HomeMy WebLinkAboutR24- Economic Development Agency f CITY OF SAN BERNARDINO ORIGINAL
ECONOMIC DEVELOPMENT AGENCY
FROM: Emil A. Marzullo SUBJECT: Expansion of the City of San Bernardino portion
Interim Executive Director of the San Bernardino Valley Enterprise Zone.
(Mount Vernon Corridor, State College, 401h
Street, Uptown, and Inland Valley
DATE: March 29,2011 Redevelopment Project Areas)
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Synopsis 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.
Recommended Motion(s):
(Mayor and Common Council)
Resolution of the Mayor and Common Council of the City of San Bernardino authorizing and approving the
submittal of a request for expansion of the geographic boundaries of the San Bernardino Valley Enterprise Zone by
the City of Colton,the City of San Bernardino,the County of San Bernardino and the Inland Valley Development
Agency
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Contact Person(s): Colin Strange Phone: (909)663-1044
Mount Vernon Corridor, State College,
40th Street,Uptown,and Inland Valley
Project Area(s): Redevelopment Project Areas Ward(s): All
Supporting Data Attached: Rl Staff Report❑Resolution(s) ❑Agreement(s)/Contract(s) 21 Map(s)❑ Letter(s)
FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A
Budget Authority: N/A
Signature: Fiscal Review:
Emil oMarzullo, m E utive Director Lori P zino- ,Inter' hief Financial Officer
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Commission/Council Notes:
PAAgendas\Comm Dev Commission\CDC 201 1\04-04-11 San Bernardino Valley Enterprise Zone Expansion SR.doc COMMISSION MEETING AGENDA
Meeting Date: 04/04/2011
Agenda Item Number: ���
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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EXPANSION OF THE CITY OF SAN BERNARDINO PORTION OF THE SAN
BERNARDINO VALLEY ENTERPRISE ZONE. (MOUNT VERNON CORRIDOR, STATE
COLLEGE, 40TH STREET, UPTOWN AND INLAND VALLEY REDEVELOPMENT
PROJECT AREAS)
BACKGROUND:
The purpose of the state enterprise zone program is to stimulate business and industrial growth in
depressed areas in the State of California ("State") by allowing businesses located within a State
designated enterprise zone to take advantage of certain credits and deductions against their State tax
liability. These include credit for new hires which can be as high as $37,440 over five years for each
new position created to deductions on tax liability for new equipment purchases, accelerated
depreciation and net interest deductions for lenders making loans within a zone.
In March 2006 the California State Department of Housing and Community Development ("HCD")
issued a Request for Proposals to fill 23 vacant enterprise zone designations out of a total of 42
allocated enterprise zones State wide.
On August 21, 2006, the Mayor and Common Council of the City of San Bernardino ("Council")
passed Resolution No. 2006-299 authorizing the submittal to HCD of a multi jurisdiction application
for the designation of 25,776 acres in the City of San Bernardino ("City"), including certain property in
the Inland Valley Development Agency Redevelopment Project Area, ("IVDA") the City of Colton
and certain unincorporated acres of the County of San Bernardino ("County") as the San Bernardino
Valley Enterprise Zone ("SBVEZ"). Of this acreage 10,673 acres allocated within the City and
comprises approximately 28 percent of the total land area of the City.
On March 5, 2009, HCD issued the SBVEZ its final designation status to take effect as of October 15,
2006. The Memorandum of Understanding between the State and the SBVEZ requires that 450 new
jobs are vouchered annually. Since 2007, the numbers average 932 per annum as follows:
Year Jobs Created
2007 130
2008 640
2009 944
2010 2,276
CURRENT ISSUE:
After a zone has received final designation the participating jurisdictions have the ability to increase
the total territory by not to exceed 15%. Should one jurisdiction not utilize all of its expansion acreage
through the process, it has the ability to offer any unused acreage to another jurisdiction within the
same zone.
