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HomeMy WebLinkAbout1989-009 ! ~ ~ . ~ ~ This action, "to be developed and coordinated by the Planning Department, requires no additional staffing or funding, and does not entail a cost burden to the City. This program is to be implemented within six (6) months after receiving conditional approval of a federal enterprise zone. Guarantees for the Proposed Element Evidence of the certainty that this activity will be implemented is attached. (City Resolution 85-411) D. Quality of Proposed Element C. The granting of variances for parking and set-back requirements will be a great benefit to small businesses contemplating the lease or acquisition of an existing structure within a built-up commercial area. A blanket application of current parking and set-back standards would make it impossible for a viable business to locate in areas developed before the advent of modern standards. Due to existing parcel size and lot coverage, the potential for stimulating the rehabilitation and re-occupancy of the many commercial fronts within the zone, will only be realized with implementation of parking and set-back relief. v. Redevelopment Commitment A. Type of Proposed Element Involvement of Public Authority Providing Financial Assistance B. Description of Proposed Element The majority of the proposed federal enterprise zone falls within existing redevelopment project areas. As such, these affected portions of the proposed zone are eligible, under California Redevelopment Law, for financial assistance through the City.s Redevelopment Agency. Tax increment financing is the primary funding tool available to the Redevelopment Agency. This Is financing methodology utilizing property taxes to either use directly for permitted uses outlined in California Redevelopment Law or to act as debt service for Agency issued tax-exempt and taxable bonds. These bond issues leverage the existing property tax in that a larger pool of funds might be created in order to address the implementation activities outlined in a respective redevelopment plan. It is the City/Agency intent to focus or target tax increment financing efforts with private sector investment. This combined effort, targeted for the creation of new development within the redevelopment project areas, will specifically assist in funding land assemblage, demolition, offstte improvements and utility relocation. (,) . . C. Guarantees for the Proposed Element The Uptown, Central City North, Meadowbrook-Central City, Central City East, Central City South, Southeast Industrial Park and Tr1-C1ty Redevelopment Project Areas have already been adopted by City Ordinance. The City's Redevelopment Agency is currently pursuing the implementation of each of these projects. Quality of Proposed Element D. f It is the intent of this element that financial assistance through the Redevelopment Agency will expedite the development of underutil1zed and poorly serviced parcels within the zone. Many times, the infusion of public dollars will make the difference in making a particular project "pencilll for a private sector investor or developer. The Agency intends to actively pursue public/private partnerships that will effectuate the creation of new building activity within the zone. The ultimate impact of this activity will be the creation of new employment opportunities and a reduction in high levels of unemployment in the zone. VI. Job Linkage Program A. Type of Proposed Element Involvement of Public Authority Providing Financial Assistance B. Description of Proposed Element The overall intent of the Job Linkage Program is to attract new business, encourage expansion of existing business and to stimulate employment opportunities for local economically disadvantaged residents. The program features the combined efforts of the City's Redevelopment Agency, Economic Development Council and Employment and Training Agency (SBETA). Under the program, new or expanding businesses, which seek any form of public assistance to assure successful development, are requested to enter into a "first source hiring agreement", whereby the employer agrees to use the SBETA as a first source of recruitment for all new entry level hires. The SBETA will refer Jobs Training Partnership Act (JTPA) eligible residents for consideration. For any entry level positions created, in which an eligible resident is hired and retained for a minimum of nine (9) months, the employer may receive a cash bonus of up to $1,500 per employee. Although the program is targeted in several areas of the community, the City is committed to expanding the program specifically within the proposed zone. The City's state application committed to expanding the annual budget by fifty (50) percent of the funds already committed to the proposed (1) . . ~ , t C. zone. "The same proposal. if the federal designation 1s obtained. will be presented to the Mayor and Common Council for potential incluston 1n the federal zone. Guarantees for the Proposed Element City Resolution #85-406 pertaining to the Job Ltnkage Element of the State Application is attached. This same commitment for a federal designation may be presented before the San Bernardino City Council for dispositton and direction.