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Home My WebLink About2006-08-22 - AGENDA REPORTS - ENTERPRISE ZONE APPLICATION (2)Agenda Item: CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: Carrie Rogers DATE: August 22, 2006 SUBJECT: RESOLUTION TO APPROVE ENTERPRISE ZONE APPLICATION DEPARTMENT: Community Development RECOMMENDED ACTION: City Council to adopt a Resolution authorizing the submittal of the Enterprise Zone application to the State of California Department of Housing and Community Development for designation as the Santa Clarita Enterprise Zone and the Negative Declaration prepared for the project. BACKGROUND The attached resolution provides the City Council an opportunity to formally approve submittal of the Enterprise Zone application to the California Department of Housing and Community Development. The purpose of the Enterprise Zone program is to target areas throughout the state to stimulate business and industrial growth. Special state and local incentives encourage business investment and promote the creation of new jobs through business attraction, expansion and retention. The Enterprise Zone program is the state's most significant tool to assist local governments in leveling the playing field with other states in the highly competitive field of business attraction. The Enterprise Zone program is a 15 -year partnership between local governments and private companies to generate new private sector investment and growth. The state provides performance-based tax credits and incentives to businesses located within the Enterprise Zone boundaries including: 1. Tax credits for sales and use taxes paid on qualified machinery or equipment 2. Tax credits for hiring qualified employees Adopted: Pte• -�7 3. Accelerated business expense deduction 4. Net operating loss carryover 5. Interest deductions for lenders on loan to companies within the EZ 6. Preference points on state contracts State law requires that 42 Enterprise Zones be maintained at all times. During the last quarter of 2006 and the first quarter of 2007, 23 Enterprise Zones will reach the end of their designation periods. The Santa Clarita Enterprise Zone application is a regional economic development effort. Partners in the application include College of the Canyons, Santa Clarita Valley Chamber of Commerce, Valley Industrial Association, financial institutions, WorkSource California Center, job developers, brokerage firms and City staff from the Community Development, Public Works and Administrative Services Departments and City Manager's Office. The proposed boundaries of the Santa Clarita Enterprise Zone include nearly all of the commercial and industrial property in the City, as provided by the regulations. As required by State guidelines for preparation of the EZ application, a resolution from the City of Santa Clarita must be submitted in support of the City's application for Enterprise Zone designation, which includes verbatim language required by the Enterprise Zone handbook making a finding that the application area is depressed and in need of an Enterprise Zone designation to revitalize it economically, as well as other conditions of designation. Certain conditions include a commitment to staff and budget allocations in support of the Enterprise Zone, including local incentives and a marketing plan, should the City receive designation. It should be noted that staff allocations are generated from existing City staff. No new staff position is being proposed as part of this application. It should further be noted that the attached EZ Line Item Budget commitments, as required for designation, are included as part of the fiscal year 06-07 approved City budget and will be addressed annually as part of the City's annual budget process in future years. The Marketing Plan consists mostly of those activities that have been and continue to be a part of the Economic Development program of the City, including media materials, press releases, brochures and other marketing materials generated in support of business development, including: • Business Database • On -Site Visits Community Workshops Electronic Distribution of Information Marketing the Enterprise Zone — Periodic print advertising in key business publications. — Radio advertising on selected news and information stations. — Direct mail package with Enterprise Zone marketing materials — Santa Clarita Enterprise Zone web site — Press releases to regional media — Annual Special Events — Trade show participation — International Council of Shopping Centers conferences. — Local newspaper articles — Newspaper advertisements locally and regionally — Community events — Enterprise Zone marketing materials — City informational mailings — Articles in City newsletters Speaking Engagements Business Information Exchange — Surveys — Stakeholder Meetings Additionally, the Enterprise Zone will develop collaborations and services that do not require additional investment by the City beyond existing staff commitments but generate significant benefits to existing businesses as well assisting in attracting new business. • Strategic Partnerships — College of the Canyons University Center Advanced Technology Incubator program Center for Applied Competitive Technologies — Valley Industrial Association Scvjobsonline.com Regional Executive Summit Santa Clarita Valley Chamber of Commerce Small Business Development Center Hispanic Business Committee "The Business Wake -Up Call" Old Town Newhall Association Workshops for small businesses Enterprise Zone Office — Technical Assistance — Planning and permitting assistance — Workforce Vouchering — Tax incentive/regulatory information — Red Team participation — Labor Market Analysis Updates — Recycling Market Development Zone assistance — Primary Business Cluster attraction efforts Funding for these activities will remain consistent with the budget policies of the City and will be approved annually as a part of the Economic Development Division budget. The Enterprise Zone application must be received by the State Department of Housing and Community Development no later than 5:00 pm on September 6, 2006. The application goes through two reviews before being scored. The scoring process takes several months, and it is anticipated that those winning EZ communities will be announced beginning in November 2006. In addition, per the requirements of the application, staff has prepared an initial study and Negative Declaration per the California Environmental Quality Act (CEQA) for the project. As part of your recommendation, the City Council would be adopting this document. ALTERNATIVE ACTIONS Modify or do not approve a resolution, authorizing the submittal of the Enterprise Zone application to the State of California Department of Housing and Community Development for designation as the Santa Clarita Enterprise Zone. FISCAL IMPACT None by this action. ATTACHMENTS Resolution Santa Clarita EZ Line -Item Budget Santa Clarita EZ Boundary Map available in the City Clerk's Reading File Negative Declaration and Initial Study available in the City Clerk's Reading File SANTA CLARITA ENTERPRISE ZONE PROGRAM MANAGEMENT LINE -ITEM BUDGET OFFICE EXPENDITURES- PERCENTAGE OF FUNDING PERSONNEL TIME SOURCE BUDGET I I EZ Administrator 5% General Fund 18,040.09 EZ Mann er 100% EZ Bud at 161,237.06 EZ Business/Marketing Re resentatiive 80% EZ Bud et 158,062.00 EZ Administrative Assistant 90% EZ Bud etj 127,875.97 EZ Worksourin Comer Coordinator 75% WIA Bud at 60,065.&5 WIA Job DevJPr0gram Coordinatocr 76% WIA Bud at 97,553.92 Assistant Mana er 5% General Fund 10 313.05 Community Develo mem Director 33%General Fund 117,464.15 Economic Deveb mem Manager 75% EZ Bud et 213,631.81