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Home My WebLink AboutAgenda Report - March 15, 2011 B-01 SMAGENDA ITEM 1B 40*1 &% CITY OF LODI COUNCIL COMMUNICATION 9M AGENDA TITLE: Adopt Resolution Opposing the Governor's Budget Pr posa Ito Eliminate Enterprise Zones MEETING DATE: March 15,2011 PREPARED BY: Konradt Bartlam, City Manager RECOMMENDED ACTION: Adopt resolution opposing the Governor's budget proposal to eliminate enterprise zones. BACKGROUND INFORMATION: At its meeting of January 19, 2011, the City Council provided general direction to send a letter of opposition to the Governor's budget proposal eliminating enterprise zones. Subsequently, the League asked that agencies provide resolutions formally stating their opposition to the proposal. This item is being presented to Council as a housekeeping item so that a formal resolution can be adopted pursuant to the Government Code. FISCAL IMPACT: Not applicable at this time. FUNDING AVAILABLE: Not applicable at this time. APPROVED: Konradt Bartlam City Manager radt Bartlam, City Manager RESOLUTION NO. 2011-28 A RESOLUTION OF THE LODI CITY COUNCIL OPPOSING THE GOVERNORS BUDGET PROPOSAL TO END ENTERPRISE ZONE TAX INCENTIVES WHEREAS, the California's Enterprise Zone originated through the enactment of two programs in 1984 and 1985 — the Enterprise Zone Act and the Employment and Economic Incentive Act, respectively; and WHEREAS, the Enterprise Zone provides a geographically -targeted economic development tool designed to improve the poor and blighted communities in California by creating incentives for businesses to hire employees with barriers to employment; and WHEREAS, the City of Lodi and the State of California are experiencing a significant economic crisis resulting in unusually high unemployment rates; and WHEREAS, high unemployment rates contribute to an increase in poverty, crime and foreclosures; and WHEREAS, the City of Lodi's Enterprise Zone has worked to combat these economic problems by utilizing the Enterprise Zone's incentives to encourage local business retention and expansion, as well as new business attraction; and WHEREAS, the Governor of California has proposed to eliminate all Enterprise Zone funding and programs effective January 1, 2011. NOW, THEREFORE, BE IT RESOLVED by the Lodi City Council that it does hereby oppose the Governor's budget proposal to end Enterprise Zone Tax Incentives. Date: March 15, 2011 hereby certify that Resolution No, 2011-28 was passed and adopted by the Lodi City Council in a special meeting held March 15, 2011, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Katzakian, Mounce, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Nakanishi ABSTAIN: COUNCIL MEMBERS— None JOHL City Clerk 2011-28 OFFICERS Randy Sling Florsheim Homes Ramon Batista River Islands @ Lathrop Bill Bromann H.D. Arnaiz Corporation Jeremy White The Grupe Company Rod Attebery Neumiller & Beardslee Rod Bovee Bennett Development Gina Carruesco Caresco Homes Rey Chavez , Kelly -Moore Paint Company Ryan Gerding Pulte Homes Cathy Ghan Oak Valley Community Bank Steve Herum Herum Crabtree Brown Dudley McGee Wells Fargo Terry Miles Teichert Construction David Nelson A.G. Spanos Companies Carol Ornelas Visionary Home Builders, Inc. Denise Tschirky Legacy Homes Matt Arnaiz H.D. Amaiz Corporation Dennis Bennett Bennett Development Bill Filios AKF Development, LLC Mike Hakeem Hakeem, Ellis & Marengo Jeffrey Kirst Tokay Development Wayne LeBaron LeBaron Ranches John Looper Top Grade Construction Steve Moore Westervelt Ecological Toni Raymus Raymus Homes, Inc. Tony Souza Souza Realty & Development BUILDING INDUSTRY ASSOCIATION OF THE DELTA 315 N. SAN JOAQUIN ST., SUITE 202 STOCKTON,CA 95202 209-235-7831.209-235-7837 fax March 11,2011 Mayor Bob Johnson City of Lodi 221 W. Pine St. Lodi, CA 95240 Mayor Johnson, BIA of the Delta has a long history of working cooperatively with the League