- Quality of Proposed Element The rate of unemployment tn the proposed enterprise zone is substantially higher than the rate for the City as a whole. Unemployment among minority youth is twice as high as that for their anglo counterparts. Unemployment among black males was estimated to be nearly seventeen (17) percent 1n 1985. In order to attract new businesses within the zone. the Job Linkage Program provides an incentive that enhances the competitive edge for the proposed zone and provides a methodology to reduce the overall unemployment rate. D. VII. Beautification (Facade Restoration) Program A. Type of Proposed Element Involvement of Public Authority Providing Financial Assistance B. Description of Proposed Element The purpose of the Beautification (Facade Restoration) Program is to provide a financial incentive to owners (or long-term tenants) of commercial properties. to invest in exterior beautification and facade improvements. Business persons who are interested. file an application with the Redevelopment Agency, including a description of the proposed beautification activities and cost estimate. If approved, the Agency will grant, a low-interest loan at low-interest rates, matching funds on a dollar for dollar for a project up to $20,000. The grant or loan. comes via a reimbursement, upon proper submittal of receipts by the owner and an inspection of the work by the Agency's and City's staff. It is the intent of the Agency to increase this effort with a concentrated marketing program. Full block participation in common facade restoration and landscaping is the desired outcome. This program is already operational. C. Guarantees for the Proposed Element The City Council committed to the implementation of the program with the adoption of City Resolution #85-406 (Copy Attached). C\) D: Quality of Proposed Element Many viable businesses within the proposed zone are not distinguishable from vacated structures. due to problems of age, deferred maintenance, lack of proper signage and landscaping. This condition adds to the already existing negative shopping atmosphere and detracts from any potential for attracting new consumers or new businesses to the -Area. The program will help leverage and stimulate private investment in improvements to commercial facades. With beautification of existing business frontage in the zone, the shopping environment will begin to look alive. thereby improving the potential for attracting new business investment and renewed consumer attention. Where feasible, it is the intent to implement this project in concert with major redevelopment efforts such as new construction developments occurring within the proposed zone. VIII. Small Business Loans A. Type of Proposed Element Involvement of Public Authority Providing Financial Assistance B. Description of Proposed Element The City of San Bernardino Community Development Department has set aside funds for the purpose of providing long-term low interest loans to small businesses. Loans will be provided to qualified small businesses that are locating within the City limits (with special targeting pertaining to businesses within the proposed zone) and have been in existence for three (3) or more years. Businesses may be provided with loans of up to $50.000 for as long as fifteen (15) years with an interest rate as low as six (6) percent. Applications are currently being accepted for review and approval by the Economic Development Program Committee (EPDC) which provides guidance to the City in administering this loan program. Through this program the City is seeking to stimulate growth within the small business sector. Such growth will lead to the creation of jobs and also increase the tax base of the City. The City will provide loans for as long as funds are available. Eligible activities for which loans will be provided include the following: (,) ;: 1 . Interior and/or exterior rehabilitation, restoraflon or t ; alteration of commercial properties. ~ h 2. Purchase of equipment. 3. Acquisition of land for business expansion. 4. Acquisition of buildings. 5. Working capital. 6. Purchase of furniture and fixtures. 7. Refinancing of existing debt. C. Guarantees for the Proposed Element This program is currently operational. The targeting of funds within the proposed zone may be addressed by the Council upon receiving approval of the federal designation. D. Quality of Proposed Element For many reasons, real and imagined, much of the proposed zone area is perceived as a high risk area by the lending community. Thus, businesses desiring to locate or expand within the area, have found it difficult, and in most cases impossible, to obtain the needed capital and long-term financing from conventional lenders. The City's loan program not only directly benefit worthwhile business ventures, and enhance the overall economic vitality of the community, but also generates conventional financing through loan guarantee provisions required through the City's program. Ultimately, conventional financing will be as readily available within the zone as it is throughout the balance of the community. IX. Housing Assistance Programs A. Type of Proposed Element Involvement of Public Authority Providing Financial Assistance B. Description of Proposed Element In-Fill Housing Program The Redevelopment Agency is committed to implementing an in-fill housing program intended to encourage residential development on the several vacant buildable lots with the proposed zone area. ('0) $ t ~ ~ h To inlttate the program. the Agency will solicit reque~ts for · proposals frOm qualified developers to Implement the program. The selected developer(s) will be responsible for acquiring the sites. Crittcal elements of the program include: 1. Exempting of engineering. planning. mechanical and building permit fees. 2. Short-term construction financing at below market interest rates. ~ . ~ ~ . . 1 t ~ ) ~ ~ 3. Mortgage financing through revenue bond financing. 