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Home My WebLink About2010-08-24 - AGENDA REPORTS - RESO NEW ENTERPRISE ZONE (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT: Agenda Item: CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval Item to be presented by: August 24, 2010 Jason Crawford S RESOLUTION AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE STATE OF CALIFORNIA HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT FOR A NEW SANTA CLARITA VALLEY ENTERPRISE ZONE TO REPLACE THE EXISTING CITY OF SANTA CLARITA ENTERPRISE ZONE City Manager's Office RECOMMENDED ACTION City Council to adopt a resolution authorizing the submittal of an Enterprise Zone application to the State of California Department of Housing and Community Development for designation of a new Santa Clarita Valley Enterprise Zone to replace the existing City of Santa Clarita Enterprise Zone. BACKGROUND The attached resolution provides the City Council an opportunity to formally approve submittal of an 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 jobs within a designated area. On July 1, 2007, the City of Santa Clarita was designated as one of 42 Enterprise Zones throughout the State of California. Since the City was designated as an Enterprise Zone, this program has helped create and retain more than 2,000 jobs locally in the City. To date, more than 200 businesses in Santa Clarita have taken advantage of the tax savings program generating close to $75 million in potential savings to local businesses. 9 On April 15, 2010, the State Department of Housing and Community Development issued a request for applications for Enterprise Zone designations to fill two expiring Enterprise Zones statewide. Applications must be completed and submitted to the State by September 15, 2010. At the June 22, 2010, City Council meeting, Council directed staff to begin partnering with the County of Los Angeles and the Santa Clarita Valley Economic Development Corporation to submit an application for a reconfiguration and expansion of the City of Santa Clarita's existing Enterprise Zone. The application for a multi jurisdictional Enterprise Zone, to be called the Santa Clarita Valley Enterprise Zone, is proposed to encompass approximately 14,441 acres of land. Of this total acreage, approximately 73% or 10,609 acres is zoned commercial or industrial. The City of Santa Clarita currently administers the existing Santa Clarita Enterprise Zone that was designated by the State in July 2007. If the application for the new Santa Clarita Valley Enterprise Zone is successful, it will replace the City's existing Enterprise Zone, keeping available the two Enterprise Zone openings for the rest of the State. The City of Santa Clarita will be the lead agency on administering the proposed new zone and will work cooperatively with Los Angeles County on marketing the benefits of the program. Marketing and outreach promoting the Enterprise Zone program to businesses within the City has been budgeted by the City Council for FY 10-11. Any additional marketing and outreach in areas within unincorporated Los Angeles County would be funded by Los Angeles County. On August 10, 2010, the County of Los Angeles approved a resolution to submit a joint _ application with the City of Santa Clarita to the State for a new Santa Clarita Valley Enterprise Zone. Should the City Council approve this action today, staff will complete the Enterprise Zone application process and submit the required documents to the State of California Department of Housing and Community Development by the September 15, 2010, deadline. If the joint application is successful, a new expiration date would be issued extending the life of the current Enterprise Zone program. If the joint application is not successful, the City would retain its current Enterprise Zone status. ALTERNATIVE ACTIONS Modify resolution, authorizing the submittal of the Enterprise Zone application to the State of California Department of Housing and Community Development for designation of a new Santa Clarita Valley Enterprise Zone. 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 of a new Santa Clarita Valley Enterprise Zone. •L FISCAL IMPACT If the proposed Enterprise Zone application is successful, we anticipate an increase to the number of vouchers to be processed by the City which may result in additional staffing needs. The additional staff costs would be fully cost recovered through the revenue generated by the Enterprise Zone Vouchering fees. ATTACHMENTS Resolution Map of Proposed Santa Clarita Valley Enterprise Zone 3 RESOLUTION 10- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR DESIGNATION OF THE SANTA CLARITA VALLEY ENTERPRISE ZONE WHEREAS, the City of Santa Clarita finds that the application area is economically depressed and that designation of the area as an Enterprise Zone is necessary in order to attract private sector investment to the application area; and WHEREAS, the City of Santa Clarita authorizes and supports job development, job creation and economic development. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. That the City authorizes that staffing shall be made available to maintain record-keeping, monthly_ updates on zone activities, and to discuss these activities with program auditors; and SECTION 2. That the City shall develop a self-evaluation process to measure its progress in meeting its goals and objectives; and, that this process shall be submitted to the Department for review, approval and inclusion in the Memorandum of Understanding (MOU) prior to final designation; and SECTION 3. That the City agrees to complete all actions stated within the application that apply to its jurisdiction should the proposed Enterprise Zone be awarded designation; and SECTION 4. That the City Manager or his designee is authorized to sign the application, the MOU and other documents necessary for the implementation of the Enterprise Zone.; and SECTION 5. That the City, the lead jurisdiction, will work cooperatively with the County of Los Angeles to implement and maintain the Enterprise Zone for a period of not less than 15 years; and SECTION 6. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this day of 2010. MAYOR ATTEST: CITY CLERK 5 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sarah P. Gorman, 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 2010, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, , City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution 10- adopted by the City Council of the City of Santa Clarita, California on , 2010, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of 2010. City Clerk By Deputy City Clerk 0 D z H \ �v o 1 1r� �,. oora aye rn,r' n s - � CD K CD - 5� O CD 90 4w,r O 0 CD CD i!. N f v a - 2 N O �wwrrw.wrrew.,ww y`^ w�. t'{\ CD D s. zr D Xt X D D Y