HomeMy WebLinkAboutR25-Economic Development Agency CITY OF SAN BERNARDINO ORIGINAL
ECONOMIC DEVELOPMENT AGENCY
FROM: Emil A.Marzullo SUBJECT: Resolutions of the Mayor and Common Council in
Interim Executive Director opposition to the Governor of California's
proposal to abolish redevelopment agencies and
enterprise zones in California
DATE: February 9,2011
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Synoasis of Previous Commission/Council/Committee Action(s):
On February 10, 2011, Redevelopment Committee Members Johnson, Marquez and Brinker unanimously voted to
recommend that the Mayor and Common Council and the Community Development Commission consider this action for
approval.
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Recommended Motion(s):
(Mayor and Common Council)
A: Resolution of the Mayor and Common Council of the City of San Bernardino in opposition to the Governor of
California's proposal to abolish redevelopment agencies in California
(Mayor and Common Council)
B: Resolution of the Mayor and Common Council of the City of San Bernardino in opposition to the Governor of
California's proposal to abolish enterprise zones in California
Contact Person(s): Teri Baker Phone: (909)663-1044
Project Area(s): All Ward(s): All
Supporting Data Attached: 0 Staff Report 0 Resolution(s)❑Agreement(s)/Contract(s)❑Map(s)❑Letter(s)
FUNDING
REQUIREMENTS: Amount: $ -0- Source: N/A
Budget Authority: N/A
Signature: Fiscal Review:
Emil A.Marzull , erim cutive Director Lori P mo- ,In ie Financial Officer
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Commission/Council Notes: SQ 's 'AL.,
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P:\Agendas\Comm Dev Commission\CDC 2011\02-22-11 Resolutions opposing the Governors Proposal to Abolish RDAs&M.docs COMMISSION MEETING AGENDA
Meeting Date: 02/22/2011
Agenda Item Number: S-
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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RESOLUTIONS OF THE MAYOR AND COMMON COUNCIL IN OPPOSITION TO THE
GOVERNOR OF CALIFORNIA'S PROPOSAL TO ABOLISH REDEVELOPMENT
AGENCIES AND ENTERPRISE ZONES IN CALIFORNIA
BACKGROUND:
As part of the State's FY 2011-2012 budget proposal, the Governor is proposing to abolish
redevelopment agencies and enterprise zones in California. This plan would destroy local economies
by eliminating programs that lead to jobs, affordable housing, tax revenue to the City's General Fund
and economic recovery of blighted areas.
The League of California Cities, the California Redevelopment Association and the California
Association of Enterprise Zones have formally opposed the Governor's budget proposal and have
issued a "call for action" recommending that local agencies take action to defend their turf. The
Agency has taken several efforts in this regard:
• The Interim Executive Director clearly described the impact to the community that would result if
redevelopment agencies and enterprise zones were to be eliminated in a Point of View article in the
Sun newspaper
• The Office of Business Development has been working with local businesses on a letter writing
campaign aimed at all newly elected Assembly persons and Senators, as well as the Governor,
Speaker of the Assembly, President of the Senate and the Legislative Analyst's Office as well as
with all businesses visiting the Office of Business Development
• The Office of Business Development is working together with Assemblymember Wilmer Amina
Carter to develop strategies to save the San Bernardino Valley Enterprise Zone which is located in
the 62nd Assembly District
• The Interim Executive Director and the Director of the California Redevelopment Association
participated in a radio station interview to defend the need for redevelopment
CURRENT ISSUE:
In an effort to further our efforts in sending a strong message to the Governor and the Legislature
regarding the devastation that would result to our community if these two important programs were
abolished, two resolutions have been drafted for Mayor and Common Council approval opposing the
Governor's Plan and are attached for your consideration. Both resolutions (Redevelopment and
Enterprise Zone) describe the economic impacts locally, regionally, and statewide to the Governor's
proposal.
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P:\Agendas\Comm Dev Commission\CDC 2011\02-22-11 Resolutions Opposing the Governor's Proposal to Abolish RDAs&Us.docx COMMISSION MEETING AGENDA
Meeting Date: 02/22/2011
Agenda Item Number: ��s
Economic Development Agency Staff Report
Resolution Opposing the Governor's Proposal
to Abolish RDAs and EZs
Page 2
ENVIRONMENTAL IMPACT:
This does not meet the definition of a "project" under Section 15378 of the California Environmental
Quality Act ("CEQA"), which states that a "Project" means the whole of an action, which has a
potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable
indirect physical change in the environment.
FISCAL IMPACT:
None by this action.
