HomeMy WebLinkAbout2011 CON California Enterprise Zone Program / San Diego Regional Enterprise Zone - Final DesignationNOTE TO FILE
03-13-12
IN THE MATTER OF: Resolution of the City Council authorizing the
Mayor to execute a Memorandum of Understanding between the
California Enterprise Zone Program and the San Diego Regional
Enterprise Zone, and to submit documents to effect an award of
final designation to the San Diego Regional Enterprise Zone.
Please note the following:
FULLY EXECUTED ORIGINAL MOU WAS NEVER
FILED WITH THE OFFICE OF THE CITY CLERK
ORIGINATING DEPARTMENT: _ CDC X Housing & Grants
City Attorney _ Human Resources
City Manager _ MIS
_ Community Svcs. _ Planning
Engineering _ Police
Finance Public Works
Fire
• The attached MOU is a copy of the A-200 attachment.
NTF
Attachment 2
California
Enterprise
Zones
MEMORANDUM OF UNDERSTANDING
BETWEEN THE
CALIFORNIA ENTERPRISE ZONE PROGRAM
AND THE
SAN DIEGO REGIONAL ENTERPRISE ZONE
An agreement establishing the San Diego Regional Enterprise Zone pursuant to the
California Enterprise Zone Program.
1. PURPOSE OF AGREEMENT
This Memorandum of Understanding (hereinafter "Agreement") constitutes
official notification of the designation of the San Diego Regional Enterprise Zone
(the "Contractor") under the California Enterprise Zone Program (the "Program")
administered by the State of California's Department of Housing and
Community Development'
The Program is authorized and governed by California Government Code
Section 7070, et seq. ,(the "Program Statutes") and the California Code of
Regulations, Title 25, Section 8430, et seq. (the "Program Regulations") all as
amended from time to time. In accepting this designation, the Contractor
agrees to comply with: (a) the Program Statutes; (b) the Program Regulations;
(c) the representations contained in the Contractor's Application made in
response to the Request For Proposal (the "Application"), which is hereby
incorporatedinto this Agreement; and (d) the terms and conditions of this
Agreement and its Supplement.
2. DEFINITION OF TERMS
Capitalized terms as used in this Agreement have the following definitions:
A. "Act" means the Enterprise Zone Act, as defined in Government Code
Section 7070.
B. "Department" means the State of California's Department of Housing and
Community Development (HCD) or its successor. HCD has legislative
authority and responsibility for the Enterprise Zone Program.
C. "Agreement" means this Memorandum of Understanding.
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 2 of 9
D. "Application" means San Diego Regional Enterprise Zone's Application
submitted to the Department.
E. "Audit" means any program performance audits of the San Diego Regional
Enterprise Zone conducted by the Department, including an audit as
described in Government Code Section 7076.1.
"Contractor" means the San Diego Regional Enterprise Zone with The City if
San Diego Business incentives program as the lead agency only, obligated
and committed to providing goods and/or services, as referenced in the
Application.
G. "De -designation" or "De -designate," means the Department's action
terminating this agreement, and/or rescinding the Enterprise Zone
designation in the event of non-performance as described in Government
Code Sections 7076.1 and 7076.2.
H. "Enterprise Zone" means the San Diego Regional Enterprise Zone consisting
of 34,720 acres located within the Cities of San Diego, Chula Vista and
National City within the County of San Diego.
I. "Plan" means the Economic Development Plan prepared and adopted for the
San Diego Regional Enterprise Zone and the California Enterprise Zone
designation.
"Program" means the State of California's Enterprise Zone Program
administered by the Department of Housing and Community Development.
"Program Income" means income earned from the evaluation of forms and
supporting documentation submitted in application for a voucher, whether or
not such application is approved.
L. "Program Manager" means the primary contact as defined in the Application.
M. "Voucher" or "Certificate" shall mean the certification described in subdivision
(c)(1) of Revenue and Taxation Code Sections 17053.74 and 23622.7 and
which contains all the information required by Section 8450.3 in a format
provided by the Department.
"Work" means the Enterprise Zone's program of activities contained within the
Plan for the Marketing, Job Development, Program Management, Financing,
Planning, Local Incentives and Vouchering of the San Diego Regional
Enterprise Zone.
3. SCOPE OF WORK
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 3 of 9
A. Contractor shall perform the Work as described in the Application, which is
on file at the Department and which is incorporated herein by this reference.
All written materials or alterations submitted during the Enterprise Zone
designation period and which are approved in writing by the Program
Manager are included in the Work. In the event of a conflict between the
descriptions of the Work in the Application and as described in this
Agreement, the description in this Agreement shall prevail. The State
reserves the right to require the Contractor to modify any or all parts of this
Agreement in order to comply with the Program Statutes or Program
Regulations.
B. Contractor shall provide all necessary administrative activities in support of
the San Diego Regional Enterprise Zone.
4. AGREEMENT PERIOD
This Agreement shall be in effect from October 15, 2006 through October 14, 2021
unless otherwise amended or terminated in writing by either party. After January
30, 2012 the Department shall Audit the Contractor to assure it has made
satisfactory and reasonable progress in implementing the obligations set forth in
the Application.
5. COUNTY AND DEPARTMENT PROGRAM COMMUNICATIONS
The contact for this Agreement will be the City of San Diego Business Incentives
Program Manager. The City of San Diego Business Incentives Program Manager,
the primary contact, as stated in the San Diego Regional Enterprise Zone Final
Application, is Lydia Moreno at (619) 236-6320.
A. The Department of Housing and Community Development's representative
for this Agreement is John Nunn, Jr., Enterprise Zone Program Manager. His
telephone number is (916) 322-7555.
B. All official communications from the Program to the Enterprise Zone shall be
directed to the Division within which the Enterprise Zone Program operates at
the following address:
City of San Diego, Office of the Mayor, Economic Growth Services
1200 Third Avenue 14th Floor San Diego, CA 92101
Contact: Lydia Moreno
D. All official communications from the Enterprise Zone to the Program shall be
directed to:
John Nunn, Jr., Manager
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 4 of 9
Enterprise Zone Program
Department of Housing and Community Development
Post Office Box 952054
Sacramento, CA 94252-2054
(916) 322-7555
6. PROGRAM ADMINISTRATIVE BUDGET:
The San Diego Regional Enterprise Zone's Operational Budget for Year One
provided under this Application shall be $361,040.
7. DEPARTMENT PROGRAM RESPONSIBILITIES:
The Department shall have the following responsibilities:
A. Inspections of Enterprise Zone Activity: Monitor, inspect and/or audit any
San Diego Regional Enterprise Zone plans and activities performed hereunder
to ensure compliance with the Enterprise Zone's responsibilities as defined in
the Application, this Agreement and its Supplement, and applicable laws,
regulations, and guidelines, and to take corrective actions as provided by law.
B. Review and Approval of Plans, Agreements, and Products: Review and
approve Vouchering, Marketing, Incentive, Financing, Management and other
Plans, agreements, documents and products required by the Application or by
law.
C. Assistance: Provide technical assistance, consultation, research and
analytical services to the San Diego Regional Enterprise Zone, if requested,
as permitted by Program resources.
8. ENTERPRISE ZONE RESPONSIBILITIES:
The Enterprise Zone shall have the following responsibilities:
A. Performance: Generally, to make substantial and sustained efforts to
revitalize the San Diego Regional Enterprise Zone areas through marketing,
incentives and financing programs, job development and independent
verification and issuance of vouchers. Specifically, to fulfill the terms,
conditions, and level of effort (staffing, budget, marketing, contracting) set
forth in this Agreement, including its Supplement, the Application and/or the
Plan, as may be supplemented or superseded by regulations, guidelines, and
other Program requirements during the designation period.
6
San Diego Regional. Enterprise Zone
Memorandum of Understanding
Page 5 of 9
B. Performance Obligations - Third Party Relationships: Notwithstanding its
designation of any third party for the undertaking of all or any part of the
activities enumerated under this Agreement, the San Diego Regional
Enterprise Zone shall remain fully obligated under the provisions of this
Agreement. The San Diego Regional Enterprise Zone shall execute written
agreements with third parties identified in the Application, if any, and/or the
Plan for the performance of the San Diego Regional Enterprise Zone's related
activities to ensure that the activities being provided under this designation
are carried out in accordance with the Program requirements.
Enterprise Zone Manager: To hire and fund an Enterprise Zone Manager,
who shall be responsible for the San Diego Regional Enterprise Zone's
budget, Plan, vouchering, and implementation of this Agreement.
D. Enterprise Zone Budget/Maintenance of Effort: To establish, fund and
maintain the Enterprise Zone budget, under the direction of the Enterprise
Zone Manger, to implement the Economic Development Plan and Scope of
Work. Without prior Department approval, the Enterprise Zone shall not
reduce the budget, staff allocation, or modify subcontracts to agencies or
community organizations identified in the Application as providing San Diego
Regional Enterprise Zone services.
E. Vouchering:
1. Voucherinq Administration - Contractor agrees to execute and maintain
the vouchering plan and vouchering procedures outlined in the Application.
The Vouchering Plan will assure that vouchers are properly issued in a timely
manner, adequately controlled and accounted for in the vouchering system.
Contractor is responsible for keeping records which fully disclose the
vouchering system. Procedures must provide for the accurate and timely
recordation of the receipt of the application fee, supporting documentation,
independent verification and approval or denial of the voucher. Adequate
documentation of each approved voucher application shall be maintained for
a minimum of five years to permit the determination, through an audit if
requested by the State, of the accuracy of the records and the eligibility of
voucher applications. If the eligibility of a voucher cannot be determined
because supporting documentation is inadequate, the voucher shall be
disallowed.
2. Enterprise Zone Voucher — As of October 15, 2006 the Contractor or their
agent shall begin accepting voucher applications and fees. The San Diego
Regional Enterprise Zone must begin using the Department of Housing and
Community Development's Enterprise Zone Voucher form to certify a
business's participation with the Program.
3. Signatory Control - Unless the Department is notified otherwise in writing
1
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 6 of 9
by the Contractor, the Enterprise Zone Manager, as listed in Section 5, shall
have final signatory approval or denial of all voucher applications.
Voucher Application Fee:
1. Contractor agrees to establish a Voucher Application Fee ("Fee") and Bill
Remittance Form ("Form") and maintain fiscal control and accounting
procedures, which assures that the Fee received for the voucher application,
is properly disbursed, adequately controlled and accounted for in a Program
account. Contractor is responsible for keeping records, which fully disclose
the amount and disposition of the proceeds of the fees. The procedure
developed by Contractor must provide for the accurate and timely recordation
of the receipt of Fees, and unexpended balances. Adequate documentation
of each transaction shall be maintained to permit the determination, through
an audit if requested by the State, of the accuracy of the records. For each
voucher application accepted for processing, the Contractor shall disburse
$15.00 to the Department in accordance with the Program Regulations.
2. Any fees remaining at the end of the designation period or de -designation
date must be forwarded to the State. Checks must be made out to the
Department of Housing and Community Development and shall be mailed
within 180 days of the end of the designation period or de -designation date.
G. Public -Private Participation: The Enterprise Zone shall be the institutional
venue for the regular participation of public and private stakeholders in
decisions affecting the Enterprise Zone, its Plan, work programs and the
implementation of this Agreement.
H. Network Participation: Ensure that the Enterprise Zone Manager and
appropriate staff participate at meetings required by the Department, and at
conferences of the California Association of Enterprise Zones or similar
professional development organizations.
I. Performance Reporting: Contractor agrees to establish a data collection
system and maintain data collection procedures, which assures that all data
are properly collected, adequately controlled and accounted for in the Annual
Survey as required by Government Code Section 7085(b). Contractor is
responsible for keeping records on all administrative and vouchering activities,
which fully disclose the effect of the Enterprise Zone on employment and
investment.
The Contractor is required to collect data for the Annual Survey that the
Department is required to provide annually to the Legislature. Unless
specified otherwise in the Annual Survey, the Contractor will collect the data
and submit it to the Department at the address noted in Section 5 of this
Agreement.
