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CITY OF SAN BeRNARDINO -
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ReQUeST FOR COUNCIL ACTION
From:
Kenneth J. Herderson, Director
Subject:
Dr.L'I:il<t'RISE ZONI!l IK3flTlE
ORDDWa
Dept:
Community Deve10pnent
Date:
September 26, 1989
Synopsis of Previous Council action:
In November 1985, ~ Mayor am Ca'mtDn eourx::il adcpted the Enterprise Zone
Incentive Ordinance which provided f:inan::ial i.rx::entives for certain b.Jsiness
am residential activity.
Recommended motion:
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'!HAT FURlHER RFADING OF '!HE ATrAaiED ORDINANCE REIATDC '10 ENrEmmSE zooi; Mii
INFIIL HOOSING INCENI'IVES BE IAID OVER FOR FINAL PASS1I.GE.
Phone:
5065
Supporting data attached:
Ward:
1-7
FUNDING REQUIREMENTS:
Amount: N/A
Source: (Acct. No.) N/A
(Acct. DescriPtion)
N/A
Finance:
Council Notes:
75-0262
Agenda Item NO~
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
In November, 1985, the Mayor ani Catutal ColD1cil adopted the Enterprise Zone
Incentive Ordinance in connection with an Enterprise Zone awlication sub-
mitted to the state of California. While the City did not I'eCleive state
EnteJ:prise Zone designation, the Mayor and CatmJn ColD1cil took actions to
establish ani maintain our locally designated EnteJ:prise Zone. '!he Zone has
a life of fifteen (15) years.
'!he incentives adopted in 1985 are due to expire iri November of this year.
'!he attached ordinance renews the Entel:prise Zone incentives for a secorrl
four (4) year period ani suwlements certain incentives ani programs as
follows:
a) Expams the Will housirg target area to inclu:le the area north of .
Highlani Avenue, <XAllllunly referred to as Delmam Heights, ani all areas
south of Highlani Avenue within the corporate boorrlaries of the City.
b) Allows subdivisions within the boorrlaries of the Enterprise Zone ani
Delmann Heights to receive Will incentives.
c) Allows c:x:mnercial rehabilitatial activities within the Cl:IrIIIez'cial Area
of the Enterprise Zone to be exenpt fran all planni.n;J fees, ergineerirg
fees, buildin;;J pennit fees ani mechanical fees in'{:a;ed by the City,
provided that such ocmnercial rehabilitation activity is privately
financEd. '!he current ordinance only provides these incentives for new
or expaOOi.n;J businesses.
Approval ani adoption of the attached ordinance will renew the Enterprise
Zone develcpnent i.ricentives for the period beginnirg November, 1989, an:i
errlirg November, 1993, ani suwlement certain incentives an:i programs in
accord with the Enterprise Zone develcpnent strategy.
'!his item was Dlaoed al the BUq)l~A' aaerp. at the reQUest ~ = ~~~r
ani as a result of meetirms c::omuct:ed l::!y the !favor ani staff wi :_ f '_
cials in connection with the City/HUD Joint venture for Aft: =~.
In order for this Droiect ani others to receive ~ assi_ _HUD.
it is imcortant that the attached ordinance be cons:i:_.
I reccmnerxi adcption of the form ll'Otion.
KENNE'lH J.
Director of Community
KJHjlab/3443
attachment
09/26/89
elopnent
75-0264
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ORDINANCE NUMBER
ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION
3.18.030(1'), 3.18.040, 3.18.050, 3.18.060 AND 3.18.070 OF THE SAN
BERNARDINO MUNICIPAL CODE AND ESTABLISHING THE REQUIREMENTS FOR A
FOUR (4) YEAR REVIEW OF THB ENTERPRISE ZONE INCENTIVES ANI> RENEW-
ING INCENTIVES TO BE GRANTED IN DESIGNATED AREAS OF THE CITY.
THB MAYOR AND COJOlON COUNCIL OJ' THB CITY 01' SAN BBRNARDINO DO
ORDAIN AS FOLLOWS:
SECTION 1. Section 3.18.030, Subsection "P" of the San Ber-
nardino Municipal Code is amended to read as follows:
P. "Infill Housing" as used in this chapter is single family
home construction built on vacant lots in neighborhoods existing
at the time of adoption of this chapter, or built on lots where
existing structures are demolished or removed for the construe
tion of single-family homes.
SECTION 2. Section 3.18.040 of the San Bernardino Municipal
Code is amended to read as follows:
Rebates -- Commercial Area. Por any qualifying new or
expanding business which locates or expands in the Enterprise
Zone within the second four (4) years of the life of the
Enterprise Zone, City shall rebate for three (3) years to
qualifying new or expanding businesses located within the
Commercial Area of the Enterprise Zone, upon application, the
following:
A. One-hundred percent (100%) rebate of utility service
users' taxes collected by City from the business enterprise
during that period for service used during that period under the
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provisions of Chapter 3.44 of the San Bernardino Municipal Code
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as applied to users of telephone, electricity, natural gas and
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cable television service.
