HomeMy WebLinkAboutR02-Redevelopment Agency
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~ RE'*VELOPMENT AGENCY-~ST FOR Q.,1SSION/COUNClL Ac9a.
From: Glenda Saul, Executive Director
Subject: ENTERPRISE ZONE
Dept: Redevelopment Agency
Date: March 25, 1985
Synopsis of Prsvious Commission/Council action:
3-19-85
3-20-85
3-21-85
Approval of application under AB 40
Review by Ways & Means COlllllittee
Review by Ways & Means Committee
Recommended motion:
MAYOR AND COUNCIL ACTION
COMMUNITY DEVELOPMENT COMMISSION ACTION
a. Move approval of the boundaries for the Enterprise Zone as proposed.
b. Move approval of boundaries for the commercial and industrial areas within the
Enterprise Zone.
c. Move to approve, in concept, the attached list of local incentives with final
review and approval to be given prior to submission of the application.
~~
Signature
GLENDA SAUL
FUNDING REQUIREMENTS:
Amount: $
N/A
Phons: 383-5081
Ward: 1,2,3,6
Project: N/A
Date: March 25, 1985
Contact person:
Supporting data stteched:
YES
No adverse Impact on City:
Council Notes:
380S/OJ
Agenda Item Noo
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REOVELOPMENT AGENCY-~ST FOR OMMISSION/COUNCIL AOoN
STAFF REPORT
On March 19, 1985, the Commission reviewed the staff proposal for the Enterprise Zone
application and referred the matters of boundaries local incentives to the Ways and
Means Committee. On March 20 and 21, 1985, staff met with the committee to review
the proposals.
As a result of the meetings, the boundaries have been adjusted as shown on Exhibit
"A". The committee felt that the focus of the commercial designation should be the
west side of the freeway, primarily the Mt. Vernon and Baseline corridors.
Although the committee recommended the commercial area to include the Baseline, Mt.
Vernon and 2nd Street areas, in discussion with the State, staff has determined that
the State may not approve the designation for the following reasons:
1) The proposed commercial designation includes more than one commercial area.
2) The proposed commercial area includes areas zoned primarily residential.
3) The proposed commercial area is in conflict with the general plan and the
Northwest Redevelopment Plan.
For application purposes, therefore, staff would, recommend a revision of the
commercial area to include only the 18 acre commercial site at Baseline and Muscott.
It should be noted that, once accepted by the State, the City can offer like
incentives to these other commercial areas.
Also during the discussions, the committee approved, in concept, the attached list of
local incentives. Staff recommends that the commission give preliminary approval of
the incentives, with final review and approval to be given prior to the actual
submission of the application.
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POSSIBLE INCENTIVES FOR USE IN ENTERPRISE ZONE
I. Incentives for use in entire Enterprise Zone.
a) ElR
The Environmental Impact Report for the City's Enterprise Zone shall
be in sufficient detail that any new development occurring within the
zone shall be grandfathered in through a negative declaration,
thereby avoiding a new ElR.
b) Financing
The Redevelopment Agency will work with local fincancia1 institutions
to secure a commitment for long-term financing for projects within
the zone.
c) Beautification Program
Within the eligible area, funds will be granted on a dollar for
dollar basis, up to a maximum of $5,000 per bUilding, for improvement
on commercial or industrial property. Funds may be used to pay for
materials, supplies, and 50% of labor costs for exterior improvements.
d) Employment Linkage
New or expansion businesses, locating within the zone who agree to
enter into a First Source Hiring Agreement with the Agency and the
Private Industry Council for the hiring of new, entry-level positions
will receive a cash bonus of up to $500 per employee hired under the
agreement. Employees will receive referrals from the San Bernardino
Employment 'and Training Agency. Businesses located within specified
target areas will receive an additional up to $500 per employee hired
under the agreement.
e) Streamlining
The Agency and City will cooperate in an effort to reduce review and
approval time for developments located within the zone. A staff
member will be designated as a contact for developers to assist in
speeding the approval process and assuring that the developer has the
requisite material submitted. A flow chart specifying departments
involved in review, length of review time, elements required, and
departmental contacts will be developed and published.
e) Small Business
The Agency will develop a Memorandum of Understanding with the San
Bernardino Area Chamber of Commerce and the local university and
community college to provide technical, management, and financial
assistance to small and medium sized businesses located within the
zone.