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 7 of 9
If an Annual Survey is not completed to the satisfaction of the Department, it
will be returned to Contractor for revision. If the Annual Survey is not
amended within 60 days of the due date, the Contractor will receive a
negative audit finding pursuant to Government Code Section 7076.1. The
Enterprise Zone's performance under this Agreement will be based in part on
whether it has submitted complete reports on a timely basis.
The Contractor shall prepare and submit report(s) of the Enterprise Zone's
performance pursuant to a format, schedule and deadlines that the
Department requires. The Annual Survey will review Enterprise Zone activity
regarding business attraction, business retention, vouchering, and local
success stories. The survey results from the San Diego Regional Enterprise
Zone will be tabulated with all other enterprise zones to create the
comprehensive report that is submitted to the Legislature.
J. Audit: The Enterprise Zone shall maintain auditable voucher records at all
times. California Government Code Section 7076.1 requires the Department
to conduct an audit of each Enterprise Zone. The Department may schedule
annual Audits. The Enterprise Zone agrees that the Department and their
delegates have the right to receive, review, obtain, and copy all records
pertaining to the Enterprise Zone and/or its vouchering activities. The
Enterprise Zone further agrees to provide the Department or its delegates with
any relevant information requested and shall permit the Department or its
delegates access to its premises, upon reasonable notice, during normal
business hours for the purpose of interviewing employees and inspecting and
copying such books, records, accounts, and other material that may be
relevant to a matter under investigation for the purpose of determining
compliance with the designation, audit, or performance.
The Enterprise Zone agrees to maintain all Enterprise Zone records,
including voucher applications, vouchers and supporting documentation for a
minimum of five (5) years after expiration of the Enterprise Zone designation.
If so directed by the Department upon termination of this agreement, or De -
designation of the Enterprise Zone, the Enterprise Zone shall cause all
records, accounts, documentation and other materials related to the
Enterprise Zone activity to be delivered to the Department.
K. Conflict of Interest of Employees, or other Public Officials: No employee,
member of the governing body, or public official who exercise any functions or
responsibilities with respect to the program during his/her tenure or for one (1)
year thereafter, shall have any interest, direct or indirect, in any contract,
subcontract, or voucher, or the proceeds thereof, for activities performed in
connection with the Enterprise Zone, and all such persons shall comply with
Government Code Section10410, et seq., Public Contracts Code Section
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 8 of 9
10410 et seq., and Government Code Section 81000 et seq. (Political Reform
Act of 1974), as applicable. Failure to comply with this requirement may
trigger an Audit.
9. AMENDMENT
No amendment or variation of the terms of this Agreement shall be valid unless
made in writing, and approved and signed by the parties to this Agreement. This
Agreement supersedes any oral promises, representations, or other agreements
with respect to the subject matter of this Agreement.
10. DISPUTES
The Department shall monitor the Enterprise Zone for performance and
compliance with this Agreement. Failure to meet the conditions of this Agreement
may be grounds for de -designation.
11. DEDESIGNATION OF THE ENTERPRISE ZONE
The Department may terminate this Agreement if the Enterprise Zone fails to
succeed in the Audit process as described in Government Code Sections 7076.1
and 7076.2. The Zone will have failed to demonstrate success in making
substantial and sustained efforts in meeting the goals and commitments as
presented in the Application. The effect of the notice specified in this section shall
be to terminate this Agreement and end Program designation of the Enterprise
Zone
12. APPROVAL
This Agreement, the Program's designation of the Enterprise Zone, as applicable,
is not valid until approved by the Cities of San Diego, Chula Vista, and National
City and signed by all parties.
IN WITNESS WHEREOF, the parties have read, understand and agree to the
terms and conditions as set forth in this Agreement on the day, month and year
noted.
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 9 of 9
APPROVED by the member of the Enterprise Zone:
City of National City, a California municipal corporation
By: Date:
Name: Ron Morrison
Title: Mayor
City of Chula Vista, a California municipal corporation
By: Date:
Name: James D. Sandoval
Title: City Manager
City of San Diego, a California municipal corporation
By: Date:
Name: Jay M. Goldstone
Title: Chief Operating Officer
Department of Housing and Community Development
Enterprise Zone Program
By: Date:
John Nunn, Jr.
Manager
I
A B
Item Application Section
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
C
Commitment
D E
Expected Outcome Performance Benchmark or Standard
F
Applicable
Timeframe
GENERAL
G
Application Cross -
Reference
GEN Performance
Measurement
To assess its performance, the enterprise
zone will develop a methodology that
effectively identifies the number of
businesses retained, expanded, and
attracted.
A measure of the
enterprise zone's
performance.
A methodology that accurately measures
the enterprise zone's efforts to retain,
expand, and attract businesses.
Year 1
HCD
A. MARKETING STRATEGY AND PLAN
A.1
8/8/2011
Explicit, quantifiable
five-year goals to be
accomplished in the
first five years.
The enterprise zone will accomplish the
following marketing goals over the first five
years of the zone:
Market the SDREZ as "One Zone' multi -
jurisdiction program and implement "One Zone"
marketing strategies:
1) Develop "One Zone" marketing materials in
English and Spanish;
2) Issue 12,500 vouchers;
2) Assist approximately 3000 businesses;
3) Assist approximately 100 small businesses
access local revitalization programs, i.e., SIP,
etc.
4) Conduct between 10 to 15 technical
1
Evidence that the enterprise zone has
progressed towards the accomplishment of
its goals.
1) Beginning
Year 1 and
updating
continuously
thereafter
2) Five years
2) Five years
3) Five years
SDREZ Five Year
Goal, Tab 19.
Note:
See note in Item
A.10
Annual Marketing
Plan, Section 19,
Page 37
Conditions
Response, May 25,
2007, Condition #1
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
workshops.
5) Conduct/participate in 3 to 10 Job Fairs and
5 Trade Shows.
6) Develop and maintain a system for reporting
annually to HCD all requested information.
7) Market the SDREZ as part of a business
attraction and retention strategy for targeted
Industries, including mfg., R&D, and technology
ventures.
8) Support (50) business finance opportunities
(loans/grants/rebates) with SDREZ businesses
using local programs
A.2 Business To retain businesses in the community, the See A.3.
Retention/Activities enterprise zone will conduct the following
activities:
1) Expand existing partnerships between
public and private sectors by doing outreach
and organizing or participating in periodic EZ
informational sessions to industry groups,
Chambers of Commerce, Business
Improvement Districts (BIDs), and Community
Economic Development Organizations to keep
the SDREZ incentives in front of businesses
and educate them on EZ benefits.
A.3 Business
Retention/Expansion
Activities
8/8/2011
To expand businesses in the community, the
enterprise zone will conduct the following
activities:
Commercial and Industrial
Commercial:
Retention/Expansion
Goal - 125
commercial
2
Evidence that the enterprise zone has
conducted the activities specified for
business retention.
Evidence that the enterprise zone has
conducted the activities specified for
business expansion.
4) Five years
5) Five years
6) Year 1
7) Year 5
8) Five years
1) Three times
annually
Section 19-
SDREZ Business
Retention Plan
Pages 1, 2, and 3
Tab 11, Table 1
Section 12 -
Annual Commercial
Retention/Expansion
Marketing Strategy
(Table 1)
Section 13 —
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
1) Use EDC Prosperity Committee or similar
committees as a warning network to notify
appropriate agencies serving at risk
businesses. This will provide assistance to
impacted companies and address
issues/concerns where appropriate. Effected
employees will be directed to Career Centers
and other agencies to obtain employment
services and ensure that layoff and plant
closure procedures are followed appropriately.
2) Improve existing downtown commercial mix
and attractiveness by working with
redevelopment agencies to identify prospective
development projects and new businesses
3) Focus efforts to 4 groups; a) small locally
owned "main street" businesses: b) base sector
industries, i.e. manufacturers, clean/green tech
businesses, warehouse/distribution
businesses; c) redevelopment project areas;
and 4) medical facilities.
8/8/2011
businesses and
1,250 jobs annually
Industrial:
Retention/Expansion
Goal - 50 industrial
businesses and
3,000 jobs annually.
3
1) Continuously
2) Continuously
3) Continuously
Annual Industrial
Retention/Expansion
Marketing Strategy
A.4 Business Attraction
Activities
8/8/2011
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
To attract businesses in the community, the
San Diego Regional Enterprise Zone (SDREZ)
will conduct the following activities:
Commercial
1) Strengthen existing and develop new
regional partnerships so that limited resources
can be leveraged to support effective marketing
and businesses development programs.
2) Use advertising to raise awareness of the
entire enterprise zone region (as described in
Advertising and Promotion Strategy, Tab 19,
Pg 41).
3) Promote opportunities (such as mixed use
development, facade improvement programs,
business improvement districts) to businesses
that will complement and improve the existing
SDREZ downtown and "Main Street"
commercial mix and will enhance the
attractiveness of these areas.
4) Establish sales/marketing team which
actively involves city representatives.'
5) Develop fast -track building permit process
for commercial/industrial construction projects.
6) Have available CD/DVD or video to
promote regional industry attractiveness.
Commercial
Target 20
commercial
businesses and 600
jobs annually.
4
Evidence that the enterprise zone has
conducted the activities specified for
business attraction.
1) Continuously
2) Annually
3) Continuously
4) Year 1
5) Year 1
6) Year 4
Section 12-
Annual Commercial
Attraction marketing
Strategy.
Section 12, Table 2,
Page 3 (Develop
and provide permit
fast tracking
assistance for new
companies)
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
Work with EDCs, Chambers, Business
Improvement Districts, Community
Development Corporations and the World
Trade Center San Diego to distribute
videos to companies considering the San
Diego Region a place to locate new
business.
7) Conduct two marketing outreach trips to
target companies seeking relocation and/or
expansion opportunities.
Industrial
(Items 1 — 7 same as above)
8) Develop inventory of available industrial
properties
8/8/2011
Industrial
Target 50 industrial
businesses and
1,500 jobs annually.
5
7) Annually
8) Year 2
Section 14,
Table 4, Page 3
(Develop and
provide permit fast
tracking assistance
for new companies)
A.5 Sales Plan for Site
Visits
818/201 1
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
The enterprise zone's sales plan for on -site
visits to existing and/or new businesses will
consist of the following activities:
Each SDREZ partner city will manage the
following activities:
1) Establish a business calling program to
identify businesses for on -site visits. (The call
program will continually screen and qualify
targeted industries when companies locate
within the SDREZ.
2) Automatic generation of SDREZ benefits
packets with each business license application
and follow up call/visit.
3) The SDREZ team will participate in 245
sales calls annually for retention, expansion, or
attraction purposes. These sales calls will be
to targeted companies for this specific purpose
4) Coordinate business site visits with
economic development organizations targeting
specific EZ areas.
6
Evidence that the enterprise zone has
conducted the activities specified in its
sales plan for on -site visits.
1) Continuously
2) Quarterly
3) Annually
4) Three (3) to
four (4) times
annually
Section 19 - Page
43 thru 45
SDREZ Sales Plan
for Business
Outreach and Site
Visits
A.6 Advertising &
Promotional Strategy
8/8/2011
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
The enterprise zone's advertising and
promotional strategy will consist of the
following activities:
Advertising
1)Establish a staff/partner advertising steering
committee to advise SDREZ staff on business
sector driven advertising
Promotion
2) Participate in speakers bureau & solicit
speaking engagements
3) Partner with business and community
development corporations to target outreach to
low/ -moderate income target areas, including
tax preparation services.
4) Target small business members in BIDs and
business organizations. SDREZ staff will
provide EZ articles and other advertisements to
be included in member newsletter. SDREZ will
provide flyers on upcoming workshops which
will be distributed to members. SDREZ will
partner with BIDs to sponsor workshops for
members. SDREZ will attend Small Business
Advisory Board meeting.
5) Conduct Annual SDREZ Business
recognition for EZ businesses and local
partners.
7
Evidence that the enterprise zone has
conducted the activities specified in its
advertising and promotional strategy.
Budget a minimum of $5,000 annually for
paid advertisements.
