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-2008-261
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C'061~i1.'Nlil' ALANNINCi AND DLb'EU)P~IEN'I
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The Honorable Miguel A. Pulido
Mayor of the City of Santa Ana
20 Civic Center Plaza
P.O. Box 1988
Santa Ana, California 92702
Dear Mayor Pulido:
Thank you for your letter of June 24, 2008, in full support of Linda Summers' letter dated
June 5, 2008, requesting a modification to the Santa Ana Empowerment Zone's Developable Site
#3 to include an additional 682.8 acres, and to withdraw the City's original request to modify
Developable Site #1 as well. No modifications were requested for the Developable Sites identified
as Site # 1 and #2. Thus, the resulting size of all three sites, upon approval of the modification to
Developable Site # 3, will be 1,742 acres. Reference the enclosed Exhibit A. Before addressing the
details of the Department's review of your expansion request, I am pleased to notify you that your
request to expand Developable Site #3 pursuant to 24 CFR § 598.425(b) has been approved.
Our review of this request focused on the definition of a developable site as provided for in the
Taxpayer Relief Act of 1997 which states that a Round II Empowerment Zone may have up to three
noncontiguous parcels, not to exceed 2,000 acres, and that may be developed for commercial or
industrial purposes. The map found at Exhibit B of your modification request identifies the exact
locations of all three developable sites and clearly shows them as noncontiguous "parcels" within
the meaning of the statutory definition. The attached Exhibit C showing the "Santa Ana
Empowerment Zone Proposed Boundary Modification" for Site #3 supports the City of Santa Ana's
contention that this expansion has a zero population; accordingly, HUD deems the Zone to have met
the population requirements of 24 CFR § 598.100 (a).
In seeking to expand the Zone, the June 5th letter highlighted the benefits that would accrue as a
result of the expansion as well as successful efforts to date in promoting the $11 billion tax incentive
package to your business community. In this regard, the letter also summarizes the strides that the
Santa Ana Empowerment Zone has made in using available federal tax incentives, such as the
issuance of 1,662 wage credit affidavits representing $4.8 million in federal tax savings to your
local businesses and the issuance of five Industrial Development Bonds totaling $27.1 million.
In her June 5th letter, Ms. Summers also notes that given the most current economic data, there is
still a real need for increased job opportunities for Zone residents in Santa Ana. This is supported
by a comparison of Santa Ana's 6.9 percent unemployment rate based on February 2008 labor force
data for Local Workfol•ce Investment Areas in California compared to the national rate of
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-~.S percent for the sanm period. Furthei-Illore. the request letti'r also points out that the <xpunsiun cif'
Site ~ ~ .vi I I provide l ,? :-~ bUSlIIeSStS Ill the exp~Uldi'd Slle wllh the Opp01'tUllity to take advantage of
the federal t~lx incentives, thereby. increasing the likelihood uf-sustaining eronunlic growth within
the Zone.
The.lune nth later also notes that the expansion of Site #~ is in close proximity to the Z.une's
residential areas making it ~,eographlcally accessible to Zune resldcllts u] search of jobs. "rhe City's
analysis of businesses located in the expanded Developable Site # ~ anil surruundin~~ areas ~ylthul
and outside of Census Tract 7-~1.~(~ ~~ as bas~ii on the existing City zoning district records. This
analysis suppol-ts the: City's yie~y that the Site #3 expansion pl'CSentS an CxCtllellt 111atC11 IoC the tVpt
of labor force pool that Is currently available in the Santa Ana Empowerment Zone residential areas.
111 CIOSIIIy~, please have the authorizing officials sign the Amendment and expl-ess mail it to
:ti9s. Pamela Glekas Spring, Director, OttlCt Of COnllllulllt}' Rene~yal, 451 7th Street, S~V, Roonl
7l ;0, ~~~ashin,ton, D.C. 2010. Since the prompt execution of the enclosed Amendment is critical
to the City's implementation of the Zone's developable site plans, 1 have signed the Anlendnlent
before the other authorized signatories. If you have questions regarding this matter, please feel tree
to call i~1r. Robert Duncan, Associate Deputy Assistant Secretary for Economic Development at
202-=~OZ-CGS 1.