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f) Available Land
The Agency will develop and maintain a database of available land
within the zone. Information within the database will include:
ownership, estimated value, current zoning, current use, location,
tax information. The Agency will work with the State University to
develop this database. Develop process for pre-approval of sites.
g) Education
The Agency will develop a Memorandum of Understanding with both the
Community College District and State University to provide
educational opportunities for the residents and business persons
within the zone. Courses of study developed in response to
specific needs of the businesses located within the zone will be
developed.
II. Incentives for Use in Commercial Area
a) Incentives covered under I. above.
b) Rebate of Utility Tax
New or expanding businesses will be given a rebate of utility tax
for two years. In year three, 75% of the utility tax will be
rebated. In year four, 50%. In year five, 25%. Beginning in year
six, the business shall pay the normal utility tax.
c) Trash Collection
New or expanding businesses shall receive free trash collection for
two years. In year three the business shall be charged 25% of the
usual fee. In year four, 50%. In year five, 75%. Beginning in
year six, the business will be charged standard rates.
d) Sewer Capacity Fees
New or expanding businesses shall receive a rebate of 50% of sewer
capacity fees.
e) Working Capital
A minimum of 50% of the 1% reserve and development fee collected
from Industrial Development Bonds will be used to create a loan
pool to fund low interest loans for working capital for new and
expanding businesses owned by women or minorities.
f) Water Rates
New or expanding businesses will receive a 10% rebate of monthly
water charge.
NOTE: All financial incentives offered in the commercially designated
are conditioned upon the business hiring unemployed residents
of the Enterprise Zone area.
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III. Incentives for Use in Industrial Area
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a) Incentives covered under 1. above.
b) Development fees.
The City will rebate development fees for any new or expanding
industrial development.
c) Incubator
The Agency. under the terms of a Memorandum of Understanding will
work with the Chamber of Commerce and Economic Development
Corporation to provide an incubator project for the creation of new
industrial business within the zone.
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T~ information gathered by City ~inistrator and p~ided to
~ and Means Committee on 3/21/8\.1 '-'
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FOR INFORMATION ONLY
Additional Incentives for Use in Enterprise Zone
1. City will dedicate surplus land to a neighborhood
group (preferably an existing neighborhood group)
in order that they can set up a business them-
selves, or leverage the land for an outside opera-
tor to develop a business that will create jobs.
2. Hire businesses or residents within Zone to provide
services, e.g. park maintenance, trash collection
in Zone, in order to produce jobs and reduce costs
of providing such services by City.
3. Grant diversion (Allowed by Federal Law changed in
July 1984) -- put AFDC payments as partial salary
payments. (AFDC payments will be reimbursed to the
business that hires such persons).
4.
Lower the level of workers' compensation
unemployment benefits for employees within
(requires State sanction).
Day Care reimbursement of $388 to employees.
and
Zone
5.
.
6. A cash bonus of $1,888 reimbursed to the business
during the training of a low or unskilled employee.
7. City will commit to dOing certain capital improve-
ments, e.g. street paving, curbs and gutter con-
struction, within the Zone. Priority will be given
to businesses that are labor-intensive.
8. Increased Fire, Police services in Zone.
9. Increased trash pickup, street sweeping services.
18. Lower fees and charges, e.g. water, sewer hookup,
building permit, license, etc.
11. Employment bonus when hiring low income minorities.
12. Job-Assistance Center a joint venture with
School District, Community College, State Univer-
sity, and Private Development Council to provide
job assessment and placement to residents within
Zone. (Supplementing No. 9 on Education Opportuni-
ties).
