HomeMy WebLinkAbout2006 CON CDC Cities of SD, C.V - MOU SD Regional Enterprise ZoneFIRST MEMORANDUM OF UNDERSTANDING
RELATING TO THE SAN DIEGO REGIONAL ENTERPRISE ZONE
This first memorandum of understanding ["FIRST MOU"] is effective upon
execution by all parties ["Effective Date"] and is entered into by and between the City of
San Diego ["San Diego"], the City of Chula Vista ["Chula Vista"], and National City,
[collectively "the Partners" or "the Partnership"]. The purpose of this FIRST MOU is to
identify the Partnership and its intended goals, and to allocate financial responsibility for
only those consulting services necessary for the submittal of the application
["Application") to the California Housing and Community Development Department
["HCD"] for designation of a San Diego Regional Enterprise Zone ["EZ"]. Upon
notification by HCD that the EZ received conditional approval, the Partners will
negotiate a second memorandum of understanding [SECOND MOU] setting forth each
Partner's specific areas of responsibility and specific financial obligations from that point
forward for the duration of the EZ.
RECITALS
WHEREAS, the Partners desire to encourage economic development and growth
by supporting businesses and industries to expand or locate in the EZ, as well as to
provide jobs, goods, and services to the inhabitants of the subject areas.
WHEREAS, the Partners desire to have commercial and industrial areas of their
respective jurisdictions designated as part of the EZ due to the potential for businesses
within the EZ to be eligible -for state incentives and programs including: tax credits for
sales and use taxes paid on qualified machinery purchases; tax credits for hiring difficult -
to -hire residents; interest deductions for lenders on loans to firms within the areas;
fifteen -year net operating loss carry -forward; accelerated expense deduction; and
priority for various state programs, such as state contracts.
WHEREAS, the Partners enter into this FIRST MOU to memorialize the
commitments and responsibilities of each Partner only to the extent necessary for the
submittal of the EZ Application to HCD, which includes: (1) designating San Diego as
the lead agency in the administration of the EZ; (2) setting the EZ boundaries; (3)
allocating financial responsibility limited to the consulting services necessary in this first
stage; (4) setting forth the intention of the Partnership with respect to the administration
of the EZ; (5) providing a general understanding of the overall level of responsibility for
each Partner; and (6) providing a guideline that is consistent with the legislative intent
and requirements of the Enterprise Tax Incentives Program of the HCD.
WHEREAS, if the Partnership is awarded a conditional EZ designation by HCD,
the Partners intend to negotiate a SECOND MOU to memorialize their specific individual
commitments and responsibilities in accordance with the conditions imposed by HCD
and any further specific obligations that become necessary at that time.
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NOW THEREFORE, in consideration of the above recitals and the mutual
covenants and conditions set forth herein, and for good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, the Partners hereby set forth
their mutual covenants and understandings and agree as follows:
1. Regional Enterprise Zone Collaboration. The Partners agree to work
together in good faith to obtain a conditional designation from HCD for a
multi jurisdiction or regional enterprise zone, which they acknowledge
will require continued collaboration among the Partners. Each Partner
agrees to take all action reasonably necessary to effectuate the timely
submittal of the Application to HCD for said EZ. Each Partner shall
deliver such further documents and take such further action as may be
reasonably necessary to obtain a conditional designation from HCD for
said EZ.
2. Compliance with Laws and Regulations. Each Partner expressly
represents and warrants it has trained and experienced personnel capable,
qualified, and authorized to undertake the activities described in the
Application, and agrees to comply with all laws and regulations related to
the Application preparation and submittal.
3. Partnership Responsibilities. The Partners agree the following are
general actions agreed to be undertaken with regard to the implementation
and administration of the EZ:
(a) San Diego shall be lead agency in the administration of the EZ,
and will coordinate all aspects of the EZ with regular input from
the Partners.
(b) San Diego will coordinate business attraction and local business
outreach programs with all Partners to include objectives,
deliverables, and expected outcomes with quarterly progress
reports concerning EZ activities.
