HomeMy WebLinkAboutReso 2017-080RESOLUTION NO. 2017-080
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA CREATING THE CHULA VISTA THIRD
AVENUE SMALL BUSINESS REVOLVING LOAN FUND
PROGRAM
WHEREAS, the City of Chula Vista previously participated with the cities of San Diego
and National City in the San Diego Regional Enterprise Zone (SDREZ) Program; and
WHEREAS, the SDREZ was administered by the City of San Diego on behalf of the
partner cities; and
WHEREAS, the administrative costs of the SDREZ were paid for in part through
administrative fees paid by businesses receiving Enterprise Zone Tax Credit Vouchers, and
WHEREAS, the Enterprise Zone Program was terminated by the State of California on
January 1, 2014; and
WHEREAS, due in large part to early termination of the State Enterprise Zone Program,
and anticipation by regional businesses and the tax professional community of the approaching
December 31, 2014 voucher issuance deadline, the City of San Diego received a very high
volume of certification applications to process during the last 18 months of the program; and
WHEREAS, as a result of the increase in Enterprise Zone Tax Credit Voucher
applications, the City of San Diego ended the program with a fund balance of approximately
$3,500,000; and
WHEREAS, the City of San Diego approved disbursement of the fund balance to former
SDREZ partner agencies in an amount equal to the percentage of Hiring Credit Voucher
Certificate applications received from qualifying businesses in those jurisdictions; and
WHEREAS, based upon the formula for disbursing funds, the City of San Diego remitted
$486,991.16 to the City of Chula Vista; and
WHEREAS, on January 10, 2017, the Chula Vista City Council amended the Economic
Development Department's budget and appropriated $200,000 utilizing former Enterprise Zone
funds for business retention and attraction activities; and
WHEREAS, City staff recommends that the funds be used to establish the Third Avenue
Small Business Revolving Loan Fund Program to provide loans to owners of property along
Third Avenue, between E Street and H Street, in amounts up to $40,000, for five year periods at
2% interest, to fund certain building improvements, including: fire sprinklers, grease traps, sewer
fees and improvements, kitchen hoods, and ADA improvements.
Resolution No. 2017-080
Page No. 2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it approves the creation of the Third Avenue Small Business Revolving Loan Fund
Program, and authorizes and directs the City Manager to take such additional actions as may be
necessary or appropriate to implement the Program, with all associated documents subject to
review and approval by the City Attorney.
Presented by Approved as to form by
Eric C. Crockett C en�Attom
ins
Director of Economic Development Ci
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 23rd day of May 2017 by the following vote:
AYES: Councilmembers: Diaz, McCann, and Padilla
NAYS: Councilmembers: None
ABSENT: Councilmembers: Aguilar aASalas
Mayor
ATTEST:
Donna R. Norris, CMC, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2017-080 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 23rd day of May 2017.
Executed this 23rd day of May 2017.
Donna R. Norris, CM , City Clerk