1) Year 1
2) Annual
beginning year 1
3 ) Three times
annually
4) Year 1
5)Annually
beginning year 4
Section 19,
Advertising and
Promotional
Strategy
Section 19 —
SDREZ
Comprehensive
Marketing Strategy
Section 19, Page 7,
Section 19, Page 9
Section 19, Page 37
& 41
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
6) Other
• Direct mail
• 5 Trade shows and trade missions (see A.1)
• Conduct or participate in EZ general
informational and technical workshops with
various stakeholders to increase awareness of
incentives and opportunities in the designated
-4) area and to targeted audience to address more
complex elements of program. Technical
workshops will target tax practitioners to
educate them on how EZ tax incentives may
apply to tax payers doing business in the
SDREZ.
A.7 The Media Strategy The enterprise zone's media strategy will
consist of the following activities:
• Pitch local print and broadcast media on
availability of incentives and other noteworthy
activities including community newspapers and
community based organization newsletters.
• Develop a group of partners/businesses to
serve as experts for media interviews to
promote the program and speak from their
perspectives.
• Annually distribute news releases on Zone
incentive workshops, job fairs, and other EZ
newsworthy information to business
8/8/2011
8
Evidence that the enterprise zone has
conducted the activities specified in its
media analysis.
6) Annually
beginning year 2
Quarterly
Year 2
Twice a year
Section 19, -
Advertising and
Promotions Strategy
Section 19, Page 43
Section 19, Page 43
Section 19, Page 43
A.8 Staff Commitment
A.9 Budget Commitment
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
organizations and local media.
• Develop SDREZ incentive web -site with links
to partner agency web -sites to market all
related business incentive programs.
The enterprise zone will commit the following
staff to its marketing plans:
Year 2 Section 19, Page 43
Staffing of one (1) FTE for the marketing Continuously Section 43 —
program. Organizational
Overview
SDREZ Zone Manager (.50 FTE), two (2)
Business Assistance Managers (.50 FTE) Section 43,Page 2
The enterprise zone will commit the following
budgets to its marketing plans:
A minimum budget of $13,000 annually for the
marketing program.
Note: Staff will evaluate budget annually
and will make adjustments to increase the
overall marketing budget when feasible.
A budget of $ 13,000 for the marketing Continuously Section 41 -
program. First MOU Relating
To The San Diego
Regional Enterprise
Zone
Page 8
A.10 Self -evaluation The enterprise zone will conduct regular self- Evidence that the enterprise zone has Annually Section 19 -
evaluations to determine the effectiveness of its conducted regular assessments of its Comprehensive
marketing program. marketing program, and made the Marketing Strategies
necessary adjustments to ensure that the Page 36
program operates effectively.
9
8/8/2011
Note:
Self -evaluation
process is not
clearly identified in
the 2006 application
but SDREZ staff has
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
developed the
attached document
"SDREZ Five Year
Goals" based on
goals identified in
2006 application.
B.
Self Evaluation
The enterprise zone will conduct regular self -
evaluations to determine the effectiveness of its
financing plan.
Evidence that the enterprise zone has Annually
conducted regular assessments of its
financing program, and made the
necessary adjustments to ensure that the
program operates effectively.
Section 24 -
Financing Plan
Page 15
Conditions
Response, May 25,
2007, #3
C.1
8/8/2011
Training
To maximize the participation of agencies and
organizations that provide job development
services for the unemployed and under-
employed, the enterprise zone's jurisdiction will
perform the following:
1) Create a job development team of all the
participating entities, as indicated in the letters
of commitment in the application, who will
aggressively and cooperatively provide an
array of services to both employers and
residents of the San Diego Regional Enterprise
zone including but not limited to:
10
Evidence that the jurisdiction has
conducted the activities specified for the
maximization of the job -development
services.
1) Continuously
Section 28 —
Job Development
Plan
C.2
8/8/2011
Training
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
Recruitment and Training evaluation
- Screening and job linkages
Assess job seekers for EZ eligibility
Applicant pre-screening
- Facilities for job interviews
- Labor market information
- Job development technical support
2) EZ Manager call or send an email to job
development agencies of the hiring and training
needs of new/expanding businesses within
zone .Additionally, the EZ manager will discuss
business training needs and contacts made at
the SDREZ partnership meeting.
3) EZ Manager to generate a quarterly status
report on job development services rendered
under the SDREZ's job development plan, i.e.
training programs, skills and earnings
increases, at -risk youth programs.
To ensure that job development
professionals are working with existing
employers to partner with the local schools
to develop and maintain a trained
workforce that will meet labor
requirements, the jurisdiction will perform
the following:
Evidence that the jurisdiction has
performed the activities specified resulting
in a partnership with local schools, the
identity of the community's labor
requirements, including the required skill
sets for local employers, and a
corresponding curriculum to meet these
requirements.
2) Monthly
3) Quarterly
-Facilitate at least two partnerships between
business/industry and high schools to develop Annually
11
Section 28,
Page 3
Page 4
Page 5
Section 28 —
Job Development
Plan
Section 28 - Pages
8
HCD — Section 28,
Page 6-7.
C.3
8/8/201 1
Training
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
workforce planning/training opportunities, i.e.
scholarships, apprenticeships, etc.
• To target, educate, and train the
unemployed and underemployed in the
applicant community, the jurisdiction will
perform the following activities: Work with
the San Diego Workforce Partnership (who
manages the administrative affairs of the
Workforce Investment Board) by integrating
the EZ program and services with the
SDWP/WIB Business Services model at the
appropriate Career Centers (One Stops)
by:
Identify industry training, employment
needs and skill gaps in the local
workforces as they relate to key
industries
Work with San Diego Workforce
Partnership and Local Career Centers
to develop outreach program integrated
with high schools to enhance early
interest in key industry occupations
12
Evidence that the enterprise zone has
conducted the activities specified to
target, educate, and train the
unemployed.
Continuously
Section 28 —
Job Development
Plan
Pages 1 -9
Section 28,
Page 4
Pages 6-9
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
C.4 Local Services To integrate local services, including human Evidence that the jurisdiction has Continuously Section 28 -
service programs, into the enterprise zone conducted the activities specified for the Job Development
program, the jurisdiction will perform the integration of local services. Plan
following: Pages 2-6 ;
Maintain a minimum of one Enterprise Zone and
Employer Services Coordinator (ESC) position
to be a collaborative partner of the Career Section 33 —
Center's Business Service mode when Table 13
targeting SDREZ companies. The ESC will Agencies Providing
work with Job Developers/Coordinators from Job and
13
8/8/201 1
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
the Career Centers, South County, Metro and Employment
South Metro Career Centers, which serve the Services to
SDREZ area, The Business Services team Proposed Enterprise
informs businesses of employment assistance Zones
available to the business community. The team Pages 1-2
will educate businesses of the employment bas
available in the SDREZ. Businesses will also
be made aware of training programs, recruiting
and other applicable services. The ESC will
provide training to the SDREZ employers
focusing on the EZ vouchering process.
C.5 Agency Contributions To commit sufficient local resources for Evidence that the agency and/contractor Continuously Section 33, -
coordination of the job development effort, the provided the contributions specified. Table 13,
specific contributions that each agency and/or Agencies Providing
contractor will make to the implementation of Job and
the Economic Development Plan as it relates to Employment
job development are as follows: Services to
Proposed Enterprise
The following are local resources that Zones
contribute to implementation of the SDREZ job Pages 1-2
development plan:
1) Metro Career Centers (Operated by
San Diego Career Opportunities
Partners)
3910 University Avenue, Ste 100
San Diego, Ca 92101
2) South Western College Small Business
Development & International Trade
Center 900 Otay Lakes Rd., Bldg
8/8/2011
14
Section 33, -
Table 13,
Pages 1-2
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
#1600, Chula Vista, CA 91910
3) South County Career Center (Operated
by Arbor Education & Training 1111
Bay Blvd., Ste E, Chula Vista, CA
91911
4) South Metro Career Center/Grant Hill
Branch (Operated by Center for
Employment Training)
3295 Market St
San Diego, CA 92102
5) Comprehensive Training Systems 497
11 `h Street #4
Imperial Beach, CA 91932
These agencies will provide and/or assist with
the following job development activities:
•Partner with the SDREZ to provide job
assistance to both job seekers and
employers in the SDREZ.
•Make information on the SDREZ benefits
available at agencies and disseminate
• Provide company referrals that can benefit from
EZ benefits
• Co-sponsor workshops and seminars provide
technical assistance to small businesses in
the SDREZ including:
• Job postings
8/8/2011
15
C.6 CaIWORKS & WIB
C.7
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
Employment referrals
Employer assistance
Rapid Response support
• Job Fairs
•Job referrals and Training opportunities to job
seekers and employers in the SDREZ
•Attend EZ meetings and workshops
• Host information meetings for employers
To place recipients of the Workforce
Placements Investment Act and CaIWORKS services into
jobs, the jurisdiction will perform the following:
Vouchering
C.8 Vouchering Fees
8/8/2011
• The Employee Services Coordinator will
work with case managers from WIA and
partnering agencies to help identify
potential employees of targeted groups
which face barriers to employment.
• Issue voucher eligibility letter to qualified
individuals
To ensure compliance with all applicable laws
and regulations, the enterprise zone will
implement systems for monitoring, reporting,
and safeguarding the vouchering process, and
monthly reporting to the Department of Housing
& Community Development.
To ensure that the enterprise zones complies
16
Evidence that the jurisdiction performed Continuously
the activities specified to place recipients
of the Workforce Investment Act and
CaIWORKS.
Evidence that the enterprise zone has Monthly
systems in place that permit the
monitoring, reporting, and safeguarding of
the vouchering process.
The timely remittance of application fees Monthly
Section 28 -
Job Development
Plan
Pages 2-6.
Section 29 -
SDREZ
Vouchering Plan
Section 28 —
SDREZ Voucher
Fee Remittance
Plan
Section 28 —
C.9 Budget & Staffing
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
with all voucher fee regulations, the jurisdiction
will implement a process that accounts for all
applications received and all fees owed to the
State.
The budget and staffing for vouchering
activities will consist of the following
The Employee Services Coordinator will do the
following:
• Serve as the SDREZ Vouchering Agent
for the Partnership.
• Review applications submitted for
hiring tax credit vouchers in compliance
with the HCD Vouchering Regulations.
• Issue voucher certificates and maintain
required data.
• Conduct hiring credit eligibility
screening for EZ companies
• Assist job developers with job
placement as needed
The original budget allocation was for one
vouchering agent at a cost of $94,000.
Note: A second Employee Services
Coordinator Vouchering Agent position
was added for a total cost of $190,000 in FY
08.
C.10 Self Evaluation The enterprise zone will conduct regular self-
17
8/8/2011
owed.
A budget of $94,000 and minimum
staffing of 1 for the enterprise zone's
vouchering activities.
Note: A second EZ Vouchering
Agent/Employee Services Coordinator
was added in 2008 to help meet the
goals and increase in workload for the
SDREZ Program.
Annually
SDREZ Voucher
Fee Remittance
Plan
Please refer to
Section 43 —
SDREZ
Organizational
Overview
Page 3
Evidence that the enterprise zone has Annually Section 28
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
evaluations to determine the effectiveness of
the job development plan.
conducted regular assessments of its job -
development program, and made the
necessary adjustments to ensure that
program operates effectively.
SDREZ
Job Development
Plan
Page 4
D.1
8/8/2011
Fee Reduction
To offer local incentives to the enterprise zone
businesses, the jurisdiction will reduce the
following fees:
Exempt the Housing Impact Fee (HIF) as
applicable. Business & Industry Incentive
Program to proactively attract, retain and
expand businesses within the region.
Assistance includes: Development Project
Advocacy and Permit Expediting Assistance;
Business Response Team
18
Evidence of fee reduction utilization for Annually
the following number of firms:
EZ companies in the SDREZ involved in
heavy/light industrial manufacturing,
research & development, wholesale
distribution and medical facilities
(hospitals/urgent care) may be eligible for
exemption of the HIF fee. Commercial
business will not be eligible for
exemption.
