HomeMy WebLinkAboutAgenda Report - April 17, 2013 C-23AGENDA ITEM G Z005
t1M CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt a Resolution Approving the Revised Boundaries of the Targeted
Employment Area (TEA) for the San Joaquin County Enterprise Zone
MEETING DATE: April 17, 2013
PREPARED BY: City Manager
RECOMMENDED ACTION: Adopt a Resolution Approving the Revised Boundaries of the
Targeted Employment Area (TEA) for the San Joaquin County
Enterprise Zone.
BACKGROUND INFORMATION: On January 31, 2008, Governor Arnold Schwarzenegger
announced the conditional designation of eight enterprise zones
statewide, including San Joaquin County. The California Enterprise
Zone Program targets economically distressed areas using special state and local incentives to promote
business investment and job creation. By encouraging entrepreneurship and employer growth, the
program strives to create and sustain economic expansion in California communities. The designation
became effective June 23, 2008 and is in effect for 15 years.
A primary goal of a state -designated Enterprise Zone is to provide employment opportunities for
residents of these distressed areas. The State of California encourages businesses to hire local workers
by offering the Employee Hiring Tax Credit for Enterprise Zone employers. As an incentive, businesses
can receive a state tax credit of $37,440, or more, per eligible employee over a five-year period. To be
eligible as an employee, the individual must be certified eligible for the Workforce Investment Act or
CalWorks program; a disabled individual; a Native American; a displaced worker; an economically
disadvantaged person 14 years of age or older; eligible for public assistance; ex -offenders and/or a
resident of a TEA.
A TEA is an area composed of census tracts with at least 51 percent of its residents at low or moderate
income levels. The purpose of a TEA is to encourage businesses within the Enterprise Zone to hire
eligible residents of a qualified geographical area that are most in need of employment.
In 2008, staff identified a list of the census tracts that qualify with at least 51 percent of their residents in
the low to moderate income levels. These census tracts comprise the existing TEA for the San Joaquin
County Enterprise Zone. The residents of the TEA automatically qualify for an Enterprise Zone Hiring
Tax Credit voucher. The Cities, San Joaquin County and the State approved the current San Joaquin
County TEA.
State regulations compel each Enterprise Zone to update the boundaries of its TEA within 180 days of
new United States census data becoming available. The State provided each Zone with a list of eligible
census tracts in January 2013. All municipal partners, which include the City of Lodi in the San Joaquin
County Enterprise Zone and the State Housing and Community Development Department, must approve
the new boundaries of the TEA before it becomes effective.
APPROVED: A I
Konradt Bartlam, City Manager
Adopt a Resolution Approving the Revised Boundaries of the Targeted Employment Area of the San Joaquin County Enterprise
Zone.
Page 2 of 2
During the last reporting period, fiscal years 2010 to 2012, San Joaquin County employers received
20,092 tax credit vouchers for hiring new Enterprise Zone -qualified employees. Nearly 90 percent of the
Enterprise Zone qualified employees were from the TEA category. The TEA is an important category for
local businesses to use when hiring new employees.
Staff recommends adoption of this resolution approving the revised boundaries of the TEA for the San
Joaquin County Enterprise Zone. The list of census tracts is attached for your review. This approval is in
concurrence with the Cities of Stockton, Lathrop, Manteca, Tracy, Ripon, and Escalon.
FISCAL IMPACT: There is no direct fiscal impact to the City of Lodi. Maintaining the San Joaquin
County TEA provides significant tax incentives for businesses to hire County
residents. As an incentive, businesses can receive a state tax credit of $37,440, or
more, per eligible employee over a five-year period. Based on the historical use of this category and the
15 -year designation, business incentives may reach hundreds of millions in tax credits over the life of the
Zone.
Rob Lechner
Business Development Manager
Attachment
Attachment "A"
San Joaquin County Enterprise Zone
Qualifying TEA Tracts
1
3
4.01
4.02
5
6
7
8.01
9
10
11.01
11.02
13
14
15
16
17
18
19
20
21
22.01
22.02
23
24.01
24.02
25.03
25.04
27.01
27.02
28
31.08
31.09
31.10
31.11
31.12
31.13
32.15
32.17
33.05
33.06
33.07
33.08
33.10
33.11
33.12
33.13
34.03
34.04
34.05
34.06
34.07
34.09
34.10
36.02
37
38.03
39
40.01
41.02
41.06
42.01
42.03
42.04
43.02
43.07
43.08
44.02
44.03
44.04
45.01
45.02
46
47.01
49.02
50.01
51.08
51.09
51.23
51.24
51.26
51.29
51.3
51.31
51.32
53.021
53.03
54.051
54.06
55.01
* Portion Tracts indicated with asterisk
Data Published December 2012
RESOLUTION NO. 2013-63
A RESOLUTION OF THE LODI CITY COUNCIL ADOPTING
THE REVISED TARGETED EMPLOYMENT AREA FOR THE
SAN JOAQUIN COUNTY ENTERPRISE ZONE
WHEREAS, the cities of Stockton, Tracy, Lathrop, Manteca, Lodi, Ripon, and Escalon,
and the County of San Joaquin have worked cooperatively in marketing and managing the
San Joaquin County Enterprise Zone that was established on June 22, 2008; and
WHEREAS; the statutes governing the Enterprise Zone Program require that each zone
update its Targeted Employment Area (TEA) within 180 days of new census data becoming
available, and the Department of Housing and Community Development (HCD) has determined
that the census data necessary to update TEAs, in accordance with the relative statutes, will be
the United States Census Bureau's American Community Survey Five Year Averages; and
WHEREAS, the HCD has compiled a spreadsheet of all qualifying census tracts, by
county, within the State of California using data from the American Community Survey Five
Year Averages, Attachment A; and
WHEREAS, the County of San Joaquin will submit a written request, as required, to the
California Department of Housing and Community Development to have its TEA updated and
approved.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve
the revised Targeted Employment Area for the San Joaquin County Enterprise Zone.
Dated: April 17, 2013
----------------
----------------
I hereby certify that Resolution No. 2013-63 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 17, 2013, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, and Katzakian
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Mounce and -Mayor Nakanishi
ABSTAIN: COUNCIL MEMBERS — None
N I JOHL
City Clerk
2013-63
Attachment "A"
San Joaquin County Enterprise Zone
Qualifying TEA Tracts
1
3
4.01
4.02
5
6
7
8.01
9
10
11.01
11.02
13
14
15
16
17
18
19
20
21
22.01
22.02
23
24.01
24.02
25.03
25.04
27.01
27.02---
7.0228
28
31.08
31.09
31.10
31.11
31.12
31.13
32.15
32.17
33.05
33.06
33.07
33.08
33.10
33.11
33.12
33.13
34.03
34.04
34.05
34.06
34.07
34.09
34.10
36.02
37
38.03
39
40.01
41.02
41.06
42.01
42.03
42.04
43.02
43.07
43.08
44.02
44.03
44.04
45.01
45.02
46
47.01
49.02
50.01
51.08
51.09
51.23
51.24
51.26
51.29
51.3
51.31
51.32
53.02
53.03
54.05
54.06
55.01
* Portion Tracts indicated with asterisk
Data Published December 2012