Loading...
HomeMy WebLinkAboutAgenda Report - October 17, 2007 K-04AGENDA ITEM �w 4 CITY OF LODI COUNCIL COMMUNICATION rnt AGENDA TITLE: Consider and Provide Direction with Regard to Participation in the San Joaquin County Enterprise Zone Application MEETING DATE: October 17,2007 PREPARED BY: City Manager RECOMMENDED ACTION: Consider the proposal to participate with the San Joaquin County Enterprise Zone Application, and if so desired, appropriate funds, adopt resolution of participation, direct the City Manager to execute a commitment letter, and take whatever other actions needed. BACKGROUND INFORMATION: The County of San Joaquin has requested that Lodi participate in an application for a new "Enterprise Zone" designation. The previous Stockton/San Joaquin County Enterprise Zone will expire in 2008. In order to provide a more competitive application, Lodi has been asked to participate. The deadline date for the application is October 26, 2007. The Council and city staff has had a limited time to respond to the invitation to participate. A presentation wiII be made at the Council meeting. However, the biggest issue is the financial obligation of participation in the Enterprise Zone vs. the return on investment. In brief, direct participation costs in the County Enterprise Zone include, but are not limited to, $23,024 per year for Enterprise Zone administration, $8,972 one-time payment for application costs, approximately $25,000 for one-third of an Economic Development Specialist, (The position is currently vacant and would need to be filled), and the unidentified costs of local incentives, such as fee reductions or waivers and one-stop permit centers. These funds would be used as an economic development tool to attract and expand businesses. The policy consideration for the Council is not whether it supports economic development, but the prioritization of which economic development tools it wishes to develop with local resources. In other words, which economic development strategy will produce the greatest return on investment? Which economic development tool should the Council focus on? Although not mutually exclusive, here is a brief listing of economic development strategies: ■ Land annexed, zoned, and available for economic development activity ■ In-house economic development staff position ■ Permit expeditor position targeted for business within the Community Development Department ■ Local grant program, facade improvements, business expansion, and other economic development tools ■ Redevelopment Project area FISCAL IMPACT: Not Applicable FUNDING AVAILABLE: Not Applicable T Blair King, Cityata ger APPROVED: 131 1' g, City Manager CITY OF RESOLUTION NO. RESOLUTION OF CITY COUNCIL AUTHORIZING APPLICATION TO STATE OF CALIFORNIA FOR SAN JOAQUIN COUNTY ENTERPRISE ZONE WHEREAS, the City of and other public entities are submitting a j oint application for a California Enterprise Zone, to be known as the San Joaquin County Enterprise Zone, to the California Department of Housing and Community Development (the Department) on or before November 16,2007; WHEREAS, the City of finds that the application area within the City of is a depressed area and that designation of the area as an Enterprise Zone is necessary in order to attract private sector investmentto the application area; WHEREAS, the City of authorizes an application for Enterprise Zone designation; WHEREAS, the City of authorizes and supports j ob development, j ob creation, and economic development; WHEREAS, the City of authorizes that staffing shall be made available to maintain record-keeping, monthly updates on zone activities, and to discuss these activities with program auditors; WHEREAS, the City of shall develop a self-evaluationprocess to measure its progress in meeting its goals and objectives and this process shall be submitted to the Department for review, approval and inclusion in the Memorandum of Understanding (MOU) prior to Final Designation; WHEREAS, the City of agrees to complete all actions stated within the application that apply to its jurisdiction should the proposed Enterprise Zone be awarded designation; and WHEREAS, [ name, title, department [city manager?] is authorized to sign the application, the MOU and