HomeMy WebLinkAboutRES 86-359 R E S O L U T I O N
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:.
THAT the Economic Development Goals, Objectives and Policies, a
copy of which is attached hereto as Exhibit "A", be, and they
are hereby, approved and adopted.
PASSED BY THE CITY COUNCIL of the City of Beaumont this
the day ofr ,t, , 1986.
- Mayor -
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COMMUNITY DEVELOPMENT DEPT.
NOVEMBER 17, 1986
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CONTENTS
page
Preface . . . . . . . . . . . . . . . 1
Definition of Economic Development . . . . . 2
Introduction . . . . . . . . . . . . . . . 3
Summary of Research Findings . . . . . . . . 5
Goal Statement . . . . . . . . . . . . . . . 12
Objectives and Policies . . . . . . . . . . 14
Long Range Strategies . . . . . . . . . . . 22
Development of an Action Plan . . . . . . 23
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 1990 's.
With its adoption, the Economic Development Policy Plan
will serve two major purposes. First, it will provide
general policy guidance to the Planning Commission, City
staff, and City Council. Second, it will set the stage for
development of an Action Plan of specific, immediate steps
to be taken to improve Beaumont's economy.
The ACL:ion 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.
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DEFINITION[ OF ECONOMIC DEVELOPMENT
Economic development a is 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:
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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 econonmy 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.
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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 : POLICY PLAN
ISSUES
CONCLUSIONS
GOALS, OBJECTIVES.,
POLICIES
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STRATEGIES
ACTION
STRATEGIES
ECONOMIC DEVELOPMENT STRATEGY
_ PART S: 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
closely, and adjustments in the plan will be made as
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
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national and international manufacturing sectors.
Since the mid 19501s, the 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
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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
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
a,nd 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 chemcials,
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.
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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.
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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o There 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
81th 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 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 includes a
diversified mix of skilled, unskilled, and
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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 competive 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 was 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 commuinity 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-migrati-on 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
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heavy-industries which have had a 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 opporytunities 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 i
PROCESS.
_ Policy 1. 1: Role of the City
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 public/private 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.
ie) develop and communicate a vision of the future --
the City's elected officials and staff must
motivate the community to set its sites on the
goal of becoming a first-class medium-sized city
with a quality of life capable of attracting new
private investment and population.
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_ 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.
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 Committment
- 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.
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_ 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.
Policy 1. 3 : Public Return on Investment
In determining where and how it's 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 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.
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 participatee 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 targetted 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
INDUSTIRIES.
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.
` Policy 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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OBJ€CTIVE #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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or
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:
• 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. '
• Achieve an equitable and moderate tax rate. This
can be achieved by broadening the tax base,
increased reliance on 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. Improving
quality of life will also require improvements in
the environment and the physical appearance of the
city.
• Improve Beaumont's quality of life by developing and
improving recreation, health, education, and
employment opportunities.
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"
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for Federal grants, contracts, and amfavorable
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
t
small "homegrown" businesses
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o identify and assist small local businesses to
participate in City contracting and purchasing -
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* o improve zoning provisions for wholesaling,
distribution, and light industry.
o train City staff in all departments to develop an
"economic development attitude"
o support the Chamber of Commerce's efforts to
attract "targetted" 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 currentl
Commercial/Multiple Dwelling y zoned General
(SUP) is received for most heavy Mccommercialcloperations in
GCMD districts. The SUP process
compatibilit is designed to insure
y between intensive commercial uses and
neighboring land uses. The Specific Use Permit process
generally takes from 5 to 7 weeks.
request has been routinely
Historically the SUP
following recommendation from the Planning-Commission. An
inventory of sites zoned GCMD indicated that these were
large areas, especially along western Washington Boulevard
and Cardinal Drive, where the SUP
commercial development was not necessary Ceto for heavy
surrounding properties. protect the
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
Of wholesaling, warehousing, distributions a commercial
services and restricted, non-pollutin
without the requirement for a Specific Use Perrmit. industry
EXPECTED RESULTS
Rezoning appropri4te GCMD 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 (ma n
Conclude: February, 1987
Cost: (votebyaCatY research)
Council)
Staff time and expenses, already
budgeted.
C
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