RECOMMENDATION:
That the Mayor and Common Council adopt the attached Resolutions.
a /S�-, (/, )
Emil A. Marzullo, Interim Ex tive irector
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P.\Agendas\Comm Dev Commission\CDC 2011\02-22-11 Resolutions Opposing the Governor's Proposal to Abolish RDAs&PZs.docx COMMISSION MEETING AGENDA
Meeting Date: 02/22/2011
19-15—
Agenda Item Number: /'-17
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1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
3 CITY OF SAN BERNARDINO IN OPPOSITION TO THE GOVERNOR OF
CALIFORNIA'S PROPOSAL TO ABOLISH REDEVELOPMENT
4 AGENCIES IN CALIFORNIA
5 WHEREAS, as part of its 2011-2012 budget proposal, the Governor has proposed
6 permanently abolishing California's more than 400 local redevelopment agencies; and
7 WHEREAS, this proposal represents more of the same misguided and illegal State budget
8 raids of local government funds that voters have repeatedly sought to end, most recently in
9 November 2010, when an overwhelming 61% of voters elected to stop State raids of local
10 government funds, including redevelopment funds; and
11 WHEREAS, this proposal will bring very little financial benefit to the State. According to
12 the State Controller's Office, redevelopment agencies have more than $87 billion in bonds and other
13 contractual obligations that legally must be repaid before revenues are available to any other
14 purpose. In fact, according to the State Department of Finance's own budget documents, there will
15 be zero State savings in out years from shutting down redevelopment; and
16 WHEREAS, this proposal will destroy local economic development, including hundreds of
17 thousands of jobs and billions of dollars in local economic activity throughout California. In fact, in
18 the City of San Bernardino, abolishing redevelopment will destroy efforts to revitalize the
19 downtown including various projects and activities for commercial and retail development and
memo
20 p+ u- blic infrastructure for projects such as the new State Courthouse and renovation of the convention
21 center; and
22 WHEREAS, throughout California, redevelopment activities support 304,000 jobs annually,
23 including 170,600 construction jobs, contribute over$40 billion annually to California's economy in
24 the generation of goods and services, and generates more than $2 billion in state and local taxes in a
25 typical year; and
26 WHEREAS, eliminating redevelopment will take away one of the few tools local
27 governments have to comply with state requirements to plan for more compact urban development
28 supported by transit-oriented development, housing,jobs and.infrastructure; and
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P:\Agendas\Resolutions\Resolutions\2011\02-22-11 Resolution Opposing the Governor's Proposal to Abolish RDAs MCC Reso A.doc
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1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
3 CITY OF SAN BERNARDINO IN OPPOSITION TO THE GOVERNOR OF
CALIFORNIA'S PROPOSAL TO ABOLISH REDEVELOPMENT
4 AGENCIES IN CALIFORNIA
5 WHEREAS, as part of its 2011-2012 budget proposal, th Governor has proposed
6 permanently abolishing California's more than 400 local redevelop nt agencies; and
7 WHEREAS, this proposal represents more of the sam misguided and illegal State budget
8 raids of local government funds that voters have repe edly sought to end, most recently in
9 November 2010, when an overwhelming 61% of oters elected to stop State raids of local
10 government funds, including redevelopment funds- d
11 WHEREAS, this proposal will bring ve little financial benefit to the State. According to
12 the State Controller's Office,redevelopment gencies have more than $87 billion in bonds and other
13 contractual obligations that legally mus be repaid before revenues are available to any other
14 purpose. In fact, according to the State epartment of Finance's own budget documents, there will
15 be zero State savings in out years fro shutting down redevelopment; and
16 WHEREAS, this proposal 11 destroy local economic development, including hundreds of
17 thousands of jobs and billions of llars in local economic activity throughout California. In fact, in
i8 the City of San Bernardino, bolishing redevelopment will destroy efforts to revitalize the
19 downtown including a new vie theater and restaurants, redevelopment of the Carousel Mall,
20 development of a transit cent r, infrastructure for the new State Courthouse and renovation of the
21 convention center; and
22 WHEREAS, throu ut California, redevelopment activities support 304,000 jobs annually,
23 including 170,600 construc on jobs, contribute over$40 billion annually to California's economy in
24 the generation of goods an services, and generates more than $2 billion in state and local taxes in a
25 typical year; and
26 WHEREAS, eliminating redevelopment will take away one of the few tools local
27 governments have to comply with state requirements to plan for more compact urban development
28 supported by transit-oriented development, housing,jobs and infrastructure; and
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1 WHEREAS, eliminating redevelopment will destroy the development of affordable housing
2 in California. Redevelopment agencies are the second largest funder of affordable housing, behind
3 only the federal government, responsible for over 98,000 units of affordable housing since 1993;
4 and
5 WHEREAS, shutting down redevelopment agencies is a violation of multiple State and
6 Federal constitutional provisions.
7 NOW, THEREFORE, IT IS HEREBY RESOLVED, that the Mayor and Common Council
8 of the City of San Bernardino formally opposes the Governer of the State of California's proposal to
9 abolish redevelopment in California.