other documents necessary for the implementation of the Enterprise Zone; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of that the City is committed to the designation, implementation, and operation of the San Joaquin County Enterprise Zone. Before the application is submitted, the Council shall follow this resolution with another council action containing specific commitments of staff time and other contributions that the City will make to the proposed Enterprise Zone. Passed, approved and adopted this day of ,2007. MODEL LETTER OF COMMITMENT FOR THE SAN JOAQUIN COUNTY ENTERPRISE ZONE Instructions: The following provides template for the Letter of Commitment and Transmittal Tetter. Please send the cover letter and certified copy of the Letter of Commitment to Fran Aguilera at the address below: Fran Aguilera Economic Development Director Employment & Economic Development Department San Joaquin County 56 S. Lincoln Stockton, CA 95203 Ph. 209 468-3615 The copy of the letter of commitment must be certified by the City Clerk through a minute order. Direct any questions to: Paul Nguyen Jack Faucett Associates, Inc. nauyen6bli faucett.com Ph. 510-533-6059 or Jason Bezis Jack Faucett Associates, Inc. bezis(o)j faucett.com Ph. 925-962-9643 A. Model Transmittal Letter Signed By City Manager p September _, 2007 [any date on or after date of Council approval of Letter of Commitment is acceptable] Mr. Frank Luera, Chief State Enterprise and Economics Development Section California Department of Housing and Community Development 1800Third Street, Suite 390 Sacramento, CA 95814 TRANSMITTAL OF LETTER OF COMMITMENT Dear Mr. Luera: I am the City Manager of the City of , an applicant for the proposed San Joaquin County Enterprise Zone. Enclosed please find the Letter of commitment approved by minute order by my City Council on , 2007. The Council is separately approving the Enterprise Zone Resolution and a Memorandum of Understanding. As the administrator for the City of , I affirm that the City commits its funding, in-kind resources, and staffing to the San Joaquin County Enterprise Zone for the life of the Zone. Sincerely yours, NAME OF CITY MANAGER City Manager City of B. Model Letter of Commitment to Be Approved by City Council and Signed by Mayor ON CITY LETTERHEAD 2007 Mr. Frank Luera, Interim Manager Enterprise Zone Program California Department of Housing and Community Development 1800 Third Street, Suite 390 Sacramento, CA 95814 LETTER OF COMMITMENT TO SAN JOAQUIN COUNTY ENTERPRISE ZONE Dear Mr. Luera: The City of (hereinafter "City") is a general law city incorporated under California law. The City has jurisdiction over a portion of the proposed San Joaquin Valley Enterprise Zone (hereinafter "Zone") and has heretofore resolved to be an applicant for the Zone. The City is separately entering into a Memorandum of Understanding that defines the respective roles of the participating cities, the County of San Joaquin, and other Zone program participants. This Letter of Commitment contains specific commitments that the City will make solely to the designation, implementation, and operation of the proposed Zone. I. Commitments of Staff Time The City commits INSERT NUMBER staff members to the Enterprise Zone project First, INSERTNAME OF YOUR CITY'S "ZONE MANAGER" AND TITLE (e.g., "Joan Smith, Economic Development Director" or "William Johnson, City Manager") will dedicate % of (HISMER) time to the project at an annual value of $ , including $ in salary and $ in benefits. HE/SHE shall be the Zone manager for the City of . HIS/HER tasks to be completed in support of the Zone will be (INSERT TASKS, e.g., "to conduct marketing for the Zone, to undertake business expansion, attraction, and retention activities for the Zone...") [USE THE FOLLOWING FOR THE 2' STAFF PERSON WHO WILL PARTICIPATE IN THE ZONE FROM YOUR CITY, IF APPLICABLE] Second, INSERT NAME OF 2nd STAFF PERSON AND TITLE (e.g., "William Johnson, City Manager" or "Mary Martin, Secretary/Executive Assistant") will dedicate% of HISMER time to the project at an annual value of $ , including $ in salary and $ in benefits. HIS/HER tasks to be completed in support of the Zone will be (INSERT TASKS, e.g., "to conduct marketing for the Zone, to