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HomeMy WebLinkAboutR06- Economic Development ^ ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION From: TIMOTHY C. STEINHAUS Subject: LOCAL AGENCY Agency Administrator MILITARY BASE RECOVERY AREA ENTERPRISE ZONE Date: March 15, 1995 ------------------------------------------------------------------------------------------------------------------------------------------------ Synousis of Previous Commission/Council/Committee Action(s): No previous action. ------------------------------------------------------------------------------------------------------------------------------------------------ Recommended Motion(s): (Community Development Commission) MOTION: A) RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION FOR THE AGREEMENT TO PARTICIPATE IN THE LOCAL AGENCY MILITARY BASE RECOVERY AREA-ENTERPRISE ZONE. (Mayor and Common Council) MOTION: B) RESOLUTION OF THE MAYOR AND COMMON CO CIL FOR THE AGREEMENT TO PARTICIPATION IN THE LOCAL AGENCY MIL ARY BASE RECOVERY AREA - ENTERPRISE ZONE. TIMOTHY C.STEINHAUS Agency Administrator -------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Timothy C. Steinhaus/Robert E.Botts Phone: 5081 Project Area(s): All Ward(s): 11=7 Supporting Data Attached: Staff Report Resolutions FUNDING REQUIREMENTS: Amount: N/A Source: N/A Budget Authority: N/A ------------------------------------------------------------------------------------------------------------------------------------------------ Commission/Council Notes: --------------------------------------------------------------------------------- TCS:REB:mym:basecdc COMMISSION MEETING AGENDA Meeting Date: 03/20/19995 Agenda Item Numbe¢\ 1 ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO STAFF I:EPORT ------------------------------------------------------------------------------------------------------------------------------------------------ Agreement to participate in the Local Agency Military Base Recovery Area-Enterprise Zone Through legislation, the State of California has established the Local Agency Military Base Recovery Area program (LAMBRA). The purpose of the program is to stimulate business and industrial growth in areas experiencing military base downsizing and closure. This will be accomplished by relaxing regulatory controls thereby encouraging private investment, cooperation and innovation between state and local governments and private business and industry. The program will provide various state tax credits and deduction and local incentives to companies locating on military properties scheduled for closure. State incentives in a LAMBRA include: 1) Tax credits for sales and use tax paid on certain qualifying equipment and property. 2) Tax credits for wages paid to qualifying employees. 3) Fifteen year net operating loss carryover. 4) Election to treat the cost of certain property as an expense not chargeable to the capital account and allowable as a deduction against income. 5) Priority and technical assistance from the Trade and Commerce Agency,the California Environmental Protection Agency, and the Office of Permit Assistance. The Inland Valley Development Agency is submitting an application requesting to be selected as an Enterprise Zone and has formed a task force of individuals to assist them including Economic Development Agency staff and City Planning staff. As specified in the cutTent legislation,the total number of LAMBRA designations will be limited to five,one in each of five regions in the state. Region Four includes San Diego,San Bernardino,Riverside,and Imperial. An intense panel review process will be used to score LAMBRA applications to select one area from Region Four. Local business and governmental support of the IVDA application is very important to its ultimate approval. The IVDA is asking both the City of San Bernardino and the San Bernardino Community Development Commission to approve the attached resolution indicating their support of both the application and then the implementation of the Enterprise Zone. There is no fm cial commitment on the part of the City or Community Development Commission in the resolution. Staff re n adoption of the form motion. TIMO TEINHAUS,Agency Administrator Economic Development Agency --------------------------------------------------------------------------------- WSAFRmymbasecdc COMMISSION MEETING AGENDA Meeting Date: 03/20/1995 Agenda Item Number: I RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AGREEING TO PARTICIPATE IN THE LOCAL AGENCY 3 MILITARY BASE RECOVERY AREA-ENTERPRISE ZONE. 4 WHEREAS, the Inland Valley Development Agency (IVDA), through the California Trade and 5 Commerce Agency,is applying for the Local Agency Military Base Recovery Area(LAMBRA)designation for 6 the San Bernardino International Airport and Trade Center,and a LAMBRA designation will help stimulate job 7 creation by enabling the IVDA to offer incentives to employers to locate within a portion of the redevelopment area 8 of the IVDA which includes the former Norton Air Force Base;and 9 WHEREAS,the economies of the Counties of San Bernardino and Riverside have experienced a direct 10 and significant adverse impact due to military base closures and downsizing of the defense industry causing 11 unemployment higher than in other portions of Southern California;and 12 WHEREAS, the San Bernardino