It is difficult to predict how many
companies/projects may receive this
benefit because the fee is tied to new
development or change in use of an
existing facility; however, data is collected
and maintained for each EZ project
granted the fee exemption. Additionally
most if not all companies assisted with
Section 36 —
SDREZ
Local Incentives
Page 10 & 11
Section 37 —
Table 16
Planning and Local
Incentives
Page 2
Please refer to
Section 37, Page 1
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
D.2 Processing Time The jurisdiction will reduce the administrative
Reduction processing time for the following items
Provide a variety of programs to directly assist
small businesses, ranging from providing
detailed information on City and regional
services, Project Advocacy, Permit Expediting
Assistance, Business Response Team; help
with business start-up questions and provide
assistance with permitting issues; advocate for
small business concerns and coordinate
programs to ensure that small businesses have
a voice in many issues that affect their ability to
succeed, Permit processing time will be
reduced 25%.
8/8i201 1
19
attraction and expansion opportunities
may be eligible for the fee exemption.
(Sections A3 & A4)
Evidence of reductions in administrative Annually
processing time for the following number
of firms:
Work with 50 businesses per year.
Provide monthly log, and evidence of
follow-up activity
Section 36 —
SDREZ
Local Incentives
Pages 12 -13
Section 37 —
Planning and Local
Incentives
Pages 1-3
MOU SUPPLEMENT
The San Diego o Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
D.3 Self -evaluation The enterprise zone will conduct regular self- Evidence that the enterprise zone has Annually Section 37 —
evaluations to determine the effectiveness of its conducted regular assessments of its Planning and Local
local incentives. incentives program, and made the Incentives
necessary adjustments to ensure that Pages 1-3
program operates effectively.
Conditions
Response, May 25,
2007, #4
E.1 Self Evaluation The enterprise zone will conduct regular self- Evidence that the enterprise zone has Annually HCD
evaluations to determine the effectiveness of its conducted regular assessments of its
program. overall program, and made the necessary
adjustments to ensure that the program
operates effectively.
E.2 Budget The jurisdiction will implement the following A budget of $361,040 for the first year. One-time
budget for the administration of the enterprise
zone in its first year:
Revenue:
• Application Fee Revenue: $125,000
• Jurisdictional Support: $194,000
(Operating MOU)
• Jurisdictional Marketing: $ 13,000
• San Diego Support: $ 29,040
TOTAL $361,040
Expenditures:
• EZ Personnel: $340,040
8/8/2011
20
Section 40 —
SDREZ
Budget Narrative
E.3 Staff Responsibilities
8/8/2011
• NPE:
• Travel/Training
• Marketing:
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
$ 5,000
$ 3,000
$ 13,000
TOTAL $361,040
Additional In Kind Commitments: $134,500
Note:
Beginning in FY 08 increases to staffing and
the budget were made to meet the
significant increase in EZ workload.
Increases included adding a second
Employee Services Coordinator
Nouchering Agent position, increasing
Business Development Coordinator from
part time to full time, and adding interns.
The following staff will perform the
responsibilities noted:
The City of San Diego will serve as the
administrative agency for the SDREZ.
Lydia Moreno, Business Incentives Program
Manager Development Coordinator:
•Provides oversight coordination for the SDREZ
Program
•Coordinates business expansion, retention and
attraction efforts
•Assist existing EZ businesses with funding and
resource development, expansions, site
assistance, and regulatory issues
21
1) Commit a full-time position to serve as Continuously
the Enterprise Zone Manager, and
2) Provide evidence of the staff and their
corresponding responsibilities.
SECTION: 43,
SDREZ
Budget Narrative
Pages 2 - 4
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15. 2006 to October 14, 2021)
•Works directly with EZ businesses in the
assessment, coordination, and assistance
of key issues for retention, expansion, and
attraction opportunities with the EZ
•Assists with SDREZ Partnership overall
marketing strategy
•Serves as immediate back-up to EZ Manager
Cord Bailey, Full-time Enterprise Zone
Manager:
•Coordinates and provides current reports
relative to progress of the EZ and monitors
benefits generated by businesses located in
the EZ
•Manages databases, documentation, and
general overall administration of the SDREZ
program
•Conducts in depth marketing efforts focused on
Zone businesses
•Manages execution of Economic Development
Incentive Agreements for all SDREZ related
development projects eligible for expedited
permit plan check
•Manages the EZ's State Grant "Preference
Point Certification" programs
•Coordinates workshops on EZ tax credits for
job developers, employers, businesses, and
related parties
•Manage collaborative efforts with non-profit and
for profit employment organizations
8/8/201 1
22
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15. 2006 to October 14, 2021)
Tere Avina and Tina Hines, EZ Vouchering
Agent/Employee Service Coordinator:
•Review applications submitted for hiring tax
credit vouchers in compliance with HCD
Vouchering regulations
•Approve and issue vouchers
•Assist EZ businesses with screening, job
placement, hiring credit eligibility
•Coordinate with job developers with process
EZ employer job orders
•Participate and assists with job fairs and
employer recruitment events
Craig Ruiz (Chula Vista) and Alfredo Ybarra
(National City), SDREZ Partnership Business
Manager:
•Perform marketing, outreach, and EZ
consultation, as well as business assistance
and attraction, workforce development,
support resources, and project assistance
to existing and new businesses locating in
the EZ
•Work directly with EZ businesses in their
jurisdiction in the assessment, coordination,
and assistance of key issues for retention,
expansion, and attraction opportunities with
the EZ
•Coordinates with Vouchering Agent/Employee
Services Coordinator to assist existing EZ
businesses and potential companies on
8/8/2011
23
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
workforce development
•Assist existing EZ businesses with funding and
resource development, expansions, site
assistance, and regulatory issues
•Manage execution of Economic Development
Incentive Agreements for all SDREZ related
development projects that are eligible
•Conduct workshops on EZ tax credits for job
developers, employers in collaboration with
the Lead Agency, businesses and related
parties
•Manage collaborative efforts with non-profit and
for profit employment organizations
•Serve as back-up Managers to the Lead
Agency Zone Manager as needed.
8/8/2011
24
Note:
Personnel changes have been made
due to retirement and turnover. A
second EZ Vouchering
Agent/Employee Services Coordinator
was added in 2008 to help meet the
goals of the SDREZ Program.
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
25
8/8/2011
RESOLUTION 2011 — 182
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CALIFORNIA ENTERPRISE ZONE
PROGRAM AND THE SAN DIEGO REGIONAL ENTERPRISE ZONE, AND
TO SUBMIT DOCUMENTS TO EFFECT AN AWARD OF FINAL DESIGNATION
TO THE SAN DIEGO REGIONAL ENTERPRISE ZONE
WHEREAS, the California Housing and Community Development Department
("HCD") oversees the Enterprise Tax Incentives Program whose goal is to stimulate growth in
economically depressed areas of the State; and
WHEREAS, the City of National City joined with the Cities of San Diego and
Chula Vista (the "Partnership") to be designated as a regional Enterprise Zone; and
WHEREAS, on August 22, 2006, the City Council adopted Resolution No. 2006-
175, authorizing submission of an application to the HCD for a San Diego Regional Enterprise
Zone ("SDREZ") designation, which would include the Partnership, and directing the Mayor to
execute the necessary documents and agreements related to the application process; and
WHEREAS, on November 3, 2006, HCD awarded conditional SDREZ
designation, and in a January 17, 2007 letter set forth conditions to be satisfied prior to the final
SDREZ designation (the "Conditions"); and
WHEREAS, on April 21, 2009, an Environmental Impact Report ("EIR") was
considered and certified by City of San Diego; and
WHEREAS, the EIR for the SDREZ has been completed and is on file in the
Office of the City Clerk; and
WHEREAS, on April 21, 2009, the City Council adopted Resolution No. 2009-83
accepting the certified final EIR, and
WHEREAS, on July 29, 2009, the City Council adopted Resolution No. 2009-118
adopting the modified boundaries of the SDREZ; and
WHEREAS, on March 2, 2010, the City Council adopted Resolution No. 2010-32
authorizing the Mayor execute the Operating MOU and Budget for the SDREZ Partnership; and
WHEREAS, on July 20, 2010, the City Council adopted Resolution No. 2010-168
expanded and modified the boundaries to the SDREZ; and
WHEREAS, the SDREZ Partners have satisfied all required designation
conditions and are seeking a final 15-year designation of the SDREZ through the execution of
the necessary "Memoranda of Understanding between the California Enterprise Zone Program
and the San Diego Regional Enterprise Zone"; and
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor or his designee to execute and deliver the
"Memorandum of Understanding between the California Enterprise Zone Program and the San
Diego Regional Enterprise Zone" substantially in the form and content on file in the Office of the
City Clerk.
Resolution No. 2011 — 182
Page Two
PASSED and ADOPTED this 16th day of August, 2011.
n Morrison, Mayor
ATTEST:
1/
Michael R. Dalla, Ci ! Clerk
APPRED AS TO FORM:
Claudi.' ' Silva
City Attorney
Passed and adopted by the Council of the City of National City, California, on August
16, 2011 by the following vote, to -wit:
Ayes: Councilmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
i/1,
I rk of the City of
City Clerk al City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2011-182 of the City of National City, California, passed and
adopted by the Council of said City on August 16, 2011.
City Clerk of the City of National City, California
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE: August 16, 2011
AGENDA ITEM NO. 10
ITEM TITLE:
Resolution authorizing the Mayor to execute a Memorandum of Understanding between the California
Enterprise Zone Program and the expanded San Diego Regional Enterprise Zone and submit
documents to effect an award of final designation to the San Diego Regional Enterprise Zone.
PREPARED BY: Alfredo Ybarr DEPARTMENT: Administrative Services
PHONE: 619 336-4279 APPROVED BY:
EXPLANATION:
Adoption of this resolution would authorize the Mayor to execute and deliver a "Memorandum of Understanding
(MOU) between the California Enterprise Zone Program and the San Diego Regional Enterprise Zone (SDREZ)."
The San Diego Regional Enterprise Zone is a fifteen (15) year partnership between local governments and
private companies to generate new private sector investments and growth with the state providing tax credits and
incentives to Enterprise Zone businesses. The purpose of the SDREZ is to : 1) promote "smart growth" by
revitalizing chronically deteriorated areas; 2) hire the most difficult to hire residents in private sector jobs and 3)
retain, expand, and reward businesses that participate in these objectives.
The SDREZ offers a special opportunity to the region to continue to implement economic development and job
creation program incentives in areas with significantly high levels of low and moderate income residents.
"ecause San Diego's economy is regional in nature, continuing the collaborative relations with other local cities,
)rt district, and the state to offer business incentives increases the regions ability to compete with other regions,
create new jobs and increase investment in our county.
FINANCIAL STATEMENT:
ACCOUNT NO.
APPROVED: Finance
APPROVED: MIS
There will be ongoing staff time required to administer the SDREZ during the designation period as detailed in the SDREZ Partnership
MOU approved by the City Council on March 2, 2010.
ENVIRONMENTAL REVIEW:
On April 21, 2009, the City Council accepted the certified Environmental Impact Report for the SDREZ,
as required by the State of California Department of Housing and Community Development.
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Adopt Resolution
BOARD / COMMISSION RECOMMENDATION:
ATTACHMENTS:
1. Background
2. Draft HCD MOU
3. SDREZ Fact Sheet
(kso�Y \ovi No. ae,\\- Via
RESOLUTION 2011 —
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CALIFORNIA ENTERPRISE ZONE
PROGRAM AND THE SAN DIEGO REGIONAL ENTERPRISE ZONE, AND
TO SUBMIT DOCUMENTS TO EFFECT AN AWARD OF FINAL DESIGNATION
TO THE SAN DIEGO REGIONAL ENTERPRISE ZONE
WHEREAS, the California Housing and Community Development Department
("HCD") oversees the Enterprise Tax Incentives Program whose goal is to stimulate growth in
economically depressed areas of the State; and
WHEREAS, the City of National City joined with the Cities of San Diego and
Chula Vista (the "Partnership") to be designated as a regional Enterprise Zone; and
WHEREAS, on August 22, 2006, the City Council adopted Resolution No. 2006-
175, authorizing submission of an application to the HCD for a San Diego Regional Enterprise
Zone ("SDREZ") designation, which would include the Partnership, and directing the Mayor to
execute the necessary documents and agreements related to the application process; and
WHEREAS, on November 3, 2006, HCD awarded conditional SDREZ
designation, and in a January 17, 2007 letter set forth conditions to be satisfied prior to the final
SDREZ designation (the "Conditions"); and
WHEREAS, on April 21, 2009, an Environmental Impact Report ("EIR") was
considered and certified by City of San Diego; and
WHEREAS, the EIR for the SDREZ has been completed and is on file in the
Office of the City Clerk; and
WHEREAS, on April 21, 2009, the City Council adopted Resolution No. 2009-83
accepting the certified final EIR, and
WHEREAS, on July 29, 2009, the City Council adopted Resolution No. 2009-118
adopting the modified boundaries of the SDREZ; and
WHEREAS, on March 2, 2010, the City Council adopted Resolution No. 2010-32
authorizing the Mayor execute the Operating MOU and Budget for the SDREZ Partnership; and
WHEREAS, on July 20, 2010, the City Council adopted Resolution No. 2010-168
expanded and modified the boundaries to the SDREZ; and
WHEREAS, the SDREZ Partners have satisfied all required designation
conditions and are seeking a final 15-year designation of the SDREZ through the execution of
the necessary "Memoranda of Understanding between the California Enterprise Zone Program
and the San Diego Regional Enterprise Zone"; and
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor or his designee to execute and deliver the
"Memorandum of Understanding between the California Enterprise Zone Program and the San
Diego Regional Enterprise Zone" substantially in the form and content on file in the Office of the
City Clerk.
