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HomeMy WebLinkAboutS3-Community Development clrv OF SAN BERNr" qDINO - REQUEST Fl"q COUNCIL ACTION From: Kenneth J. He.!uerson, Director Subject: ENl'ERPRISE ZONE IN::ENl'IVE ORD~ Dept: Community Development Date: September 26, 1989 Synopsis of Previous Council action: In November 1985, the. Mayor am Cornlron Council adopted the Enterprise Zone Incentive Ordinance which provided financial incentives for certain l:usiness am residential activity. Recommended motion: (,.;;, ;:0 (;;;;;1 p"! f.e) ("':;, (,,0 c; f"Tl -0 1 N :Pt- :f) c::: h:t~~ -- -:.;;) a .." 'IHAT FURIHER READING OF '!HE A'ITACliED ORDINANCE REI.A~ 'IO ENI'ERPRISE ~ AND: rnFIIL HaJSING INCENI'IVES BE lAID OVER FOR FINAL PASSAGE. ~L~ G.~t, Signature Contact person: Ken Henderson Phone: 5065 Supporting data attached: Staff Report; Ordinance 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. S3 CITY OP SAN BERN'" qDINO - REQUEST PI' ~ COUNCIL ACTION STAFF REPORT In November, 1985, the Mayor arrl Cornrron Council 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 receive state Enterprise Zone designation, the Mayor arrl Caroron Council took actions to establish arrl maintain our locally designated Enterprise Zone. '!he Zone has a life of fifteen (15) years. The incentives adopted in 1985 are due to expire in November of this year. The attached ordinance renews the Enterprise Zone incentives for a secon::i four (4) year period arrl supplements certain incentives arrl programs as follows: a) Exparrls the infill housing target area to include the area north of Highlarrl Avenue, COIlll"OC>nly referred to as Delmann Heights, arrl all areas south of Highlarrl Avenue within the corporate bourrlaries of the City. b) Allows subdivisions within the bourrlaries of the Enterprise Zone arrl Delmann Heights to receive infill incentives. c) Allows cornmercial rehabilitation activities within the Carmercial Area of the Enterprise Zone to be exempt fran all plannin;J fees, en:Jineer~ fees, building pennit fees arrl mechanical fees :i.npJsed by the City, provided that such conunercial rehabilitation activity is privately financed. The current ordinance only provides these incentives for new or exparrli.n;J businesses. Approval arrl adoption of the attached ordinance will renew the Enterprise Zone developrrent incentives for the period beg~ November, 1989, arrl ~ November, 1993, arrl supplement certain incentives arrl programs in accord with the Enterprise Zone developrrent strategy. This i tern was placed on the supplemental agenda at the request of the Mayor and as a result of meetings conducted by the Mayor arrl staff with BUD offi- cials in connection with the citv/HUD Joint Venture for Affordable Hous~. In order for this oroiect arrl others to receive maximum assistance from HUD. it is imPortant that the attached ordinance be considered. I recarnmerrl adoption of the form motion. l KJH/lab/3443 attachment 09/26/89 75-0264 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 ORDINANCE NUMBER ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION 3.18.030(F), 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 THE ENTERPRISE ZONE INCENTIVES AND RENEW- ING INCENTIVES TO BE GRANTED IN DESIGNATED AREAS OF THE CITY. THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. Section 3.18.030, Subsection "F" of the San Ber- nardino Municipal Code is amended to read as follows: F. "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. 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 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 provisions of Chapter 3.44 of the San Bernardino Municipal Code 27 as applied to users of telephone, electricity, natural gas and 28 9/25/89 -1- 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 28 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 Exem?tions -- 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 9/25/89 -2- 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 28 the Commercial Area of the Enterprise Zone shall be exempt from all engineering fees, planning fees, building permit fees and mechanical fees imposed by the city, when such commercial rehab- ilitation is privately financed. storm drain and sewer capacity fee charges are expressly not exempt. Where such commercial rehabilitation is financed in whole or in part by the City, the commercial property owner shall pay all fees associated with said commercial rehabilitation. SECTION 4. section 3.18.060 of the San Bernardino Municipal Code is amended to read as follows: Rebates -- Industrial Area. During the first year of operation of any new industrial business located within the Industrial Area of the Enterprise Zone, City shall rebate to qualifying new businesses, upon application, the following: A. Twenty-five percent (25%) of the utility service users' taxes paid by such business under Chapter 3.44 of the San Bernar- dino Municipal Code, relating to telephone, electricity, natural gas and cable television use during that period. B. Twenty-five percent (25%) of the business license tax paid by such business for the period under the provisions of 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. SECTION 5. Section 3.18.070 of the San Bernardino Municipal Code is amended to read as follows: Fee Exemptions -- Infill Housing; Housing Rehabilitation. A. Infill housing projects within the infill target area, as defined in section 3.18.070, subsection "B", shall be exempt from 9/25/89 -3- 1 all engineering fees, planning fees, building permit fees 2 and mechanical fees imposed by the city. storm drain and sewer 31 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 in Section 3.18.070 of this chapter, for single-family dwelling 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 unit construction. 19 20 2) In all tions on contiguous 21 22 23 24 25 26 27 28 other areas of the target area, the limita- lots qualifying for infill fee exemptions shall remain at four (4). In the case of mUlti-family develop- ment, a duplex, triplex or fourplex shall qualify for infill fee exemptions. 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 9/25/89 -4- 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 28 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- nardino at a meeting thereof, held on the ___ day of , 1989, by the following vote, to wit: AYES: Council Members NAYES: ABSENT: CITY CLERK III 9/25/89 III -5- 1 The foregoing ordinance is hereby approved this ___ day of 2 , 1989. 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 28 Mayor, City of San Bernardino Approved as to form and legal content: b~~~ KJH/lab/3441 9/25/89 -6-