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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"