Loading...
HomeMy WebLinkAboutS1-Community Development CITY OF SAN SER..- '.RDIN~ REQUEST r'R COUNCIL ACTION From: Kenneth J. Herrlerson, Drrector Subject: ENl'ERPRISE ZONE DI::ENI'l:VE ORDDmK::E Dept: Community Develq:ment Date: March 13, 1990 Synopsis of Previous Council action: In November, 1985, the Mayor am Cormron Council adopted Enterprise Zone Incentive Ordinance (Ordinance has a life of four (4) years). On October 2, 1989, the Mayor am Canrrk:m Council corrlucted first readin:J of the revised Enterprise Zone Incentive Ordinance with a proposed life of four (4) years (November, 1989 to November, 1993). On October 16, 1989, the Mayor am Cormron Council continued this matter to November 20, 1989, so staff could provide a report on developne:nt activity durin:J first four (4) years of Enterprise Zone. SYH>PSIS CXlNl'INUED 'lO NEXT PAGE l Recommended motion: OONDUCT FIRST REM>DG OF ~ ORDDmK::E ORDDWa: OF THE cny OF SAN BERNMI)IH:l AMENDDG SECl'ION 3.18.070(B) (1) (2) OF THE SAN BERNMI)IH:l MtlNICIPAL CDDE (ENl'ERPRISE ZONE DI::ENI'l:VE ORDDmK::E). ~f1A V. ~~~1 Ken Herrlerson Contact person: Phone: 5065 Supporting data attached: staff Report; Ordinance Ward: 1,2,3,5,6 FUNDING REQUIREMENTS: Amount: N/A Source: (Acct. No.) N/A (Acct. Description) N/A Finance: Council Notes: 75-0262 Agenda Item No. S ..- ( CITY OF SAN BERk RDINO - REQUEST r R COUNCIL ACTION STAFF REPORT . On November 20, 1989, the Mayor am Camoon eooncil adopted Ordinance Number Me-688, which took effect thirty (30) days later. '!he effect of this action was to renew certain incentives asscx::iated with the City's Enterprise Zone, with such incentives to be in effect fran December 20, 1989 to December 20, 1993. '!he Ordinance also called for an annual report to be developed am submitted to the Mayor am Camoon eooncil detailin;J activity occurrin;J in the Zone, am the iltpact on the General F'l1rrl caused by various tax rebates am fee exemptions. Urxler the Infill Housin;J portion of Me-688, the Ordinance renewed the infill fee exemptions am within the l:lourdaries of the Enterprise Zone raooved the limitation of cxmtiguous lots qualifyin;J for infill fee exenptions. '!he net result of this change was to allCM sul:xlivisions in the Enterprise Zone to qualify for infill fee exemptions. At the request of the Mayor, staff has analyzed the iltpact on the General F'l1rrl if the City were to grant infill fee exemptions to a one-hurrlred, fourteen (114) unit subdivision in the Enterprise Zone, already the recipient of City am Redevelopment Agercy financial assistance. Based upon infonnation provided by the Directors of Public Works am Planning am &1ildin::J Sel:vices, the iltpact on the General F'l1rrl would be as follCMS: Plannilql EIVJineering Hane Size Buildinc:r Fees Fees Total 1,573 sq. ft. $2,758.98 $506.40 $3,265.38 1,672 sq. ft. $2,876.50 $506.40 $3,382.90 1,859 sq. ft. $3,273.27 $506.40 $3,779.67 Based upon the rnnnber of units (114) am the number of homes of each size proposed, the follCMin;J is what the City would not collect as a result of the infill fee exemptions: 1,573 sq. ft. = $3,265.38 in fees x 37 units = $120,819.06 1,672 sq. ft. = $3,382.90 in fees x 47 units = 1,859 sq. ft. = $3,779.67 in fees x 30 units = $158,996.30 $113.390.10 '1U1'AL AM:>UNl': $393.205.46 03/13/90 75-0264 ENTERPRmE 2ICIU!l 8'm.Fl ~'1IORr eontinued... March 13, 1990 Page -2- 'I\vo (2) iSSl.... _ocme :readily to mirrl, the first of TNhich is whether the City can afford Will fee exe1tptions without regard to project size in the EnteJ:prise Zale. '!be secord issue is whether, as a matter of policy, the Mayor arrl a....lLMl Council wish to subsidize significant developnent with General Furrl m:mi.es. Based upon preli.m:inal:y revenue forecasts for the 1990/1991 fiscal year, it appears there could be a General Furrl shortfall even at exi.st.inJ sex:vice levels, so it is inportant that arrj' tax rebates or fee exenptions be off-set by the econanic activity they produce. As with arrj' City this size, the Mayor arrl Ccmoon Council have at their disposal barrl