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Home My WebLink About54-Community Development CITY OF ..SAN BER~RDINOh} REQUEST ~R COUNCIL ACTION From: Kenneth J. Hen:1erscn, Direct:ar Chmo"lity Devel~.L November 9, 1989 Subject: BNTJ!lR1IRISB .. IR:ZNl'IVE OBDDI>>I:Z Dept: Date: I I !.. In Navea:i:ler, 1985, the Mayor ani n ..... ", 0:a.Inci.l adcpted Entezprise Zone u::: 0 Incentive Ordinance (Ordinance has a life of four (4) years). :p ;. -~... ::::l r~ m t.r.:J' C"'? ~; 0 -- Synopsis of Previous Council action: On October 2, 1989, the Mayor ani 0.....". 0:a.Inci.l oc:niuct:ed first ~f ~ revised EI1tEprise Zone Incentive Ordinance with a PI-'l<~ life of four.q4):,' years (NOI.~, 1989 to Nav~, 1993). ~, On October 16, 1989, the Mayor ani n ..... III Oluncil ClCI1tinJed this matter to NaIIeIi'.ler 20, 1989, so staff cxaUd provide ...~t on devel~d. activity dIJrirr,J first four (4) years of Entezprise Zone. Recommended motion: '!HAT 'lHE MAYeR AND CXIM:B 0XlNCIL 1W.JU>!E AND FIIE 'lHE AT'n\aIED STAFF ~. (SEE }mrz.'I'Il'I'\ AGE1Q ITEM t ). ~-- ~t.#' C. ~1 Contect person: Ken Hen:1erscn staff REport Phone: 5065 Supporting data attached: Ward: 1,2,3,5 & 6 FUNDING REQUIREMENTS: Amount: N/A Source: (Acct. No.) N/A (Acct. DescriDtion) NjA Finance: Council Notes: 75-0262 Agenda Item No - ~ L C'IT~ OF SAN BERQRDINO - REQUEST ~R COUNCIL ACTION .. STAFF REPORT In Nav~, 1985, the Mayor ani n ..... . , 0:a.Inci.l adcpted the Entezprise Zone Incentive Ordinance in o..lI-..tian with an EI1tEprise Zone llRl1icaticn IlUbaitted to the state of Califamia. 1I1i1e the City did not receive state Entezprise Zone n-ignatia'l, the Mayor ani n ...,. '" CCAmcil took actions to establish ani maintain our locally designated Entezprise Zone. 'lhe Zone has a life of fifteen (15) years. 'lhe incentives adcpted in 1985 are due to expire in NaI.......... of this year. 'lhe at:tad1ed ardinance i....--'B the EI1tEprise Zone incentives far a seca.:'1 falr (4) year period ani IllW'--tt& certain incentives ani }&..."........ as follows: a) Expands the infill hcAJsin:] target area to include the area north of Highl.arn Aveme, .. .,.,. "Ily refet'nld to as n..''''''"'1Il Heights, ani all areas scuth of Highland Avenue within the .......~Atel:lcundaries of the City. b) Allaws subdivisions within the I:lamdaries of the Entezprise Zone ani n..'-'1I1 Heights to receive infill incentives. c) Allows.' ....-. cia1 rehabilitatia'l activities within the t\ ....-.cla1 Area of the Ent:mprise Zone to be ~L frail all ~ fees, ~ fees, bI.i1din;J pmaj.t fees ani II8CtIanic:al fees i~ by the City, provided that such (. ....-. cia1 rehabilitation activity is privately fiMnced. 'lhe c..........iL ardinance only provides these incentives far new ar expm:iirq l:udr.... !S. 'lhe first ~ of the revised Entezprise Zone Incentive ominarx:le occurred on October 2, 1989. At the sec....:'1 nll!Idin;J oc:niuct:ed on October 16, 1989, CDm:ilman Flores lISkIld that the matter be ccntinued to Nav~ 20, 1989, so staff cxaUd provide infotmatia'l on devel~iL activity in the Zone dIJrirr,J its first four (4) years of existence. '!he infcmaatian set forth below.