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Home My WebLink AboutR26-Redevelopment Agency ...' I -. , -.. ,. \, DOBLOPIIBlIr DBPAllrOllr OF TIll CIn' OF S.lB BBUAIlDIBO IIBOOBsr FOil COIMISSIOll/COUBCIL ACTIOll From: KEi'lRETH J. HENDERSON Executive Director Subj ec t : IIBPBAL OF GBlUIlAL FlIlID IIICDTIVBS ASSOCUTBD WITH CIn' BBTBRPIlISB ZOD PIlOGIlAII Date: July 20, 1992 SvnoDsis of Previous Cnnaission/Council/Comaittee Action(s): On June 9, 1992, the Mayor and Common Council revised the Enterprise Zone Program, limited incentives to commercial and industrial abutting designated streets and adopted the staff proposed program. Recommended IIotion(s): (IIavor and C~ Council) MOrIOIl A: AN ORDINANCE OF THE CITY OF SAN BERNARDINO REPEALING CHAPTER 3.18 OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO THE ENTERPRISE ZONE. MOTIOIl B: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO REPEALING RESOLUTION NOS. 86-354, 85-411, 85-405, 85-163 AND 83-76 RELATING TO THE CITY'S ENTERPRISE ZONE. ~~Oll Executive Director Administrator Contact Person(s): Kenneth Henderson/Stafford Parker Phone: 5081 Project Area(s): N/A Ward(s): 1-7 Supporting Data Attached: Staff reDort: Memorandum of 6/9/92. FUNDING REQUIREMENTS: Amount: $ N/A N/A Source: Budget Authority: N/A Commission/Council lIotes: KJH:SWP:dle:58llR Attac:blllent COIKISSIOll IIDTIBG AGODA lIeeting Date: 08/03/1992 Agenda Its I!haber: ;)~ ~' I ..., ". -.. ". " ",....., ,......- l J ...' DB~BLOPMBWT DBPARTMBWT OF TIlE CITY OF SAIl BBUARDIRO STAn' RBPOIl'r ReDeal of General ~d Incentives Associated vith City Enterorise Zone Proar.. This is a ministerial "housekeeping" agenda item necessary to complete prior Council and Commission actions. In the interest of continuity as well as securing an opportunity for public comment it is recommended this council item be discussed during the Community Development Commission Agenda. On June 9, 1992, actions of the Mayor and Common Council and Community Development Commission revised the Enterprise Zone Program and authorized the Economic Development Agency to underwrite the cost of the proposed incentives (June 9, 1992 staff memorandum attached). The Development Department vas directed to work with the City Attorney and staff "to make any and all appropriate amendments to the Municipal Code" in order to implement the new program. Although the focus of the State's original Enterprise Zone Program and the City's continuing goal is the creation of jobs and attraction/retention of businesses, the proposed program still enables assistance to residential owners on a case by case basis. This assistance will be afforded for existing and infill housing in scattered or targeted sites within redevelopment project areas. The office of the City Attorney has opined the more appropriate course of action is to repeal the existing enabling legislation/ordinance and resulting City Enterprise Zone Program through adoption of the attached ordinance and resolution. The Commission has already approved the Agency's Direct Incentives and Linkage (DIAL) Program that will be funded by the Agency rather than the City. Consequently, there will be no interim gap of inactivity between the dissolution of one program (Enterprise Zone) and creation of the replacement program. Staff recommends the first reading of the attached ordinance and adoption of the attached resolution. 1\J5I.UIli.[~~JasOW. Bltecutive Develo.-ent Departaent Director KJH:SWP:dle:581IR Attachment COIIIISSIOW MEBTIBG AGBMlA Meeting Date: 08/03/1992 Aaenda Itell lf1aber: ::Jh - 12 ESTRADA 13 REILLY 14 HERNANDEZ , .. 15 MAUDSLEY 16 MINOR 17 POPE-LUDLAM 18 MILLER 19 20 1-- ,. \. ... 