proceeds, tax increment arrl COB:; :funjs to subsidize developnent if it is determined such a subsidy is necessary. Because General Furrl m:mi.es are used to provide basic ~lic sex:vices, arrj' developnent subsidy fran this furrl could have a conesporrl.inJ i.nq:lact on such ~lic sex:vices if the economic activity is unsuccessful or W'lSUbstantial. II This it8ll was J)laced on the SUDD18lllmtal aaenda at the reauest of the Mawr. ~JIIII!l did not cennit adeauate analYSis of the iss"'" set forth in this staff raDOrt J)rior to the reaular aaenda deadline. I recxmnend adoption of the fonn Iro'tion. RENNETII J. Director of lhmn11'\i. ty KJH,Ilab/3747 03/13/1990 SDI)1IBI8 a. PRBVXOCB OOONCIL ~ ocm+-111'JIed... On Nov~ 20ft 1989, the Mayor an::l 0.....111 Council conducted the final reac1i.n.J and ~ the EnteJ:prise Ilrentive 0rI:li.name. Said Ordinarx:le to be in effect f'iliia ~..I.er 20, 1989 to ~ 20, 1993. 1 2 3 4 5 6 7 8 9 10 . 11 .. 12 13 14 15 16 17 18 19 20 21 22 23 ORDINANCB NtJXBBR ~. ~CB OF THE 3.1.~(.) (1) (2) OF CITY OF SAN BERNARDINO AMENDING SBCTION THE SAN BBRNARDINO MUNICIPAL CODB. TBB MAYOR AND COMKON COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. section 3.18.030, Subsection "F" of the San Bernardino Municipal Code is amended to read as follows: "Infill Housing" as used in this chapter is single family home construction built on lots which were vacant on the date of adoption of this chapter, or such contruction which is built on , . lots where existing structures have been demolished or re~ved to permit the construction of such single-family homes after the effective date of this Chapter. SECTION 2. section 3.18.040 of the San Bernardino Municipal Code is amended to read as follows: Rebates -- Commercial Area. For any qualifying new or expanding business which locates or expands in the commercial area of the Enterprise Zone within the second four (4) years of the life of the Enterprise Zone, City shall, upon application therefore, rebate the following to such qualifying businesses for a maximum rebate period of three (3) 24 years: 25 A. One hundred percent (100%) of the Service users' taxes 26 collected by City the from the business qualifying under San 27 Bernardino Municipal Code Chapter 3.44 for services used during 28 3/13/90 -1- -::I S - ;:L 1 2 3 4 5 6 7 8 9 10 ~ 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 the rebate period. Service shall include telephone, electricity, nat~ qas and cable television service. 1~- - ~one-hundred percent (100%) of the business license tax imposed during the rebate period upon the qualifying business under Chapter 5.04 of the San Bernardino Municipal Code. The City Clerk is hereby authorized to grant such rebate at the time of initial and annual application for a business license to any business in good standing with the City at the time of such 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 the rebate peri~d. 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 portion of the tax which is an increase of such tax over and above a base amount. The base amount shall be the total amount of each such tax paid by that business during the twelve (12) month period immediately preceding the date it be- comes an "expanding business" as defined at section 3.18.030(d) above. SBCTION 3. section 3.18.050 of the San Bernardino Municipal Code is amended to read as follows: Fee ExemDtions -- Commercial Area. Any qualifying new or expanding business which locates or expands in the commercial area of the Enterprise Zone within the 28 3/13/90 -2- II 1 2 3 4 5 6 .~:.four (4) years of the life of the Enterprise Zone shall, ')".;."'~- upon.~lication t~erefore, be e~emPt from payment of the follow- ing t . for a max1mum of exempt10n period of three (3) years: A. 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, except that; 7 B. Projects involving the rehabilitation of commercial 8 structures within the Commercial Area of the Enterprise Zone 9 shall be exempt from all engineering fees, planning fees, 10 building permit fees and mechanical fees imposed by the City, 11 when such commercial rehabilitation is privately financed;". 