Subject: Foreign Trade Zone #56 - Application For Alternative Site Framework From: Economic And Workforce Development Department Recommendation: Adopt A Resolution Authorizing The City Administrator To Submit A Foreign Trade Zone Alternative Site Framework Application And To Execute An Agreement With The Foreign Trade Zone (FTZ) Board Of The U.S. Department Of Commerce

Summary

This item seeks City Council authorization for the City Administrator to submit an application to the U.S. Foreign Trade Zone (FTZ) Board to convert Oakland FTZ #56 to the Alternative Site Framework (ASF). This conversion, previously authorized in 2014 and 2016 but not finalized, is strategically important due to increased demand for flexible FTZ structures driven by changes in federal trade policy and supply chain dynamics. The ASF program streamlines the management and expansion of FTZs, allowing for easier addition of new sites through minor boundary modifications. This will expand Oakland FTZ #56's capacity to attract manufacturing, goods movement, warehousing, and distribution activities, thereby increasing employment opportunities in Oakland and its proposed service area (Marin, Solano, Contra Costa, and Alameda Counties). The City has previously collected license fees, such as $16,047 in FY 2024-2025 from Matson Logistics, and new sites added under the ASF would also be required to make annual license fee payments.

Citizen Impact

This action aims to attract businesses and create jobs in Oakland and surrounding counties by making it easier to establish operations within the Foreign Trade Zone. This could lead to increased economic activity and employment opportunities for residents.

Confidence

high