4. Aggressive marketing program. In addition. consideration may be given to short-term loan assistance for site acquisition, pre-approved plans and temporary buy down of permanent financing. Housina Rehabilitation The purpose of the Housing Rehabilitation Program is to assist low and moderate income homeowners tn upgrading their properties to meet minimum property standards. Homeowners in need of assistance, apply to the Agency which in turn provides such services as property inspection, work write-up assistance, contract award and supervision along with direct loan assistance. Key to the success of the program, are the rehabilitation loans, which are offered at interest rates of 11 to 51 and cannot exceed the lesser of the actual cost of rehabilitation or $27.000 whichever is lesser. The program currently available on a City wide basis, costs $115,000 a year to operate and features an annual lending capacity of approximately $1,000,000. As a form of targeting, the City is committed to considering that at a minimum, thirty-five (35) percent of these funds will be loaned within the proposed zone on a yearly basis. (This was the premise under the state application which will need Council approval for the federal designation) Housing Development Financina The Redevelopment Agency and the City's Community Development Department will promote the use of single family Mortgage Revenue Bonds and Industrial Development Bonds for multi-family housing within the proposed zone. This is obviously intended to encourage development of the numerous parcels of residentially zone property contained within the proposed zone. The City is taking a comprehensive approach to overall economic development by providing the incentives to both businesses and individuals in an effort to create an f . , ('I) I 1 r t .~ ~ 1 environment where individuals can live near their respective · places of employment. Continuatton of thts program currently slated for the life of the proposed zone designation, is dependent upon the federal government continuing to allow tax exempt bond financing possible for residential development. The annual amount of ftnanctng possible via houstng bond tssues is subject to caps set by the federal and state governments. C. Guarantees for the Proposed Element City Resolutton #85-405 is attached which highlights the targeting of these programs within the state enterprise zone area. It ts antictpated, that this same action may be approved by the City Council pertaintng to the proposed federal zone area. D. Qualttyof Proposed Element Both the in-fill and housing financing program will address the creation of new housing within the proposed zone. The eltmtnation of vacant parcels along wtth the creation of affordable housing within the downtown area will act as a stimulus for the creation of new commercial opportunities within the proposed zone area. The rehabilitation effort will not only improve the living conditions of zone residents, but will generate positive spin-off effects In terms of neighborhood appearance and pride. This effort will act as a catalyst In stemming deterioration while rebuilding an Image of an area in which to work, live and tnvest. x. Marketing A. Type of Proposed Element Involvement of Public Authority Providing Financial Assistance B. Description of Proposed Element The Redevelopment Agency staff tntends to develop a comprehensive Enterprise Zone marketing plan and strategy tn conjunctton with the San Bernardino Area Chamber of Commerce and San Bernardino Economic Development Council. The general Intent of the effort is to determine what types of businesses are best suited for and most needed by the proposed zone area and develop a markettng strategy to attract these Identified targeted businesses. (11) ~ I ; I ~. ! r i I' C. Guarantees for the Proposed Element ., Commun1ty Development Comm1ssion Resolution #4807 pertaining to the state designation is attached. It is anticipated that a like action may be taken regarding the federal zone area. D. Qua11tyof Proposed Element Effect1ve market1ng of the proposed zone are 1s the most critical element in the ent1re process. Without potential new bus1ness. industry and 1nvestment w1ll more than likely never become a rea11ty. Only through act1ve promot10n of the zone and the appurtenant incent1ves will the necessary awareness and cur10s1ty be created. The marketing program. emphas1z1ng the posit1ve nature of the zone env1ronment. will act to deter the current negative perception of the area. State of California Efforts In addit10n to the City of San Bernardino's proposed course of action. the State of Ca11fornia. as evidenced by the attached Memorandum of Understanding. agrees to prov1de the follow1ng 1ncentives: I. Prov1de tax reduction 1ncentives to businesses located in California's designated enterprise zones and employment incentive areas as called for 1n Ca11forn1a Law. II. Provide technical assistance. job tra1nlng. financial assistance and marketing assistance through the usual State of California activities and programs. III. Give special contract preference to m1norlty-owned businesses as called for in California Law. (,~ RESOLUTION NO. Rq-q 2 RESOLUTION OF THE CITY OF SAN BERNARDINO DESIGNATING THE PROPOSED CITY OF SAN BERNARDINO EMPLOYMENT AND ECONOMIC ENTERPRISE ZONE AREA AS DISTRESSED 3 4 5 WHEREAS, on June, 3, 1988, the U.S. Department of Housing and Urban 6 7 8 9 10 Development issued regulations for the Enterprise Zone Program to implement Title VII, Enterprise Zone Development, of the Housing and Community Development Act of 1987; WHEREAS, Title VII, authorizes the U.S. Department of Housing and Urban Development (hereinafter referred to as the "Department") to designate not 11 12 13 14 15 16 17 18 more than 100 enterprise zones based entirely on rank order of distress; WHEREAS, the City of San Bernardino has requested that the Department designate the proposed City of San Bernardino Employment and Economic Enterprise Zone Area as a Federal Enterprise Zone to provide for the economic revitalization of the area; WHEREAS, a finding that the proposed enterprise zone area is distressed is a requirement of the enterprise zone designation process; and WHEREAS, the Mayor and Common Council of the City