a policy framework for
addressing the number one local issue, economic growth, a
preliminary Economic Development Policy Plan has been
prepared. The Plan reflects the City's acceptance of a
more significant role in economic development and the
determination of the City Council to mobilize the City's
resources for the crucial task of building a new Beaumont
area economy.
3
The Economic Development Policy Plan consists of goals,
objectives, policies, and proposals for guiding Beaumont's
future economic growth and development. The strategy was
developed following an inventory and analysis of the
characteristics of Beaumont's economy, obstacles to
economic growth, opportunities for new employment, and
Beaumont's competitive position in terms of locational
attributes and business climate.
The Policy Plan is the first major step in developing an
action-oriented Economic Development Strategy. The
economic development policies are based on one goal: to
increase the total number of permanent jobs available to
citizens of Beaumont and the Southeast Texas region. Five
objectives have been identified to address this goal, and
policies have been drafted to meet each objective.
As the second major part of the process of activating an
Economic Development Strategy, Action Strategies for
implementation of each objective will be proposed.
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ECONOMIC DEVELOPMENT STRATEGY
PART 2: ACTION PROGRAM
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The highest priority strategies will be identified and
assigned to specific departments, agencies, or project
teams. Those high-priority strategies will comprise an
Action Plan. Progress of the Action Plan will be monitored
necessary, as successful and unsuccessful strategies are
evaluated.
SUMMARY OF RESEARCH FINDINGS
The policies and proposals contained in the preliminary
Economic Development Strategy are based on a strategic
planning process which involved an assessment of local and
regional competitive strengths and weaknesses. The
following conclusions emerged from -the research/analysis
phase of the planning process, and influenced the
formulation of policies and proposals:
o The decline in the Beaumont area's economy over
the past five years is a result of long-term
trends in the national and international
manufacturing sectors. Since the mid 19501s, the
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proportion of blue collar jobs in the American
economy has been declining. And, in recent
years, industries such as shipbuilding, petroleum
refining, and petrochemicals have been losing
significant market shares to foreign producers.
These two trends have had a larger impact on the
Beaumont area economy than most other regional
economics because of the area's high level of
specialization in shipbuilding, oil refining, and
petrochemical production. There is little, if
anything, that can be done locally to reverse
these long-term, global trends.
What can be done locally is to assist local firms and
plants to be competitive in the world economy.
Although the U.S. has lost dominance in many
traditional heavy industries, there are still growth-
markets to be tapped. Using the petrochemical
industry as an example, foreign competitors with newly
constructed plants may capture a large segment of the
market for "commodity" industrial chemicals, however
American producers will remain competitive in the
production of more specialized products because of
superior research and development capabilities. A
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similar trend toward developing more specialized
products provides the opportunity to avoid head to
head competition with foreign competitors, with their
new facilities and cheap labor, in several other heavy
industries, including refining and production of
valves and fittings.
o There are sectors of the local economy which have
good growth prospects. Examples include health
care and medical services, soft drinks,
newspapers, commercial printing, industrial
organic chemicals, high-performance valves and
pipe fittings, radio and TV communications
equipment, and optical instruments.
These industries currently account for about
17,000 jobs in the 3-county metropolitan area.
Growth in many of these industries at the
national level is expected to generally exceed
growth in the Gross National Product over the
next several years.
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o One of the most effective economic development
functions for a local government is to identify
barriers to economic growth and, where possible,
remove or reduce these barriers. Specific
opportunities include:
- working with banks and Federal agencies to
increase the availability of debt financing
and venture capital for business expansions
and start-ups.
- simplifying and streamlining city
regulations and permitting procedures
affecting business expansion.
- providing leadership in developing a
community attitude of unity and
determination in the effort to rebuild the
area economy.
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oThere are several very significant resources Beaumont
can build on in creating a new economy:
Access to population of 385, 000 in the 3-
county, Beaumont/Port Arthur Metropolitan
Statistical Area (MSA) . This provides a
good market (the 8th largest MSA in the
U.S. ) for retail consumer goods and
services. Access to an "expanded market
area" with a population of 778,500
(consisting of the Beaumont/Port Arthur MSA
and the counties and parishes within 50
miles of Beaumont) provides a good market
base for specialized or high-quality
retailing, health and other professional
services, and "day-trip" tourism. The
population of the "expanded market area" is
also an asset in providing a large labor
market for potential new industry and for
providing a sizable market for wholesaling
and distribution activities.
