HomeMy WebLinkAbout2009-09-22 - AGENDA REPORTS - HCD APPLICATION (2)Agenda Item: 31
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Jason Crawford
DATE: September 22, 2009
SUBJECT: RESOLUTION AUTHORIZING THE SUBMITTAL OF AN
APPLICATION TO THE STATE OF CALIFORNIA HOUSING
AND COMMUNITY DEVELOPMENT DEPARTMENT IN
ORDER TO EXPAND THE ENTERPRISE ZONE
DEPARTMENT: City Manager's Office .
RECOMMENDED ACTION
City Council adopt resolution authorizing the submittal of an Enterprise Zone expansion
application to the State of California Department of Housing and Community Development.
BACKGROUND
On July 1, 2007, the City of Santa Clarita was designated as an Enterprise Zone by the State of
California Department of Housing and Community Development pursuant to the California
Enterprise Zone Act. The purpose of the Enterprise Zone is to stimulate business and industrial
growth, help attract business, help retain and expand business and industry, and create increased
job opportunities. The Enterprise Zone currently encompasses 97 percent of all commercial and
industrial zoned land within the City.
At the time of approval of the City's Enterprise Zone, it was authorized to encompass an area of
8,527 acres. The Enterprise Zone Act allows for current zones to expand by 15 percent by written
request to the California Department of Housing and Community Development. This translates
to a potential expansion of 1,279 acres for the City of Santa Clarita.
City staff has been approached by the business community, including the Santa Clarita Valley
Chamber of Commerce and the developer and owner of Bridgeport Marketplace, Intertex
Companies, to expand the Enterprise Zone to include as much commercial and industrial zoned
properties as possible to provide the greatest benefit to our local businesses.
The proposed expansion will encompass 63 acres, or 5 percent, of the total allowable expansion
of .1,279 acres, and will include the retail centers of Bridgeport Marketplace, Baywood at
Bridgeport, and Granary Square.The City has the discretion to request additional expansions in
the future should it become necessary, up to the 15 percent maximum allowable. The proposed
expansion equals potential tax savings to over 50 businesses as well as helping to attract
additional businesses to the vacant areas of those centers.
On April 28. 2009, the City Council unanimously approved the 21 -Point Business Plan for
Progress, a broad -reaching economic development stimulus program to strengthen our local
economy for both the short- and long-term. The 21 -Point Business Plan for Progress will enhance
local business partnerships, encourage quality job creation in the area through business retention,
expansion and attraction, bolster retail spending, and attract external dollars to the community.
One component of the plan included increasing the number of businesses taking advantage of the
benefits of the Enterprise Zone. Staff created a three -pronged approach to do so which includes
marketing the program to existing businesses, outreaching to businesses looking to relocate to the
City, and expanding the boundaries of the Enterprise Zone to include additional areas.
Since the City was designated as an Enterprise Zone in July 2007, this program has generated a
potential savings of over $27,892,800 to local businesses. In FY 08-09 alone, the number of
businesses taking advantage of the Enterprise Zone grew by 88 percent, bringing the total number
of participating businesses to nearly 120. This past year's growth included issuance of 459 hiring
credit vouchers to companies that hired Enterprise Zone eligible employees. These vouchers
allow business owners to receive approximately $37,440 in tax savings over a five-year period
for a single qualifying employee.
Since the inception of the 21 -Point Business Plan for Progress, the City has hosted two
Enterprise Zone workshops and has begun an outreach campaign that includes calling and
walking door-to-door to promote and educate the .businesses on the Enterprise Zone program. As
a result, 24 new businesses have taken advantage of the benefits of the Enterprise Zone and, in
the three month period, the City has issued 213 new voucher certificates to local businesses
which is the highest quarter of activity to date for the program.
Should the City Council approve this action, Staff will complete the Enterprise Zone expansion
application and submit the required documents to the State of California Department of Housing
and Community Development. The approval process is expected to take up to 90 days.
ALTERNATIVE ACTIONS
Other actions as determined by City Council.
FISCAL IMPACT
There is no fiscal impact as a result of this item.
ATTACHMENTS
Resolution
Proposed Enterprise Zone Expansion Area
RESOLUTION 09-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF AN
APPLICATION FOR EXPANSION OF THE SANTA CLARITA ENTERPRISE ZONE TO
THE STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
WHEREAS, the California Enterprise Zone Act (California Government Code
Section 7070 et seq.) and enabling regulations (25 CCR 8430 et seq.) allow for the establishment,
expansion and regulation of California designated Enterprise Zones; and
WHEREAS, the California Government Code Sections 7073 and 7074 allow for each
designated Enterprise Zone area to be expanded contiguous to the current enterprise zone by an
aggregate amount not to exceed fifteen percent (15%) of the geographic area within the
boundaries of the enterprise zone as originally designated by the California Department of
Housing and Community Development; and
WHEREAS, the City of Santa Clarita Enterprise Zone was established on
July 1, 2007, and authorized by the State to encompass an area of 8,527 acres; and
WHEREAS, the Santa Clarita Enterprise Zone could be expanded by an amount not
to exceed 1,279 acres; and
WHEREAS, the City of Santa Clarita desires to expand the Enterprise Zone by 63
acres to include Bridgeport Marketplace, Baywood at Bridgeport, Granary Square and connection
parts of McBean Parkway; and
WHEREAS, the requested expansion represents five percent (5%) of the available
fifteen percent expansion allowable; and
WHEREAS, the City of Santa Clarita acknowledges that the expansion requested
does not exceed the expansion allotment available; and
WHEREAS, the City of Santa Clarita agrees to submit a written request to the
California Department of Housing and Community Development to have its current Enterprise
Zone boundaries expanded; and
WHEREAS, the land included in the propsed expansion is zoned for industrial or
commercial use; and
WHEREAS, any non -industrial or non-commercial land can only be included if that
land is a right-of-way and is needed to meet the requirements for a contiguous expansion
between an existing enterprise zone and the proposed expansion area.
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby
resolve as follows:
3
SECTION 1. The City Manager or designee is hereby authorized and empowered to
execute in the name of the City of Santa Clarita all necessary documents, including but not
limited to applications; agreements, and amendments necessary to expand the Santa Clarita
Enterprise Zone.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this day of 12009.
MAYOR
ATTEST:
CITY CLERK
F WA
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA)
I, Sharon L. Dawson, MMC, City Clerk of the City of Santa Clarita, do hereby certify that
the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the day of , 2009, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
5
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
CITY COUNCIL RESOLUTION
I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true
and correct copy of the original Resolution 09- adopted by the City Council of the City of
Santa Clarita, California on , 2009, which is now on file in my office.
Witness my hand and seal of the City of Santa Clarita, California, this day of
, 2009.
Sharon L. Dawson, MMC
City Clerk
By
Susan Caputo, CMC
Deputy City Clerk
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