Benicia Economic Development Board Meeting Summary – March 25, 2026

The Benicia Economic Development Board met on March 25, 2026, at Benicia City Hall, Council Chambers, 250 East L Street, Benicia, CA. The meeting was scheduled for 5:30 PM and was called to order at 5:34 PM. The agenda included a California Forever project update, a tourism marketing update, a business license tax study presentation, consideration of dissolving the Tourism Subcommittee, and election of a vice chair. All votes taken during the meeting were unanimous.

Public Comments & Testimony

• No members of the public commented on non-agenda items, and no written comments were received after 3 p.m.
• Michael Hayes, a Benicia resident, expressed strong opposition to the California Forever project during the presentation portion of the meeting. He called the proposed shipyard component a "slap in the face" to Vallejo and Mare Island, arguing that shipyard activity, particularly for the Navy, should go to Vallejo/Mare Island rather than Collinsville, where he said there is no infrastructure. He cautioned that the Solano Foundry could co-opt tenants from the Benicia Industrial Park, compared the project's competitive risk to the decline of Hilltop Mall after Solano Mall and Sun Valley Mall were built, and urged the board to view the project with a critical eye and reject it.

Information & Presentations

• California Forever Update – Jim Wonderman (head of public affairs, formerly CEO/president of the Bay Area Council for 22 years) and Anders Engnell (chief of staff) presented on behalf of California Forever. They described three related efforts: the Solano Shipyard, the Sassoon Expansion Plan ("Solano Foundry"), and Solano Living housing. They said the shipyard is central to Project Gondor, a confidential shipbuilder competing to build 80- to 160-foot autonomous cargo vessels, with a Navy mandate to have vessels in the water by 2028; California Forever is one of three finalists for the RFP, with competitors in the Gulf and on the East Coast. They cited a potential $5 billion investment and 10,000 jobs by 2035 across a network of sites, and noted the Solano County Board of Supervisors voted 5–0 in September 2025 to support pursuing the project. They also announced a proposed Maritime Prosperity Zone partnership with the Nimitz Group, Cal Poly Maritime, the Working Waterfront Coalition, and Solano EDC, which would cover Benicia and create tax incentives and permitting expediting for maritime industries; the application was submitted three weeks before the federal maritime action plan was released. Wonderman expressed strong support for reviving Bay Area shipbuilding, noting the region's historical role and that all five new zero-emission Bay Ferry vessels are being built in Washington state because the Bay Area lacks shipbuilding capacity. Engnell cited national security context, stating China is building about a thousand ships a year while the U.S. builds five, and noted Benicia is projected to lose about 2,000 jobs this year. A board member who had toured the site said it was "pretty amazing" and encouraged other members to take a tour; tours were offered. California Forever also referenced a Bay Area Council study projecting over half a million permanent jobs over the project's 40- to 50-year buildout, tens of thousands of construction jobs, and six-figure average pay.
• Tourism Marketing Update – Staff noted the tourism marketing presentation was given to the City Council on March 17, 2026, and is recorded and available on the city's website. No separate presentation was made, but an information session with the consultant can be arranged.
• New Business Licenses – The board received the informational list of new business licenses for November 2025, December 2025, January 2026, and February 2026.
• Commercial/Industrial Vacancies – The board received the informational list of current commercial/industrial properties for lease and for sale in Benicia.

Consent Calendar

• The board approved the minutes of the August 27, 2025 special meeting and the 2026 meeting calendar by a single motion, adopted unanimously by roll call. No items were pulled for discussion.

Discussion Items

• Business License Tax Update – Eric Myers of HDL (via Zoom) presented a business license tax study. Key findings: current annual business license tax revenue is about $628,000 and has been relatively flat, with a modest increase in FY 2022–23 after a compliance/amnesty effort; Benicia's top 100 businesses represent about 37% of reported gross receipts and about 53% of reported employees but pay just over 24% of taxes due to the city's low cap; and Benicia is roughly mid-range among peer jurisdictions and the only one with a cap. Two modernization models were presented, both removing the cap and retaining the exemption for businesses with less than $10,000 in gross receipts: Model 1 (variable gross receipts rates by business type) is estimated to generate about $2.3 million in additional revenue (roughly $2.9 million total); Model 2 (a Fairfield-style tiered flat-fee structure with a low gross receipts rate at the top tier, approved by Fairfield voters in 2024 with about 71% support) would add about $573,000, roughly doubling current revenue to about $1.2 million. HDL also modeled a possible marine terminal use at the Valero refinery area, estimating a mid-range of about $34 million in annual gross receipts, with potential revenue of about $340,000 at a 1% rate up to about $1 million at a 3% rate; combined with Model 1, total revenue would range from about $3.2 million to $3.9 million, and with Model 2 from about $1.5 million to $2.2 million. The timeline targets the November 3, 2026 ballot. Board members asked about the impact of gross receipts taxes on low-margin small businesses, administrative complexity, and differences from Fairfield's business mix; Myers explained that state law constrains the city to taxing gross receipts rather than net income, rates for small businesses are modest, complexity falls mainly on the city's administrators, and Benicia's greater concentration of smaller businesses might justify fewer tiers than Fairfield uses. A board member requested the full slide deck be emailed, noting the handout did not match the online presentation; staff said the correct version is published in the agenda packet online.
• Consideration of Dissolving the Tourism Subcommittee – Staff recommended dissolving the board's Tourism Subcommittee and having the Benicia Chamber of Commerce administer tourism coordination and business walks, citing staff efficiency (the department has gone from two or more full-time EDB staff members to one) and duplication with chamber programs. The chamber would take on the business walks at no cost to the city, and EDB members would remain invited. Board member Penny expressed concern that non-chamber-member businesses, especially struggling downtown retail shops and art galleries, could be left out of outreach, and asked that feedback from business walks be compiled and shared formally with the EDB. Other members supported the change, describing the subcommittee as redundant given the more active chamber and Main Street organizations and noting the subcommittee struggled with quorum and low participation under Brown Act requirements. The board approved the staff recommendation.
• Election of Vice Chair – Mike nominated himself for vice chair and was elected unanimously by roll call.

Key Outcomes

• Consent calendar approved unanimously: minutes of August 27, 2025, and the 2026 meeting calendar.
• Tourism Subcommittee dissolved; the Benicia Chamber of Commerce will take over tourism coordination and business walk administration, with the EDB remaining invited and involved.
• Mike elected vice chair by unanimous roll-call vote.
• Board openings: the full board has seven seats; several applications have been submitted and are under review, with city council interviews expected to begin next week. One board member's term ends in July after more than ten years of service.
• The next regular meeting is scheduled for July 22, 2026.