HomeMy WebLinkAboutR01-Redevelopment Agency
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'. R~VELOPMENT AGENCY-.QaueST FOR o..lSSION/COUNCIL A~
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From: Glenda Saul, Executive Director
Subject:
EMPLOYMENT LINKAGE PROGRAM
Dept: Redevelopment Agency
Date: March 22, 1985
Synopsis of Previous Commission/Council action:
1-28-85
Approved, in concept, the development of an Employment Linkage Program
3-18-85
Continued to 3-19-85
3-19-85
Continued to 3-25-85
Recommsnded motion:
A) Approve program as submitted to Committee, or;
B) Approve program with the Ways and Means Committee's recommended changes, or;
C) Approve compromise program and direct staff to prepare suggested target areas to
the Redevelopment Committee for recommendations
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Signature
GLENDA SAUL
Contact person:
Phone:
3831l!ll
YES
Supporting data attached:
N/A
Ward:
ALL
FUNDING REQUIREMENTS:
Amount: $
Project:
March 25, 1985
No edverse Impact on City:
Date:
Council Notes:
878J/EB
Agenda Item Noo ~
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REOVELOPMENT AGENCY-QUEST FOR OMMISSION/COUNCIL Ac()oN
STAFF REPORT
On March 11, 1985, Staff submitted the proposed Employment Linkage Program to the Ways
and Means Committee.
The proposed program contained the following eligibility for a cash bonus:
(Alternative A)
1. Employers locating or expending in a Redevelopment Project
Area can receive a one time $500 bonus per employee for every
employee certified as JTPA eligible and retained in the job
for at least six months.
2. Employers locating in or expanding in the designated downtown
area (see attached as Exhibit A) can receive an additional one
time $500 bonus per employee for every employee certified as
JTPA eligible and retained on the job for a least six months.
3. Bonus money will be a maximum cap of $100,000 for each
employer.
The Ways and Means Committee recommended the following changes to the cash bonus
eligibility (Alternative B):
1. The program would be offered city wide, not restricting it to
redevelopment areas.
2. The downtown area would not be targeted for an additional
bonus. Rather, a cap of $1,000 would be set per employee and
the amount actually paid would be negotiated up front on a
case-by-case basis.
3. Bonus money will be a maximum cap of $100,000 for each
employer.
When staff initially developed the proposed program, the focus was on a small scale,
i.e. targeting only the downtown area. As a result of the Ways and Means Committee
suggested revisions of program expansion staff offers the follOWing alternative which
would not only expand the benefits of the program, it would also enable the Agency to
use tax increment money to fund the bonus incentive.
EMPLOYMENT LINltAGE
Pursuant to comments made at the 3-18-85 Commission/Council meeting, staff submits
the follOwing compromise in the bonus payment system which we believe can achieve the
goals of the Employment Linkage Program.
A)
For Employers Who are Eligible to $50,000 Bonus Payment:
Employers who hire JTPA eligible employees for siz months will be eligible
for a one time $1,000 per employee bonus.
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1) If the employer is located within a Redevelopment Project Area
or Survey & Planning Area and receives other financial
assistance from the Agency, the following deductions per
employee will apply:
a) Receives IDB - less $200 - Total $SOO/emp10yee
b) Receives other tax increment assistance - less $200 - Total
$600/emp10yee
2) If the employment is located within a targeted area and receives
other financial assistance from the Agency, the Agency may
negotiate the following:
a) Receives - IDB - may deduct up to $100 - Total $900/employee
b) Receives other tax increment assistance - may deduct up to $100
- Total $SOO/emp10yee
Example
An employer hires 20 certified employees and retains them on the job
for six months. The employer is located in a Redevelopment Project
but not a targeted area. The business has received IDB financing, and
off site improvements from the Agency.
His bonus payment would be as follows:
For each employee:
- Less $200 - IDB
- Less $200 - Tax Increment Asst.
$ 1,000.00
$ SOO.OO
$ 600.00
20 x $600 -
$12,000.00
If the employee is located within a targeted area, the bonus payment
would be:
20 x $SOO -
$ 1,000.00
$ 900.00*
$ SOO.OO*
$16,000.00
For each employee:
- Less $100 - IDB
- Less $100 - Tax Increment Asst.
