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HomeMy WebLinkAboutAgenda Statement 1985/04/16 Item 12 COUNCIL AGENDA STATEMENT Item 12 Meeting Date 4/16/85 ITEM TITLE: Resolution // 7;6/Making certain findings relative to the proposed State enterprise zone areas and authorizing the submission of the enterprise zone ''application SUBMITTED BY: Community Development DirectorC �� 4VSths Vote: Yes No x ) REVIEWED BY: City Manager ,2 At its March 19, 1985, meeting, the City Council directed staff to prepare an application for assistance under the State-sponsored enterprise zone program. The proposed enterprise zone areas are the Otay Valley Road industrial area and the proposed Bayfront tourist-commercial area. Prior to submission of the application to the State by April 17, 1985, the City must make certain findings relative to these areas. RECOMMENDATION: That the City Council find that the application areas are depressed and that designation of those areas as enterprise zones is necessary in order to assist in attracting private sector investment, and authorize submission of the application to the State. BOARDS/COMMISSIONS RECOMMENDATION: The Downtown Committee believes that the program would be of greater benefit to developing or undeveloped areas and would not be of great advantage to small business and merchants in the Town Centre area. The Otay Valley Road Project Area Committee is supportive of the inclusion of the project area in an application to the State. DISCUSSION: The State Department of Commerce has demarcated eligible areas for proposed enterprise zone applications throughout the State. Under State guidelines, if a jurisdiction has an eligible area, it may apply to establish a commercial area and/or an industrial area as a sanctioned enterprise zone. The commercial area must be within or directly contiguous to the eligible area. The industrial area may be within or outside the eligible area. However, if the industrial area is outside the eligible area, it must be in close proximity so that residents of the eligible area may reasonably be expected to find employment in the industrial area. In consideration of our eligible areas and the requirements of the State, staff has selected the proposed commercial area adjacent to Tidelands Avenue within the Bayfront Redevelopment project area, and the Otay Valley Redevelopment project area (with the exception of the County landfill ) as the industrial area. The proposed Bayfront commercial area adjacent Tidelands Boulevard is within the eligible area and thus qualified for application. The provision of State tax benefits will help attract developers and commercial users to this area by adding additional financial inducements. Page 2, Item 12 Meeting Date 4/16/85 The Otay Valley Road Redevelopment project area, although approximately five miles from the eligible area, is beginning to develop and presents the City's best opportunity to develop industrial job opportunities in the near future. Although it is not within or contiguous to the eligible area, it is likely that many residents of the eligible area will find employment with emerging industries in the Otay Valley. In addition to identifying one commercial and/or industrial area, the State requires that the City stipulate the impediments to growth and development within these areas, and indicate what measures the City is undertaking to remove some of these impediments. Because both of these areas are located within redevelopment project areas, there is ample documentation of the impediments to development and the City's efforts to overcome those impediments through the provision of redevelopment planning, financing, infrastructure improvements, design review, and public participation. Although it is anticipated that the selection process will be very competitive, staff feels that the two areas chosen will be competitive based upon our past efforts and activities in these areas. A copy of the application is attached to the resolution for your information. FISCAL IMPACT: The program does not include any reimbursement for staff expenses, nor does it provide funds for planning and capital improvements within the eligible areas. WPC 1502H by tile,. O1f.y Ccd,-,cil of C�iu.a V ivia' California Dated '/— 7 ....