The labor force in the Beaumont area
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includes a diversified mix of skilled,
unskilled, and trainable workers. Labor
relations have improved tremendously in the
last 5 years. Outside of the "big three",
local industries (refining, petro-chemicals,
and shipbuilding) the cost of labor is very
competitive with the rest of Texas.
According to local industrial real estate
specialists, there is a more than adequate
supply in Beaumont of industrial and
commercial development sites with adequate
utilities and good transportation access.
A widely diversified transportation system
serves the area with freeway, rail,
international port, and jet aircraft
transportation.
Unlike other regions in the Southwest, the
Beaumont area has a large, reliable supply
of fresh surface water.
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Lamar University provides the nucleus of new
research and technology oriented businesses.
Based on these and other findings, a preliminary Economic
Development Strategy wa prepared for public review and
discussion, refinement, and adoption by City Council as an
element of the Comprehensive Plan. The basic message of
the Economic Development Strategy is that, although this
area's economy has sustained some very severe setbacks, the
situation is not hopeless and the community is not
powerless to improve the economy. The Economic Development
Strategy advocates concentrating on the problems that the
community can do something about and using the area's
resources to the best advantage. The objectives, policies,
and strategies contained in the plan were formulated to
address one simple goal: to increase the number of
permanent jobs available to citizens of Beaumont and
Southeast Texas. In order to meet this goal, it will be
necessary for the entire community to unite to make our
businesses and industries competitive in the national and
inter-national economic arenas.
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GOAL: INCREASE THE NUMBER OF PERMANENT
JOBS AVAILABLE TO CITIZENS OF
BEAUMONT AND SOUTHEAST TEXAS
The decline in manufacturing in the Beaumont-Port Arthur
Metropolitan area, which began in late 1981, has resulted in the loss
of 15,000 jobs in refineries, petrochemical plants, and shipyards. The
resulting loss in buying power has led to declining employment in
retail and wholesale sales, services, and residential and commercial
construction. Sales tax revenues and property taxes, the City's largest
revenue sources, have been adversely affected, resulting in budget
constraints which limit the City's ability to provide services and capital.
improvements.
In order to,alleviate human suffering, prevent a major out-migration
of working-age families, and put Beaumont in a position to enter the
21st century as a city with a future, the community must make a
prolonged, unified effort to attract and create new jobs (and to retain
existing ones).
WHAT KIND OF JOBS? While virtually any new jobs would help
the community's economic situation, emphasis should be placed on
the jobs which are most likely to lead to further job creation. Jobs in
"basic" or "export" industries bring money into the region through
production of goods or services that are exported outside of
Beaumont. These jobs, which are generally relatively highly paid,
create spendable household income, generating new jobs in sales and
services.
There are also some specific types of jobs needed to address
Beaumont's unique population characteristics. Beaumont's female
labor force is an asset which is under-utilized because the area
economy has been dominated by heavy-industries which have had a
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traditionally male work force. Beaumont also needs jobs which can
be filled by workers who were previously employed in shipyards,
refineries, and chemical plants. These skilled workers are among
Beaumont's most valuable economic resources and will leave the area
if new job opportunities are not developed.
Because of an especially high unemployment rate among Beaumont's
sizable minority population, entry-level jobs with on-the-job training
are needed to bring unskilled workers from low-income backgrounds
into the work force.
WHERE WILL THESE JOBS COME FROM? New jobs come from
three sources:
1) expansion of existing businesses
2) creation of new, entrepreneurial enterprises
3) attraction of plants or businesses from outside the
community.
Research indicates that expansion of existing businesses and creation
of new entrepreneurial enterprises account for 80% to 90% of all new
jobs. Many experts in the field of economic development recommend
that communities should concentrate their efforts in business
expansion and start-ups, rather than competing for major new plants.
Because of the severity of Beaumont's economic situation, however,
the community must make a concentrated effort to create jobs by all
three techniques, including the most difficult, industrial attraction.
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OBJECTIVE #1: ESTABLISH AN EFFECTIVE ROLE FOR
THE CITY OF BEAUMONT IN THE
ECONOMIC DEVELOPMENT PROCESS.
