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HomeMy WebLinkAbout2007-06-26 - AGENDA REPORTS - ENTERPRISE ZONE MOU (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT: Agenda Item: CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: June 26, 2007 0WX-,4,1a- IV Jason Crawford SANTA CLARITA ENTERPRISE ZONE MEMORANDUM OF UNDERSTANDING (MOU) WITH STATE OF CALIFORNIA City Manager's Office RECOMMENDED ACTION City Council authorize and direct the City Manager to enter into a Memorandum of Understanding (MOU) with the State of California Housing and Community Development Department to accept the Final Designation and administer the Santa Clarita Enterprise Zone, subject to City Attorney approval. BACKGROUND The Enterprise Zone Program is a long -tern (15 -year) partnership between local governments and private companies to generate new private sector investment and growth. The State of California provides performance-based tax credits and incentives to Enterprise Zone businesses that revitalize deteriorated areas, hire local residents in private sector jobs, and retain, and expand new businesses that participate in the objectives of the Enterprise Zone. Enterprise Zones are geographical areas in which companies are eligible for exclusive state incentives and programs. Incentives available to companies within an Enterprise Zone include tax credits for purchasing equipment and machinery, hiring local employees, 15 year net operating cost cavy -forward, interest deductions for lenders on loans to firms within a designated zone, accelerated expense deduction, and priority for state programs. On November 3, 2006, the State of California Housing and Community Development Department bestowed a "Conditional" Enterprise Zone designation to the City on areas specified in the Santa Clarita Enterprise Zone boundary map. The area that is being analyzed consists of 13.5 square miles of primarily commercial and industrial areas in the City. The Enterprise Zone APPROVED would not change the existing underlying land use designation of the parcels included in the zone. As uses change or new future uses and development occur within this zone, they will be analyzed on a case-by-case basis in compliance with CEQA. On December 15, 2006, the City of Santa Clarita received direction from the State of California Housing and Community Development Department to conduct and complete the Environmental Impact Report (EIR) as a condition to receive "Final' designation of the Santa Clarita Enterprise Zone. On June 12, 2007, the City Council adopted a resolution certifying the Final Environmental Impact Report. The City is required to enter into an MOU with the State of California to accept the final designation and administer the Santa Clarita Enterprise Zone. The State has supplied draft language to the City of Santa Clarita for this MOU, which will be provided to City Council. It is expected that this MOU will be finalized and approved for a July 1 final designation date, dependant upon the State providing the final language of the MOU to the City. The MOU is the contract document between the State of California Housing and Community Development Department and the City of Santa Clarita. It embodies the goals identified and commitments made in the application including the scope of work, agreement period, performance benchmarks mutually agreed to, self evaluation processes established, reporting requirements and all other requirements pursuant to the Enterprise Zone program regulations. Performance of the MOU and compliance with regulations is the basis of passing or failing audits and the continuance as an Enterprise Zone. ALTERNATIVE ACTIONS Other action as determined by City Council. FISCAL IMPACT None by this action. ATTACHMENTS MOU Supplement Memorandum of Understanding E* a a W PC c� .-3 19 t c m r co c rC N C Cn CCo O.� N . 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