of San Bernardino hereby 19 finds and determines that the proposed City of San Bernardino EmplOYment and 20 21 22 23 24 25 26 27 28 Economic Enterprise Zone Area, identified within Attachment I, is distressed based on the existence of the following criteria: UnemploYment rate of at least 1.5 times the national unemployment rate; a poverty rate of at least twenty (20) percent; and has at least seventy (70) percent of the households within the area with incomes of below eighty (80) percent of the median income of the City of San Bernardino. NOW THEREFORE, BE IT RESOLVED, by the Mayor and Common Council of the City of San Bernardino that: . - .. . The proposed City of San Bernardino Employment and Economic Enterprise 2 Zone Area is distressed and designation of the area as a Federal Enterprise 3 Zone is necessary to stimulate the creation of new jobs and to promote the 4 overall economic revitalization in the area. 5 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the 6 7 8 9 10 Mayor and Common Council of the City of San Bernardino at a reqular 3rd day of January, 1989, by the meeting thereof, held on the following vote, to wit: Council Members AYES: Estrada, Reilly, Flores. Maudslev. 11 12 13 14 Minor, Pope-Ludlam, Miller NAYS: None ABSENT: None 15 16 ~$ ~J~ / , g(< 'A'J?A~~1?r:{;/ '1J2'fJiC"":/ 17 18 19 City Clerk The foregoing resolution is hereby approved this ~d~ day of January 20 1989. 21 22 23 24 25 26 form and 27 SH:EJ:sm:4760G 28 I. ~v PROPOSED COURSE OF ACTION CITY OF SAN BERNARDINO EMPLOYMENT AND ECONOMIC ENTERPRISE ZONE AREA The City of San Bernardino's Proposed Course of Action contains ten (10) separate components. Each component is described and documented below per application instructions. These ten (10) components will operate independently; each addressing a separate targeted need but together providing the synergistic effect necessary to initiate positive change in the zone. This Course of Action was included in the City's applicatton to the State of California for a state enterprise zone designation. The ten components are: I. City Rebate and Fee Exemption Program II. Streamlining the Permit Process III. Ombudsman Program IV. Parking and Set Back Relief v. Redevelopment Commitment VI. Job Linkage Program VII. Beautification (Facade Restoration) Program VIII. Small Business Loans IX. Housing Assistance Programs X. Marketing I. City Rebate and Fee Exemption Program A. Type of Proposed Element Tax and Fee Reduction B. Description of Proposed Element As part of the City of San Bernardino's application to the State of California for a state enterprise zone designation, the Mayor and the Common Council approved and adopted an ordinance granting both tax and fee rebates along with actual fee exemptions to new and/or expanding commerctal and industrtal users within the proposed zone. It is the intent of the City Council to utilize these same financial incentives within the federal enterprise zone should the designation be granted. This element is described through the original state application: Tax and Fee Rebates For new and/or expanding businesses within the zone, the City will provide the following rebate incentives during the first three (3) years of the life of each such business: (" r '\ 1. lOOt rebate of the utility services users' tax 2. lOOt rebate of the Business License tax 3. 2St rebate of the water charges (for new businesses only) For purposes of this incentive. a new business is defined as any businesses which is start-up in nature or has relocated to the zone from outside the Corporate city limits of the City of San Bernardino. Note: An existing business within the zone, which has been purchased, is not considered a new business. An expanding business is defined as an existing business which has made a physical move within the zone or has physically expanded its existing facilities within the zone. In either case, the expansion must have resulted in at least fifty (50) percent increase in permanent full-time employees or two employees, whichever is greater. The amount of rebate on the utility tax for an expanding business, will be based on the amount of said tax paid by the business over and above the amount paid, for the twelve months prior to the expansion. Note: Permanent employees referred to in this section must be residents of the City of San Bernardino and be on the job a minimum of nine (9) months. For new industrial firms locating within the zone, the City will provide the following rebate incentives during the first year of operation of each such firm: 1. . 2St rebate of the utility services users' tax 2. 2St rebate of the Business License tax Fee Exemptions During the first three (3) years of zone designation, all new or expanding businesses within the zone will be exempt from all engineering, planning, mechanical and building permit fees. Note: Storm drain and sewer connection fees are not covered by the exemption. In addition, developers participating in the City of San Bernardino Redevelopment Agency's In-fill Housing Program within the zone will be exempt from the same development fees listed above. C. Guarantees for the Proposed Element A copy of City Ordinance #MC-480 is attached pertaining to the State of California Enterprise Zone designation. The Mayor and Common Council may be discussing the implementation of a liKe ordinance should the federal designation be granted. D. Quality of Proposed Element It is the intent of the City Rebate and Fee Exemption Program to provide an incentive to small commercial and industrial entrepreneurs to locate and expand within the proposed zone. (1) In that the major increase in employment throughout the nation is due to the creation and expansion of small business, it is expected that zone residents will be able to seek employment opportunities from these