POLICY 1.1: Role of the 91 ty
The City will serve in a leadership role in the following areas of
economic development:
a) strategic planning -- analyzing Beaumont's competitive
strengths and weaknesses in the world economy and then
taking aggressive action to capitalize on the strengths and
overcome the weaknesses.
b) legislative advocacy -- working closely and diligently with
State and Federal elected officials to secure major
funding assistance, obtain major Federal defense-related
contracts, and to enact or change laws to increase the
strategic competitiveness of the local/regional economy.
c) capital formation and financial packaging -- development
of programs, or, when appropriate, custom-tailored
financing packages to assist in fixed asset financing and
start-up capital.
d) leveraging and publicLprivate partnerships -- using the
limited resources available to the City government, such
as grants, development incentives, infrastructure, land,
and staff to attract private sector investments which will
create or retain jobs and/or increase the tax base.
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e) develop and communicate a vision of the future -- the
City's elected officials and staff must motivate the
community to set its sights on the goal of becoming a
first-class medium-sized city with a quality of life capable
of attracting new private investment and population.
In developing this 'vision of the future", the city will
develop "Neighborhood Redevelopment Plans" and will
do so in such a manner that such plans will be supportive
of the City's Comprehensive Plan of which this Economic
Development Plan is a part.
f) broadening the base of public involvement in economic
development -- mobilizing the entire community,
especially including labor unions and minorities, for
economic development. All citizens must feel that they
have a personal stake in economic development and that
their efforts will produce positive results.
g) coordination -- The very loosely knit "economic
development network" of over 20 groups as described
earlier is a tremendous potential resource. The Mayor
and City Council must provide a coordinating mechanism
for working together with this network to meet the City's
long-range and immediate economic development goals.
The City will serve in a support role in the following areas,
participating actively and lending whatever support is needed to other
members of the economic development network:
a) promotion: assisting the Chamber of Commerce, SET Inc., the
Convention and Visitors Bureau, and the other promotional
groups in promoting Beaumont as a business location, tourist
destination, etc.
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b) industrial attraction: assisting the Chamber/Economic
Development Council in competing for new industry.
c) -job training
The City will not engage in activities which would duplicate or detract
from activities being successfully conducted by other organizations.
Policy 1.2: The City's Commitment
The City will commit the assets it has available -- staff, land,
taxing authority, infrastructure, tax-exempt bonding authority,
and access to State and Federal grants -- to the local and
regional economic development efforts.
The City will also strive for excellence in conducting its basic
responsibilities of providing public services and infrastructure,
recognizing that an efficient, competent and responsive City
government is one of the prerequisites for economic growth of
a community.
Allocation of resources for construction of new or the repair or
extension of existing city infrastructure and new or revised city
services will be implemented on the basis of need; however, the
impact of such actions on the economic development of the city
as a whole will be considered of overriding importance when
deciding where to allocate the city's resources among areas
which are of equal need.
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Policy 1.3: Public Return on Investment
In determining where and how its limited resource will be
committed, the City will examine the potential return on the
public's investment. Return on public investment will be
measured in terms of jobs created, jobs retained, and
broadening of the tax base.
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OBJECTIVE #2: CREATE A BETTER CLIMATE FOR
BUSINESS GROWTH
Policy 2.1: The City of Beaumont recognizes that the degree of
cooperation and support of local government plays a major role
in business location and expansion decisions. The City resolves
to improve its efficiency in providing assistance and services to
business.
Policy 2.2: The City will examine and update its regulatory
ordinances and procedures to eliminate "nuisance" regulations,
reduce regulatory complexity, and increase permitting efficiency.
Policy 2.3: The City of Beaumont will be committed to
improving the quality of life for current and future residents.
In recognition of the connection between economic
development, the quality of life or livability of a city, and the
development of a favorable sense of place among residents and
non-residents alike, the City supports the inclusion of "quality
of life" and "environmental quality".considerations in making
planning and development decisions.
Visual community appearance considerations in the City's
planning and development efforts are to be considered
important economic development actions which will improve
Beaumont's ability to attract new businesses and employment
opportunities. Inclusion of an "Urban Design" component to
the Comprehensive Plan would therefore be considered a
positive action to take in fostering the economic development
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of Beaumont.