13.
Adopt-a-Business --
new/small business
facilitate a working
other companies they
major corporation will adopt a
within Zone in order to
relationship with them or with
have access to.
14. Corporate Franchise Tax exclusion.
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15. Land/property payments, in lieu of taxes, paid
within Zone are collected as special funds for the
purpose of demolition of old buildings, land
banking, upgrade police security, etc. for the
Zone.
16. City will assist in issuing revenue bonds to assist
in financing capital projects.
17. A Committee made of of Zone residents and business-
es to market and publicize the Enterprise Zone
Program to other businesses which are considering
relocation. (Emphasis is on neighborhood involve-
ment).
18. The use of lOBs to provide start-up capital for
small businesses.
19. Give businesses located within Zone a lower
property assessment valuation in order to lower
their property taxes.
28. Tax abatement through a combination of State and
local taxes, e.g. sales tax.
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POSSIBLE INCENTIVES FOR USE IN ENTERPRISE ZONE
1. City Fees and Utility Tax
SO% of City fees collected within the eligible and industrial areas
of the Enterprise Zone for the first 5 years will be designated for
specific uses within the areas, such as funding infrastructure
improvements or funding a loan pool for use in facade improvement
through the Beautification Program. The remaining 10 years in the
life of the Zone, the amount would drop to 60%.
2. EIR
The Environmental Impact Report for the City's Enterprise Zone shall
be in sufficient detail that any new development occurring within the
zone shall be grandfathered in through a negative declaration,
thereby avoiding a new EIR.
3. Financing
The Redevelopment Agency will work with local fincancia1 institutions
to secure a commitment for long-term financing for projects within
the zone.
4. Facade Improvement (Beautification Program)
Within the eligible area, funds will be granted on a dollar for
dollar basis, up to a IIB.ximum of $5,000 per building, for facade
improvement on commercial or industrial property. Funds may be used
to pay for materials, supplies, and 50% of labor costs for exterior
improvements.
5. Employment Linkage
New or expansion businesses, locating within the zone who agree to
enter into a First Source Hiring Agreement with the Agency and the
Private Industry Council for the hiring of new, entry-level positions
will receive a cash bonus of $500 per employee hired under the
agreement. Employees will receive referrals from the San Bernardino
Employment and Training Agency. Businesses located within specified
target areas will receive an additional $500 per employee hired under
the agreement.
6. Streamlining
The Agency and City will cooperate in an effort to reduce review and
approval time for developments located within the zone. A staff
member will be designated as a contact for developers to assist in
speeding the approval process and assuring that the developer has the
requisite material submitted. A flow chert specifying departments
involved in review, length of review time, elements required, and
departmental contacts will be developed and published.
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7. Small Business
The Agency will work with the San Bernardino Area Chamber- of Commerce
and the local university and community college under the terms of a
Memorandum of Understanding (to be developed) to provide technical,
management, and financial assistance to small and medium sized
businesses located within the zone.
8. Available Land
The Agency will develop and maintain a database of available land
within the zone. Information within the database will include:
ownership, estimated value, current zoning, current use, location,
tax information. The Agency will work with the State University to
develop this database. Develop process for pre-approval of sites.
9. Education
The Agency will work with both the Community College Dietrict and
State University under the terms of a Memorandum of Understanding to
provide educational opportunities for the residents and business
persons within the zone. Courses of study developed in response to
specific needs of the businesses located within the zone will be
developed.
10. Relief
The City will grant relief from parking and set back requirements in
the zone on a case by case review.
The City will create an Enterprise Zone review committee which will
have priority over the granting of any relief.
11. Incubator
The Agency, under the terms of a Memorandum of Understanding (to be
developed), will work with the Chamber of Commerce and Economic
Development Corporation to provide an incubator project for the
creation of new industrial business within the zone.
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