new and expanding businesses. As stated in the City's state application: In order for the [enterprise zone's] commercial area to assume a competitive position with other retail centers, it must overcome Its high risk image. This will only happen over time, 1f business develops in the area, which will only occur 1f the cost of development and doing business in the area are so much lower than competing areas as to compensate for the perceived risk. In addition, by providing the fee exemptions associated with the City's In-fill Housing Program, new residential development will provide the stimulus that creates expanded markets for new commercial and light industrial uses. New housing starts will add to the economic revitalization of the community located within the proposed federal enterprise zone. The City Rebate and Fee Exemption Program will assist in reducing the direct development and start-up operating costs associated with start-up and expanding businesses. It is this type of incentive, combined with the other elements of the City's Course of Action, that will enhance the zone's overall competitive position with other commercial industrial areas throughout the community. In that business creation and actual building has been very slow in the proposed area, it is not known as to what the actual cost to the City will be in terms of lost revenue. II. Streamlining the Permit Process A. Type of Proposed Element Increase of Local Service While Increasing Public Service Efficiency B. Description of Proposed Element As explained in the state application: The basic Objective of the streamlining process is to expedite the delivery of services to prospective developers, and in so doing, reduce the review and approval time, and ultimately the cost, of developments proposed in the enterprise zone. The City's Redevelopment Agency will be the initial contact point for developers interested in investing in the proposed enterprise zone. The Ombudsman/Enterprise Zone Coordinator (refer to Component III) will provide each prospective developers a packet of information detailing critical information relative to zoning, fire access, grading, rights of way, water, power and building requirements, needed to complete plans and cost estimates, secure financing and to implement development. In addition, the Coordinator will provide a flow chart specifying departments involved, key (~) ~ . departmental' contacts, elements required and length of" review time. If necessary, the Coordinator, with the concurrence of the Deputy City Administrator, will request a preliminary meeting with the Development Review Committee to clarify any matters related to development requirements, or to critique an initial conceptual layout of proposed development. The Development Review Committee (DRC) ts the key to the streamlining process. Composed of personnel from the various City Departments involved in plan checking and issuing permits, and coordinated by the Planning department, the ORC provides for one step review and approval of development plans and specifications. Within approximately ten (10) days of receipt of a development proposal, the DRC will meet to discuss the plans and recommend any needed corrections or alterations. Once the DRC has approved the plans, the developer will be able to conclude all permit issuance requirements with only one visit to City Hall. C. Guarantees for the Proposed Element f The above referenced actions will be implemented as specified in Community Development Commission Resolution #4806 and City Resolution #85-407 (Copies attached>. D. Quality of Proposed Element In order for the overall enterprise zone to gain a competitive edge over competing commercial and industrial areas in attracting new development, the cost of development must be comparatively lower. Streamlining enables the City to reduce the processing time for proposed zone developments by 50 to 75 percent, thereby reducing preliminary development costs. This action will enhance the potential for attracttng new business development on vacant parcels in the commercial and industrial areas of the zone. No additional costs to the city are expected with the implementation of this element. III. Ombudsman Program A. Type of Proposed Element Increase of Local Services and Efficiency B. Description of Proposed Element It is the overall intent of this element to maximize communication between City Hall, private entrepreneurs, local organizations, neighborhood as'sociat10ns, community groups and individual citizens. It will be the respons1bility of the Ombudsman to disseminate information throughout the zone as to the benefits and programs pertaining to the designated area. The Ombudsman will also be responsible for expediting cit1zen inquiries regarding normal entitlement processing, business (~) licens~ng and the general operations of the City; The' Ombudsman will act as the Enterprise Zone Coordinator, assist the Deputy City Administrator in the administration of the Development Review Committee and will be responsible for carrying out and/or overseeing each element contained in the Course of Action. It Is the responSibility of the Ombudsman to interface with each participating department and/or outside agency on behalf of enterprise zone participants in the course of providing incentives provided through the zone.. This element will become effective with the federal approval for the zone. At this time, it is expected that this activity will continue throughout the thirty (30) year life of the zone. C. Guarantees for the Proposed Element The duties and functions of the Ombudsman/Enterprise Zone Coordinator will be handled by existing staff of the San Bernardino Redevelopment Agency. D. Quality of Proposed Element It is Intended that the Ombudsman Program will expedite the dissemination of program