* These deductions may be negotiated for business located within
targeted areas. The amount shown above is the least amount to be
accrued for 20 eligible employees.
B) For those businesses who are eligible to receive an amount over and
above $50,000, the following will apply:
For the first $50,000, the above formula is applicable.
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For the amount above $50,000 staff will negotiate the amount of
bonus received, based upon other financial assistance requested and
the long range impact of the business on the City.
The amount negotiated is capped at $100,000, and staff will bring
all proposals in this $50,000 - $100,000 range back to the Council
for approval.
This system satisfies the concerns of the Council for room to
negotiate, and also the concerns of the PIC and EDC. These
agencies feel some sort of base amount is needed to effectively
market the program in a way that will prevent the possibility of
any accusations of inequitable treatment or misrepresentation.
If the Commission authorizes Staff to implement Alternative C, Staff would bring back
to the CommiSSion, via the Redevelopment Committee, recommended target areas within
Redevelopment Project Areas and Survey and Planning areas.
At current time, the Agency has only one Survey and Planning Area, that being the
proposed Uptown Project. Staff would recommend that if those areas designated as
"target areas" are not within a program area, that specific action be taken to
incorporate said area as a designated Survey & Planning Area.
The targeted areas would ideally be restricted to a two-square or three-square block
area. They could be amended or the location may be considered and changed at a later
date as the program continues and evaluation occurs.
With this program, the Agency would have the ability to utilize its tax increment
dollars in both redevelopment project areas and survey and planning areas. It would
also leave room for negotiations and would expsnd the concentration of additional
incentives to a larger yet manageable sector of the City.
878J/EB
3-25-85
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EMPLOYMENT LINKAGE PROGRAM
On January 28, 1985, the Mayor and Common Council of San Bernardino
approved, in concept, the development of an Employment Linkage Program
for the coordination of employment and training programs with economic
development programs and services to better achieve the community
objectives of greater private investment in the City and increased
employment opportunities for City residente, particulsr1y unemployed,
economically disadvantaged individuals.
No one agency, firm or sector in a community has all the
information and resources needed to achieve local employment and economic
development objectives. Therefore, the vital component of the program is
the "link" between agencies thereby pooling together a unique set of
resources. A major component of the program is the "bonus" which will
produce a etrong incentive to draw business to San Bernardino.
As directed by Council, the following Employment LiDkage Program
design is submitted for Council consideration.
I. BACKGROUND
The ability of San Bernardino to retain and attract businesses,
revitalize the downtown and neighborhood commercial stripe, increase
residents' income and quality of life and create new job opportunities
for its unemployed population depends on a variety of factors. These
factors include competitively priced developable land, an infrastructure
conducive to development, investment financing available at a competitive
cost, a favorable tax structure, a skilled and available labor force and
a public sector willing and sb1e to assist development.
San Bernardino, through the Economic Development Council and
Redevelopment Agency, currently offers a variety of inducement a to retsin
and attract industrial and commercial development. These inducements
have ranged from land assembly, improvements and writedowne to public
improvements and tax increments to create financial incentives such as
below market rate loans, UDAGs and IDBs. Running parallel to these
inducements are the programs administered through the San Bernardino
Employment and Training Agency (administrative entity for the Private
Industry Council), which prOVides hiring and training services, salary
reimbursement and tax credits to employers. At this point in time, the
services offered by the Private Industry Council have never been directly
coordinated with the resources provided by the Redevelopment Agency or
the Economic Development Council. Adopting this plan will produce a
coordinated effort for both job-creating development projects and
job-filling placement programs which will provide successful community
revitalization and development.
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With over 23,600 other economic development programs in the United
States, the City of San Bernardino 18 in a very competitive market to
attract new businese. Therefore, it is particularly important to convey
a message that will set San Bernardino apart from its competitQrs. The
Employment LiDkage Program has been designed to coordinate all the tools
devised over the years, plus institute a unique cash bonus system, to
create a total investment incentive package.