International Airport and Trade Center are designated as regional 13 employment generators providing a basis for job development for surrounding communities within the overall 14 strategy of the IVDA to provide economic incentives to locate in the redevelopment area,within existing buildings 15 as well as the option to develop new facilities,and the IVDA will also be sponsoring a Small Business Incubator 16 to promote the growth and development of new enterprises by providing flexible space at affordable rates,a variety 17 of technical services,access to management,technical and financial assistance,and opportunities to interact with 18 other entrepreneurs and business experts;and 19 WHEREAS,the objectives of a LAMBRA designation are to stimulate business and industrial growth 20 in areas experiencing military base closure which will be accomplished by relaxing regulatory controls thereby 21 encouraging private investment, cooperation and innovation between state and local governments and private 22 business and industry;and 23 WHEREAS,the LAMBRA is intended to be a public-private effort,through the assistance of an economic 24 development plan that incorporates a marketing plan,job development programs,local and planning incentives, 25 and financial programs to provide financial assistance through existing state and local entities;and 26 WHEREAS,the LAMBRA provides a variety of incentives for businesses to locate within an application 27 area including,tax credits of sales and use tax paid on certain qualifying equipment and property,tax credits for 28 wages paid to qualifying employees,fifteen year net operating loss carryover,election to treat the cost of certain I property as an expense not chargeable to the capital account and allowable as a deduction against income,priority 2 and technical assistance from the Trade and Commerce Agency,the California Environmental Protection Agency, 3 and the Office of Permit Assistance;and 4 WHEREAS,the LAMBRA application area encompasses the land boundaries of the former Norton Air 5 Force Base which falls within the responsibility of the following joint powers authorities known as the I VDA and 6 the San Bernardino International Airport Authority(SBIAA);and 7 WHEREAS,the IVDA is a joint powers agency which includes the surrounding jurisdictions comprised 8 of the cities of Colton,Loma Linda, San Bernardino,and the County of San Bernardino all of which have board 9 members on the IVDA;and 10 WHEREAS,the SBIAA is a joint powers agency which is represented by the cities of Colton,Highland, 11 Loma Linda,Redlands, San Bernardino,and the County of San Bernardino;and 12 WHEREAS,the major functions of the IVDA are to develop the mechanisms for strategic reuse of Norton 13 Air Force Base and to streamline the development process by improving the methods of starting up and maintaining 14 productive businesses, and in order to assemble an advantageous program, the IVDA is in need of active 15 cooperation and assistance from the agencies and organizations that are within the communities that provide 16 services to help implement and develop the program and incentive goals. 17 NOW, THEREFORE,be it resolved by the Community Development Commission of the City of San 18 Bernardino as follows: 19 Section 1. The Community Development Commission is fully committed towards assisting the IVDA 20 in its development of the application requirements that pertain to the Community Development Commission and 21 the Economic Development Agency of the City of San Bernardino. The Commission acknowledges that the I VDA 22 will oversee the application process and will actively solicit advice and comments from representatives of the 23 Commission to identify additional opportunities to expand the LAMBRA program,and the IVDA will begin to 24 develop a resource guide for businesses within the community, including,but not limited to,job development 25 Programs,local and planning incentives,and financial programs to enhance the LAMBRA designation. 26 Section 2. The Commission agrees that an application for LAMBRA designation should be submitted 27 to the Trade and Commerce Agency by the IVDA and the Commission hereby supports the application process 28 to obtain a LAMBRA designation, and that the Commission does not seek to participate as an applicant. The 1 Commission further agrees to complete all actions stated within the application as shall be submitted by the I VDA 2 should the application be awarded a LAMMRA designation,subject to review and approval of the final application 3 by the Chairrnan and the Acting Director prior to submission of said application. 4 Section 3. This Resolution shall take effect upon adoption. 5 6 7 8 9 10 11 iii 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ��� 1 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community Development 2 Commission of the City of San Bernardino at a meeting thereof, held on the day of 1995,by the following vote,to-wit: 3 Commission Members: AYES NAYS ABSTAIN ABSENT 4 NEGRETE CURLIN 5 HERNANDEZ OBERHELMAN 6 DEVLIN POPE-LUDLAM 7 MILLER 8 9 Secretary 10 11 The foregoing resolution is hereby approved this day of 11995. 12 13 Tom Minor,Chairman of the 14 Community Development Commission of the City of 15 San Bernardino Approved as to form and legal content: 16 17 By: Agency Counsel 18 19 20 21 mym:basereso(revised 3/17/95) 22 23 24 25 26 27 28