B. One-hundred percent (100%) rebate of the business license
tax imposed during that period upon the business enterprise under
Chapter 5.04 of the San Bernardino Municipal Code. The City
Clerk may administratively grant the rebate at the time of
initial and annual application.
C. For new businesses only, twenty-five percent (25%) of the
total water bill collected by the San Bernardino Board of Water
Commissioners from the new business during that period. Only the
water portion of such bill shall be considered for such rebate.
D. Notwithstanding the provisions of Subsections A and B
above, the rebate to be granted to any expanding business shall
be based on the stated percentage of the increase of such tax
over and above a base amount, which base amount shall be the
total amount of each such tax paid by that business during the
twelve (12) month period immediately preceding such expansion.
SECTION 3. Section 3.18.050 of the San Bernardino Municipal
Code is amended to read as follows:
Fee Exemptions -- Commercial Area.
For any qualifying new or expanding business which locates or
expands in the Enterprise Zone within the second four (4) years
of the life of the Enterprise Zone, City shall exempt from
certain fees for three (3) years to qualifying new or expanding
businesses located within the Commercial Area of the Enterprise
Zone, upon application, the following: all engineering fees,
planning fees, building permit fees, and mechanical fees imposed
by the City. Storm drain and sewer capacity fee charges are
expressly not exempt. Commercial rehabilitation projects within
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1 the Commercial Area of the Enterprise Zone shall be exempt from
2 all engineering fees, planning fees, building permit fees and
3 mechanical fees imposed by the city, when such commercial rehab-
4 ilitation is privately financed. storm drain and sewer capacity
5 fee charges are expressly not exempt. Where such cOmmercial
6 rehabilitation is financed in whole or in part by the City, the
7 commercial property owner shall pay all fees associated with said
8 commercial rehabilitation.
9 SECTION 4. Section 3.18.060 of the San Bernardino Municipal
10 Code is amended to read as follows:
11 Rebates -- Industrial Area. During the first year of
12 operation of any new industrial business located within the
13 Industrial Area of the Enterprise Zone, City shall rebate to
14 qualifying new businesses, upon application, the following:
15 A. Twenty-five percent (25%) of the utility service users'
16 taxes paid by such business under Chapter 3.44 of the San Bernar-
17 dino Municipal Code, relating to telephone, electricity, natural
18 gas and cable television use during that period.
19 B. Twenty-five percent (25%) of the business license tax
20 paid by such business for the period under the provisions of
21 Chapter 5.04 of the San Bernardino Municipal Code. The City
22 Clerk may administratively grant the rebate at the time of
23 initial and annual application.
SECTION 5. Section 3.18.070 of the San Bernardino Municipal
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Code is amended to read as follows:
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Fee ExemDtions -- Infill Housinq; Housinq Rehabilitation.
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A. Infill housing projects within the infill target area, as
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defined in'section 3.18.070, subsection "B", shall be exempt from
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all engineering fees, planning fees, building permit fees
and mechanical fees imposed by the city. storm drain and sewer
capacity fee charges are expressly not exempt, provided, however,
that the City's existing policy regarding exemptions where homes
and structures have previously been connected to the Sewer and
have been demolished, shall continue in effect. Housing rehab-
ilitation projects within the Enterprise Zone shall be exempt
from all engineering fees, planning fees, building permit fees
and mechanical fees imposed by the city. storm drain and sewer
capacity fee charges are expressly not exempt.
B. The target area for infill housing activities shall in-
clude the area north of Highland Avenue, commonly referred to as
Delmann Heights, and all areas south of Highland Avenue within
the corporate boundaries of the City.
1) Within the boundaries of the Enterprise Zone and
Delmann Heights, there shall be no limit as to the number of
contiguous lots qualifying for infill fee exemptions, as defined
of this chapter, for single-family dwelling
in Section 3.18.070
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unit construction.
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tions on contiguous
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nardino at a
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18 NAYES:
19 ABSENT:
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first four (4) years of the life of the Enteprise Zone and at the
end of each four (4) year period thereafter, at which time the
Mayor and Common Council will take steps to enhance the needed
overall development strategy of the designated Commercial Area.
SECTION 7.
This ordinance, upon adoption, renews all incentives to be
granted new business, expanding businesses, commercial rehabili-
tation projects, and infill housing activities located within the
Enterprise Zone and infill housing target areas of the City for a
period of four (4) years from the date said ordinance goes into
effect.
I HEREBY CERTIFY that the foregoing ordinance was duly
adopted by the Mayor and Common Council of the City of San Ber-
meeting thereof, held on the ___ day
, 1989, by the following vote, to wit:
Council Members
CITY CLERK
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ENTERPRISE ZONE~INANCE
1 The foregoing ordinance is hereby approved this ___ day of
2 , 1989.
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4 Mayor, City of San Bernardino
5 Approved as to form
6 and legal content:
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