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PA\Agendas\Comm Dev Commission\CDC 2011\04-04-11 San Bernardino Valley Enterprise Zone Expansion SA.doc COMMISSION MEETING AGENDA
Meeting Date: 0�4j/04/2011
Agenda Item Number: —
Economic Development Agency Staff Report
San Bernardino Valley Enterprise Zone Expansion
Page 2
Based upon its total acreage, the City of San Bernardino has the ability to add 1,636.52 additional acres
to the previous designation. The allocation is proposed with two criteria in mind.
1. Add the industrial/commercial space to the SBVEZ which is currently located within the Local
Area Military Base Recovery Act ("LAMBRA") zone at the San Bernardino International Airport
which is set to expire in the next five years. This will allow the property within the LAMBRA
designation to continue for another ten years as an enterprise zone 4 after the LAMBRA expires. JAe
2. Add as many commercial corridors to the SBVEZ as possible. These were omitted from the
original map because of different criteria required by HCD at the time of designation. This will add
the commercial corridors of:
a. "E" Street north of 7th Street
b. Baseline Street east of the 1-215 Freeway
c. Highland Avenue east of Muscupiabe Drive
d. Mount Vernon Avenue north of 5th Street
e. University Parkway
f. Kendall Avenue Retail
g. 401h Street Retail
h. Foothill Boulevard west of Rancho Avenue
i. Waterman Avenue north of 7th Street
It is therefore proposed that 300.13 acres be reserved for the IVDA, as per point number 1. above.
Any additional acreage required for the IVDA will be made available from the County allocation.
The remaining 1,336.39 acres will be sufficient to add the commercial corridors 2(a) through (i) above.
Because the zone must now be contiguous some streets have been included in the zone with no
purpose other than to connect University Parkway, Kendall Avenue, 401h Street, Eastern Highland
Avenue and Foothill Boulevard to the main body of the SBVEZ.
ENVIRONMENTAL IMPACT:
For the purposes of the California Environmental Quality Act ("CEQA") the Council made a finding
on December 17, 2007, that the environmental effects of the SBVEZ were adequately analyzed in the
Program Environmental Impact Report prepared for the City of San Bernardino General Plan, as
certified on November 1, 2005.
FISCAL IMPACT:
There is no charge from the state to add additional territory to an officially designated State Enterprise
Zone. The internal jurisdictional budget will not change either although the amount paid by each
member may change as the initial assessments were made on a percentage of the total acreage. The
other members have not yet finalized how many acres they wish to add, however, the total budget
between the four entities is $135,250 for 2011 of which the City's share was $48,179.00.
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P:Wgendas\Comm Dev Commission\CDC 2011\04-04-11 San Bernardino Valley Enterprise Zone Expansion SR.doc COMMISSION MEETING AGENDA
Meeting Date: 04/04/2011
Agenda Item Number:
2 & -%i 1.
Economic Development Agency Staff Report
San Bernardino Valley Enterprise Zone Expansion
Page 3
RECOMMENDATION:
That the Mayor and Common Council adopt the attached Resolution.