undertake business expansion, attraction, and retention activities for the Zone..."; if secretary: "to provide clerical support for Zone affairs at the City of 7)) [USE THE FOLLOWING FOR THE 3RD STAFF PERSON WHO WILL PARTICIPATE IN THE ZONE FROM YOUR CITY, IF APPLICABLE] Third, INSERT NAME OF P STAFF PERSON AND TITLE (e.g., "Mary Martin, Secretary/Executive Assistant") will dedicate _% of HIS/HER time to the project at an annual value of $ , including $ in salary and $ in benefits. HIS/HER tasks to be completed in support of the Zone will be INSERT TASKS (e.g., if secretary: "to provide clerical support for Zone affairs at the City of ") [USE THE FOLLOWING FOR THE 4" STAFF PERSON WHO WILL PARTICIPATE IN THE ZONE FROM YOUR CITY, IF APPLICABLE] Fourth, INSERT NAME OF 4`h STAFF PERSON AND TITLE (e.g., "Mary Martin, Secretary/Executive Assistant") will dedicate,_.% of HIS/HER time to the project at an annual value of $ , including $ in salary and $ in benefits. HIS/HER tasks to be completed in support of the Zone will be INSERT TASKS (e.g., if secretary: "to provide clerical support for Zone affairs at the City of ") II. Commitments of Other Services and Supplies The City also commits the following to the Zone program: [PROVIDE AS MANY SPECIFICS ABOUT THE CONTRIBUTIONAS POSSIBLE (NUMBER, DOLLAR AMOUNT, ETC.). DELETE CATEGORIES THAT ARE NOT APPLICABLE TO YOUR CITY. ADD ANY OTHER CONTRIBUTIONS YOU CAN IDENTIFY] marketing. San Joaquin Partnership Dues: The City commits $ per year to the San Joaquin Partnership for Zone marketing and business attraction. Dues & Subscriptions: The City commits $ per year as dues to the INSERT ORGANIZATIONNAME [If your city is a member of the California Economic Development Association, etc., so state and include your annual membership dues here.] The City commits $ per year as subscriptions for the following publications related to economic development: Trainings. Trade Shows. & Meetings: The City commits an annual value of $ for trainings, trade shows, and meetings. [Add details. E. g., "The City shall promote the Zone annually at the International Council of Shopping Centers spring convention at a cost of $ per year."] ["The City shall promote the Zone at the annual California Economic Development Association convention at a cost of $ per year."] Professional Consultant Services: The City commits $ ("per year" or "in Year 1"or "in Year 3" etc.) for professional consultant services. [Add details. E.g., "The City shall hire a consultant to prepare a marketing plan for Zone services."] Other Advertising & Marketing: The City commits an annual value of $ to other advertising and marketing activities for the Zone. INSERT BRIEF EXPLANATION [website development, brochure design and production could be included here] (e.g., "Such funds shall be used to construct and maintain a city webpage devoted to the Zone" or "Such value represents an in-kind contribution from the City's Inforroation/Technology Systems division to the Zone for construction and maintenance of a city webpage devoted to the Zone.") Office Equipment & Maintenance: The City commits an annual value of $ to office equipment and maintenance. [Add details. "Such value represents the portion of City computer systems devoted to Zone affairs."] Office Supplies: The City commits an annual value of $ to office supplies. Such value represents the cost of paper, stationery, envelopes, and other supplies consumed for Zone affairs. Vehicle Allowance: The City commits an annual value of $ to cover vehicle expenses related to Zone affairs. Telecommunications: The City commits an annual value of $ to cover telephone, facsimile, and internet expenses related to Zone affairs. III. Total Contributions The total annual value of the contributions of the City of to the Zone shall be $ INSERT SUM OF STAFF TIME, CASH. AND OTHER CONTRIBUTIONS IN SECTIONS I AND II. mote: If the annual value varies year-to-year during the first five years of the Zone's designation, indicate the total annual values for Years 1, 2, 3, 4, and 5.] The City of acknowledges that its commitment is an annual commitment for the life of the Zone. The City Council of the City of has approved this Letter of Commitment as a minute order. The City Manager is directed