10 THEREFORE, BE IT FURTHER RESOLVED, that the Mayor and Common Council
11 authorizes its Council and staff to communicate its opposition to this proposal to the Governor, the
12 Legislature,business groups and citizens.
13 Section 1. This Resolution shall take effect upon its adoption and execution in the manner
14 as required b the City Charter.
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO IN OPPOSITION TO THE GOVERNOR OF
2 CALIFORNIA'S PROPOSAL TO ABOLISH REDEVELOPMENT
3 AGENCIES IN CALIFORNIA
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
5 Common Council of the City of San Bernardino at a meeting
6 thereof, held on the day of , 2011, by the following vote to wit:
7 Council Members: Ayes Nays Abstain Absent
8 MARQUEZ
9 VACANT
10 BRINKER
11 SHORETT
KELLEY
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13 JOHNSON
14 MC CAMMACK
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16 Rachel G. Clark, City Clerk
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18 The foregoing Resolution is hereby approved this day of , 2011.
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20 Patrick J. Morris, Mayor
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City of San Bernardino
22 Approved as to Form:
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By:
24 James F. Penman, City Attorney
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I RESOLUTION NO. COPY
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
3 CITY OF SAN BERNARDINO IN OPPOSITION TO THE GOVERNOR OF
CALIFORNIA'S PROPOSAL TO ABOLISH ENTERPRISE ZONES IN
4 CALIFORNIA
5 WHEREAS, as part of its 2011-2012 budget proposal, the Governor has proposed abolishing
6 California's 42 Enterprise Zones; and
7 WHEREAS, the purpose of the State Enterprise Zone Program is to stimulate business and
8 industrial growth in depressed areas in the State of California by allowing businesses located within
9 a State designated enterprise zone to take advantage of certain credits and deductions against their
10 State tax liability; and
11 WHEREAS, the State has very few tools at its disposal to attract new businesses and help
12 create jobs, especially in the most distressed communities; and
13 WHEREAS, areas in which enterprise zones are located have significantly higher
14 unemployment rates, some reaching close to 40 percent for minority populations; and
15 WHEREAS, in 2010, enterprise zones created or retained 118,000 jobs in California at a
16 time when the state is experiencing unprecedented unemployment; and
17 WHEREAS, part of the long-term solution to California's budget distress is economic
18 growth, enterprise zones are an important part of that path to recovery; and
19 WHEREAS, the Governor's proposal will destroy local business and job growth. In 2010,
20 the City of San Bernardino's enterprise zone activities were responsible for projects such as: Kohl's
21 online order distribution center, Dollar Tree's distribution center, Leggett & Platt manufacturing,
22 Royal Appliance manufacturing and Interline Brands' distribution center which collectively resulted
23 in 2,276 jobs being vouchered, as well as additional tax revenue.
24 NOW, THEREFORE, IT IS HEREBY RESOLVED, that the Mayor and Common Council
25 of the City of San Bernardino formally opposes the Governer of the State of California's proposal to
26 abolish Enterprise Zones in California.
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I THEREFORE, BE IT FURTHER RESOLVED, that the Mayor and Common Council
2 authorizes its Council and staff to communicate its opposition to this proposal to the Governor, the
3 Legislature, business groups and citizens.
4 Section 1. This Resolution shall take effect upon its adoption and execution in the manner
5 as required by the City Charter.
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MCC R—R dnn
I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO IN OPPOSITION TO THE GOVERNOR OF
2 CALIFORNIA'S PROPOSAL TO ABOLISH ENTERPRISE ZONES IN
3 CALIFORNIA
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
5 Common Council of the City of San Bernardino at a meeting
6 thereof,held on the day of , 2011, by the following vote to wit:
7 Council Members: Ayes Nays Abstain Absent
8 MARQUEZ
9 VACANT
10 BRINKER
11 SHORETT
12 KELLEY
13 JOHNSON
14 MC CAMMACK
15
16 Rachel G. Clark, City Clerk
17 The foregoing Resolution is hereby approved this day of , 2011.
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Patrick J. Morris, Mayor
20 City of San Bernardino
21 Approved as to Form:
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23 By:
James F. Penman, City Attorney
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