-rizes devel~jL activity dIJrirr,J the period rxrt:ed abc::IYe. - 'lhe incentives adcpted in Navea:i:ler, 1985, CXIIIerEld the followin:] areas: a) ReaM.....H..' lInfill ani Rehabilitation} : All ~ fees, en- qineerirr;J fees, hl1i1(lin;r pmaj.t fees ani II8CtIanic:al fees i1lp<l6Erl by City are ~L.ed. b) n ...._n ,oIA1 t'Nsw n ....Ati'!;Jllll and ""air ~1'IllZicrsl : City rebates one hunch...cI percent (loot) of utility tax far thnle (3) years, one hunW...cI per......iL (loot) of bJsiness license fee far thnle (3) years, twenty-five ~......iL (25%) of water USllgll c:tlarges far thnle (3) years ani all ~ fees, ~ fees, bI.i1di.rq pemi.t fees ani medlani.c:al fees i~ by City are ...........L.ed. 11/09/89 75.0264 ......L'ZiKnU.IUi .1CIlB ~ """"""IR: s&rf Report ~... P8g8 -2- o c) TYri",d-:ri.., (New Devel.........iLl: City rebates twenty-five percent (25%) of utility tax for thres (3) years ani twenty-five peI:u!lllt (25%) b.1siness license fee far thres (3) years. Based upon the abave incentives, loIe kncJw that thirty-six (36) infill devel~d.s have cxx:urred, includin;J twent.y-eight (28) sin:]1e-family residences, seven (7) dIlplexs ani one (1) triplex. In the area of hoosin:] rehabilitation, thirty-ane (31) sin:]1e-family r-i~ have been rehabilitated, primarily thraJgh the City's Neightlomood Rehab- ilitation P......"..aw, with an average rehabilitation cost of CIK"-.....J.- mately $15,000.00. In the Co ......... cia1 sector, SCIIIe t:hirty-seven (37) devel~d.s have cxx:urred, inc1udin;J thirty-ane (31) nsIf bJlIu- ani six (6) c' ........,- cia1 rehabilitation projects. nn-in;J the four (4) year period beqinnin:J Nav~, 1985 ani endin;J NaI...L.., 1989, only one (1) imustriaJ. devel~1t cxx:urred in the :imustrla1 designated area of the Entezprise Zone (Kimkc Qnporatia'l at 5455 Ird1stria1 Plnicway). -.......... of ~''l!t:e ani iDx1nsistent infCDll2ltian on jc:b creatian ani ret:entian, teliab1e data in tMee areas are not av>oi"'l:>le. 'Ibis infaz:matian cxaUd be cbtainsd by ~.,.._..L 1qrn::y staff thraJgh a survey of eacn nsIf ar expan:iiJlq b.Jsiness receivin:] ~ Zone benefits. As to the lack of ......r...........ce in the :imustrla1~ignated area of the Zone, the primary reuan far the dearth of d8wlo,..-..L activity is the lack of infrutructure in the NartbaI8st P-"-I'elo,.'-iL Project ~ :imustrla1 pmit. Histaty has shawn in the Sc:utheIISt: ani State OD.1lege imustriaJ. pal1aI that the insta11aticn of int.rastructure is the sin:]le IIIOSt effective tool in faci1itatinq imustriaJ. develop- ment. '!he City cannot: l'8IISa'IlIbly IDlplICt significant activity in this area until the infrasaucture f~ i...._ have been al)o( fully resolved. As is noted earlier, the Zone has a life of fiftec1 (15) years. It is ilIp)rtant that the incentives, inc1udin;J tbcee described abave, remain in place, in ......i:... far the Zone to have a l'8IISa'IlIble dw1ce of suc- cess. a....-iL case s"Vli... on allX f'I:Il ~ Zaws p:ablished by the U.S. Department of n ....-. ce reveal that zones begin to shaw a marked ~ in devel_d. activity dIJrirr,J yean; five (5) thraJgh seven (7) if }&""1""Lly IIlIlJ:iteted ani 1IIlII'Ja9lild. I reo. ....-ld adcpt:ian of the fom mat:ian ani ClK"-uVal of the ~ Zone Incentive ominarxle cantained elsab!re in your agenda pacItet. \J~ G. ~J. Dizec:t:or of Chmo"lity Devel~,L KJlVlab/3532 Nov. 9, 1989