to transmit this Letter of Commitment with the Enterprise Zone application. Sincerely, Mayor, City of APPENDIX C Signature Page California Enterprise Program 2007 Application Application Deadline: November 16, 2007 Application Submitted By: Name of Enterprise Zone Name and Title of Authorized Official Aftiliation of Authorized Official Signature of Authorized Official Date California Enterprise Zone Program Department of Housing and Community Development 1800 Third Street, Third Floor Sacramento, CA 95814 Telephone: (916) 322-1112 www.hcd.ca.aov/fa/cdbq/ez e Pages from All Participating Cities (Appendix C) information (Appendix D) Capital Improvement Plans Collection Business License Listings/Database Copies of ED Reports, Plans, Marketing Materials, etc. Land Use Zoning Maps/Shape Files Collection solutions (JFA Template Provided), tters of Commitment (JFA Template Provided) Ymoranda of Understanding (JFA Template Provided) County/Cities lFriday, September 14 JFA to complete using Friday, September 7 County Compiled Contact List to Send to SJC iant to City Council Meeting iules. Schedules to be identified by 'ities. To be completed no later September 30 Zone Mapping (See Part IV Below) County Sept. 14 (Preliminary to HCD) Monday, October 22 (Final) Legal Boundary Description County Monday, October 22 (Final) Street Range Listing County Monday, October 22 (Final) Noncontiguous Area Demonstration (Data Analysis & Narrative) JFA Monday, October 22 (Final) Ratio Demonstration (Data Analysis &Narrative) IJFA IMonday, October22 (Final) X In Section L Mii*e0'"9'Strkolly'ind Ian A - C2TLwehensive Marketing Strategy JFA/County Frida , October 5 B - Rentention, Expansion, Retraction Plans JFA/County Friday, October 12 77ornpanies Closed, Relocated, or Downsized (Table 6) Cities/County Friday, October 12 D - Annual Mari ' Plan (Table 11 2, 3) JFA/County Tuesday, October 16 E - Economic Development Partner (Narrative + Table 5) JFA/Co-n -Monday, October 15 F - Sales Plan & Successes JFA/County/Cities Monday, October 15 G - Existing Business & Real Estate Marketing Ors Table 4) All Monday, October 15 H - Advertising & Promotional Strategy All Friday, October 12 1- Administration EZ Man! ement, Budget, Self Evaluation JFA Monday, October 22 Section 2: Ariiil0k'Property xed Susinessss . . County/Cities/JFA Monday, August 27, 2007 Section 3;Flaandniprog"Ins. County Friday, September 14, 2407 A - Business & Real Estate Plan (Table 8 + Narrative) Coun IJFA B - Finance Track Record (Table 9, 10 + Narratives and Self Evai. Plan) County Section 4+10vrmopmfA# .v6sclining:Plan and Vouahering fee.. A - Job Development Plan (Narratives, Table 11, 12, & Org Chart) B - Vouchering Plan(Narrative, B et & Org Chart C - Voucher Fee Remittance Plan(Narrative, Timeline, Org Chart County/JFA Monday, September 17, 2007 Section S.;Plaanii and Localnedttives .. ..... Monday, September -Plan to Reduce Fern -Plan to Reduce Administrative Processing Time for Permits -Land Use Maps Forecasting 5 years + Narrative -Plan to Transform Neighboorhopkthrough Current & Planned Activities -Plan to offer local incentives -Evaluation of Incentives Effectiveness JFA to assesmble information from All Participants ectFon 6 Unemployment and Area Income Levels (Table 13): JFA Stetioe 7: Enterprise Zone Program Management Information JFA - Budget & Letters of Commitment -Vouchering Agent (Narrative,MOU to include Conflict of Interest D - EZ ManagementOrg Chart Section 8: Infrastructure and Capital Improvement Plan Narrative A Table 14 1 JFA Copies of CIPS I To be provided by Cities , October 22, 01,2007 Table 15 - Poverty Stats JFA Friday, October 19, 2007 Table 16 - Unemployment Stats JFA lFriday, October 19, 2007 Table 17 - Unioue Distress Factors + Documentation JJFA lFriday, October 19, 2007 TBD by County Planning Dept Initial Study & Notice of Preparation County JTBD (completed by no later than 11-1-07) Part I'll: Required Maps -Proposed Boundary Map -Eligibility/Census Tracts Map -Commercial/In dustrial Parcel Map -Land Use Mao raphics (Draft Mockups of all graphics to be far pre -approval submission Friday, September 14,2007 Onzoinir - Milestones TBD A to deliver electronic (Friday, October 26, 2007 pies for printing and livery by EDA