benefits throughout the zone. It 1s further intended that the Ombudsman will be able to convey community concerns and recommendations to the City in that the entire municipal delivery service will become more efficient and specifically targeted to the needs of the community within the zone. The Ombudsman, acting as facilitator, will assist in the resolution of entitlement processing problems and will assist in the coordination of the streamlining permit process. In that these functions are to be conducted by existing staff, no additional costs associated with the implementation of this element are anticipated. IV. Parking and Set Back Relief A. Type of Proposed Element Reducing Governmental Requirements B. Description of Proposed Element For new or expanding businesses desiring to occupy existing commercial structures, where inability to meet current off street parking standards is the only deterrent to successful occupancy, the City will consider granting parking variances. In addition for businesses desiring to construct new facilities, where inability to meet current set-back requirements is the only deterrent to successful development, the City will consider granting variances. (5) 1 ~ ~ ~ .", ~ This action, "to be developed and coordinated by the Plann1ng Department, requ1res no additional staff1ng or funding, and does not entatl a cost burden to the C1ty. Thts program ts to be tmplemented wtthtn stx (6) months after receiving condttional approval of a federal enterprise zone. Guarantees for the Proposed Element Evtdence of the certatnty that thts acttvity wtll be implemented ts attached. <City Resolutton 85-411) D. Qualtty of Proposed Element C. The grant1ng of var1ances for parktng and set-back requirements will be a great beneftt to small bus1nesses contemplat1ng the lease or acquisttion of an existtng structure wtthtn a built-up commercial area. A blanket application of current parking and set-back standards would make it 1mposs1ble for a viable bustness to locate 1n areas developed before the advent of modern standards. Due to extsting parcel size and lot coverage, the potential for sttmulattng the rehabi1itatton and re-occupancy of the many commerctal fronts within the zone, w11l only be realized with implementation of parking and set-back re11ef. v. Redevelopment Commitment A. Type of Proposed Element Involvement of Publtc Authortty Providing Financtal Assistance B. Description of Proposed Element The majority of the proposed federal enterprtse zone falls within existing redevelopment project areas. As such, these affected portions of the proposed zone are eligible, under California Redevelopment Law, for financtal assistance through the City's Redevelopment Agency. Tax increment ftnancing is the primary funding tool available to the Redevelopment Agency. This ts financing methodology utilizing property taxes to either use directly for permitted uses outltned in California Redevelopment Lawor to act as debt servtce for Agency issued tax-exempt and taxable bonds. These bond issues leverage the existing property tax in that a larger pool of funds might be created in order to address the implementation activities outlined in a respective redevelopment plan. It is the City/Agency intent to focus or target tax increment financing efforts with private sector investment. This combined effort, targeted for the creation of new development within the redevelopment project areas, will specifically assist in funding land assemblage, demolition, offstte improvements and utility relocation. (n . . C. Guarantees for the Proposed Element The Uptown, Central City North, Meadowbrook-Central City, Central City East, Central City South, Southeast Industrial Park and Tr1-C1ty Redevelopment Project Areas have already been adopted by C1ty Ord1nance. The C1ty's Redevelopment Agency 1s currently pursuing the 1mplementat10n of each of these projects. Qua11ty of Proposed Element D. t It is the 1ntent of this element that financial assistance through the Redevelopment Agency will expedite the development of underut1l1zed and poorly serviced parcels within the zone. Many times, the infusion of public dollars will make the difference 1n making a particular project "pencil" for a private sector investor or developer. The Agency intends to actively pursue public/private partnerships that will effectuate the creation of new building activity within the zone. The ultimate impact of this activity will be the creation of new employment opportunities and a reduction in high levels of unemployment in the lone. VI. Job Linkage Program A. Type of Proposed Element Involvement of Public Authority Providing Financial Assistance B. Description of Proposed Element The overall intent of the Job Linkage Program is to attract new business, encourage expansion of existing business and to stimulate employment opportunities for local economically disadvantaged residents. The program features the combined efforts of the City's Redevelopment Agency, Economic Development Council and Employment and Training Agency (SBETA). Under the program, new or expanding businesses, which seek any form of public assistance to assure successful development, are requested to enter 1nto a "first source hiring agreement", whereby the employer agrees to use the SBETA as a first source of recruitment for all new entry level hires. The SBETA will refer Jobs Training Partnership Act (JTPA) eligible residents for consideration. For any entry level positions created, in which an eligible resident is hired and retained for a minimum of nine (9) months, the employer may receive a cash bonus of up to $1,500 per employee. Although the program is targeted in several areas of the community, the City is committed to expanding the program specifically within the proposed zone. The City's state application committed to expanding the annual budget by fifty (SO) percent of the funds already committed to the proposed to . . ~ zone. .The same proposal, if the federal designation is obtained, will be presented to the Mayor and Common Council for potential tnclus10n in the federal zone. C. Guarantees for the Proposed Element City Resolution #85-406 pertaining to the Job Linkage Element of the State Application 1s attached. This same commitment for a federal designation may be presented before the San Bernardino City Counc'l for disposition and direct1on.