(c) The Partnership will conduct economic development activities for
the EZ in mutual cooperation and coordination with all Partners in
order to encourage the development of new businesses, including
attracting and assisting businesses with location decisions.
(d) San Diego will coordinate and provide current reports relative to
the progress of implementing the EZ, and will monitor various
levels of benefits as generated by the businesses located in the EZ.
(e) San Diego will act as the Vouchering Agency for the EZ and will
provide direct staff assistance in the vouchering of all eligible new
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hires as submitted by businesses located within the EZ, including
full documentation for verification of eligibility.
(f) San Diego will assist EZ businesses with screening, job placement,
and hiring credit eligibility screening, so that individuals can be
certified as "qualified employees" for vouchering purposes.
(g)
Within their respective jurisdictions, each Partner will provide
timely staff support to serve existing and new businesses to the EZ.
(h) Each Partner will assist in the Partnership's overall marketing
strategy to attract and retain businesses and jobs in the EZ.
(i)
Within their respective jurisdictions, each Partner will market the
benefits of the EZ to existing and prospective businesses in order
to attract and retain investment, job creation, and businesses in the
EZ.
(j) Each Partner will provide current and relevant data as it relates to
their respective jurisdictions of any changes in the following: its
land use laws, regulations or policies; infrastructure upgrades and
planning; zoning within the EZ; fee structure; and any other
jurisdictional actions that would impact the ability to assist existing
businesses or new businesses locating in the EZ.
(k) Within their respective jurisdictions, each Partner will encourage
its elected officials to engage in active support of business
development and job creation within the EZ.
(1)
Within their respective jurisdictions, each Partner will facilitate
access and provide assistance to EZ businesses with permit,
infrastructure, expansion, and general business issues as they relate
to the operation and benefits of the EZ.
4. Allocation of Costs and Fees. The Partners agree that costs and fees
associated with the EZ Application preparation and submittal be allocated
as follows:
(a) Tassa Consulting Group, LLC [TASSA]. The Partners agree
San Diego will contract with TASSA to provide consulting
services to assist with the Application preparation and submittal.
The Partners acknowledge the total cost of TASSA's services is
estimated at $52,500 [Total Fee], plus travel expenses not to
exceed $1,500. The Partners agree to allocate TASSA's costs and
fees as set forth below. The Partners agree to provide their share
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of this fee to San Diego within twenty (20) days of receipt of
invoice(s) from San Diego.
(i)
San Diego's Share of TASSA Fee. San Diego shall be
responsible for $25,000 of TASSA's Total Fee. San Diego
agrees to provide its portion of this fee to TASSA as it
becomes due.
(ii) Chula Vista's Share of TASSA Fee. Chula Vista shall be
responsible for $17,500 of TASSA's Total Fee. Chula
Vista shall provide its share of this fee to San Diego within
twenty (20) days of receipt of invoice(s) from San Diego.
(iii) National City's Share of TASSA Fee. National City shall
be responsible for $10,000 of TASSA's Total Fee.
National City shall provide its share of this fee to San
Diego within twenty (20) days of receipt of invoice(s) from
San Diego.
(iv) TASSA's Travel Expenses. TASSA's travel expenses,
not to exceed $1,500, shall be split equally among the
Partners, and each Partner is responsible for up to $500.
Each Partner shall provide its share of these costs to San
Diego within twenty (20) days of receipt of invoice(s) from
San Diego.
(b) Pacific Municipal Consulting [PACIFIC]. The Partners agree
National City will contract with PACIFIC to provide
environmental consulting services relating to the EZ as necessary
for the submittal of the Application in compliance with the
requirements of the California Environmental Quality Act
[CEQA], including preparing the Notice of Preparation, Initial
Study, and any other environmental documents necessary for
Application submittal in compliance with CEQA guidelines. The
Partners acknowledge the cost of these services is currently
estimated not to exceed $25,000. The Partner's agree National
City shall be solely responsible and will pay for these services up
to $25,000. National City shall provide documentation to the
Partners reflecting actual payment(s) made for these services.