II. DEFINITIONS
1. Certified Employee - This is an employee who is certified by San
Bernardino Employment & Training Agency to have met all conditions
set forth in the bonus eligibility criteria. They are Jobs
Partnership Training Act eligible, may be located in downtown area
and have been retained on the job for six monthe.
2. Economic Development Council - The Economic Development Council is
a non-profit corporation located in the City of San Bernardino that
is charged with the responsibility of stimulating and providing
investment opportunities through marketing of those areas which are
characterized by deterioration, blight or functional obsolescence
and to encourage continued investment in those areas where planned
and logical growth is necessary.
3. First Source Hiring Agreement: It. "best effort" contractural
agreement whereby an employer agrees to use the City's employment
and training system (SBETA) as a first source for recruitment of
all new entry level hires. The employer fills out an up10yment
plan specifying the number and types of jobs required, approximate
hire dates, salary range and other appropriate referral
information. The employment and training system is given a
reasonable time period to refer appropriate candidates. If
qualified applicants cannot be found in the stated time frame,
employers are free to uee any other recruitment source. All hiring
decisions rest with the employer.
4. The Job Training Partnership Act (JTPA) - Enacted in 1982, the Act
marshe11s federal, state and local resources to help prepare
economically disadvantaged and long-term unemployed people to
become productive labor force members. The JTPA has five sections:
Title I: Sets up the state/local delivery system and
addresses general program and administrative iesues,
delineating the public/private partnership.
Title II: Authorizes funding and sets requirements for local
training services for disadvantaged youths and adults.
Title III:
Establishes a program for dislocated workers.
Title IV:
and offers
system.
Amends the Wagner-Peyser and Social Security Acts
laws to foster coordination with the job training
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5. Jobs Training Partnership Act (JTPA) Eligibility
a) Residents of the San Bernardino, verified through rent
receipte, utility bills, registered letter, etc.
b) Economically disadvantaged residente, such as welfare
recipients, handicapped individuals and othere whose income
does not exceed $11,970 for a family of four as set forth by
the Lower Living Standard Income Level.
6. On-the-Job Training - On-the-job training (OJT) is conducted by
public or private employers who agree to hire the trainee in a job
at the firm'e standard wage for that job. Training must be for at
least two weeks and will be directed toward entry-level, upgrading
or retraining positions.
7. The Private Industry Council - Shares overall policy and oversight
responsibility for the City's employment and training programs with
the Mayor. The PIC represents local business leaders, education,
labor, rehabilitation agencies, community-based organizations,
economic development agencies and the local employment services.
8. The San Bernardino Employment and Training Agency (SBETA) - The
administrative entity for the Private Industry Council contracts
with agencies to conduct classroom training programs in a wide
variety of skill areas; develops customized training programs and
on-the-job trsining programs; provides recruitment, screening, and
direct referrals to employees; administers summer youth programs
and youth work experience programs.
9. The San Bernardino RedeVelopment Agency - The Redevelopment Agency
was established pursuant to the Community Redevelopment Law,
codified as Part I of Division 24 of the California Health & Safety
Code. The Agency is charged with the authority and responsibility
of redeveloping and upgrading blighted areas of the City.
10. Targeted Jobs Tax Credit (TJTC) - Employers who hire JTPA eligible
people can qualify for tax credits on their federal returns of up
to $3,000 the first year and $1,500 the second year for each
employee. Plus credit from the state.
11. Throughout the report, the following acronyms will apply:
Memorandum of Understanding - MOU
Jobs Partnership Training Act - JPTA
Private Industry Council - PIC
San Bernardino Employment & Training Agency - SBETA
San Bernardino Redevelopment.- RDA
Economic Development Council - EDC
On-the-Job Training - OJT
Targeted Jobs Tax Credit - TJTC
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III. LINKAGE PROGRAM DESIGN
A. Objectives
1. To increase and strengthen the coordination between economic
development activities, up10yment and training programs and
private employers.
2. To increase the number of businesses expanding in or relocating
to San Bernardino, specifically targeting the Redevelopment
Project areas and the area of downtown shown on the attached
Exhibit A.
