HomeMy WebLinkAbout2013-06-25 - AGENDA REPORTS - ENTERPRISE ZONE TEA (2)Agenda Item: 6
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Jason Crawford
DATE: June 25, 2013
SUBJECT: UPDATE CERTIFICATION OF THE SANTA CLARITA
ENTERPRISE ZONE TARGETED EMPLOYMENT AREAS (TEA)
DEPARTMENT: Community Development
RECOMMENDED ACTION
City Council adopt a resolution certifying the boundaries of the Targeted Employment Areas
(TEA) using data made available in December 2012 from the United States Census Bureau's
American Community Survey Five Year Averages, which identifies the Qualified Census Tracts
(QCT) for the Santa Clarita Valley Enterprise Zone; under the guidelines set forth by the State of
California Housing and Community Development Department (HCD).
BACKGROUND
The current Santa Clarita Valley Enterprise Zone received its 15 -year Enterprise Zone "final"
designation from the State of California on January 1, 2011, and will be active through January 1,
2026. Prior to the zone being expanded to also include the unincorporated areas of the Santa
Clarita Valley, the City of Santa Clarita Enterprise Zone existed from July 1, 2007, through
December 31, 2010.
The State of California requires the City of Santa Clarita to establish Targeted Employment
Areas (TEA) within City boundaries. TEAs are defined as geographic areas with a percentage of
households at or below low -to -moderate income levels. Businesses within the Enterprise "Zone
boundaries who hire eligible employees that live within the boundaries of a TEA may qualify for
the Hiring Tax Credit. The Hiring Tax Credit is one of the most widely used incentives of the
Enterprise Zone program with over 7,500 people having been hired into jobs at local Santa
Clarita Valley businesses through the Enterprise Zone program since its inception in 2007. A
business has the potential of earning $37,440 in tax credits over a five-year period per qualifying
employee hired.
The process of determining TEAs is set forth by the State of California Housing and Community
Development Department (HCD), and is composed solely of those census tracts designated by
��optE�: moo. �3-sa
the United States Department of Housing and Urban Development (HUD) as having at least 51
percent of its residents of low- or moderate -income levels, using either the most recent United
States Department of Census data available at the time of the original Enterprise Zone
application, or the most recent census data available at the time the Targeted Employment Area is
designated to determine that eligibility.
The City Council previously adopted Resolution 07-61 on August 28, 2007, certifying TEAS as
part of the original Santa Clarita Enterprise Zone application, using data based on the 2000
Census. The statutes governing the Enterprise Zone Program require that each zone update its
TEA within 180 days of new census data becoming available. The census data necessary to
update TEAS, in accordance with the relative statutes, was made available in December 2012,
using the United States Census Bureau's American Community Survey Five Year Averages.
Based on this new data, the Santa Clarita Enterprise Zone TEAS include five (5) Census Tracts
located in the communities of Newhall and Canyon Country: 9200.31, 9200.37, 9200.38,
9203.36, and 9203.37.
The Governor is currently proposing to replace the existing Enterprise Zone program with a new
program that would effectively eliminate the Santa Clarita Valley Enterprise Zone program and
the ability for our businesses to receive hiring tax credits which will lead to weakened business
development in Santa Clarita. If the Governor's proposal is approved, the Santa Clarita Valley
Enterprise Zone would cease to exist on December 31, 2013, instead of at the conclusion of the
15 -year designation in 2026. Per the City Council decision at the May 14, 2013, City Council
meeting to oppose any administrative or legislative efforts to eliminate the Enterprise Zone
program, City staff have been working in partnership with the Santa Clarita Valley Economic
Development Corporation, the Chamber of Commerce, and the Valley Industry Association to
protect the Santa Clarita Valley Enterprise Zone. A decision on the Governor's proposal is
expected within the next few weeks.
At this point, the City of Santa Clarita is required to move forward with the TEA certification
process regardless of what the future might hold for Enterprise Zones.
ALTERNATIVE ACTIONS
Other actions as detennined by the City Council
FISCAL IMPACT
None by this action
ATTACHMENTS
Resolution
TEA MAP CENSUS2010 061213
2
RESOLUTION 13-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA,
CERTIFYING THE COMPLIANCE OF ENTERPRISE ZONE
TARGETED EMPLOYMENT AREAS (TEA) BASED ON NEW CENSUS DATA
RELEASED IN DECEMBER 2012
The City Council of the City of Santa Clarita does hereby resolve as follows:
SECTION 1. FINDINGS OF FACT: The City Council does hereby make the
following findings of fact:
a. The Santa Clarita Valley Enterprise Zone received its 15 -year Enterprise Zone
"final" designation from the State of California on January 1, 2011, and will be
active through January 1, 2026;
Previously, the City of Santa Clarita Enterprise Zone existed from July 1, 2007,
through December 31, 2010;
c. On August 28, 2007, the City Council adopted Resolution 07-61 that approved
and certified the Targeted Employment Areas (TEA), and submitted them to the
State of California Housing and Community Development Department;
d. The statutes governing the Enterprise Zone Program require that each zone update
its TEA within 180 days of new census data becoming available. The census data
necessary to update TEAS, in accordance with the relative statutes, was made
available in December 2012 using the United States Census Bureau's American
Community Survey Five Year Averages.
SECTION 2. The City Council of the City of Santa Clarita does hereby certify:
a. The Targeted Employment Areas (TEA) for the Santa Clarita Enterprise Zone
have been prepared under the guidelines set forth by the State of California
Housing and Community Development Department, and are in compliance with
the new census data released in December 2012 using the United States Census
Bureau's American Community Survey Five Year Averages;
b. The Targeted Employment Areas (TEA) for the Santa Clarita Enterprise Zone
include five (5) Census Tract numbers: 9200.31, 9200.37, 9200.38, 9203.36, and
9203.37;
c. The Targeted Employment Areas (TEA) and census tracts for the Santa Clarita
Enterprise Zone were presented to the City Council for review and approval on
June 25, 2013;
a
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this day of 2013.
31 VAT •
ATTEST:
INTERIM CITY CLERK
Mo
q