HomeMy WebLinkAbout1994-12-13 - AGENDA REPORTS - BUSINESS INCENTIVES JOBS (2).AA ..
NEW BUSINESS
DATE:
SUBJECT:
DEPARTMENT:
BACKGROUND
AGENDA REPORT
City anaglt Approval:
George A. Cazav dho
Item to p ented by:
Mich a andWA
December 13, 1994
Business Incentives for Jobs Retention
Community Recovery Agency
The Economic Development efforts of the Community Recovery Agency are facing increasing competition for competitor
cities seeking to attract businesses to their respective communities. This increasingly competitive nature of Economic
Development is reflected in aggressive targeted marketing programs and increasingly sophisticated incentive packages
being offered to firms to encourage their relocation. A recent example of the application of incentives involves an offer
from a competitor city which is attempting to attract an existing Santa Clarita business with over, 100 employees. Their
incentive package included; a partial waiver of fees,, a $2,000 cash incentive for each permanent job created, a low cost
construction loan, and a special employee assistance program to help in relocation.
Currently die City of Santa Clarita has no effective incentive programs, or negotiating flexibility with which to make a
counter proposal that might assist in retaining an existing business in Santa Clarita, or to attract new businesses and jobs
to die community.
Staff does not feel that the attemptingeto compete solely on the basis of matching economic incentives is appropriate from
a public policy perspective in term's of longterm benefit to the community.. However, staff does believe that City Council
should consider the value of expanding the City's current Economic Development policy to allow for the waiver of part
or all development fees,, based on potential jobs that might be created or retained with in the City, Once Recovery Agency
tax increments become operational, then such waived fees could be reimbursed to the General Fund. Flexibility in the.
application of fees and the utilization of redevelopment tools and resources can allow the City to undertake a much more
proactive and competitive Economic Development program.
RECOMMENDATION
The City Council should authorize the City Manager to implement all possible incentives, including a waiver of part or
all development fees, up to $20,000.00, as a mechanism to retain jobs within the City of Santa Clarita, and to report to
City Council in six (6) months on the success of efforts.
Economic Development Incentives Memorandum, December 5, 1994
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Agenda Item:__._
CITY OF SANTA CLARITA
INTEROFFICE MEMORANDUM
TO: George A, Caravalho, City Manager
FROM: Michael K. Haviland, Marketing and Economic Development Manager
DATE: December 5, 1994
SUBJECT: Economic Development Incentives
The following is an outline of the incentives being offered to a 150 employee company in the Valencia Industrial Park.
The company's lease on their current property is about to expire, and they need new space to expand into. The
President and the employees want to stay in Santa Clarita; but, the parent company which owns the firm is looking at
the bottom line. The City of Palmdale is aggressively courting this business to move to Palmdale. The following g is a
breakdown comparison of Palmdale vs. Santa Clarita as a location for this firm.
11 Palmdale
Cash Incentive: $2,000 per employee based on projection of two
years from now: 150 employees x $2,000 = $300,000
cash (this is a cash check from the City)
Permit Waivers: Maximum cap of $50,000 for all permits.
Low Cost
Building Loan:
Land Cost:
Employee
Assistance:
ecnnJ ev \incentive. mem
Palmdale offers low interest loan (terms not
identified)
.950 sq. foot
A special package of incentives designed to help
the employees of companies who move to the
Antelope Valley includes special home financing as
well as discounts for builders, lenders, and local
merchant. Employees could save up to $10,000 on
the cost of a new home and its furnishings.
Santa Clarita
Cash Incentive: No incentive
Permit Waivers: Na waive of permits: = $122,490 cost for.
company
Low Cost
Building Loan:
Land Cost:
Employee
Assistance:
Nolow interest loans
$7.00 - $8.50/sq. foot
No Program