3. To insure that the maximum number of entry level jobs created by
the City's economic development activities are targeted to
economically disadvantaged San Bernardino residents eligible for
assistance under eIIp10ym&nt and training programs funded through
federal, state and local sources.
4. To place unemployed, economically disadvantaged residents into
permanent entry level jobs without conflicting with any
collective bargaining agreements.
5. To improve the overall business climate.
6. To develop a joint marketing strategy and marketing resources
Which will present a competitive and unique investaent incentive
package.
B. Strategy
Program Operation
1. The Total Investment Incentive Package
The investaent incentive package will consist of the following,
tailored to meet the developers' or business' needs:
a) Up to $1,000 cash bonus for each eligible employee with a
maximum cap of $100,000 for each employer.
b) Customized training programs.
c) Salary reimbursement during training period.
d) Free recruitment, screening and referral services.
e) Qualified workers who can quality employers for etate and
federal tax credits.
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f) Below urket rate loans.
g) UDAGs
h) !DBs
i) Tax increment financing.
j) Owner Participation Agreemente; Disposition & Joint
Development Agreements
k) Special Assessment Financing
1) Land write-downs
m) On and off-site improvements
n) Small business loans
2. Operating Entities/Implementation
The Redevelopment Agency (BDA), the Economic Development Council
(EDe) and the San Bernardino Employment and Training Agency
(SBETA) (administrative entity for the Private Industry Council
(PIC)) will enter into a Memorandum of Understanding (MOU) Which
outlines the roles and responsibilities of each entity (see
Exhibit B).
Other related entities such as Operation Second Change will be
encouraged to become a party to the Employee Linkage Program.
3. Eligibility Requirements
a) Developer/Employer Eligibility
Any employer or developer who seeks financing aesistance from
the RDA or EDC will be requested to negotiate a contractual
agreement to participate in the Employment Linkage Program.
The contractual agreement will be in the form of a First
Source Hiring Agreement. For any employer/deVeloper who does
not wish to participate in the program, such information will
be submitted to the respective boards as to the final
decision for requesting financial assistance.
The First Source Hiring Agreement obligates the employer
to use the City's employment and training system as a
First Source for all new entry level hires; to give the
employment system reasonable notice of hire dates,
minimum requirements, 'salary range, and referral
preferences; to interview referrals; and to hire
qualified referrals. If the employment and training
eystem cannot meet the employer's needs, he is free to
use any other recruitment source.
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b) Cash Bonus Eligibility
1) Emp10yere locating or expanding in a Redeveloplllent
Project Area can receive a one time $500 bonue per
employee for every employee certified as JTPA eligible
and retained in the job for at least six months.
2) Employers locating in or expanding in the designated
downtown area (see attached as Exhibit A) can receive an
additional one time $500 bonue per employee for every
employee certified as JTPA eligible and retained on the
job for at least six months.
3) Bonus money will hsve a maximum cap of $100,000 for each
employer.
c) JTPA Eligibility
As per the Memorandum of Understanding (See Exhibit B), the
San Bernardino Employment and Training Agency (SBETA) will be
reeponsible for certification of JTPA eligibility, six month
retention verification and verification of employment in
designated areas.
4. Program Limitations
The Employment Linkage Program is limited to the following:
a) Businesses receiving assistance from the RDA or the !DC who
are expanding or relocating in the designated areas.
b) Permanent entry-level, ~ jobs.
c) Bonuses are one-time only and are limited to certified JTPA
eligible hires who are retained on the job for at least six
months.
5. Monitoring and Evaluation
As per the Memorandum of Understanding, evaluation will be
conducted on an on-going basis through regularly scheduled
meetings with designated staff of each agency. Evaluation will
also be measured by the number of actual referrale and hires.
Employee certification is part of the usual ongoing functions of
the SBETA, as ie monitoring for retention on a 30, 60 and 90 day
basis. It is anticipated no new staff will be needed for the
implementation of this program..
The Employment Linkage Program will produce minimal reporting
requirements on the employer or developer.
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C. Source of Funds
Proposed Budget
$340,000.00
1. Administrative Costs
No additional coats anticipated.