In realization of the fact that investing in the overall
improvement in the quality of life or livability of the city is not
a goal which can be achieved overnight, the City will
concentrate its resources on the cleanup and rehabilitation of
selected neighborhoods and on the development and
implementation of urban design plans for selected open space,
street corridor, and city entrance or gateway areas.
Policy 2.4: The City will be committed to improving the equitability of
property taxes and to reducing the property tax rate as quickly
as financially feasible.
Policy 2.5: The City will actively participate in the regional effort to
improve labor-management relations.
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OBJECTIVE #3: ATTRACT NEW BUSINESSES AND
INDUSTRIES TO THE BEAUMONT
AREA
Policy 3.1: The City will work with the Chamber of Commerce, the
John Gray Institute, and other economic development groups
in a team effort to bring new businesses and industries to the
Beaumont area.
Policy 3.2: Efforts to attract new business and industry will be
targeted on industries whose locational needs are consistent
with the Beaumont area's locational attributes.
Policy 3.3: The City's support of efforts to attract industry will extend
to the entire three-county region and will not be limited to
Beaumont.
Policy 3.4: The City will encourage broad-based community
support and participation in the industrial attraction effort.
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OBJECTIVE #4: RETAIN AND EXPAND EXISTING
BUSINESSES AND INDUSTRIES
Policy 4.1: The City of Beaumont recognizes that existing
businesses and industries are the community's most important
economic resource and will support the efforts of existing
businesses to expand and modernize.
Policy 4.2: An "outreach" program to foster continuing open
lines of communication between the City government and
existing businesses and industries will be initiated.
Pow 4.3: Lamar University will be utilized as a center of
technological and management innovation with major emphasis
on application of new technology to local industry and technical
assistance for businesses.
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OBJECTIVE #5: STIMULATE THE CREATION OF NEW
BUSINESSES.
Policy 5.1: Programs will be developed to provide supplemental
financing assistance for new businesses.
Policy 5.2: A small business incubator will be established to stimulate
growth of new entrepreneurial business enterprises. (More than
one incubator may be desirable.)
Policy 5.3: Support services and technical assistance programs for new
business start-ups will be expanded.
Policy 5.4: Personal attention will be provided to address the needs
and problems of emerging new businesses.
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OBJECTIVE #6: IMPROVE THE COMPETITIVE
ADVANTAGES OF THE BEAUMONT
AREA ECONOMY.
Policy 6.1: The City of Beaumont will assume a role of partnership
with local business and industry in competing with producers in
other regions, states and countries. This means City actions
involving taxes, infrastructure, regulations and development
incentives will be geared to making it easier, more efficient, and
more advantageous to do business in Beaumont.
Policy 6.2: The City of Beaumont will work with Lamar
University and major local corporations to develop a research
and technology-based business sector of the local economy.
Policy 6.3: Expand the scope of Beaumont's market area by
capitalizing on the City's role as a regional center of trade,
professional services, entertainment, distribution, and medical
services.
Policy 6.4: Expand the scope of markets available to local firms by
promoting international trade.
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LONG RANGE STRATEGIES
Building a new economic base for the Beaumont area will
take many years. Although there are actions that can be
taken immediately to create new jobs, there are also some
large-scale, long-range improvements that must be made to
remove barriers to economic development and make Beaumont
competitive. The following long-range strategies are
recommended:
o Improve academic and vocational educational
opportunities at all levels (pre-school through
graduate school) . Educational attainment of the
population and the quality of education available
in a community will be the most important
economic development considerations in the
future.
o Achieve an equitable and moderate tax rate. This
can be achieved by broadening the tax base,
increased reliance of user fees, and adopting a
more efficient alternative to costly long-term
bond financing for capital improvements. A
moderate and equitable tax structure and a
favorable business climate are better overall
economic development incentives than
discretionary tax abatement decisions made on a
case-by-case basis.
o Improve Beaumont's quality of life by developing
and improving recreation, health, education, and
employment opportunities. Improving quality of
life will also require improvements in the
environment and the physical appearance of the
city.
o Continue to make progress in improving racial
relations. A community divided along racial
lines cannot make a unified effort to improve its
economy.
Successfully pursuing these long-range strategies will make
Beaumont more attractive as a place to relocate, expand, or
start a business venture. These strategies are also aimed
at retaining and enlarging the middle-income population
which provides a market for consumer goods and services.
