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HomeMy WebLinkAbout55B - RESO - ADOPT NEW TARGET EMPLOYMENT AREAREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 5, 2013 TITLE: RESOLUTION ADOPTING THE NEW PROPOSED TARGET EMPLOYMENT AREA FOR THE ENTERPRISE ZONE CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1" Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO FILE NUMBER Approve a resolution for the updated Target Employment Area in the Enterprise Zone. DISCUSSION A Target Employment Area (TEA) is an area within a city that is composed solely of those census tracts that have at least fifty-one percent of its residents at low or moderate income levels. Its purpose is to encourage businesses in an Enterprise Zone (EZ) to hire eligible residents from these local geographic areas. The incentive for these businesses is the availability of a tax credit for hiring these residents. Although Enterprise Zones are being eliminated as of December 31, 2013 pursuant to recently enacted legislation (Assembly Bill 93 and Senate Bill 90), EZ's will still be able to process vouchers for the remainder of the year and possibly into 2014 for employees hired in 2013. In order for staff to continue issuing vouchers based on TEA criteria, Santa Ana is required to update its current TEA. To establish a TEA, an EZ must submit an annual application for TEA designation to the State of California's Housing and Community Development Department (HCD). The application must clearly identify the TEA census tracts that have been provided by HCD and must include a certified resolution approving the boundaries of the TEA. FISCAL IMPACT This is no fiscal impact associated with this action. 55B-1 EZ - Target Employment Area August 5, 2013 Page 2 Si Sandra D. Gottlieb Acting Executive Director Community Development Agency SDG/LAO/CD/kg Exhibits: 1. Map 2. Resolution 55B-2 EXHIBIT 1 Target Employment Area Boundaries Census Tracts Proposed Target Employment - Area 753.01 _ 754.04 754.01 Santa Ctat@A" LL -`- 7Cy?.J 753.03 cn ; m 1 s 754.05 Westmms?er!Ave °- _ - - = -17m st_.._ r7th St _ 7.5 2..2- l j Washington Ave N 11111 0 v?-_--CLvSCenterDr a - 7E •,v 7 b.v > / l T y `o -- 1st St Z --- - •?` --r.L;i 1s1 St ?.. 451 S. F .47 Qga ?3 r 203 ., _kAcf edden Avg...-._ 4 r? I { 746,02 Q t .J K jrrp Q 74 ?.C Z - o; f? LL _, McFadd nAve v7 I 148. r'? -1MtF Edmger Av,: _ ?4?. '14}8. c ice. 7? '' . _ - -- Edin Ave 74,5.02 Edin rAve 7410`;' d^ ?- ?41. ? T ,.G-3 `743.0 Aye ----- - 740 15 2I 740.03 a M Se erstrom Ave 741 ` Dyer Rd 75511.) 5 r Se erstrom Ave[ f LL' _ - -? - _- . i m _- r Alton Ave LLl MacArth}rr 91Vd - - 7 S'nFlowerAve 1°?Y ogA,y?e co _N_ j 0.0 0.5 1.0 1.5 2.0 mi_ Source: 2000 Census Data 55B-3 55B-4 les 7/13 EXHIBIT 1 RESOLUTION NO. 2013- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA IDENTIFYING THE CENSUS TRACTS COMPRISING THE TARGETED EMPLOYMENT AREA FOR THE SANTA ANA ENTERPRISE ZONE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. On January 31, 2008, the City of Santa Ana was re-designated as a California Enterprise Zone. This designation was to be in effect for fifteen (15) years. B. Pursuant to recently enacted Assembly Bill 93 and Senate Bill 90, all Enterprise Zones will sunset January 1, 2014. Enterprise Zones will still be able to process vouchers for the remainder of the year and possibly into 2014 for employees hired in 2013 (awaiting determination by State of California). C. The California Enterprise Zone Program targets economically distressed areas using special state and local incentives to promote business investment and job creation. By encouraging entrepreneurship and employer growth, the program strives to create and sustain economic expansion in California communities. D. Section 7072(1) of the California Government Code defines a "Targeted Employment Area" ("TEA") as an area within a city that is composed solely of those census tracts that have at least fifty-one percent (51%) of its residents at low- or moderate-income levels. Its purpose, according to the Code, is to encourage businesses in an enterprise zone to hire eligible residents from these geographic areas. The incentive for these businesses is the availability of a tax credit for hiring residents who reside in a TEA. Resolution No. 2013-XXX 556-5 Page 1 of 2 E. To establish a TEA, an Enterprise Zone must submit an application for TEA designation to the Housing and Community Development Department. The application must clearly identify the census tracts that will constitute the proposed TEA and demonstrate that they meet the eligible criteria. The application must include a certified resolution which approves the boundaries of its TEA. In addition, cities must review and update their TEA boundaries to reflect the most recent census data in order to continue issuing vouchers. Section 2. The following census tracts, lying wholly or partly within the territorial jurisdiction of the City of Santa Ana, have been designated by the United States Department of Housing and Urban Development as having at least fifty-one percent (51%) of their residents are of low- and moderate-income levels, and are hereby identified as those census tracts which are in the most need of employment targeting pursuant to the Enterprise Zone Act: 740.04, 740.05, 740.06, 741.02, 741.06, 741.07, 741.08, 741.11, 742, 743, 744.03, 744.05, 744.06, 744.07, 745.01, 745.02, 746.01, 746.02, 747.01, 747.02, 748.01, 748.02, 748.03, 748.05, 748.06, 749.01, 749.02, 750.02, 750.03, 751, 752.01, 752.02, 753.01, 753.02, 754.03, 754.04, 755.05, 758.06, 759.02, 760, 889.03, 890.01, 890.04, 891.02, 891.04, 891.05, 992.02, 992.47, 992.48 and 992.49. Section 3. A Targeted Employment Area composed of the above-specific census tracts and having the boundaries created by grouping said census tracts together, as shown on Exhibit A, attached hereto and incorporated herein, is hereby approved, effective immediately. Resolution No. 2013-XXX 556-6 Page 2 of 2 Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of 2013 Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia Carvalho, City Attorney By: Lisa Storck Assistant City Attorney AYES: NOES: Councilmembers Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2013- to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution No. 2013-XXX 556-7 Page 3 of 2 EXHIBIT A Target Employment Area Boundaries Census Tracts - Proposed Target Employment Area f t 733.01 - rn „` ?..G. o ` ?... _ 3.03 754.01 a' 754.05 171h St 17th St i ? -------. i -..: Wash,_ngton Ave _? h--- a r2.i:? - r Civic Peqtpr .T 7° ?. Jar 7 4. 2 - Santa Ana Blvd / r 41h St J -._-._ 151 Jt 2. -....__.. __...... 746-012 Ist St 05 1s1 St r..- 1 S92.47 .- w. - -McFadden Avq_ ?hc. ¢? , < 743.0 3 Y - - :McFaddenANe c Edm?er Avei - - - 747 0 7,6.7.02 I 7??E_ 744.03 --- Ede A°eO 74.55.02 -- Edinger Ave Y i ?I o' _f.71 ?4i.u8 741.0c m ' Q . J•0 , -40 740.03 CC Se erstromAve 741- _ DZ'er Rd 755.15 m 7$1.06 ? i x ? Alton Ave _ i 741 Td 7.'.0.04 .+";7 MacArthur Blvd .. 7 0.06 5'nflowerAve / i 1 j1H p-al?. T¦ 3?0 ?o 'I c -N- 0.0 0.5 1.0 1.5 2.0mi 1 , Source: 2000 Census Data 55B-8