HomeMy WebLinkAboutCC RESO 2002 - 127RESOLUTION NO. 2002 —127
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO ENTER INTO A
MEMORANDUM OF UNDERSTANDING WITH THE
CITY OF SAN DIEGO FOR THE EXPANSION OF
THE SOUTH BAY ENTERPRISE ZONE
WHEREAS, the City of San Diego received designation from the California
Trade and Commerce Agency for the South Bay Enterprise Zone on January 27, 1992, as a 15-
year state designated area within which businesses may claim certain state tax benefits, primarily
for hiring qualified new employees and/or purchasing equipment to stimulate investment in
economically distressed areas; and
WHEREAS, the existing South Bay Enterprise Zone has acres available for
expansion based on California state law that permits the expansion of Enterprise Zones by up to
20% of the originally designated area, if less than 13 square miles at the time of designation; and
WHEREAS, the City of San Diego will seek to expand the boundaries of the
South Bay Enterprise Zone by no more than 125 acres, leaving a surplus of 208.25 acres; and
WHEREAS, the City of National City is currently unable to obtain an Enterprise
Zone designation from the California Trade and Commerce Agency due to the legislative
limitation of 39 Zone designations, all of which have already been established within the state;
and
WHEREAS, it is recommended that an expansion of the South Bay Enterprise
Zone to include an additional 84.48 acres, particularly described in Exhibit A attached hereto and
incorporated herein by this reference and from hereon referred to as the "Zone Expansion Area,"
would promote private business investment and the creation of new job opportunities to benefit
low-income and other disadvantaged community residents; and
WHEREAS, the Port of San Diego owns approximately 47.76 acres of property
located in the Cities of National City and San Diego adjacent to the existing boundaries of the
South Bay Enterprise Zone, which is included in the proposed expansion request; and
WHEREAS, the City of San Diego received designation in November 1998 from
the California Trade and Commerce Agency for a Targeted Employment Area (TEA) comprised
of low- and moderate -income 2000 Census tracts in conjunction with the South Bay Enterprise
Zone to encourage Enterprise Zone businesses to hire TEA residents in order to receive state tax
credits on wages paid to these employees; and
August 20, 2002
Page 2
WHEREAS, an expansion of the TEA to include low -and moderate -income 2000
Census tracts in the City of National City, particularly described in Exhibit B attached hereto and
incorporated herein by this reference, would promote workforce development and employment
opportunities created by businesses located within the Enterprise Zone to benefit low-income and
other residents of National City; and
WHEREAS, a request to expand the South Bay Enterprise Zone to include certain
areas within the City of National City requires a Memorandum of Understanding (MOU)
between the California Trade and Commerce Agency and the City of National City, as an
additional jurisdiction included in the Enterprise Zone; and
WHEREAS, a Memorandum of Understanding between the City of National City
and the City of San Diego is necessary to address program administration, compensation and
resources to support the Enterprise Expansion Area; and
WHEREAS, the proposed Enterprise Zone expansion would involve a regional
partnership between the City of National City, the City of San Diego and the Port of San Diego
with each organization providing funding and/or programmatic support.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL
CITY does hereby find, determine and resolve that:
1. An expansion of the South Bay Enterprise Zone to include certain areas in the
City of National City, as described in Exhibit A, will provide businesses located or locating in
the designated area with certain state tax benefits, primarily for hiring qualified new employees
and/or purchasing new equipment, resulting in private investment, the creation of no job
opportunities and significant economic benefits for the National City community.
2. An expansion of the City of San Diego's Targeted Employment Area (TEA) to
include low- and moderate -income 2000 Census tracts in the City of National City, as described
in Exhibit B, would assist employers located or locating in the Enterprise Zone and provide
employment opportunities for low- income and other community residents;
3. The City Manager or his designee is authorized and directed to assist the City of
San Diego by providing the necessary documentation in support of a request to the California
Trade and Commerce Agency for expansion of the South Bay Enterprise Zone to include the
proposed Zone Expansion Area described in Exhibit A;
4. The City Manager or his designee is authorized to execute an MOU with the City
of San Diego to address program administration, compensation and resources to support the
Zone Expansion Area;
August 20, 2002
Page 3
5. The Zone expansion is exempt from CEQA pursuant to Subsection (B) (3) of the
State CEQA Guidelines.
PASSED and ADOPTED this 20th day of August, 2002.
George H. Waters, Mayor
ATTEST:
Mic ael R. Dalla,/City Clerk
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
Exhibit "A"
ATTACHMENT 3
NATIONAL CITY
CENSUS TRACTS
Exhibit "B"