HomeMy WebLinkAboutReso 2000-438 RESOLUTION NO. 2000-438
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA SUPPORTING THE EXPANSION OF THE SAN
YSIDRO/OTAY MESA ENTERPRISE ZONE AND TARGETED
EMPLOYMENT AREA TO INCLUDE CERTAIN AREAS IN THE
CITY OF CHULA VISTA; APPROVING AGREEMENTS WITH
THE CALIFORNIA TRADE AND COMMERCE AGENCY, THE
CITY OF SAN DIEGO AND THE PORT OF SAN DIEGO
REGARDiNG ZONE EXPANSION AND IMPLEMENTATION;
AND APPROPRIATING $29,500 FROM THE GENERAL FUND
TO SUPPORT THE EXPANDED ENTERPRISE ZONE PROGRAM
WHEREAS, the City of San Diego received designation from the California Trade and
Commeme Agency for the San Ysidro/Otay Mesa Enterprise Zone on January 27, 1992, as a 15-
year state designated area within which businesses may claim certain state tax benefits, primarily
for hiring qualified new employees and/or pumhasing equipment to stimulate investment in
economically distressed areas; and
WHEREAS, the existing San Ysidro/Otay Mesa Enterprise Zone has 827 acres available
for expansion based on California state law that permits the expansion of Enterprise Zones by up
to 20% of the originally designated area, if less than 13 square miles at the time of designation;
and
WHEREAS, the City of San Diego will seek to expand the boundaries of the San
Ysidro/Otay Mesa Enterprise Zone by no more than 250 acres, leaving a surplus of 577 acres;
and
WHEREAS, the City of Chula Vista is currently unable to obtain an Enterprise Zone
designation from the California Trade and Commerce Agency due to the legislative limitation of
39 Zone designations, all of which have already been established within the state; and
WHEREAS, it is recommended that an expansion of the San Ysidro/Otay Mesa
Enterprise Zone to include an additional 577 acres, particularly described in Exhibit A attached
hereto and incorporated herein by this reference and from hereon referred to as the "Zone
Expansion Area," would promote private business investment and the creation of new job
opportunities to benefit low-income and other disadvantaged community residents; and
WHEREAS, the Port of San Diego owns approximately 400 acres of property located in
the cities of Chula Vista and San Diego adjacent to the existing boundaries of the San
Ysidro/Otay Mesa Enterprise Zone, which is included in the proposed expansion request; and
WHEREAS, the City of San Diego received designation in November 1998 from the
California Trade and Commerce Agency for a Targeted Employment Area (TEA) comprised of
low- and moderate-income 1990 Census tracts in conjunction with the San Ysidro/Otay Mesa
Enterprise Zone to encourage Enterprise Zone businesses to hire TEA residents in order to
receive state tax credits on wages paid to these employees; and
WHEREAS, an expansion of the TEA to include low- and moderate-income 1990 Census
tracts in the City of Chula Vista, particularly described in Exhibit B attached hereto and
incorporated herein by this reference, would promote workforce development and employment
Resolution 2000-438
Page 2
opportunities created by businesses located within the Enterprise Zone to benefit low-income and
other residents of Chula Vista; and
WHEREAS, a request to expand the San Ysidro/Otay Mesa Enterprise Zone to include
certain areas within the City of Chula Vista requires a Memorandum of Understanding (MOU)
between the California Trade and Commerce Agency and the City of Chula Vista, as an
additional jurisdiction included in the Enterprise Zone; and
WHEREAS, a Memorandum of Understanding (MOU) between the City of Chula Vista
and the City of San Diego is necessary to address program administration, compensation and
resources to support the Enterprise Zone Expansion Area; and
WHEREAS, the proposed Enterprise Zone expansion would involve a regional
partnership between the City of Chula Vista, the City of San Diego and the Port of San Diego
with each organization providing funding and/or programmatic support.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does
hereby find, determine and resolve that:
1. An expansion of the San Ysidro/Otay Mesa Enterprise Zone to include certain areas in
the City of Chula Vista, as described in Exhibit A, will provide businesses located or
locating in the designated area with certain state tax benefits, primarily for hiring
qualified new employees and/or purchasing new equipment, resulting in private
investment, the creation of new job opportunities and significant economic benefits for
South Bay communities;
2. An expansion of the City of San Diego's Targeted Employment Area (TEA) to include
low- and moderate-income 1990 Census tracts in the City of Chula Vista, as described in
Exhibit B, would assist employers located or locating in the Enterprise Zone and provide
employment opportunities for low-income and other community residents;
3. The City Manager or his designee is authorized and directed to assist the City of San
Diego by providing the necessary documentation in support of a request to the California
Trade and Commerce Agency for expansion of the San Ysidro/Otay Mesa Enterprise
Zone to include the proposed Zone Expansion Area described in Exhibit A;
4. The City Manager or his designee is authorized and directed to execute an MOU with the
California Trade and Commerce Agency to include the City of Chula Vista as an
additional jurisdiction within the expanded Enterprise Zone;
5. The City Manager or his designee is authorized to execute an MOU with the City of San
Diego to address program administration, compensation and resources to support the
Zone Expansion Area;
6. The City Manager or his designee is authorized to execute a cost-sharing agreement with
the Port of San Diego to address funding support for the Zone Expansion Area;
Resolution 2000-438
Page 3
7. All of the agreements shall be entered into on the terms presented and in final form
approved by the City Attorney;
8. $29,500 is appropriated from the General Fund to support the expanded Enterprise Zone
for fiscal year 2001.
9. The Zone expansion is exempt from CEQA pursuant to Section 15061, Subsection (B)
(3) of the State CEQA Guidelines.
Presented by Approved as to form by
Chris Salomone ~ Jo M. Kaheny d/)
Community Development Director rney
Resolution 2000-438
Page 4
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
Califomia, this 5th day of December, 2000, by the following vote:
AYES: Councilmembers: Davis, Padilla, Rindone, Salas, and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Shirley ~oo~ Mayor
ATTEST:
Susan Bigelow, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2000-438 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 5th day of December, 2000.
Executed this 5th day of December, 2000.
S~'ssan Bigelow, City Cl~r~
R2000-438
EXH~BNT ,a
CHULA
VISTA
SAN'\DI EGO '
,-"' ' ~': ~::
San Ysidro I Otay Mesa Enterprise Zone Chula Vista Capital 20.0 acres
Rohr I BFGoodrich 75.6 acres
2000 Expansion Pod Tidelands I Boatyard 161.2 acres
port I Duke Energy 140.9 acres
! ; Chula Vista Expansion Area Fairfield [Fenton] 56.4 acres
7~ San Diego Expansion Area Raytheon 9.8 acres
ROW Connection Port (San Diego] 100.0 acres
Ex s ng Enterpr se Zone Proposed PG&E Power Plant 9.8 acres
t \ / ' City Boundary ROW Estimate 3,3 acres
,, Streets
Southern: Chul,~ Vl&t~ Communlh' Oevelo~rnent i Chut~ Vlet= Gis i San Diego County Aeiosaor i SAMGISTOTAL EXPANSION AREA577.0 ACRES