Morgan Hill Approves Incentive Program for New Industrial & Commercial Development

Morgan Hill, CA, February 28, 2018. – At the most recent Morgan Hill City Council meeting, the City approved a Development Impact Fee Freeze Program with the intention to incentivize commercial and industrial development within the next three years. The Development Impact Fee Freeze Program could offer new commercial and industrial projects a fee reduction by using the 2016/2017 fee schedule for approved projects that construct in period of three years.

With construction and labor costs continuing to escalate in one of the longest economic expansions in Silicon Valley, Morgan Hill is enticing new commercial development by locking in impact fees at the 2016/17 rate and exempting them from the cost of living and other infrastructure cost adjustments which occur annually.

“We are trying to be very strategic and intentional about the type of development we want to attract to Morgan Hill. This Impact Fee Freeze Incentive Program provides certainty to both businesses and developers who are trying to construct commercial projects in a market that is challenged by the rising construction costs” states Edith Ramirez, Economic Development Director.

This program is a product of our Economic Blueprint that was approved by the Council in 2017 that identifies four key industries for Morgan Hill. With a clear vision for development, the City is currently revising its Zoning Code to make it one of the most progressive and business-friendly zoning codes that streamlines permitting for: innovation and advanced manufacturing, retail, tourism and healthcare industries. Morgan Hill has approximately 247 acres of vacant industrial/commercial property available for development, a 1% industrial vacancy rate, a burgeoning Downtown, access to affordable housing, and offers companies a reverse commute within Silicon Valley.

About the City of Morgan Hill Economic Blueprint
Morgan Hill’s Economic Blueprint outlines a strategy intended to foster economic growth and support fiscal sustainability by attracting investment, development, and jobs that will ensure fiscal sustainability and vitality in Morgan Hill. The Blueprint directs the City to focus efforts on four key industries that will support drive economic prosperity, create fiscal sustainability and guide the City’s Economic Development efforts in the coming years. The four key industries are:

  1. Innovation and Advanced Manufacturing — Grow existing companies, attract new industry and grow professional jobs.
  2. Retail — Grow retail offerings and strengthen commercial nodes.
  3. Tourism — Grow leisure, agriculture, wine country & recreational tourism.
  4. Health Care — Grow and foster the medical service and diagnostics industry by attracting services and facilities.
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