of California Cities and localjurisdictions on issues ofjoint concern. As does the California Building Industry Association, which at their last Board meeting took a unanimous vote opposing the Governor's proposal to eliminate Redevelopment Agencies and Enterprise Zones. BIA members throughout California have signed online petitions, written letters and joined the coalition to save RDA's and Enterprise Zones. Attached you will find our letter to Governor Brown on this issue. Please feel free to use BIA of the Delta as an example of the many organizations which recognize the harmful economic impact this proposal will have on local jurisdictions. Sincerely, Z io�R.Beckman Chief Executive Officer BUILDING INDUSTRY ASSOCIATION OF THE DELTA B 111 315 N. S AN JOAQUIN ST., SUITE 202 STOCKTON,CA 95202 OF THE DELTA 209-235-7831.209-235-7837 fax OFFICERS Randy Bling March 8,20 11 Floisheim Hoines Ramon Batista The Honorable Jerry Brown River islands @ Lathrop Governor, State of California Bill Bromann State Capitol, Suite 1173 H.D. Arnaiz Corporation Sacramento, CA 95814 Jeremy White The Grupe Company Dear Governor Brown: BOARD OF DIRECTORS The Building Industry Association of the Delta represents over 100 companies doing business in San Joaquin County. Our membership is comprised of contractors, Rod Attebery Neumiller & Beardslee Rod Bovee landscapers, engineers, architects, title companies, banks, insurance companies and home Bennett Development builders. Gina Carruesco Caresco Homes We write today to express opposition to the proposed elimination of Redevelopment Rey Chavez Agencies and Enterprise Zones as proposed in your January Budget Proposal. Kelly -Moore Paint Company Ryan Gerding Puite Hoines The Redevelopment Agencies located in Tracy, Manteca, Ripon and Stockton and the Cathy Ghan Enterprise Zone covering large portions of San Joaquin County have enabled our region Oak valley Coinimmity Bank to weather the storm of the Great Recession. As you may have heard Stocktonhas lead Steve Heru m the nation for more months than any other city in the nation in foreclosures. Herum Crabtree Brown Dudley McGee Wells Fargo your proposal would stall our tepid recove ust as we are on the cusp of growing p P p tS'J p �' g Terry Miles employment numbers. Teichert Construction David Nelson From a policy standpoint, the elimination of these important programs makes no sense. A.G. Spanos Companies Redevelopment and enterprise zones fundamentallyboosts the economy, and are Carol Ornelas Visionary Home Builders, Inc. essential tools in the state's economic recovery. Redevelopment builds and improves Denise Tschirky communities s urs ob growth and taxes and is the most si nificant rovider of � p J g g p Legacy Homes infrastructure, urban development and affordable housing in the state. Enterprise zones are one of the few economic development tools that local agencies have to bring jobs to, LIFETJME DIRECTORS and retain jobs in, depressed areas. Matt Arnaiz H.D. Amaiz Corporation Ultimately, California'sbudget crisis will be solved by strengthening California's Dennis Bennett economy and creatingjobs. Our association is apart of that solution, but this proposal Bennett Development will do nothing but slow economic growth. We look forward to working with you to find Bill Filios AKF Development, LLC solutionsthat will address the state's fiscal problems while also supportingtools for Mike Hakeem economic recovery. Hakeem, Ellis & Marengo Jeffrey Kirst SiWerely, Tokay Development Wayne LeBaroni �JohnR.eckman LeBaron Ranches John Looper Top Grade Construction Chief Executive Officer Steve Moore Westervelt Ecological CC: Senator Lois Wolk Toni Raymus Senator Torn Berryhill Raymus Homes, Inc. Assemblymember Bill Berryhill Tony Souza Souza Realty & Development� Assembl ember CathleenGal Tani g Assemblymember Alyson Huber Dan Carrigg, Legislative Director, League of California Cities