(c) All Other Application Related Costs and Fees. The Partners
agree that any costs and fees associated with the EZ Application
preparation and submittal which are not expressly allocated above
in paragraphs 2(a) and 2(b), shall be allocated among the Partners
in accordance with the following ratio ["the Ratio"]: San Diego
shall be responsible for 50%, National City shall be responsible for
25%, and Chula Vista shall be responsible for 25%. The Partners
agree this is a fair allocation based on each Partner's projected
administrative responsibilities and the size of each Partner's
industrial and commercially zoned geographical area within the
EZ. Each Partner shall be responsible for the timely payment of its
share of said costs and fees; however, the Partners acknowledge
such payment may be subject to approval by their respective City
Councils.
(d) Fees Unrelated to EZ Application Preparation and Submittal.
It is expressly understood and agreed that any and all costs and
fees not directly related to or necessary for the preparation and
submittal of the EZ Application, including those associated with
any further environmental obligations under CEQA which may
consist of consultation, scoping, public involvement and response,
public workshops, hearings, and preparation of the Environmental
Impact Report, are not the subject of this FIRST MOU shall be
negotiated and allocated in accordance with the Partners'
agreement in the SECOND MOU upon notification by HCD of
conditional EZ designation. The Partners acknowledge and agree
that all costs to administer the EZ will ultimately have to be
provided exclusively by the Partners; however, the allocation of
those costs among the Partners will be negotiated in the SECOND
MOU.
5. EZ Boundaries. The Partners agree the boundaries for the EZ are
properly set forth in Exhibit "A" hereto and fully incorporated herein.
6. Term. This FIRST MOU shall remain in full force and effect from the
Effective Date until notification by the HCD that the EZ has or has not
been awarded conditional designation as set forth below.
(a) Denial of EZ Application. In the event the HCD does not award
conditional designation, this FIRST MOU shall immediately
terminate upon such notification by HCD, and each Partner shall be
exclusively responsible for its portion of any and all costs and fees
allocated by it toward the EZ up to that point with no
reimbursement from the other Partners.
(b) Award of Conditional Designation. If the HCD awards
conditional designation, and within sixty (60) days of said
notification by HCD the Partners cannot agree on the terms of a
SECOND MOU implementing the conditions imposed by HCD and
specifically allocating all further responsibilities, commitments, and
financial obligations, this FIRST MOU shall automatically
terminate and each Partner shall be exclusively responsible for its
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portion of any and all costs and fees allocated by it toward the EZ
up to that point with no reimbursement from the other Partners.
7. Integration. This MOU fully expresses the final and complete
understanding of the Partners concerning the matters covered therein. No
change, alteration, or modification of the terms or conditions of this MOU,
and no verbal understanding of the Partners, their officers, agents, or
employees shall be valid unless made in writing and signed by the each
Partners' duly authorized representatives. All prior negotiations and
agreements are merged into this MOU.
8. Headings. Headings and captions in this MOU are solely for convenience
of reference and shall not affect its interpretation.
9. No Single Drafting Party. All Partners were involved in drafting this
MOU and all Partners were advised by their respective counsel. In the
event any term or provision of this MOU is found vague or ambiguous by
a court of law of competent jurisdiction, such term or provision shall not,
under any rule of statutory interpretation, be construed against any Partner
on grounds that such Partner was the drafting party.
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IN. WITNESS WHEREOF, each Partner agrees to abide by the terms of this MOU and
hereby executes the same by and through its duly authorized representative.
THE CITY OF SAN DIEGO
Date:
Date:
By
William Anderson
Director City Planning and Community Investment
Approved as to form and legality:
By
Jana L. Garmo, Deputy City Attorney
THE CITY OF CHULA VISTA
Date: g
Date: g Jam!_ ve By
NATIONAL CITY
Date:
Date:
C5
Jim Thomson, Interim City Manager
Approved as to form:
Ann Moore, City Attorney
By
hris apata, City Manager
By
Approved as to form and legality:
George Eiser, City Attorney
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