Sincerely,
.• ~ rte,. "ks ?„ 4
General Dep>.Ity Assistant Secretary
for Community Planning and Development
Enclosures
I `` ~i ~
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O C ~ ~ ~ - ` A-2008-261
AMENDMENT # 1 TO THE MEMORANDUM OF AGREEMENT
Santa Ana, California Empowerment Zone
This agreement (the "Amendment") amends the Memorandum of Agreement-for the Santa Ana,
California Empowerment Zone, among the Department of Housing and Urban Development
("HUD"), the State of California and the City of Santa Ana (the "Nominating Entities").
WHEREAS, the Santa Ana Empowerment Zone as originally designated by HUD
consists of 1990 Census Tracts 744.03; 744.05; 745.01; 746.02; 748.02;
749.01; 749.02; along with three developable sites known as Site #1, Site #2 and Site #3;
WHEREAS, Developable Site #3 has been expanded to include a total of 682.8 acres by
means of a boundary modification request in accordance with 24 CFR 598.425(b);
WHEREAS, developable sites are exempt from poverty criteria pursuant to 24 CFR
598.115 (a), but are subject to the population requirements of 24 CFR 598.100 (a);
WHEREAS, Developable Site #3, totaling 682.8 acres has zero population, 24 CFR
598.100(a) is not applicable;
WHEREAS, pursuant to 26 U.S.C. § 1391(g)(3)(A)(iii), 24CFR 598.3 and 24 CFR
598.115(c), an urban Round II Empowerment Zone may have up to three noncontiguous parcels
that maybe developed for commercial or industrial purposes, and that the total acreage of all
three sites may not exceed a total of 2000 acres without regard to certain poverty rate
requirements;
WHEREAS, the Santa Ana Empowerment Zone has three noncontiguous developable
sites and the total acres of all three developable sites, including the acres of the area of
Developable Site #3, is 1,742 acres. Further, Site #3 is a commercial area containing an
estimated 1,223 businesses that will have the opportunity to take advantage of the $11 billion tax
incentive package available to EZ/RC businesses and has a zero population;
WHEREAS, the Santa Ana Empowerment Corporation (SAEC) has affirmed that in
February 2005, the Zone's governance board approved the expansion of Developable Site #3
where all governance board meetings are open to the public, and that the expansion has full
community support. Further, this Developable Site #3 expansion is consistent with the HUD
approved Santa Ana's Strategic Plan;
WHEREAS, HUD has determined that the information furnished by the City of Santa
Ana and the Santa Ana Empowerment Corporation Inc. is reasonably accurate and consistent
with the forgoing findings; and
A ~ ~.
WHEREAS, HUD has, by letter dated `'~ ~" ~ "=' ,modified the designation of the
Santa Ana, California Empowerment Zone by expanding its boundary to include the expanded
area of the Developable Site #3.
NOW, THEREFORE, in consideration of the mutual obligations effected by this Amendment,
the parties agree as follows:
HUD confirms and the Nominating Entities acknowledge, that the boundary of
the Santa Ana, California Empowerment Zone has been expanded to include an
addition to Developable Site #3 of 682.8 acres.
2. All references in the Memorandum of Agreement to the Santa Ana, California
Empowerment Zone, and all the obligations of the Nominating Entities stated
in the Memorandum of Agreement that relate to the Zone shall be deemed to
refer to and relate to the Santa Ana, California Empowerment Zone as
expanded to include the expanded area of Developable Site #3.
Other than the modifications stated above, all of the provisions of the
Memorandum of Agreement remain unchanged and in full force and effect.