Resolution No. 2011 —
Page Two
PASSED and ADOPTED this 16th day of August, 2011.
Ron Morrison, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
Claudia G. Silva
City Attorney
Attachment 1
BACKGROUND
In 1986 and 1992 the City of San Diego received approval for two enterprise zone (EZ)
designations, the Metro Enterprise Zone (1986) and the South Bay Enterprise Zone
(1992). In 2000 and again in 2004, the South Bay Enterprise Zone was expanded to
include properties along the San Diego Bay front redevelopment areas of the cities of
Chula Vista and National City. In turn, the cities of Chula Vista and National City, in
collaboration with the San Diego United Port District, provided funding to the City of
San Diego to support the cost of managing the program and marketing the zone. The
Metro Enterprise Zone expired on October 14, 2006, and the South Bay Enterprise Zone
was set to expire on January 27, 2007.
In 2006, the City Council approved a resolution authorizing submission of an application
to the State of California Housing and Community Development Department (HCD) for a
regional EZ designation for the cities of San Diego, Chula Vista and National City
("SDREZ Partners"). The Partnership received "Conditional Approval" from HCD on
November 3, 2006. Except for the City of National City authorizing execution of the
HCD Agreement, the Partnership has now completed all the necessary steps for final
approval designation.
The process for EZ designation is competitive and is based on economic need (distressed
communities, need for private investment, high unemployment, and low income census
tracts). The application also had to include realistic yet ambitious marketing and job
development strategies to implement the EZ program along with other local economic
development strategies and tools.
Purpose and Benefits of the SDREZ Program
The legislative purpose of the EZ program is to "stimulate business and industrial growth
in the depressed areas of the State". The other purposes are to establish a program "to
help attract business and industry to the state, to help retain and expand existing state
business and industry, and to create increased job opportunities for all Californians.
Local jurisdictions must provide additional local incentives throughout the 15-year
designation.
Businesses located within the SDREZ may receive individual or corporate state tax
incentives/credits to reduce a company's state tax liability dollar per dollar. Any unused
tax credits may be carried forward to reduce future tax year's liabilities. Attachment 3
(SDREZ Fact Sheet) provides a brief description of the state tax benefits available to
SDREZ businesses. The EZ program has made a significant impact on the local
economy. The SDREZ program is a fifteen (15) year designation and offers tremendous
business incentives and helps the region retain employers and attract new ones
Discussion
In November 2006, the City of San Diego, as the lead agency for the SDREZ, was
notified that it was awarded a conditional EZ designation. Final designation is contingent
upon completion of the conditions imposed for the designation by HCD. Except for the
1
Attachment 1
City of National City authorizing execution of the HCD Agreement, the SDREZ Partners
have completed all required conditions and engaged in the task of seeking final
designation of the SDREZ. These tasks included executing the necessary Memoranda of
Understanding (MOU) between the SDREZ Partners outlining administrative roles and
responsibilities as well as the budget for the SDREZ, and the MOU between the SDREZ
Partners and the HCD (Attachment "2" HCD MOU). HCD has accepted all of the
required documents and has awarded final designation subject to the City of National
authorizing execution and final execution of the HCD MOU.
CONCLUSION:
The official designation of the SDREZ by the State HCD will allow a significant
economic and employment incentive program to continue in the cities of San Diego,
Chula Vista and National City. A cooperative framework for managing this unique
opportunity to provide business tax incentives in the region has been formalized in the
Memorandum of Understanding (MOU) between the SDREZ Partners as well as the
SDREZ Partners' commitment to the fifteen (15) year SDREZ designation. The SDREZ
is a special opportunity to continue to implement economic development and job creation
program incentives in areas within the region with significantly high levels of
unemployment and/or help residents of low and moderate income census tract
communities to obtain employment.
2
Attachment 2
California
Enterprise
Zones
MEMORANDUM OF UNDERSTANDING
BETWEEN THE
CALIFORNIA ENTERPRISE ZONE PROGRAM
AND THE
SAN DIEGO REGIONAL ENTERPRISE ZONE
An agreement establishing the San Diego Regional Enterprise Zone pursuant to the
California Enterprise Zone Program.
1. PURPOSE OF AGREEMENT
This Memorandum of Understanding (hereinafter"Agreement") constitutes
official notification of the designation of the San Diego Regional Enterprise Zone
(the "Contractor") under the California Enterprise Zone Program (the "Program")
administered by the State of California's Department of Housing and
Community Development
The Program is authorized and governed by California Government Code
Section 7070, et seq. (the "Program Statutes") and the California Code of
Regulations, Title 25, Section 8430, et seq (the "Program Regulations") all as
amended from time to time. In accepting this designation, the Contractor
agrees to comply with: (a) the Program Statutes; (b) the Program Regulations;
(c) the representations contained in the Contractor's Application made in
response to the Request For Proposal (the "Application"), which is hereby
incorporated into this Agreement; and (d) the terms and conditions of this
Agreement and its Supplement.
2. DEFINITION OF TERMS
Capitalized terms as used in this Agreement have the following definitions:
A. "Act" means the Enterprise Zone Act, as defined in Government Code
Section 7070.
B. "Department" means the State of California's Department of Housing and
Community Development (HCD) or its successor. HCD has legislative
authority and responsibility for the Enterprise Zone Program.
C. "Agreement" means this Memorandum of Understanding.
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 2 of 9
D. "Application" means San Diego Regional Enterprise Zone's Application
submitted to the Department.
E. "Audit" means any program performance audits of the San Diego Regional
Enterprise Zone conducted by the Department, including an audit as
described in Government Code Section 7076.1.
F. "Contractor" means the San Diego Regional Enterprise Zone with The City if
San Diego Business incentives program as the lead agency only, obligated
and committed to providing goods and/or services, as referenced in the
Application.
G. "De -designation" or "De -designate," means the Department's action
terminating this agreement, and/or rescinding the Enterprise Zone
designation in the event of non-performance as described in Government
Code Sections 7076.1 and 7076.2.
H. "Enterprise Zone" means the San Diego Regional Enterprise Zone consisting
of 34,720 acres located within the Cities of San Diego, Chula Vista and
National City within the County of San Diego.
I. "Plan" means the Economic Development Plan prepared and adopted for the
San Diego Regional Enterprise Zone and the California Enterprise Zone
designation.
J. "Program" means the State of California's Enterprise Zone Program
administered by the Department of Housing and Community Development.
K. "Program Income" means income earned from the evaluation of forms and
supporting documentation submitted in application for a voucher, whether or
not such application is approved.
L. "Program Manager" means the primary contact as defined in the Application.
M. "Voucher" or "Certificate" shall mean the certification described in subdivision
(c)(1) of Revenue and Taxation Code Sections 17053.74 and 23622.7 and
which contains all the information required by Section 8450.3 in a format
provided by the Department.
N. "Work" means the Enterprise Zone's program of activities contained within the
Plan for the Marketing, Job Development, Program Management, Financing,
Planning, Local Incentives and Vouchering of the San Diego Regional
Enterprise Zone.
3. SCOPE OF WORK
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 3 of 9
A. Contractor shall perform the Work as described in the Application, which is
on file at the Department and which is incorporated herein by this reference.
All written materials or alterations submitted during the Enterprise Zone
designation period and which are approved in writing by the Program
Manager are included in the Work. In the event of a conflict between the
descriptions of the Work in the Application and as described in this
Agreement, the description in this Agreement shall prevail. The State
reserves the right to require the Contractor to modify any or all parts of this
Agreement in order to comply with the Program Statutes or Program
Regulations.
B. Contractor shall provide all necessary administrative activities in support of
the San Diego Regional Enterprise Zone.
4. AGREEMENT PERIOD
This Agreement shall be in effect from October 15, 2006 through October 14, 2021
unless otherwise amended or terminated in writing by either party. After January
30, 2012 the Department shall Audit the Contractor to assure it has made
satisfactory and reasonable progress in implementing the obligations set forth in
the Application.
5. COUNTY AND DEPARTMENT PROGRAM COMMUNICATIONS
The contact for this Agreement will be the City of San Diego Business Incentives
Program Manager. The City of San Diego Business Incentives Program Manager,
the primary contact, as stated in the San Diego Regional Enterprise Zone Final
Application, is Lydia Moreno at (619) 236-6320.
A. The Department of Housing and Community Development's representative
for this Agreement is John Nunn, Jr., Enterprise Zone Program Manager. His
telephone number is (916) 322-7555.
B. All official communications from the Program to the Enterprise Zone shall be
directed to the Division within which the Enterprise Zone Program operates at
the following address:
City of San Diego, Office of the Mayor, Economic Growth Services
1200 Third Avenue 14th Floor San Diego, CA 92101
Contact: Lydia Moreno
D. All official communications from the Enterprise Zone to the Program shall be
directed to:
John Nunn, Jr., Manager
S
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 4 of 9
Enterprise Zone Program
Department of Housing and Community Development
Post Office Box 952054
Sacramento, CA 94252-2054
(916) 322-7555
6. PROGRAM ADMINISTRATIVE BUDGET:
The San Diego Regional Enterprise Zone's Operational Budget for Year One
provided under this Application shall be $361,040.
7. DEPARTMENT PROGRAM RESPONSIBILITIES:
The Department shall have the following responsibilities:
A. Inspections of Enterprise Zone Activity: Monitor, inspect and/or audit any
San Diego Regional Enterprise Zone plans and activities performed hereunder
to ensure compliance with the Enterprise Zone's responsibilities as defined in
the Application, this Agreement and its Supplement, and applicable laws,
regulations, and guidelines, and to take corrective actions as provided by law.
B. Review and Approval of Plans, Agreements, and Products: Review and
approve Vouchering, Marketing, Incentive, Financing, Management and other
Plans, agreements, documents and products required by the Application or by
law.
C. Assistance: Provide technical assistance, consultation, research and
analytical services to the San Diego Regional Enterprise Zone, if requested,
as permitted by Program resources.
8. ENTERPRISE ZONE RESPONSIBILITIES:
The Enterprise Zone shall have the following responsibilities:
A. Performance: Generally, to make substantial and sustained efforts to
revitalize the San Diego Regional Enterprise Zone areas through marketing,
incentives and financing programs, job development and independent
verification and issuance of vouchers. Specifically, to fulfill the terms,
conditions, and level of effort (staffing, budget, marketing, contracting) set
forth in this Agreement, including its Supplement, the Application and/or the
Plan, as may be supplemented or superseded by regulations, guidelines, and
other Program requirements during the designation period.
6
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 5 of 9
B. Performance Obligations - Third Party Relationships: Notwithstanding its
designation of any third party for the undertaking of all or any part of the
activities enumerated under this Agreement, the San Diego Regional
Enterprise Zone shall remain fully obligated under the provisions of this
Agreement. The San Diego Regional Enterprise Zone shall execute written
agreements with third parties identified in the Application, if any, and/or the
Plan for the performance of the San Diego Regional Enterprise Zone's related
activities to ensure that the activities being provided under this designation
are carried out in accordance with the Program requirements.