The program will utilize eXisting staff
of participating agencies.
2. Marketing
$ 60,000.00
RDA participation
$ 20,000.00
3. Bonus Program
$280,000.00
RDA participation
$280,000.00
$300,000.00
Sources
RDA
$100,000.00 - CDBG
$200,000.00 - Available funds
Note: Both PIC and EDC have budgeted $20,000.00 each for their
marketing participation. No new money is anticipated.
The above outlines funds for an anticipsted one year prolram. It is
the intent after the end of one year to prepare a status report and
long-range financial plan for the continued operation of the program.
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STEPS IN EMPLOYMENT LINltAGE PROGRAM
Employer/Developer
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1. RDA/EDC introduces Employment Linkage Program to the
employer/developer and presents a total investment incentive pBckage.
2. RDA/EDC tailors incentives to meet employer/developer needs, then
structures the financing incentives.
3. RDA/EDC calls in the SBETA staff to mutually deVelop Employment Plan
and First Source Hiring Agreement with the employer/developer.
4. RDA/EDC obtains necessary approvals for financing from po1icy-llaking
body.
5. RDA/EDC routes Employment Plan/First Source Hiring Agreement to SBETA
and records transaction in their tickler file.
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1. SBETA records Employment Plan/First Source Hiring Agreuent in their
tickler file.
2. SBETA contacts the employer prior to indicated hire date via a
"reminder letter" signed by the Mayor. Follows up with phone call.
3. SBETA provides recruitment, screening and referral services,
including TJTC referral (see definitions) and development of
customized training programs, as appropriate.
4. SBETA certifies 3TPA eligibility, 6 month job retention, and
employment in designated areas.
5. SBETA notifies RDA/EDC of certification for bonus eligibility.
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1. RDA disburses the bonus per the notification of certification of
eligibility.
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1. SBETA
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Monitors employment,
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Maintains a reporting system as per JTPA regulationa, and
Responds to RDA's and EDC's notification of data collection needs.
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MEMORANDUM
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OF
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BACKGROUMD
On
, 1985, the City of San Bernardino established all
Employment Linkage Program.
The primary goals of the Employment Linkage Program are: (1) To increase
the number of businesses expanding in or relocating to San Bernardino;
(2) To increase and strengthen the coordination between economic
development activities, employment and training programs and private
employers; and (3) To insure that the maximum number of jobs created by
the City's economic Development Programs are targeted to San Bernardino
residents, particularly economically disadvantaged persons who are
eligible for assistance under employment and training programs funded
through federal, state or local sources.
The objectives of Employment Linkage Program are to offer employers a
package of teclmical and training services, tax advantages, below market
rate financing and a cash bonus for hiring Job Training Partnership Act
(JTPA), eligible residents in the designated downtown and redevelopment
areas. The total package of incentives will be marketed jointly by all
three public entities who are party to this agreement.
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POB.POSE
This Memorandum of Understanding repreeents a statement of commitment
from all critical public entities to cooperate in achieving the goals and
objectives of the Employment Linkage Project.
SCOPE
This Memorandum of Understanding sets forth the procedures for
coordinated program development and implementation as provided in the
description of the role and responsibilities of each entity as it relates
to the goals and objectives of the Employment Linkage Project.
The public entities party to this agreement are: (1) Community
Development CommiSSion, doing business as the San Bernardino
Redevelopment Agency (RDA); (2) The San Bernardino Economic Development
Council (EDC); and (3) The San Bernardino Employment & Training Agency,
administrative entity for the Private Industry Council (SBETA).
ROLES AND RESPONSIBILITIES
A. The Redevelopment Agency will:
1. Assist in establishing an interagency network designed to
llllXimize the placuent of San Bernardino residents,
psrticulsr1y economically disadvantaged individuals, in private
sector jobs with businesses locating or expanding within an RDA
project area.
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2. Inform firms who come to the RDA for financing assistance
during the application process, of the requirement t9
contracturally agree to participate in the Employment Linkage
Program; and of the SBETA's ability to customize training and
referral services and generally promote the concept of
employment and training as another economic development tool.