Emil A. Marzullo, Interim Executive Director
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PAAgendas\Comm Dev Commission\CDC 2011\04-04-11 San Bernardino Valley Enterprise Zone Expansion SR.doc COMMISSION MEETING AGENDA
Meeting Date: 04/04/2011
Agenda Item Number:
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1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
3 CITY OF SAN BERNARDINO AUTHORIZING AND APPROVING THE
SUBMITTAL OF A REQUEST FOR EXPANSION OF THE GEOGRAPHIC
4 BOUNDARIES OF THE SAN BERNARDINO VALLEY ENTERPRISE
ZONE BY THE CITY OF COLTON, THE CITY OF SAN BERNARDINO,
5 THE COUNTY OF SAN BERNARDINO AND THE INLAND VALLEY
6 DEVELOPMENT AGENCY
7 WHEREAS, the City of San Bernardino (the "City") adopted Resolution No. 2006-299 on
8 August 21, 2006, authorizing the preparation and submittal of a formal application to the State of
9 California Department of Housing and Community Development, for the designation of the "San
10 Bernardino Valley Enterprise Zone" ("SBVEZ"), in participation with the City of Colton, the
11 County of San Bernardino and the Inland Valley Development Agency ("IVDA"); and
12 WHEREAS, the SBVEZ was awarded a final designation by the State of California
13 Department of Housing and Community Development on March 5, 2009, retroactive to October 15,
14 2006; and
15 WHEREAS, the City of Colton, the City, the County of San Bernardino and the IVDA
16 entered into that certain Memorandum of Understanding dated November 19, 2008 ("MOU"),
17 regarding governance and participation in the SBVEZ; and
18 WHEREAS, the City of Colton, the City, the County of San Bernardino and the IVDA now
19 seek to expand the geographic boundaries of the SBVEZ, as allowed by California law; and
20 WHEREAS, the City of Colton, the City, the County of San Bernardino and the IVDA must
21 all approve any expansion of the SBVEZ, pursuant to the MOU, as part of submitting an expansion
22 request to the State of California.
23 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
24 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
25 FOLLOWS:
26 Section 1. Recitals. The recitals preceding this Resolution are true and correct and are
27 incorporated into this Resolution.
28
1
1 Section 2. CEQA. For the purposes of the California Environmental Quality Act
2 ("CEQA"), the Council made a finding on December 17, 2007, that the environmental effects of the
3 SBVEZ were adequately analyzed in the Program Environmental Impact Report prepared for the
4 City's General Plan, as certified on November 1, 2005.
5 Section 3. Approval of SBVEZ Expansion. The Mayor and Common Council of the
6 City of San Bernardino hereby authorizes and approves the submittal of a request to the State of
7 California for an expansion of the geographic boundaries of the SBVEZ by the City of Colton, the
8 City, the County of San Bernardino and the IVDA in accordance with the map of the expanded
9 SBVEZ boundaries attached hereto as Exhibit"A."
10 Section 4. City Manager Authority. The City Manager is authorized and directed to
11 deliver a copy of this Resolution to the City of Colton, the County of San Bernardino, the IVDA and
12 the State of California, as appropriate, regarding the submittal of a request to the State of California
13 for an expansion of the geographic boundaries of the SBVEZ.
14 Section 5. Notice of Determination. Staff is directed to file a Notice of Determination
15 with the San Bernardino County Clerk within five working days of the adoption of this Resolution.
16 Section 6. Effectiveness. This Resolution shall take effect upon its adoption and
17 execution in the manner as required by the City Charter.
18
19
20
21
22
23
24
25
26
27
28
2
I
I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AUTHORIZING AND APPROVING THE
2 SUBMITTAL OF A REQUEST FOR EXPANSION OF THE GEOGRAPHIC
3 BOUNDARIES OF THE SAN BERNARDINO VALLEY ENTERPRISE
ZONE BY THE CITY OF COLTON, THE CITY OF SAN BERNARDINO,
4 THE COUNTY OF SAN BERNARDINO AND THE INLAND VALLEY
DEVELOPMENT AGENCY
5
6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
7 Common Council of the City of San Bernardino at a meeting
8 thereof, held on the day of , 2011, by the following vote, to wit:
9 Council Members: Ayes Nays Abstain Absent
10 MARQUEZ
VACANT
11
BRINKER
12
SHORETT
13
KELLEY
14 JOHNSON
15 MC CAMMACK
16
17
18 Rachel G. Clark, City Clerk
19 The foregoing Resolution is hereby approved this day of , 2011.
20
21 Patrick J. Morris, Mayor
22 City of San Bernardino
23 Approved as to Form:
24
25 By:
ames F. Penman, City Attorney
26
27
28
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