21 22 23 24 25 26 27 "" 28 By: - ,.'.''''''', '-' - 1 2 3 4 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO REPEALING RESOLUTION NOS. 86-354, 85-411, 85-405, 85-163 AND 83-76 RELATING TO THE CITY'S ENTERPRISE ZONE. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON 5 COUNCIL of the City of San Bernardino that. Resolution Nos. 86-354, 6 85-411, 85-405, 85-163 and 83-76 are hereby repealed. 7 I HEREBY CERTIFY that the foregoing resolution was duly 8 adopted by the Mayor and Common Council of the .Ci ty of San 9 Bernardino at a meet:l.ng thereof, held on the 10 day of , 1992, by the following vote, to wit: 11 Council Members: AYES NAYS ABSTAIN ABSENT City Clerk of The foregoing resolution is hereby approved this day , 1992. W. R. HOlcomb, Mayor' City of San Bernardino Approved as to form and legal content: JAMES F. PENMAN, City Attorney DAB/sea/Zone.rea 1 June 26. 1992 ~6 1-., tf" '" tf' '" .,. I .... 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -- '-, .......""" - 1 2 3 ORDINANCE NO. AN ORDINANCE OF THE CITY OF SAN BERNARDINO REPEALING CHAPTER 3.18 OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO THE ENTERPRISE ZONE. 4 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. Chapter 3.10 of the San Bernardino Municipal Code is hereby repealed. I HEREBY CERTIFY that the foregoing ordinance was duly adopted by the Mayor and Common Council of the City of San Bernardino at a day of meeting thereof, held on the , 1992, by the fOllowing vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT ESTRADA REILLY HERNANDEZ MAUDSLEY MINOR POPE-LUDLAM MILLER City Clerk The foregoing ordinance is hereby approved this day of , 1992. W. R. Holcomb, Mayo~ City of San Bernardino Approved as to form and legal content: JAMES F. PENMAN, City Attorney By: DAB/s.s/Zone.ord 1 June 25. 1992 c-J b 1--.. f' \, ". -. .- "'" -""'"' D~ B LOP M B N T D B PAR T~B N T OF THE CITY OF SAIl BEIlRARDIIro REOUEST FOR COKMISSION/COURCIL ACTION From: KENNETH J. HENDERSON Executive Director Subj ec t : PROPOSBD DB1/BLOPKEftT INCBftTIVES AIm LInKAGE PROGIWI (DIAL) IN LIEU OF BftTBRPRISB ZOl'lB PROGIWI Date: June 9, 1992 -------------------------------~----------------------------------------------- SvnoDsis of Previous Commission/Council/Committee Action(s): i On June 3, 1992 the Legislative Review Committee reviewed the subject , agenda item and recommended approval of the motions referenced below. ------------------------------------------------------------------------------- Recommended Motion(s): (Mavor and Common Council) MOTION A: That the Mayor and Common Council approve the proposed revision of the City Enterprise Zone Program. MOTION B: That the Mayor and Common Council limit incentives to commercial and industrial development abutting designated streets. (Motions Continued on Next Page) ,S Administrator ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Commission/Council Notes: 1--- _.. " " fill , "" I... REQUEST FOR CO""ISSI~OURCIL ACTIOB Proposed Development Incentives and Linkage Program June 9, 1992 Page Bumber -2- ........ '-1" ------------------------------------------------------------------------------- Recommended Motion{s) Continued... (Mavor and Common Council) MCTIOB C: That the Mayor and Common Council adopt the staff drafted program as revised. (COBIIItIIlitv Deve10Dllent Commission) MOTIOB D: That the Community Development Commission authorize the Economic Development Agency to financially underwrite the proposed development incentives. MOTIOB H: That the Community Development Commission authorize the Office of the City Attorney to make any and all appropriate amendments to the municipal code. . ------------------------------------------------------------------------------- KJH:SWP:dle:5756R ClMUSSIOB MEETING AGENDA Meeting Date: 06/15/1992 Agenda Itl!lll Bumber: ~ d{;. 