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HomeMy WebLinkAboutAgenda Packet 1994/09/06 Item 8 CITY COUNCIL AGENDA STATEMENT ITEM TITLE: Item r- Meeting Date 09/6/94 Resolution 17 b..:J5AuthoriZing staff to apply for state Defense Adjustment Matching Grant funds Community Developme?:?irector {_S. City Manager~ ~ ~ (4/5ths Vote: Yes No Xl Council Referral Number: N/A SUBMITTED BY: REVIEWED BY: BACKGROUND: On July 19th, 1994 the City Council directed staff to prepare an application to the federal Economic Development Administration (EDA) for funding of two Border Environmental Commerce Alliance (BECA) initiatives - the Border Environmental Business Cluster and the Border Environmental Technology Resource Center - and to seek matching State Defense Adjustment Grant monies. The Defense Adjustment Grant Program requires the submission of a resolution by Council authorizing application for these state funds. RECOMMENDATION: That Council adopt the resolution authorizing staff to apply for California Defense Adjustment Matching Grant Funds and to enter into a related agreement with the California Trade and Commerce Agency. BOARDS/COMMISSIONS RECOMMENDATION: The Economic Development Commission endorsed an application for EDA and related funds for the BECA on July 6, 1994. (vote 5-0- 2, with Brene Patrick and Liz Lebron absent, 2 vacancies) DISCUSSION: The California Defense Adjustment Matching Grant Program is designed to provide up to $100,000 in matching funds for communities seeking federal funding of defense related economic adjustment strategies and programs. Chula Vista will be seeking funds to help pay the operational costs of the Border Environmental Technology Resource Center. FISCAL IMPACT: The City is requesting $100,000 in state matching funds to supplement the federal EDA grant. The state grant requires no direct City contribution. (The fiscal impact of the overall EDA grant application will be addressed in a staff report that will accompany the final EDA application, pending further EDA input and negotiations with Rohr, Inc., regarding the incubator facility). [C,IWP51ICOUNCIL\113SISTATE-1.113] B'''I RESOLUTION 17~:15' RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING STAFF TO APPLY FOR STATE DEFENSE ADJUSTMENT MATCHING GRANT FUNDS WHEREAS, the Border Environmental Alliance (BECA) program initiated by the Chula Vista City Council is a regional program that is designed to encourage the development and commercialization of environmental technologies and the start-up and expansion of environmental companies; and WHEREAS, the BECA initiatives, including a Border Environmental Technology Resource Center and a Border Environmental Business Cluster (Incubator), will support and expand the San Diego area's ongoing economic defense conversion efforts; and WHEREAS, BECA programs have been endorsed by numerous state and local governments, academic institutions, private environmental businesses, Chambers of Commerce, and environmental and economic development organizations; and WHEREAS, the City of Chula Vista is working with the City of San Diego to secure federal Economic Development Administration funds for these programs; and WHEREAS, the federal Economic Development Administration application requires matching funds and the BECA program meets all of the requirements of the Defense Adjustment Matching Grant Program and is consistent with its goals of job creation and economic conversion to mitigate the impacts of defense cutbacks. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby find, order, determine and resolve that the Community Development Director is hereby authorized and empowered to apply, approve, sign, and execute in the name of the City of Chula Vista any documents necessary for applying for funding under the California Trade and Commerce Agency's Defense Adjustment Matching Grant Program and for entering into an agreement, including any amendment thereto, with the Trade and Commerce Agency in the event that funding is awarded under that program in such form as is approved by the City Attorney. ~~ APPROVED AS TO FORM BY: ,,"~tf:'~;d ~ City Attorney PRESENTED BY: Chris Salomone Community Development Director IC:\WP51\COUNCIL\RESOS\STATE-1.RESI '1''';1... MINUTES ECONOMIC DEVELOPMENT COMMISSION CITY OF CHULA VISTA, CALIFORNIA Wednesday, July 6,1994 12:00 Noon Conference Rooms 2&3 Public Services Building CALL TO ORDER/ROLL CALL The meeting was called to order at 12:10 p.m. DRAFT Chair Tuchscher introduced the newest member on the Commission, Mr. Glen Lewis. Mr. Lewis was appointed as an ex-officio member. Mr. Lewis gave a brief summary of his qualifications and experience. PRESENT: Chair Tuchscher; Members Davis, Compton, Peter, Read, ex officiis Sutherland, Sellgren, Munch, Councilman Moore ABSENT: Members Patrick (unexcused), Lebron; ex officio Clark (unexcused) OTHERS: Principal Planner Griffin, Public Infonnation Coordinator Gulbransen, Economic Development Manager Dye, CD Specialist II Valenzuela 1. APPROVAL OF MINUTES - May 4 and June 1, 1994 MSC (Davis/Peter) to approve the minutes as submitted (5-0-4; Patrick, Lebron absent; 2 vacancies). 