12 (i) storm drain and sewer capacity fee charges are 13 expressly not exempt, and; 14 (ii) Where such commercial rehabilitation is financed in 15 whole or in part by the City, the commercial property owner shall 16 pay all fees associated with said commercial rehabilitation. 17 SECTION 4. 18 Section 3.18.060 of the San Bernardino Municipal Code is 19 amended to read as follows: 20 Rebat.. -- Industrial Area. 21 During the first year of operation of any new industrial 22 business located within the Industrial Area of the Enterprise 23 Zone, City shall rebate to such qualifying industrial business, 24 upon application, the following: 25 A. Twenty-five percent (25%) of the utility service users' 26 taxes paid by such business during the rebate period under 27 Chapter 3.44 of the San Bernardino Municipal Code, relating to 28 3/13/90 -3- 1 2 3 4 5 6 7 8 9 10 ~ 11 12 13 14 15 16 17 18 19 20 21 22 23 telephone, electricity, natural gas and cable television use d~th.t period. ,i' ~. ~ Twenty-five percent (25%) of the business license tax paid by such business during the rebate period under the provisions of Chapter 5.04 of the San Bernardino Municipal Code. The City Clerk is hereby authorized to grant the rebate at the time of initial and annual application to any qualifying industrial business in good standing with the City at the time of such application. SECTION 5. section 3.18.070 of the San Bernardino Municipal Code is amended to read as follows: . Fee ExemDtions -- Infill Housina: Housina Rehabilitation. A. Infill housing projects within the infill target area, as defined in Section 3.18.070, subsection "B", shall be exempt from all engineering fees, planning fees, building permit fees and mechanical fees imposed by the city. storm drain and sewer capa city 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 24 capacity fee charges are expressly not exempt. 25 B. The target area for infill housing activities shall in- 26 clude the area north of Highland Avenue, commonly referred to as 27 Delmann Heights, and all areas south of Highland Avenue within 28 3/13/90 -4- 1 2 3 4 5 6 7 8 9 10 - 11 ~ 12 13 14 15 16 17 18 the corporate boundaries of the City. +-- ~Within the boundaries of the infill target area, as defined in Section 3.18.070, Subsection (B), the limitation as to the number of contiguous lots qualifying for infill fee exemptions, as defined in section 3.18.070 of this chapter, for single-family dwelling unit construction is hereby established at four (4) contiguous lots. In the case of multifamily develop- ment, a duplex, triplex or fourplex shall qualify for infill fee exemptions, and the limitation on contiguous lots qualifying for infill fee exemptions shall remain at four (4). SECTION 6. . It is the intent of the Mayor and Common Council to analyze the impact of the tax rebates on development in the designated Commercial Area of the Enterprise Zone. The review and analysis period shall occur no later than the end of the 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 19 development strategy of the designated commercial Area. 20 SECTION 7. 21 This ordinance, upon adoption, renews all incentives to be 22 granted new business, expanding businesses, commercial rehabili- 23 tat ion projects, and infill housing activities located within the 24 Enterprise Zone and infill housing target areas of the City for a 25 period of four (4) years from the date said ordinance goes into 26 effect. 27 28 3/13/90 -5- 1 2 3 4 5 6 7 8 9 10 .. 11 12 13 14 OIlDUiAItCK OF THE CITY OF SAIl BBIUIARDUIO AMBRDUIG SECTIOR 3.18.070(B)(1)'~) OF THE SAIl BEIUIARDIBO MURICIPf COOl. I HEREBY CERTIFY that the foregoing ordinance was duly ad~}Jy nard9at a of the Mayor and Common Council of the City of San Ber- meeting thereof, held on the ___ day , 1990, by the following vote, to wit: AYES: NAYES: ABSENT: Council Members CITY CLERK The foregoing ordinance is hereby approved this day. of , . 1990. '" BY: W.R. "BOB" HOLCOMB, MAYOR City of San Bernardino