1_-- .. " \.. ". ... ,. I ... D~ ..'~"" ELOP"ERT DEPART"'tE OF THE CITY OF SAIf BERl'fAIlDlRO RT STAFF REPORT -------------------------------------------------------------------------------- Prouosed Develoument Incentives and LinkaRe ProRram (DIAL) In Liew Of Enterurise Zone ProRram In 1986, the City of San Bernardino applied for a competitive statewide Enterprise Zone. The City was unsuccessful in its effort and not awarded State designation. A local Enterprise Zone program, which included housing, was developed in 1986 as a strategy that reasoned such a positive demonstrative display of local initiative would enhance the City's chances of being selected by the State in subsequent Enterprise Zone program competitions. Unfortunately, the State solicitations were shortlived and the program was terminated due to the lack of State funds and higher priorities. The primary goal of the Enterprise Zone program, from the City and State's viewpoint, was to attract and retain businesses within economically distressed areas of the municipality. A key benefit of achieving this goal was the creation of permanent jobs for City residents. However, similar to the State, the City has also determined that the program is an expensive one to operate as presently structured. This revelation is especially evident in view of the fact that incentives are provided to developers through fee exemptions and rebates that would normally be paid to City departments. Further, it was observed that in many instances the City financial incentives were often a developer's pleasantly discovered windfall rather than the initial reason or motivation a business was started or house constructed. In deference to dwindling City resources and acknowledgment that elements of the City Enterprise Zone Program are desirable, the Development Incentives and Linkage (DIAL) program (attached) has been developed. Key elements of the existing program's revision are as follows: . 1. Eligible geographical areas are limited to major City thoroughfares. 2. The Economic Development Agency will financially underwrite the provision of incentives on a "case by case" basis. 3. Zoning for the proposed use must be compatible with the City's General Plan and redevelopment plan if the project lies in whole or in part of an adopted redevelopment project area. 4. Residential incentives are eliminated and, in the alternative, such assistance will be afforded through the Development Department'~ existing housing rehabilitation and infill housing programs on a case by case basis in scattered or targeted sites within redevelopment project areas. ------------------------------------------------------------------------------- KJH:SWP:dle:5756R COteUSSIOR tmETIl'fG AGEBDA "eeting Date: 06/15/1992 Agenda Its Rumber: h- d0 1-- ,. , " , ... t1" ... REQUEST FOR COMKISS~COUBCIL ACTI08 PROPOSED DBVBLOPIIB8T I8CBIr.rIVBS AIm LIlUtAGB PROGRAJII BlITBRPRISE ZOO June 9. 1992 Page 8umber -2- ,""" ....., (DIAL) 18 LIEU OF -------------------------------------------------------------------------------- 5. Applications for assistance will not be approved retroactively. 6. Eligibility will be certified by the Development Department. 