C. Enterprise Zone Manager: To hire and fund an Enterprise Zone Manager,
who shall be responsible for the San Diego Regional Enterprise Zone's
budget, Plan, vouchering, and implementation of this Agreement.
D. Enterprise Zone Budget/Maintenance of Effort: To establish, fund and
maintain the Enterprise Zone budget, under the direction of the Enterprise
Zone Manger, to implement the Economic Development Plan and Scope of
Work. Without prior Department approval, the Enterprise Zone shall not
reduce the budget, staff allocation, or modify subcontracts to agencies or
community organizations identified in the Application as providing San Diego
Regional Enterprise Zone services.
E. Vouchering:
1. Vouchering Administration - Contractor agrees to execute and maintain
the vouchering plan and vouchering procedures outlined in the Application.
The Vouchering Plan will assure that vouchers are properly issued in a timely
manner, adequately controlled and accounted for in the vouchering system.
Contractor is responsible for keeping records which fully disclose the
vouchering system. Procedures must provide for the accurate and timely
recordation of the receipt of the application fee, supporting documentation,
independent verification and approval or denial of the voucher. Adequate
documentation of each approved voucher application shall be maintained for
a minimum of five years to permit the determination, through an audit if
requested by the State, of the accuracy of the records and the eligibility of
voucher applications. If the eligibility of a voucher cannot be determined
because supporting documentation is inadequate, the voucher shall be
disallowed.
2. Enterprise Zone Voucher — As of October 15, 2006 the Contractor or their
agent shall begin accepting voucher applications and fees. The San Diego
Regional Enterprise Zone must begin using the Department of Housing and
Community Development's Enterprise Zone Voucher form to certify a
business's participation with the Program.
3. Signatory Control - Unless the Department is notified otherwise in writing
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 6 of 9
by the Contractor, the Enterprise Zone Manager, as listed in Section 5, shall
have final signatory approval or denial of all voucher applications.
F. Voucher Application Fee:
1. Contractor agrees to establish a Voucher Application Fee ("Fee") and Bill
Remittance Form ("Form") and maintain fiscal control and accounting
procedures, which assures that the Fee received for the voucher application,
is properly disbursed, adequately controlled and accounted for in a Program
account. Contractor is responsible for keeping records, which fully disclose
the amount and disposition of the proceeds of the fees. The procedure
developed by Contractor must provide for the accurate and timely recordation
of the receipt of Fees, and unexpended balances. Adequate documentation
of each transaction shall be maintained to permit the determination, through
an audit if requested by the State, of the accuracy of the records. For each
voucher application accepted for processing, the Contractor shall disburse
$15.00 to the Department in accordance with the Program Regulations.
2. Any fees remaining at the end of the designation period or de -designation
date must be forwarded to the State. Checks must be made out to the
Department of Housing and Community Development and shall be mailed
within 180 days of the end of the designation period or de -designation date.
G. Public -Private Participation: The Enterprise Zone shall be the institutional
venue for the regular participation of public and private stakeholders in
decisions affecting the Enterprise Zone, its Plan, work programs and the
implementation of this Agreement.
H. Network Participation: Ensure that the Enterprise Zone Manager and
appropriate staff participate at meetings required by the Department, and at
conferences of the California Association of Enterprise Zones or similar
professional development organizations.
I. Performance Reporting: Contractor agrees to establish a data collection
system and maintain data collection procedures, which assures that all data
are properly collected, adequately controlled and accounted for in the Annual
Survey as required by Government Code Section 7085(b). Contractor is
responsible for keeping records on all administrative and vouchering activities,
which fully disclose the effect of the Enterprise Zone on employment and
investment.
The Contractor is required to collect data for the Annual Survey that the
Department is required to provide annually to the Legislature. Unless
specified otherwise in the Annual Survey, the Contractor will collect the data
and submit it to the Department at the address noted in Section 5 of this
Agreement.
p
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 7 of 9
If an Annual Survey is not completed to the satisfaction of the Department, it
will be returned to Contractor for revision. If the Annual Survey is not
amended within 60 days of the due date, the Contractor will receive a
negative audit finding pursuant to Government Code Section 7076.1. The
Enterprise Zone's performance under this Agreement will be based in part on
whether it has submitted complete reports on a timely basis.
The Contractor shall prepare and submit report(s) of the Enterprise Zone's
performance pursuant to a format, schedule and deadlines that the
Department requires. The Annual Survey will review Enterprise Zone activity
regarding business attraction, business retention, vouchering, and local
success stories. The survey results from the San Diego Regional Enterprise
Zone will be tabulated with all other enterprise zones to create the
comprehensive report that is submitted to the Legislature.
J. Audit: The Enterprise Zone shall maintain auditable voucher records at all
times. California Government Code Section 7076.1 requires the Department
to conduct an audit of each Enterprise Zone. The Department may schedule
annual Audits. The Enterprise Zone agrees that the Department and their
delegates have the right to receive, review, obtain, and copy all records
pertaining to the Enterprise Zone and/or its vouchering activities. The
Enterprise Zone further agrees to provide the Department or its delegates with
any relevant information requested and shall permit the Department or its
delegates access to its premises, upon reasonable notice, during normal
business hours for the purpose of interviewing employees and inspecting and
copying such books, records, accounts, and other material that may be
relevant to a matter under investigation for the purpose of determining
compliance with the designation, audit, or performance.
The Enterprise Zone agrees to maintain all Enterprise Zone records,
including voucher applications, vouchers and supporting documentation for a
minimum of five (5) years after expiration of the Enterprise Zone designation.
If so directed by the Department upon termination of this agreement, or De -
designation of the Enterprise Zone, the Enterprise Zone shall cause all
records, accounts, documentation and other materials related to the
Enterprise Zone activity to be delivered to the Department.
K. Conflict of Interest of Employees, or other Public Officials: No employee,
member of the governing body, or public official who exercise any functions or
responsibilities with respect to the program during his/her tenure or for one (1)
year thereafter, shall have any interest, direct or indirect, in any contract,
subcontract, or voucher, or the proceeds thereof, for activities performed in
connection with the Enterprise Zone, and all such persons shall comply with
Government Code Section10410, et seq., Public Contracts Code Section
San Diego Regional. Enterprise Zone
Memorandum of 1Jnderstanding
Page 8 of 9
10410 et seq., and Government Code Section 81000 et seq. (Political Reform
Act of 1974), as applicable. Failure to comply with this requirement may
trigger an Audit.
9. AMENDMENT
No amendment or variation of the terms of this Agreement shall be valid unless
made in writing, and approved and signed by the parties to this Agreement. This
Agreement supersedes any oral promises, representations, or other agreements
with respect to the subject matter of this Agreement.
10. DISPUTES
The Department shall monitor the Enterprise Zone for performance and
compliance with this Agreement. Failure to meet the conditions of this Agreement
may be grounds for de -designation.
11. DEDESIGNATION OF THE ENTERPRISE ZONE
The Department may terminate this Agreement if the Enterprise Zone fails to
succeed in the Audit process as described in Government Code Sections 7076.1
and 7076.2. The Zone will have failed to demonstrate success in making
substantial and sustained efforts in meeting the goals and commitments as
presented in the Application. The effect of the notice specified in this section shall
be to terminate this Agreement and end Program designation of the Enterprise
Zone
12. APPROVAL
This Agreement, the Program's designation of the Enterprise Zone, as applicable,
is not valid until approved by the Cities of San Diego, Chula Vista, and National
City and signed by all parties.
IN WITNESS WHEREOF, the parties have read, understand and agree to the
terms and conditions as set forth in this Agreement on the day, month and year
noted.
0
San Diego Regional Enterprise Zone
Memorandum of Understanding
Page 9 of 9
APPROVED by the member of the Enterprise Zone:
City of National City, a California municipal corporation
By: Date:
Name: Ron Morrison
Title: Mayor
City of Chula Vista, a California municipal corporation
By: Date:
Name: James D. Sandoval
Title: City Manager
City of San Diego, a California municipal corporation
By: Date:
Name: Jay M. Goldstone
Title: Chief Operating Officer
Department of Housing and Community Development
Enterprise Zone Program
By: Date:
John Nunn, Jr.
Manager
11
• •
A B
Item Application Section
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
C
Commitment
D E
Expected Outcome Performance Benchmark or Standard
F
Applicable
Timeframe
G
Application Cross-
Refe rence
GENERAL
GEN Performance
Measurement
To assess its performance, the enterprise
zone will develop a methodology that
effectively identifies the number of
businesses retained, expanded, and
attracted.
A measure of the
enterprise zone's
performance.
A methodology that accurately measures
the enterprise zone's efforts to retain,
expand, and attract businesses.
Year 1
HCD
A. MARKETING STRATEGY AND PLAN
A.1
8/8/2011
Explicit, quantifiable
five-year goals to be
accomplished in the
first five years.
The enterprise zone will accomplish the
following marketing goals over the first five
years of the zone:
Market the SDREZ as "One Zone" multi -
jurisdiction program and implement "One Zone"
marketing strategies:
1) Develop "One Zone" marketing materials in
English and Spanish;
2) Issue 12,500 vouchers;
2) Assist approximately 3000 businesses;
3) Assist approximately 100 small businesses
access local revitalization programs, i.e., SIP,
etc.
4) Conduct between 10 to 15 technical
1
Evidence that the enterprise zone has
progressed towards the accomplishment of
its goals.
1) Beginning
Year 1 and
updating
continuously
thereafter
2) Five years
2) Five years
3) Five years
SDREZ Five Year
Goal, Tab 19.
Note:
See note in Item
A.10
Annual Marketing
Plan, Section 19,
Page 37
Conditions
Response, May 25,
2007, Condition #1
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
workshops.
5) Conduct/participate in 3 to 10 Job Fairs and
5 Trade Shows.
6) Develop and maintain a system for reporting
annually to HCD all requested information.
7) Market the SDREZ as part of a business
attraction and retention strategy for targeted
industries, including mfg., R&D, and technology
ventures.
8) Support (50) business finance opportunities
(loans/grants/rebates) with SDREZ businesses
using local programs
A.2 Business To retain businesses in the community, the See A.3.
Retention/Activities enterprise zone will conduct the following
activities:
1) Expand existing partnerships between
public and private sectors by doing outreach
and organizing or participating in periodic EZ
informational sessions to industry groups,
Chambers of Commerce, Business
Improvement Districts (BIDs), and Community
Economic Development Organizations to keep
the SDREZ incentives in front of businesses
and educate them on EZ benefits.
A.3 Business
Retention/Expansion
Activities
8/8/2011
To expand businesses in the community, the
enterprise zone will conduct the following
activities:
Commercial and Industrial
Commercial:
Retention/Expansion
Goal - 125
commercial
2
Evidence that the enterprise zone has
conducted the activities specified for
business retention.
Evidence that the enterprise zone has
conducted the activities specified for
business expansion.
4) Five years
5) Five years
6) Year 1
7) Year 5
8) Five years
1) Three times
annually
Section 19-
SDREZ Business
Retention Plan
Pages 1, 2, and 3
Tab 11, Table 1
Section 12 -
Annual Commercial
Retention/Expansion
Marketing Strategy
(Table 1)
Section 13 —
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
1) Use EDC Prosperity Committee or similar
committees as a warning network to notify
appropriate agencies serving at risk
businesses. This will provide assistance to
impacted companies and address
issues/concerns where appropriate. Effected
employees will be directed to Career Centers
and other agencies to obtain employment
services and ensure that layoff and plant
closure procedures are followed appropriately.
2) Improve existing downtown commercial mix
and attractiveness by working with
redevelopment agencies to identify prospective
development projects and new businesses
3) Focus efforts to 4 groups; a) small locally
owned "main street" businesses; b) base sector
industries, i.e. manufacturers, clean/green tech
businesses, warehouse/distribution
businesses; c) redevelopment project areas;
and 4) medical facilities.
8/8/2011
businesses and
1,250 jobs annually
Industrial:
Retention/Expansion
Goal - 50 industrial
businesses and
3,000 jobs annually.