2. NEW BUSINESS a. Border Environmental Commerce Alliance Update Cheryl Dye described the efforts currently underway to develop an Economic Development Administration (EDA) grant application. She explained that staff will present the draft preproposal to the City Council on July 19 for their approval. The application has two major components: the BETRC (Border Environmental Technology Resource Center) and the BEBC (Border Environmental Business Cluster). The Chula Vista EDA application is being developed so as to build on efforts in the City of San Diego. The City of San Diego has received approximately $6,000,000 in EDA support for a regional economic development program. The major areas that the City of San Diego is pursuing include the following: a high-tech council, a high-tech resource center, a world trade center, a high tech incubator and a seed capital fund. There are two major components of Chula Vista's program. The BETRC, which is going to expand San Diego's efforts geographically by creating a satellite technology resource center to South Bay businesses and to provide specialized environmental technical support county-wide. A unique feature of this technology resource center would be its ability to further cross-border relations and the potential for exports. The BECA is also closely aligned with San Diego's regional efforts. It will be an incubator facility to house 20 - 25 start-up businesses that have been in business for less than two years and that qualify as an environmental business. Generally, qualification means that a business would 1) create products which help the environment, 2) provide services to business which help the environment or 3) utilize environmentally sound processes in manufacturing. Ms. Dye further went on to explain some of the details contained within the EDA application. She stated that the application will be for roughly $2.6 million in funding. This would support two to three years of the program. The application is not only a local effort but brings together various other entities state, regional and local to make this effort possible. The $2.6 million request requires that the City provide a certain level of matching funds. That funding can be cash or in-kind services. One in-kind source is the state, which has agreed to provide access to the environmental technology clearinghouse as well as to provide training to the program's businesses in the areas of pollution prevention. The City of San Diego's high tech incubator will be cross referring interested parties to our incubator and vice versa to service the high tech industry as well as the environmental industry. Southwestern College has also agreed to provide business development assistance through their Small Business Development and ~':J Minutes, EDC 2 July 6, 1994 International Trade Center. UCSD Connect will provide access to various venture capital sources. DRAF The City is also pursuing a state defense adjustment matching grant of $100,000. The probability of our receiving this funding is very high because of how well our program matches the objectives of their program. The program is designed to match Federal monies coming into the area for conversion of defense industries into other commercially viable businesses. Finally, a critical component of this application is the donation of a vacant Rohr facility to house the BETRC & BEBC. < Ms. Dye further explained that staff will be seeking conceptual support from the San Diego High- Tech Council on July 14. We need to obtain their approval of this program before submitting a final application to the Economic Development Agency. Discussion between various members of the Commission ensued regarding the types of cash and in-kind funding available. Ms. Dye explained that two sources of potential cash match include Community Development Block Grant funding and rental revenue from the incubator facility which will be set at a lower than market rate. Staff will evaluate various options before making any recommendation to Council in this regard. Commissioner Read requested that staff explain how the $100,000 CDBG allocation, from Fiscal Year 1993/94, was being used. Ms. Dye explained that Council authorized $100,000 allocation to develop the Border Environmental Commerce Alliance by retaining the services of a director. Council subsequently authorized using $20,000 of the funds to retain two consultants who serve as the interim directors for the program currently and the City Manager authorized $4,800 for an additional consultant who is providing assistance in preparing the EDA application. Fifty thousand dollars was made available to fund these activities immediately and another $50,000 was to be made available when matching funds were obtained from outside sources. Currently approximately $55,000 remain unencumbered in this fund. Chairman Tuchscher clarified that the support being sought by staff is conceptual approval for the program and the application that is being developed. MOTION (Peter/Compton) to recommend that Council direct staff to move forward with the development / of an application to pursue EDA funding as well as related endorsements and contributions. ......... Mr. Read questioned the motion, stating that it sounds like the EDC is endorsing the final application. Chair Tuchscher explained again that the EDC is recommending that Council pursue the completion and development of an application. Mr. Read asked if staff had the appropriate talents and time to be able to do this without any additional expenditures of money. Ms. Dye responded that this is being handled as a Council priority. VOTE ON MOTION: The motion passed !HI-4 (Patrick & Lebron absent; 2 vacancies). < b. Design Review Steve Griffin, Principal Planner reported that Council had directed staff to start on a program to update the design manual and the process of streamlining, that is, to amend the code to allow a greater number of projects to be considered by staff as opposed to always using the Design Review Committee. This would be a shorter, less expensive process. He was asking for endorsement of the Design Review Manual from the EDC. Mr. Read commended the Committee on the manual. His only concern was to ensure staff's increased flexibility. He noted they have spent many g..";~ing to maintain a "user friendly"