3. Notify the SBETA representatives of meetings with employers in
order to jointly develop an Employment Plan and First Source
Hiring Agreement. Such Employment Plans shall include, but not
be limited to the following: Number of job opportunities,
types of jobs, location of jobs, projected hire dates, contact
person(s), and skill level required.
4. Route, on a timely basis, Employment Plans and First Source
Hiring Agreements to the EDC and the SBETA.
5. Develop and maintain a "tickler system" to record and track
Employment Linkage Program data.
6. Disburse cash or equivalent bonus to employers who SBETA has
certified as having met the etated eligibility requirements.
7. Assist in identifying employers' specialized training needs for
job openings identified under the Employment Linkage Program.
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8. Designate funds for the development of a joint marketing
program and participate in joint marketing activities,
including assisting in the development of appropriate
informational materials.
9. Notify the SBETA, on a timely basis, of all data collection
needs.
10. Serve as the linkage and primary contact between SBETA and
participating employers in the areas of negotiating
contractural conditions and resolving any issues and problems
which might develop.
11. Designate a staff member to coordinate the terms of this
Agreement on an ongoing basis.
12. The designated staff member will attend regularly echeduled
meetings according to a schedule agreed to by all parties in
order to develop the Employment Linkage Program and ensure its
ongoing efficiency.
13. Cooperate in the development and implementation of any
necessary joint staff training program.
14. Cooperate in other activities agreed to by all parties as
essential to effective program operation.
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B. The San Bernardino Employment & Training Agency will:
1. Assist in establiehing an interagency network designed to
maximize the placement of San Bernardino residents,
particularly economically disadvantaged individuals, in private
sector jobs with businesses locating or ezpsnding within an RDA
project area.
2. Respond to IDA and EDC notification of up10yer meetings and
assist in the development of Employment Plans and First Source
Hiring Agreements.
3. Provide employment and training assistance to employers who
complete and Employment Plan/First Source Hiring Agreement
under the auspices of the IDA and/or the EDC, to include, but
not limited to, the following: recruitment, screening and
referral services, including Targeted Jobs Tax Credits (TJTC)
referrals for prospective employees; and development of
On-the-Job Training (OJT) contracts.
4. Develop and maintain a "tickler" eystem to ensure that JTPAs
eligible and other City residents are referred to RDA &
EDC-identified employers in accord with required time1ines and
procedures.
5. Integrate a -Reminder Letter" and develop appropriate follow up
procedures for the "Tickler System".
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6. Certify the eligibility of those referred under the stated
guidelines of the Employment Linkage Program, inc1u4,ing the
certification of: residency, JTPA eligibility, six (6) month
job retention, employment in downtown and redevelopment areas.
7. Notify the RDA and the !DC of the firms who have not met the
stated eligibility requirements.
8. Ensure that subcontractors and other appropriate training
organizations are cognizant of job orders and referral
proceduree.
9. Maintain a reporting system per JTPA regulstions for collecting
data on Employment Linkage clients every 30, 60 and 90 days the
job retention certification.
10. Designate funds for the development of a joint marketing
program and participate in joint marketing activities,
including assisting in the development of appropriate
informational materials.
11. Respond to RDA's and EDC's notification of data collection
needs.
12. Designate a staff member to coordinate the terms of this
Agreement on an ongoing basis.
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13. Attend regularly echeduled l18etings according to a echedule
agreed to by all parties in order to develop the Employment
Linkage Program and ensure its ongoing efficiency.
14. Cooperate in the development and implementation of any
necessary joint staff training program.
15. Cooperate in other activities agreed to by all parties as
eseential to effective program operation.
C. The San Bernardino Economic Development Council will:
1. Assist in establishing an interagency network designed to
maximize the placement of San Bernardino residents,
particularly economically disadvantaged individuals, in private
sector jobs with businesses locating or expanding within an RDA
project area.
2. Inform firms who come to the EDC for financing assistance
during the application process of the requirement to
contractura1ly agree to participate in the Employment Linkage
Program; and of the PIC's ability to customize training and
referral services and generally promote the concept of
employment and training as another economic development tool.