3
1) Continuously
2) Continuously
3) Continuously
Annual Industrial
Retention/Expansion
Marketing Strategy
A.4 Business Attraction
Activities
8/8/2011
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
To attract businesses in the community, the
San Diego Regional Enterprise Zone (SDREZ)
will conduct the following activities:
Commercial
1) Strengthen existing and develop new
regional partnerships so that limited resources
can be leveraged to support effective marketing
and businesses development programs.
2) Use advertising to raise awareness of the
entire enterprise zone region (as described in
Advertising and Promotion Strategy, Tab 19,
Pg 41).
3) Promote opportunities (such as mixed use
development, facade improvement programs,
business improvement districts) to businesses
that will complement and improve the existing
SDREZ downtown and "Main Street"
commercial mix and will enhance the
attractiveness of these areas.
4) Establish sales/marketing team which
actively involves city representatives.
5) Develop fast -track building permit process
for commercial/industrial construction projects.
6) Have available CD/DVD or video to
promote regional industry attractiveness.
Commercial
Target 20
commercial
businesses and 600
jobs annually.
4
Evidence that the enterprise zone has
conducted the activities specified for
business attraction.
1) Continuously
2) Annually
3) Continuously
4) Year 1
5) Year 1
6) Year 4
Section 12-
Annual Commercial
Attraction marketing
Strategy.
Section 12, Table 2,
Page 3 (Develop
and provide permit
fast tracking
assistance for new
companies)
• •
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
Work with EDCs, Chambers, Business
Improvement Districts, Community
Development Corporations and the World
Trade Center San Diego to distribute
videos to companies considering the San
Diego Region a place to locate new
business.
7) Conduct two marketing outreach trips to
target companies seeking relocation and/or
expansion opportunities.
Industrial
(Items 1 — 7 same as above)
8) Develop inventory of available industrial
properties
8/8/2011
Industrial
Target 50 industrial
businesses and
1,500 jobs annually.
5
7) Annually
8) Year 2
Section 14,
Table 4, Page 3
(Develop and
provide permit fast
tracking assistance
for new companies)
A.5 Sales Plan for Site
Visits
8/8/2011
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
The enterprise zone's sales plan for on -site
visits to existing and/or new businesses will
consist of the following activities:
Each SDREZ partner city will manage the
following activities:
1) Establish a business calling program to
identify businesses for on -site visits. (The call
program will continually screen and qualify
targeted industries when companies locate
within the SDREZ.
2) Automatic generation of SDREZ benefits
packets with each business license application
and follow up call/visit.
3) The SDREZ team will participate in 245
sales calls annually for retention, expansion, or
attraction purposes. These sales calls will be
to targeted companies for this specific purpose
4) Coordinate business site visits with
economic development organizations targeting
specific EZ areas.
Evidence that the enterprise zone has
conducted the activities specified in its
sales plan for on -site visits.
6
1) Continuously
2) Quarterly
3) Annually
4) Three (3) to
four (4) times
annually
Section 19 - Page
43 thru 45
SDREZ Sales Plan
for Business
Outreach and Site
Visits
•
. •
• • •
A.6 Advertising &
Promotional Strategy
8/8/201 1
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
The enterprise zone's advertising and
promotional strategy will consist of the
following activities:
Advertising
1)Establish a staff/partner advertising steering
committee to advise SDREZ staff on business
sector driven advertising
Promotion
2) Participate in speakers bureau & solicit
speaking engagements
3) Partner with business and community
development corporations to target outreach to
low/ -moderate income target areas, including
tax preparation services.
4) Target small business members in BIDS and
business organizations. SDREZ staff will
provide EZ articles and other advertisements to
be included in member newsletter. SDREZ will
provide flyers on upcoming workshops which
will be distributed to members. SDREZ will
partner with BIDs to sponsor workshops for
members. SDREZ will attend Small Business
Advisory Board meeting.
5) Conduct Annual SDREZ Business
recognition for EZ businesses and local
partners.
7
Evidence that the enterprise zone has
conducted the activities specified in its
advertising and promotional strategy.
Budget a minimum of $5,000 annually for
paid advertisements.
1) Year 1
2) Annual
beginning year 1
3 ) Three times
annually
4) Year 1
5)Annually
beginning year 4
Section 19,
Advertising and
Promotional
Strategy
Section 19 —
SDREZ
Comprehensive
Marketing Strategy
Section 19, Page 7,
Section 19, Page 9
Section 19, Page 37
& 41
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
6) Other
• Direct mail
• 5 Trade shows and trade missions (see A.1)
• Conduct or participate in EZ general
informational and technical workshops with
various stakeholders to increase awareness of
incentives and opportunities in the designated
area and to targeted audience to address more
complex elements of program. Technical
workshops will target tax practitioners to
educate them on how EZ tax incentives may
apply to tax payers doing business in the
SDREZ.
A.7 The Media Strategy The enterprise zone's media strategy will
consist of the following activities:
• Pitch local print and broadcast media on
availability of incentives and other noteworthy
activities including community newspapers and
community based organization newsletters.
• Develop a group of partners/businesses to
serve as experts for media interviews to
promote the program and speak from their
perspectives.
• Annually distribute news releases on Zone
incentive workshops, job fairs, and other EZ
newsworthy information to business
8/8/2011
8
Evidence that the enterprise zone has
conducted the activities specified in its
media analysis.
6) Annually
beginning year 2
Quarterly
Year 2
Twice a year
Section 19, -
Advertising and
Promotions Strategy
Section 19, Page 43
Section 19, Page 43
Section 19, Page 43
• •
A.8 Staff Commitment
A.9 Budget Commitment
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
organizations and local media.
• Develop SDREZ incentive web -site with links
to partner agency web -sites to market all
related business incentive programs.
Year 2 Section 19, Page 43
The enterprise zone will commit the following Staffing of one (1) FTE for the marketing Continuously Section 43 —
staff to its marketing plans: program. Organizational
Overview
SDREZ Zone Manager (.50 FTE), two (2)
Business Assistance Managers (.50 FTE) Section 43,Page 2
The enterprise zone will commit the following
budgets to its marketing plans:
A minimum budget of $13,000 annually for the
marketing program.
Note: Staff will evaluate budget annually
and will make adjustments to increase the
overall marketing budget when feasible.
A budget of $ 13,000 for the marketing Continuously Section 41 -
program. First MOU Relating
To The San Diego
Regional Enterprise
Zone
Page 8
A.10 Self -evaluation The enterprise zone will conduct regular self- Evidence that the enterprise zone has Annually Section 19 -
evaluations to determine the effectiveness of its conducted regular assessments of its Comprehensive
marketing program. marketing program, and made the Marketing Strategies
necessary adjustments to ensure that the Page 36
program operates effectively.
9
8/8/2011
Note:
Self -evaluation
process is not
clearly identified in
the 2006 application
but SDREZ staff has
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
developed the
attached document
"SDREZ Five Year
Goals" based on
goals identified in
2006 application.
B.
Self Evaluation
The enterprise zone will conduct regular self -
evaluations to determine the effectiveness of its
financing plan.
Evidence that the enterprise zone has Annually
conducted regular assessments of its
financing program, and made the
necessary adjustments to ensure that the
program operates effectively.
Section 24 -
Financing Plan
Page 15
Conditions
Response, May 25,
2007, #3
C.1
8/8/2011
Training
To maximize the participation of agencies and
organizations that provide job development
services for the unemployed and under-
employed, the enterprise zone's jurisdiction will
perform the following:
1) Create a job development team of all the
participating entities, as indicated in the letters
of commitment in the application, who will
aggressively and cooperatively provide an
array of services to both employers and
residents of the San Diego Regional Enterprise
zone including but not limited to:
10
Evidence that the jurisdiction has
conducted the activities specified for the
maximization of the job -development
services.
1) Continuously
Section 28 —
Job Development
Plan
C.2
8/872011
Training
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
Recruitment and Training evaluation
- Screening and job linkages
- Assess job seekers for EZ eligibility
Applicant pre-screening
- Facilities for job interviews
- Labor market information
- Job development technical support
2) EZ Manager call or send an email to job
development agencies of the hiring and training
needs of new/expanding businesses within
zone .Additionally, the EZ manager will discuss
business training needs and contacts made at
the SDREZ partnership meeting.
3) EZ Manager to generate a quarterly status
report on job development services rendered
under the SDREZ's job development plan, i.e.
training programs, skills and earnings
increases, at -risk youth programs.
To ensure that job development
professionals are working with existing
employers to partner with the local schools
to develop and maintain a trained
workforce that will meet labor
requirements, the jurisdiction will perform
the following:
Evidence that the jurisdiction has
performed the activities specified resulting
in a partnership with local schools, the
identity of the community's labor
requirements, including the required skill
sets for local employers, and a
corresponding curriculum to meet these
requirements.
2) Monthly
3) Quarterly
-Facilitate at least two partnerships between
business/industry and high schools to develop Annually
11
Section 28,
Page 3
Page 4
Page 5
Section 28 —
Job Development
Plan
Section 28 - Pages
8
HCD — Section 28,
Page 6-7.
C.3
8/8/2011
Training
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
workforce planning/training opportunities, i.e.
scholarships, apprenticeships, etc.
• To target, educate, and train the
unemployed and underemployed in the
applicant community, the jurisdiction will
perform the following activities: Work with
the San Diego Workforce Partnership (who
manages the administrative affairs of the
Workforce Investment Board) by integrating
the EZ program and services with the
SDWP/WIB Business Services model at the
appropriate Career Centers (One Stops)
by:
Identify industry training, employment
needs and skill gaps in the local
workforces as they relate to key
industries
Work with San Diego Workforce
Partnership and Local Career Centers
to develop outreach program integrated
with high schools to enhance early
interest in key industry occupations
12
Evidence that the enterprise zone has
conducted the activities specified to
target, educate, and train the
unemployed.
Continuously
Section 28 —
Job Development
Plan
Pages 1 -9
Section 28,
Page 4
Pages 6-9
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
C.4 Local Services To integrate local services, including human Evidence that the jurisdiction has Continuously Section 28 -
service programs, into the enterprise zone conducted the activities specified for the Job Development
program, the jurisdiction will perform the integration of local services. Plan
following: Pages 2-6 ;
Maintain a minimum of one Enterprise Zone and
Employer Services Coordinator (ESC) position
to be a collaborative partner of the Career Section 33 —
Center's Business Service mode when Table 13
targeting SDREZ companies. The ESC will Agencies Providing
work with Job Developers/Coordinators from Job and
13
8/8/2011
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
the Career Centers, South County, Metro and Employment
South Metro Career Centers, which serve the Services to
SDREZ area. The Business Services team Proposed Enterprise
informs businesses of employment assistance Zones
available to the business community. The team Pages 1-2
will educate businesses of the employment bas
available in the SDREZ. Businesses will also
be made aware of training programs, recruiting
and other applicable services. The ESC will
provide training to the SDREZ employers
focusing on the EZ vouchering process.
C.5 Agency Contributions To commit sufficient local resources for Evidence that the agency and/contractor Continuously Section 33, -
coordination of the job development effort, the provided the contributions specified. Table 13,
specific contributions that each agency and/or Agencies Providing
contractor will make to the implementation of Job and
the Economic Development Plan as it relates to Employment
job development are as follows: Services to
Proposed Enterprise
The following are local resources that Zones
contribute to implementation of the SDREZ job Pages 1-2
development plan:
1) Metro Career Centers (Operated by
San Diego Career Opportunities
Partners)
3910 University Avenue, Ste 100
San Diego, Ca 92101
2) South Western College Small Business
Development & International Trade
Center 900 Otay Lakes Rd., Bldg
8/8/2011
14
Section 33, -
Table 13,
Pages 1-2
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
#1600, Chula Vista, CA 91910
3) South County Career Center (Operated
by Arbor Education & Training 1111
Bay Blvd., Ste E, Chula Vista, CA
91911
4) South Metro Career Center/Grant Hill
Branch (Operated by Center for
Employment Training)
3295 Market St
San Diego, CA 92102
5) Comprehensive Training Systems 497
11`n Street #4
Imperial Beach, CA 91932
These agencies will provide and/or assist with
the following job development activities:
•Partner with the SDREZ to provide job
assistance to both job seekers and
employers in the SDREZ.