4. oThis ~ ~ndm~n~,}~},ay be executed in counterparts and shall be effective as
U.S. Department of Housing and Urban Development
.~
Authorized Signature Title Date
Nelson R. Bregon General Deputy Assistant
Secretary for Community
Planning and Development
State of
9 a9 ~~
A on ature Title Date
Sa'~ta
rized Signature
Title
Date
AT7E8Ts
PAIR/C!A E. HEAL 1~
CLERK OF THE CO(/NC/L
25.C. AGMT NO. 2008-255 -COOPERATIVE AGREEMENT TO CONDUCT
DETAILED PLANNING AND ENVIRONMENTAL STUDIES TO
CONSTRUCT AND OPERATE A FIXED GUIDEWAY SYSTEM - With
the Orange County Transportation Authority (OCTA) -Public Works
Agency
25.D. AGMT NO. 2008-256 -ENERGY CONSULTING SERVICES - With
Edward K. Aghjayan in an amount not to exceed $75,000 -Public Works
Agency
25.E. AGMT NO. 2008-257 -POLICE SERVICE DOG TRAINING SERVICES -
With Adlerhorst International, Inc. in an amount not to exceed $50,000 -
Police Department
25.F. AGMT NO. 2008-258 - NEWPORT WATERSHED COOPERATIVE
AGREEMENT - With the County of Orange to extend the term of the
agreement to 2010 and authorize an annual payment amount of not to
exceed $400,000 -Public Works Agency
25.G. AGMT NO. 2008-259 -OPERATION OF THE COMMUNITY GARDEN AT
JEROME PARK -With The Grain Project for atwo-year term with two 5-
year renewal options -Parks, Recreation & Community Services Agency
MOTION: Benavides
VOTE:
AYES:
NOES:
ABSTAIN:
ABSENT:
SECOND: Alvarez
Alvarez, Benavides, Bustamante, Martinez,
Sarmiento, Tinajero, Pulido (7)
None (0)
None (0)
None (0)
25.H. AGMT NO. 2008-260 -LANDSCAPE MAINTENANCE SERVICES FOR
THE SANTA ANA ZOO AT PRENTICE PARK -With Vista Del Verde
Landscape, Inc. for aone-year term, in an amount not to exceed $112,720
- Parks, Recreation & Community Services Agency
25.1. AGMT NO. 2008-261 -EMPOWERMENT ZONE MEMORANDUM OF
AGREEMENT -Authorize the Mayor to execute an amendment with the
U.S. Department of Housing & Urban Development - Community
Development Agency
MOTION: Sarmiento SECOND: Alvarez
VOTE: AYES: Alvarez, Benavides, Bustamante, Martinez,
Sarmiento, Tinajero, Pulido (7)
NOES: None (0)
CITY COUNCIL MINUTES 9 SEPTEMBER 2, 2008
ABSTAIN: None (0)
ABSENT: None (0)
25.J. AGMT NO. 2008-262 -ONE STOP OPERATOR FOR PROGRAM YEAR
2008-2009 -Execute an extension of the Memorandum of Understanding
with the Santa Ana WORK Center -Community Development Agency
**END OF CONSENT CALENDAR**
BUSINESS CALENDAR
RESOLUTIONS
55.A.
RESOLUTION AUTHORIZING PARTICIPATION IN THE CALIFORNIA
STATE PARKS RECREATIONAL TRAILS PROGRAM
Motion:
Adopt a resolution.
RESOLUTION NO. 2008-061- A resolution of the City Council of the City
of Santa Ana approving the application for grant funds from the
Recreational Trails Program to develop the Fisher Park Nature Trail
MOTION: Benavides SECOND: Alvarez
VOTE: AYES: Alvarez, Benavides, Bustamante, Martinez,
Sarmiento, Tinajero, Pulido (7)
NOES: None (0)
ABSTAIN: None (0)
ABSENT: None (0)
55.B.
RESOLUTION SUPPORTING RECYCLING AT CITY FACILITIES AND
AT CITY SPONSORED EVENTS
Motion:
Adopt a resolution.
RESOLUTION NO. 2008-062 - A resolution of the City Council of the City
of Santa Ana adopting a policy to encourage recycling at City facilities and
City sponsored events
CITY COUNCIL MINUTES 10 SEPTEMBER 2, 2008