- D. Quality of Proposed Element The rate of unemployment in the proposed enterprise zone is substantially higher than the rate for the City as a whole. Unemployment among minority youth is twice as h'gh as that for their anglo counterparts. Unemployment among black males was estimated to be nearly seventeen (17) percent in 1985. In order to attract new businesses within the zone, the Job Linkage Program provides an incentive that enhances the competitive edge for the proposed zone and provides a methodology to reduce the overall unemployment rate. VII. Beautification (Facade Restoration) Program A. Type of Proposed Element Involvement of Public Authority Providing Financial Assistance B. Description of Proposed Element The purpose of the Beautification (Facade Restoration) Program is to provide a financial incentive to owners (or long-term tenants) of commercial properties, to invest in exterior beautification and facade improvements. Business persons who are interested, file an application with the Redevelopment Agency, including a description of the proposed beautification activities and cost estimate. If approved, the Agency will grant, a low-interest loan at low-interest rates, matching funds on a dollar for dollar for a project up to $20,000. The grant or loan, comes via a reimbursement, upon proper submittal of receipts by the owner and an inspection of the work by the Agency's and City's staff. It is the intent of the Agency to increase this effort with a concentrated marketing program. Full block participation in common facade restoration and landscaping is the desired outcome. This program is already operational. C. Guarantees for the Proposed Element The City Council committed to the implementation of the program with the adoption of City Resolution #85-406 (Copy Attached). C,) D: Quality of Proposed Element Many viable businesses within the proposed zone are not distinguishable from vacated structures, due to problems of age, deferred maintenance, lack of proper signage and landscaping. This condition adds to the already existing negative shopping atmosphere and detracts from any potential for attracting new consumers or new businesses to the -Area. The program will help leverage and stimulate private investment in improvements to commercial facades. With beautification of existing business frontage in the zone, the shopping environment will begin to look alive, thereby improving the potential for attracting new business investment and renewed consumer attention. Where feasible, it is the intent to implement this project in concert with major redevelopment efforts such as new construction developments occurring within the proposed zone. VIII. Small Business Loans A. Type of Proposed Element Involvement of Public Authority Providing Financial Assistance B. Description of Proposed Element The City of San Bernardino Community Development Department has set aside funds for the purpose of providing long-term low interest loans to small businesses. Loans will be provided to qualified small businesses that are locating within the City limits (with special targeting pertaining to businesses within the proposed zone) and have been in existence for three (3) or more years. Businesses may be provided with loans of up to $50,000 for as long as fifteen (15) years with an interest rate as low as six (6) percent. Applications are currently being accepted for review and approval by the Economic Development Program Committee (EPDC) which provides guidance to the City in administering this loan program. Through this program the City is seeking to stimulate growth within the small business sector. Such growth will lead to the creation of jobs and also increase the tax base of the City. The City will provide loans for as long as funds are available. Eligible activities for which loans will be provided include the following: ~ ~ f 1.' Interior and/or exterior rehabilitation, restoration or alteration of commercial properties. 2. Purchase of equipment. 3. Acquisition of land for business expansion. 4. Acquisition of buildings. 5. Working capital. 6. Purchase of furniture and fixtures. ; t , > ~, 7. Refinancing of existing debt. C. Guarantees for the Proposed Element This program is currently operational. The targeting of funds within the proposed zone may be addressed by the Council upon receiving approval of the federal designation. D. Quality of Proposed Element For many reasons, real and Imagined, much of the proposed zone area is perceived as a high risk area by the lending community. Thus, businesses desiring to locate or expand within the area, have found it difficult, and 'n most cases impossible, to obtain the needed capital and long-term financing from conventional lenders. The City's loan program not only directly benefit worthwhile business ventures, and enhance the overall economic vitality of the community, but also generates conventional financing through loan guarantee provisions required through the City's program. Ultimately, conventional financing will be as readily available within the zone as it is throughout the balance of the community. IX. Housing Assistance Programs A. Type of Proposed Element Involvement of Public Authority Providing Financial Assistance B. Description of Proposed Element In-Fill Housina Proaram The Redevelopment Agency is committed to implementing an in-fill housing program intended to encourage residential development on the several vacant buildable lots with the proposed zone area. ~~ r. ~ i ~ I, i ~ ~ t i To initiate the program, the Agency will solicit reque~ts for · proposals frOm qualifted developers to implement the program. The selected developer(s) will be responsible for acquiring the sites. Crt tical elements of the program Include: 1. Exempting of engineering, planning, mechanical and building permit fees. 2. Short-term construction financing at below market tnterest rates. 