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DEVELOPING AN ACTION PLAN
Adoption of the Economic Development Policy Plan is the
first stage in developing a strategy for rebuilding
Beaumont's economy. The second phase of the process
involves developing and implementing an Action Plan.
The City staff is preparing an Action Plan comprised of a
group of Action Strategies -- specific actions with finite
time frames, cost estimates, and designated groups,
agencies or individuals responsible for their
implementation.
Since there is a limit to the time and money available to
devote to implementing the Action Plan, the City will work
with participants in the economic development process --
other economic development organizations, civic groups,
businesses, and citizens --. to prioritize the Strategies.
Some Action Strategies, for which staff time and/or funding
is currently available, are already being implemented.
Table 1 is a list of Action Strategies currently being
developed. An example of an Action Strategy is also
attached.
For the economic development effort to succeed, it will be
necessary to create a much broader base of support than the
City, Chamber of Commerce, and other organized economic
development agencies. At an "Economic Summit" planned for
early .1987, the entire community will be enlisted in the
effort to rebuild Beaumont's economy. The purpose of the
"Summit" will be to make economic recovery a community-wide
project, with many organizations not traditionally
identified with economic development involved as
participants.
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Table 1
Possible "Action Strategy" Topics
* o Improve availability of financing for business
expansions and start-ups
o assign a City employee to act in a Business
Liaison role
* o develop a "legislative advocacy" program to push
for Federal grants, contracts, and favorable
legislation
* o Economic Summit
* o "adaptive reuse" of idle industrial facilities
* o review and revise the Zoning Ordinance and
permitting process to encourage economic growth
* o develop a larger tourism industry by creating new
attractions
o expand and improve the City's programs to develop
international trade
o build a university related "research park"
o build new industrial parks
o establish a "business incubator" to nurture new
entrepreneurial enterprises
o create a revolving fund to underwrite the
training and initial employment of workers in
small "homegrown" businesses
o identify and assist small local businesses to
participate in City contracting and purchasing
* o improve zoning provisions for wholesaling,
distribution, and light industry.
o train City staff in all departments to develop an
"economic development attitude"
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o support the Chamber of Commerce's efforts to
attract "targeted" industries. Hire a national
caliber consultant to refine and expand inventory
of target industries, markets, and products
o actively pursue the location of additional State
and Federal offices in Beaumont
* Implementation in progress as of November, 1986
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IMPROVING ZONING FOR WHOLESALING, DISTRIBUTION
AND RESTRICTED LIGHT INDUSTRY
Background
Warehousing and distribution are often cited as being both
desirable and realistic "target industries" for Beaumont's
economy because of the City's locational attributes for
these activities. The location of the Wall Street
Journal 's regional printing and distribution plant on
Cardinal Drive illustrates Beaumont's competitiveness in
wholesale trade and distribution.
Many wholesaling, warehousing and distribution operations
could operate on sites currently zoned General
Commercial/Multiple Dwelling (GC-MD) . A Specific Use
Permit (SUP) is received for most heavy commercial
operations in GC-MD districts. The SUP process is designed
to insure compatibility between intensive commercial uses
and neighboring land uses. The Specific Use Permit process
generally takes from 5 to 7 weeks. Historically, the SUP
request has been routinely approved by City Council
following recommendation from the Planning Commission. An
inventory of sites zoned GC-MD indicated that these were
large areas, especially along western Washington Boulevard
and Cardinal Drive, where the SUP process for heavy
commercial development was not necessary to protect the
surrounding properties.
RECOMMENDATIONS
By rezoning properties shown on the attached map to
"Commercial Manufacturing" (CM) , regulatory complexity and
delays can be reduced and the public interest will not be
adversely affected. The Cm district permits a wide range
of wholesaling, warehousing, distribution, commercial
services and restricted, non-polluting light industry
without the requirement for a Specific Use Permit.
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EXPECTED RESULTS
Rezoning appropriate GC-MD tracts to CM will reduce costs
and approval times for commercial and light industrial
projects and will thereby make Beaumont more competitive
for these developments.
IMPLEMENTATION
To be performed by: City Planning Staff
Start: October, 1986 (mapping and research)
Conclude: February, 1987 (vote by City Council)
Cost: Staff time and expenses, already
budgeted
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