7. The fee rebate period has been shortened from three or two years in some cases to one. On June 3, 1992, the Legislative Review Committee reviewed and discussed the staff recommendations regarding this agenda item and recommended to the Mayor and Common Council and Community Development Commission of same. Based upon the foregoing, staff recommends adoption of form motions "A" through "E". ~s 1US1'I1'IliIII J. Development RDERS08. Executive Director epartment Attachment: Proposed Dial Program . ------------------------------------------------------------------------------- KJH:SWP:dle:5756R COMKISSI08 tmBTIlfG AGBRDA Meeting Date: 06/15/1992 Agenda Item lfumber:~ ~b 1__- c' , iio. "., I "" - '-" IIInrm.nPlmn' nr~rn. AIID LtIIr.mr . ~"'; ....., IDY.'., 1WW!D.a. noPOSID IELIClUn.m ClIrnu roR CIn DnZLol'lllllr ASSIIUJICa Bi.torlcall~, aa4 concarrent with ..tabll.hment of the 10call1 IDlti.ted Interpri.e Zone, the Cit, of San lernardino ha. proYided certain incentiye. within de.ienated ar.a. of the Cit~ to a..i.t and encoUraae deyelopment. Predictabl~, the co.t of UDdervrltina the prolram h.. pl.cld a .tr'ln on the Cit~" badlet. e'peclall~ in Yiev of a deficit in relation to co.t. and reYenuel and an all-tiae hilh nled for .erYice. durlna the wor.t economic dOVlltum .inca the 1929 depre..ion. 2'h. Iconoalc Denlopllent .laenc~ _ Deyelopllent Departaent .taff hat concluded .uch a..i.tance to deyeloper. I. beneficial to redeyelopllent effort. and the Cit~ .hould a.intain the prolram, .... 'dJ~_.., u . ......... "01 .... ........ ......... ~~ ::~l::' I:O:D:;::::;:= ~ ::e::~~v :0 D::~:o~h:r Cl:~~r~..r:" f::: tv ::~~: ~:,,:: h;;;t~.;~;.. It I. the contlnaed de.ire of the Cit~ of San lemardino to IDcourale and a"lat aconoaic deYelopllent and p~.lcal reYitallzatlon of ..t.bli.hed Induatrial and commercial .rea. b7 deyeloplna vacant .cattered lot. and enhancina their yi.aal attractiyene.. on commonl~ trayeled .treet. throulhout the Clt~. 2'he Clt~ ha. deyeloped certain incentiye., that ..~ chance froa tlae to tiae, for Which the follovina 'lilibilit~ criteria ahall appl~. Adoption of thi. criteria aupercedea all other elillbilit~ criteria referenced In the preYloa.l~ adopted Clt~ Interpriae Zone. 1. .li.ihl. Prot.et Ar... The propoled a.e au.t be located on the frontale of one of the followlna arterial atreet. within the Clt~ of San lemardlno: A. I..t - W.at Arteriala 40th Street 9th Street "Ill Street Slah1and Annue 5th Street Foothill Ihd I..ellne Street Rial to Ayenue B. Barth - Rauth Arteri.l. WaterallD AYlDae ArrOWhead AYlDue I Street "to Vemon Annue D Street Sierra Va~ 2. %onln. Zonina aalt be appropriate for the propoled a.e and coapatible with the City'. Claneral Plan and all redeyelopment plan. If the deyelopaent lie., In whole or In part in a propo..d or adopted redeYelopaent project area. . SWP:dle:56271 -9-- .d~ 1__,.. DEVILOfIIIIft DIP~ '- U: DlVILOfIIIIft IlcmIVlS .lRD LIRA" (DIAL) '10CIAfI Jlme 3, 1992 -,...... , " 3. rimll!!ly r"eMltl.. .AbarDY.I 'ale -2- The De?eloPBlDt Department .u.t appro?e .11 Incentl? r.qu..t. for a..i.tanc.. All requ..t. and .ppro?al for a.ai.tanc. au.t b. applied for at or be for. 'ppro?l of the buildina p.rait, and clt~ Incentl?. viII not b. 'ppro?d r.troacti?ly In aQy c.... Upon r.c.ipt'of the Initial elilibility appro?al, it i. the r',poDlibilit~ of the .pplicant to r.que.t ita iDcentln in vritllll from the Dne10Pllent D.partmlDt of the IconOllic DenloPllent Aaenc~ within a pariod not to ac.ad thir~ (30) d~. or forf.it the incenti?. 