•Make information on the SDREZ benefits
available at agencies and disseminate
•Provide company referrals that can benefit from
EZ benefits
•Co-sponsor workshops and seminars provide
technical assistance to small businesses in
the SDREZ including:
• Job postings
8/8/2011
15
C.6 CalWORKS & WIB
Placements
C.7
Vouchering
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
• Employment referrals
• Employer assistance
• Rapid Response support
• Job Fairs
•Job referrals and Training opportunities to job
seekers and employers in the SDREZ
• Attend EZ meetings and workshops
• Host information meetings for employers
To place recipients of the Workforce
Investment Act and CaIWORKS services into
jobs, the jurisdiction will perform the following:
• The Employee Services Coordinator will
work with case managers from WIA and
partnering agencies to help identify
potential employees of targeted groups
which face barriers to employment.
• Issue voucher eligibility letter to qualified
individuals
To ensure compliance with all applicable laws
and regulations, the enterprise zone will
implement systems for monitoring, reporting,
and safeguarding the vouchering process, and
monthly reporting to the Department of Housing
& Community Development.
C.8 Vouchering Fees To ensure that the enterprise zones complies
16
8/8/2011
Evidence that the jurisdiction performed Continuously
the activities specified to place recipients
of the Workforce Investment Act and
CalWORKS.
Evidence that the enterprise zone has Monthly
systems in place that permit the
monitoring, reporting, and safeguarding of
the vouchering process.
The timely remittance of application fees Monthly
Section 28 -
Job Development
Plan
Pages 2-6.
Section 29 -
SDREZ
Vouchering Plan
Section 28 —
SDREZ Voucher
Fee Remittance
Plan
Section 28 —
C.9 Budget & Staffing
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
with all voucher fee regulations, the jurisdiction
will implement a process that accounts for all
applications received and all fees owed to the
State.
The budget and staffing for vouchering
activities will consist of the following
The Employee Services Coordinator will do the
following:
• Serve as the SDREZ Vouchering Agent
for the Partnership.
• Review applications submitted for
hiring tax credit vouchers in compliance
with the HCD Vouchering Regulations.
• Issue voucher certificates and maintain
required data.
• Conduct hiring credit eligibility
screening for EZ companies
• Assist job developers with job
placement as needed
The original budget allocation was for one
vouchering agent at a cost of $94,000.
Note: A second Employee Services
Coordinator Nouchering Agent position
was added for a total cost of $190,000 in FY
08.
C.10 Self Evaluation The enterprise zone will conduct regular self-
17
8/8/2011
owed.
A budget of $94,000 and minimum
staffing of 1 for the enterprise zone's
vouchering activities.
Note: A second EZ Vouchering
Agent/Employee Services Coordinator
was added in 2008 to help meet the
goals and increase in workload for the
SDREZ Program.
Annually
SDREZ Voucher
Fee Remittance
Plan
Please refer to
Section 43 —
SDREZ
Organizational
Overview
Page 3
Evidence that the enterprise zone has Annually Section 28
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
evaluations to determine the effectiveness of
the job development plan.
conducted regular assessments of its job -
development program, and made the
necessary adjustments to ensure that
program operates effectively.
SDREZ
Job Development
Plan
Page 4
D.1
8/8/2011
Fee Reduction
To offer local incentives to the enterprise zone
businesses, the jurisdiction will reduce the
following fees:
Exempt the Housing Impact Fee (HIF) as
applicable. Business & Industry Incentive
Program to proactively attract, retain and
expand businesses within the region.
Assistance includes: Development Project
Advocacy and Permit Expediting Assistance;
Business Response Team
18
Evidence of fee reduction utilization for Annually
the following number of firms:
EZ companies in the SDREZ involved in
heavy/light industrial manufacturing,
research & development, wholesale
distribution and medical facilities
(hospitals/urgent care) may be eligible for
exemption of the HIF fee. Commercial
business will not be eligible for
exemption.
It is difficult to predict how many
companies/projects may receive this
benefit because the fee is tied to new
development or change in use of an
existing facility; however, data is collected
and maintained for each EZ project
granted the fee exemption. Additionally
most if not all companies assisted with
Section 36 —
SDREZ
Local Incentives
Page 10&11
Section 37 —
Table 16
Planning and Local
Incentives
Page 2
Please refer to
Section 37, Page 1
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
D.2 Processing Time The jurisdiction will reduce the administrative
Reduction processing time for the following items
Provide a variety of programs to directly assist
small businesses, ranging from providing
detailed information on City and regional
services, Project Advocacy, Permit Expediting
Assistance, Business Response Team; help
with business start-up questions and provide
assistance with permitting issues; advocate for
small business concerns and coordinate
programs to ensure that small businesses have
a voice in many issues that affect their ability to
succeed. Permit processing time will be
reduced 25%.
8/8/2011
19
attraction and expansion opportunities
may be eligible for the fee exemption.
(Sections A3 & A4)
Evidence of reductions in administrative Annually
processing time for the following number
of firms:
Work with 50 businesses per year.
Provide monthly log, and evidence of
follow-up activity
Section 36 —
SDREZ
Local Incentives
Pages 12 -13
Section 37 —
Planning and Local
Incentives
Pages 1-3
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
D.3 Self -evaluation The enterprise zone will conduct regular self- Evidence that the enterprise zone has Annually Section 37 —
evaluations to determine the effectiveness of its conducted regular assessments of its Planning and Local
local incentives. incentives program, and made the Incentives
necessary adjustments to ensure that Pages 1-3
program operates effectively.
Conditions
Response, May 25,
2007, #4
E.1 Self Evaluation The enterprise zone will conduct regular self- Evidence that the enterprise zone has Annually HCD
evaluations to determine the effectiveness of its conducted regular assessments of its
program. overall program, and made the necessary
adjustments to ensure that the program
operates effectively.
E.2 Budget The jurisdiction will implement the following A budget of $361,040 for the first year. One-time
budget for the administration of the enterprise
zone in its first year:
Revenue:
• Application Fee Revenue: $125,000
• Jurisdictional Support: $194,000
(Operating MOU)
• Jurisdictional Marketing: $ 13,000
• San Diego Support: $ 29,040
TOTAL $361,040
Expenditures:
• EZ Personnel: $340,040
8/8/2011
20
Section 40 —
SDREZ
Budget Narrative
E.3 Staff Responsibilities
8/8/2011
• NPE:
• Travel/Training
• Marketing:
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
$ 5,000
$ 3,000
$ 13,000
TOTAL $361,040
Additional In Kind Commitments: $134,500
Note:
Beginning in FY 08 increases to staffing and
the budget were made to meet the
significant increase in EZ workload.
Increases included adding a second
Employee Services Coordinator
Nouchering Agent position, increasing
Business Development Coordinator from
part time to full time, and adding interns.
The following staff will perform the
responsibilities noted:
The City of San Diego will serve as the
administrative agency for the SDREZ.
Lydia Moreno, Business Incentives Program
Manager Development Coordinator:
•Provides oversight coordination for the SDREZ
Program
•Coordinates business expansion, retention and
attraction efforts
•Assist existing EZ businesses with funding and
resource development, expansions, site
assistance, and regulatory issues
21
1) Commit a full-time position to serve as Continuously
the Enterprise Zone Manager, and
2) Provide evidence of the staff and their
corresponding responsibilities.
SECTION: 43,
SDREZ
Budget Narrative
Pages 2 - 4
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
•Works directly with EZ businesses in the
assessment, coordination, and assistance
of key issues for retention, expansion, and
attraction opportunities with the EZ
•Assists with SDREZ Partnership overall
marketing strategy
•Serves as immediate back-up to EZ Manager
Cord Bailey, Full-time Enterprise Zone
Manager:
•Coordinates and provides current reports
relative to progress of the EZ and monitors
benefits generated by businesses located in
the EZ
•Manages databases, documentation, and
general overall administration of the SDREZ
program
•Conducts in depth marketing efforts focused on
Zone businesses
•Manages execution of Economic Development
Incentive Agreements for all SDREZ related
development projects eligible for expedited
permit plan check
•Manages the EZ's State Grant "Preference
Point Certification" programs
•Coordinates workshops on EZ tax credits for
job developers, employers, businesses, and
related parties
*Manage collaborative efforts with non-profit and
for profit employment organizations
8/8/2011
22
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
Tere Avina and Tina Hines, EZ Vouchering
Agent/Employee Service Coordinator:
•Review applications submitted for hiring tax
credit vouchers in compliance with HCD
Vouchering regulations
•Approve and issue vouchers
•Assist EZ businesses with screening, job
placement, hiring credit eligibility
•Coordinate with job developers with process
EZ employer job orders
•Participate and assists with job fairs and
employer recruitment events
Craig Ruiz (Chula Vista) and Alfredo Ybarra
(National City), SDREZ Partnership Business
Manager:
•Perform marketing, outreach, and EZ
consultation, as well as business assistance
and attraction, workforce development,
support resources, and project assistance
to existing and new businesses locating in
the EZ
•Work directly with EZ businesses in their
jurisdiction in the assessment, coordination,
and assistance of key issues for retention,
expansion, and attraction opportunities with
the EZ
•Coordinates with Vouchering Agent/Employee
Services Coordinator to assist existing EZ
businesses and potential companies on
8/8/2011
23
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to Octoher 14, 2021)
workforce development
• Assist existing EZ businesses with funding and
resource development, expansions, site
assistance, and regulatory issues
• Manage execution of Economic Development
Incentive Agreements for all SDREZ related
development projects that are eligible
•Conduct workshops on EZ tax credits for job
developers, employers in collaboration with
the Lead Agency, businesses and related
parties
•Manage collaborative efforts with non-profit and
for profit employment organizations
•Serve as back-up Managers to the Lead
Agency Zone Manager as needed.
8/8/2011
24
Note:
Personnel changes have been made
due to retirement and turnover. A
second EZ Vouchering
Agent/Employee Services Coordinator
was added in 2008 to help meet the
goals of the SDREZ Program.
MOU SUPPLEMENT
The San Diego Regional Enterprise Zone's (SDREZ) Commitments
And
Performance Measures
(October 15, 2006 to October 14, 2021)
25
8/8/2011
www.sandiegoregionalez.org
Attachment 3
Iffe San Diego Regional
Enterprise Zone
A total of $1.7 billion worth of investment has been made in San Diego -area Enterprise Zones. More
than 20,000 jobs have been generated, and hundreds of businesses have received expedited permit
applications. Thousands more have received technical or financial assistance.
An Enterprise Zone is a geographically designated area in which businesses can receive substantial
state tax breaks and other benefits. Enterprise Zones were created in California to stimulate business
investments and to increase job opportunities in areas of high unemployment. San Diego is home to one
of 42 Enterprise Zones statewide.
San Diego Regional Enterprise Zone: Established in 2006, the One Zone is a regional economic
development program incorporating portions of the City of San Diego, significant portions of the City of
Chula Vista and the City of National City.
Advantages of the Enterprise Zone Program are the tax savings and other incentives including:
• Sales or Use Tax Credit: A tax credit against the purchase of new manufacturing, assembly, data
processing or communications equipment equivalent to the amount of sales or use tax, or up to $1.55
million annually.
• Hiring Credit: A tax credit on the wages to qualified new employees over a five-year period (up to
50 percent in the first year, 40 percent in the second year, etc.) This credit could exceed $34,000 per
eligible employee.
• Accelerated Depreciation Deduction: The option to accelerate depreciation on business property.
A business may treat 40 percent of the cost of qualified property as a business expense in the first
year it is placed into service for a maximum deduction of $20,000 per year, whichever is smaller.
• Net Interest Deduction for Lenders: Allows lenders a deduction on the net interest earned from
loans made to Enterprise Zone businesses, including business loans, mortgages and loans from
noncommercial sources.
Other advantages include:
• No -cost job referral service used to find qualified employees whose wages can be claimed as
tax credits.
• Development permit expediting and assistance.
• Tax savings for Enterprise Zone employees.
• Access to specialized technical and financial assistance programs.
For more information, visit www.sandiegoregionalez.org
SAN DIEGO REGIONAL ENTERPRISE ZONE
+-, CALIFORNIA • .
Ni TIONAL Orr
'c1J:'1-7/. m�J
OTY
CHl1LA VISTA
Unified Port
of San Diego
THE CITY OF SAN DIEGO