3. Mortgage financing through revenue bond financing. 4. Aggressive marketing program. In addition, consideration may be given to short-term loan assistance for site acquisition, pre-approved plans and temporary buy down of permanent financing. Housing Rehabilitation The purpose of the Housing Rehabl1itation Program is to assist low and moderate income homeowners tn upgrading thelr properties to meet minlmum property standards. Homeowners tn need of assistance, apply to the Agency whlch in turn provldes such servtces as property inspection, work wrlte-up asslstance, contract award and supervision along with dlrect loan assistance. Key to the success of the program, are the rehabl1itation loans, which are offered at interest rates of 11 to 51 and cannot exceed the lesser of the actual cost of rehabilltation or $27,000 whichever is lesser. The program currently avallable on a City wide basis. costs $115,000 a year to operate and features an annual lendlng capacity of approxlmately $1.000,000. As a form of targeting, the City is committed to consldering that at a minlmum, thirty-flve (35) percent of these funds wlll be loaned wlthin the proposed zone on a yearly basls. (Thls was the premise under the state application whlch wll1 need Council approval for the federal designatlon) Housing Development Financing The Redevelopment Agency and the City's Communlty Development Department will promote the use of single family Mortgage Revenue Bonds and Industrial Development Bonds for multi-family housing within the proposed zone. This is obviously intended to encourage development of the numerous parcels of residentially zone property contained within the proposed zone. The City is taking a comprehensive approach to overall economic development by providing the lncentives to both businesses and individuals in an effort to create an (II) ,- t 1. f ~ f \ C. environment where individuals can live near their respective · places of employment. Continuation of this program currently slated for the life of the proposed zone designation, is dependent upon the federal government continuing to allow tax exempt bond financing possible for residential development. The annual amount of financing possible via housing bond issues is subject to caps set by the federal and state governments. Guarantees for the Proposed Element City Resolution #85-405 1s attached which highlights the targeting of these programs within the state enterprise zone area. It is anticipated, that this same action may be approved by the City Council pertaining to the proposed federal zone area. D. Quality of Proposed Element Both the in-fill and housing financing program will address the creation of new housing within the proposed zone. The elimination of vacant parcels along with the creation of affordable housing within the downtown area will act as a stimulus for the creation of new commercial opportunities within the proposed zone area. The rehabilitation effort will not only improve the living conditions of zone residents, but will generate positive spin-off effects in terms of neighborhood appearance and pride. This effort will act as a catalyst in stemming deterioration while rebuilding an image of an area in which to work, live and invest. x. Marketing A. Type of Proposed Element Involvement of Public Authority Providing Financial Assistance B. Description of Proposed Element The Redevelopment Agency staff intends to develop a comprehensive Enterprise Zone marketing plan and strategy in conjunction with the San Bernardino Area Chamber of Commerce and San Bernardino Economic Development Council. The general intent of the effort is to determine what types of businesses are best suited for and most needed by the proposed zone area and develop a marketing strategy to attract these identified targeted businesses. ('1) 't ~. ; r , C. Guarantees for the Proposed Element '. Coninun1ty Development ConIn1ssion Resolution '4807 perfaining to the state designation is attached. It is anticipated that a like action may be taken regarding the federal zone area. D. Quality of Proposed Element Effective marketing of the proposed zone are is the most critical element in the entire process. Without potential new business, industry and investment will more than likely never become a reality. Only through active promotion of the zone and the appurtenant incentives will the necessary awareness and curiosity be created. The marketing program, emphasizing the positive nature of the zone environment, will act to deter the current negative perception of the area. State of California Efforts In addition to the City of San Bernardino.s proposed course of action, the State of California, as evidenced by the attached Memorandum of Understanding, agrees to provide the following incentives: I. Provide tax reduction incentives to businesses located in California.s designated enterprise zones and employment incentive areas as called for in California Law. II. Provide technical assistance, job training, financial assistance and marketing assistance through the usual State of California activities and programs. III. Give special contract preference to minority-owned businesses as called for in California Law. (I~)