4. Rev or antand.ct lu.hie.... Mu.t Create Job. ~. .ev Bu.I"..... A "new bu.in..." i. d.fln.d a. on. which I. .tart-up In nature or aD ai.tlna bU'Ine.. which ha. b.en r.locat.d to San Bernardino from anoth.r area, muuicipalit~ or ,0?'rDmlDtal juriadiction. A bu.ine.. which ba. b.en ,old, r',ultllll in a ehaDa. of ower.hip, will not be couaidered a new bu.in.... B. ~andln. BU81n...ea ,. -. AD ~anded bu'In..., UDd.r thl. crit.ria, i. on. that m..t. the follovlna crit.ria. (1) The ~anaion In?ol?a a p~.ical mo? of an ai.tina bu.ine.. into a n.v location withiD . de.ilnated .lilibl. area that r..ult. In at le..t . fift~ percent incr...e of peraanellt. full-time ..plo~e.. or an incr.... of two peraanent, full-time ..plo~e.., Vhichner b larler, within 011. ~'ar frOll the d.t. of .' the mon; and (2) A p~.ical ~analon of ai.tina faciliti.. which re'Ulta ill .t l...t a fifty percent illcre..e of peraanent, full-time "plo~ee. or an illcr.... of two peraanent, full-time "plo~.... whichner i. l.r.er, within on. ~'.r frOll the dat. of compl.tion of the ~an.ion. (3) Employee. fillilll the new po.itioD', add.d in p.r..r.ph one and tvo abo?, au.t be r..ident. of the Cit~ of San Bern.rdillo and ban been on the Job for .t leut nine 1I0ntlul. "" SWP:dl':56271 .". ~ d)(, 1--- - DIVU.OPlllIIT DI'~ _ H: DIVBLOPMIIIT !ltcurIVIS A1lD L!lfQClI CDUJ.) '10ClIAII Jm. 3. 1992 , ,,", 'al. -3- 5. I.h.~.. -- C~.p~f.l Are. For aQ1 qu.llfYlua n.v or 8Zpandlua bu.ln.... Which loc.t.. or 8Zpand. on an .pprov.d .rt.rl.l .tre.t. and .ppll.. for .uch ben.flt. .t or befon .pproval of the buUdllll p.nalt. the Aaenq .hall r.b.te to .ctlve. fmctlonlua Olllolua bu. In..... for a 'period not to exceed on. year. the follovlua Upon .pp1!c.tion: A. ODe hmdr.d p.rcent reb.ta of atllltJ .ervlc. a.er'. tax collected ~ the City fr~ the bu.lne.. durlua the p.riod for .ervlce ailed durllll th.t P.rtod mder the provllloDl of the Sm Bernardino Municpal Code .. applied to u.er. of telephone. .lectriclty. natural ,a. and cable t.l.vl.ion .ervlce. B. ODe hmdred percent rebate of the bu.lne.. llcen.e tax lmpo.ed durllll that period upon the bulln... enterprlae pur.uant to the San Bernardino Munlclp.l Code. C. lor nIY bu.lne.... only, twentY-flv. percent of the total vater bill coll.ct.d ~ the San B.rnardlno Boar<< of Vater Commll.lonerl fr~ the nIY bulln... durllll that period. 0nl1 the vater portion of .uch bUl .hall b. couldered for .uch rebate. ~. ,"" D. Itotvlthatandlua the provl.lou of 'ub.ectloDl A and B above. the rebate to be Irant.d to aQ1 8Zpmdlua bUllne.. .hall be ba.ed on the Itat.d p.rcental. of the lncre.le of IUch tax over and above a ba.. "OUllt. Which ba.. IIDOUllt .hall be the total UOUllt of each IUch tax Paid by that bullneal durllll the tve1ve-llonth p.rlod ~edlat.ly prec.diua IUch ezpanalon. I. Fe. h_DtIOll. __ C""erelal .Ar.. For aQ1 qU.llt.Jlua n.vor 8Zpandllll bu.lne.. Which loc.te. or 8Zpmdl . In elllible .real of the DIAL prolr.. the City .hall exempt It. on a one-time ba.ll. fr~ c.rtaln f.el to qU.llt.J11II nIY or 8Zpandlna bu.lne.le. loc.ted on .aJor arterial Itreetl of the DIAL 'rolrllD upon applicatiou. the folloviua: all euaiueerilll feel. plauniua feel. buildlua penait feel. CUltural development conltructlon feel. and aechmlcal feea lapoled ~ the City. 'tona drain and lever capacity fee charlel Ire ezprellly not exempt. 7. lehat.. -- IndU8trfal Are. . Duriua the flr.t year of operltlon of any quallfylua nIY lndultrial bUlinel1 that locatel on an approved aaJor art.rlal .treet. the A,ency .hall rebate the follovlua: ",. 'WP:dle:56271 .... ,--6 d& 1__ DIVILoPIInT DI'~ .." UI DIVILOPIInT lacurlVlI ARD LlRACD (DIAL) PlOQUII JlIIIe 3, 1992 "'"- , " 'a.e -4- A. 1'ventT-flYa percent of tha utlUtT la"ice lIaerl' tu.. pdd b)- lach bullne.. lIIIder the Ian Bernardino Municipal Code reletina to telephone, electrlcitT, nataral ,a. and cabl. televl.lon a.e darlna that one Tear period. B. 1'ventT-flYe percent of the badne.. Uc_i tu pdd b)- lach ba.lae.. for a p.riod not to excaed one Tear. , \. . c ' BWPld1el56271 ~ d~