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3. Notify the SBETA representatives of meetings with employers in
order to jointly develop an Employment Plan and FirsJ Source
Hiring Agreement. Such Employilent Plans shall include, but not
be limited tQ the following: Number of job opportunities,
types of jobs, location of jobs, projected hire dates, contact
person(s), and skill level required.
4. Route, on a timely basis, Employment Plans and First Source
Hiring Agreements to the RDA and the SBETA.
5. Develop and maintain a "tickler system" to record and track
Employment Linkage Program data.
6. Assist in identifying appropriate training programs for
training JTPA participants for job openings identified under
the Employment LiDkage Program.
7. Designate funds for the development of a joint marketing
program and participste in joint marketing activities,
including assisting in the development of appropriate
informational materials.
8. Notify the SBETA, on a timely basis, of all data collection
needs.
9. Designate a staff member to coordinate the terms of this
Agreement on an ongoing basie.
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10. Attend regularly scheduled _eting according to a schedule
agreed to by all parties in order to develop the Emp10yment
Linkage Program and ensure its ongoing efficiency.
11. Cooperate in the development and impluentation of any
necessary joint staff training program.
12. Cooperate in other activities agreed to by all parties as
essential to effective program operation.
It is recognized that all employer information will be kept confidential
to the extent allowable by law.
It is also recognized that other agencies or bodies may become party to
this at the mutual agreement of the RDA, the EDC, and the SBETA.
Evaluation of thie understanding will be performed jointly on a regular
basis.
THEREFORE, IT IS ALSO RECOGNIZED that either party may request amendments
or conditions set forth in this Understanding by submitting a request in
writing. Such written amendments shall be incorporated into this
Understanding through mutual consent. If at any time any party
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determines this working relaUonahip to be unsatisfactory, either due to
the failure of any party to fulfill any obligation specified i!l this
Understanding, or the onset of unforeseen circumstances, this
understanding can be terminated for cause by unilateral action.
THEREFORE, WE, THE UNDER.SIGNED HEREBY DECLARE OUR INTENT AND COMMITMENT
TO FULFILL THE PROVISIONS OF THIS MEMORANDUM OF UNDER.STANDING ON
THIS
day of
, 1985.
GLENDA SAUL, Executive Director
Redevelopment Agency
Date
JACK KELLY, Executive Director
Economic Development Council
Date
Date
GEORGE FUJIWARA
Executive Director
San Bernardino Employment &
Training Agency
GS:EB:jat:857J
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REOn,Jr. OPMENT AGENCY-QauEST FOR o..ISSION/COUNCIL AQION
STAFF REPORT
EMPLOYMENT LINltAGE
Pursuant to cOlllllents made at the 3-18-85 Commission/Council meeting,
staff submits the following compromise in the. bonus payment system
which we believe can achieve the goals of the Employment LiDksge
Program.
A) For Employers Who are Eligible to $50,000 Bonus Payment:
Employers who hire JTPA eligible employees for six months will be
eligible for a one time $1,000 per employee bonus.
1) If the employee is located within a Redevelopment Project Area
and receives other financial assistance from the Agency, the
following deductions per employee will apply:
a) Receives IDB - less $200 - Total $800/employee
b) Receives other tax increment assistance - less $200 - Total
$600/emp10yee
2) If the employment is located within a targeted area and receives
other financial assistance from the Agency, the Agency IIl8Y
negotiate the following:
a) Receives - !DB - may deduct up to $100 - Total $900/emp10yee
b) Receives other tax increment assistance - may deduct up to $100
- Total $800/emp10yee
B)
For those business who are eligible to receive an amount over and
above $50,000, staff will negotiate the amount of bonus received up
to the $100,000.00 cap and bring the proposal back to the Council
for approval.
This system satisfies the concerns of the Council for room to
negotiate, and slso the concerns of the PIC and EDC. These
agencies feel some sort of base amount is needed to effectively
market the program in a way that will prevent the ppssibility of
any accusations of inequitable treatment or misrepresentation.
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REDEVELOPMENT AGENCY.R!GUEST POll COMMISSION/COUNCIL ACTION
From: Glenda Saul, Executive Director
. Subject: EMPLOYMENT LINKAGE PROGRAM
Dept: Redevelopment Agency
Date: March 18, 1985
Synopsis of Previous Commission/Council action:
1-28-85
Approved, in concept, the development of an Employment Linkage Program
Recommsnded motion:
(OOMMUNITlr DEVELOPMENT OOMMISS ION)
A) Approve program as submitted to Committee, or;
B) Approve program with the Ways and Means Committee's recommended changes, or;
C) Approve compromise program and direct staff to prepare suggested target areas to
the Redevelopment Committee for recommendations
~~~
Signat
GLENDA SAUL
Contact person:
FUNDING REQUIREMENTS:
Amount: $
N/A
Phone: 383-5081
ALL
Ward:
Projact: ALL
Date: March 18, 1985
Supporting date attached:
YES
No edv8rse Impact on City:
Council Notes:
Aaenda Item No.
9
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. REAVELOPMENT AGENcy-IQQuEST FOR QMMISSION/COUNCIL A~
STAFF REPORT
On March 11, 1985, Staff submitted the proposed Employment Linkage Program to the Ways
and Means Committee.
The proposed program contained the following eligibility for a cash bonus:
(Alternative A)
1. Employers locating or expanding in a Redevelopment Project
Area can receive a one time $500 bonus per employee for every
employee certified as 3TPA e1ibib1e and retained in the job
for at least six months.
2. Employers locating in or expanding in the designated downtown
area (see attached as Exhibit A) can receive an additional one
time $500 bonus per employee for every employee certified as
3TPA elibib1e and retained on the job for a least eix IIlOnths.
3. Bonus money will be a maximum cap of $100,000 for each
employer.
The Ways and Means Committee reco_ended the following changes to the cash bonus
eligibility (Alternative B):
1. The program would be offered city wide, not restricting it to
redevelopment areas.
2. The downtown area would not be targeted for an additional
bonus. Rather, a cap of $1,000 would be set per employee and
the amount actually paid would be negotiated up front on a
case-by-case basis.
3. Bonus money will be a maximum cap of $100,000 for each
employer.
When staff initially developed the proposed program, the focus was on a 8mall scale,
i.e. targeting only the downtown area. As a result of the Ways and Means Committee
suggested revisions of program expansion,staff offere the follOWing alternative which
would not only expand the benefits of the program, it would also enable the Agency to
use taz increment money to fund the bonus incentive.
Staff offers the following for consideration:
1. A $500 bonus per employee for employer's locating or expanding
in a Redevelopment project area or a Survey and Planning
area. This bonus is applicable for every employee certified
as 3TPA elibible and retained in the job for at least eix
months.
2. An additional bonus of upt to $500 per employee for employers
locating or expanding in a targeted area located within a
Redevelopment Project Area or a Survey and Planning Area. The
additional amount not to exceed $500 per employee to be
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REAVELOPMENT AGENCY-.QQUEST FOR "MMISSION/COUNCIL A~
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STAFF REPORT
negotiated on a case-by-case basia taking into consideration
other incentives provided to the businesslDlll1.
3. Bonus money will be a maximum cap of $100,000 for each
employer.
If the Commission authorizes Staff to implement Alternative C, Staff would bring back
to the Commission, via the Redevelopment Committee, recommended target areas within
Redevelopment Project Areas and Survey and Planning areas.
At current time, the Agency has only one Survey and Planning Area, that being the
proposed Uptown Project. Staff would recommend that if those areas designated as
"target areas" are not within a program area, that specific action be taken to
incorporate said area as a designated Survey & Planning Area.
The targeted areas would ideally be restricted to a two-square or three-square block
area. They could be amended or the location msy be considered and changed at a later
date as the program continues and evaluation occurs.
With this program, the Agency would have the ability to utilize its tax increment
dollars in both redevelopment project areas and survey and planning areas. It would
also leave room for negotiations and would expand the concentration of additional
incentives to a larger yet manageable sector of the city.
878J/EB
3-18-85