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HomeMy WebLinkAbout2014-052 - Insupport of Assembly Bill 199908/27/14 SRC RESOLUTION NO. 2014 -052 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA INSUPPORT OF ASSEMBLY BILL 1999 (ATKINS), THE CALIFORNIA ECONOMIC DEVELOPMENT AND HISTORIC PRESERVATION TAX CREDIT ACT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: WHEREAS, the California Economic Development and Historic Preservation Tax Credit Act, Assembly Bill 1999 (Atkins), would establish an incentive for economic development through the rehabilitation of historic buildings, and WHEREAS, currently, the 20% Federal Historic Preservation Tax Incentives program, available to California's income - producing historic properties, has generated nearly $1.5 billion dollars in investment during the last 10 years; and WHEREAS, the Assembly Bill would provide a state income tax credit equal to 25% of approved expenses on rehabilitation of structures listed in the National Register of Historic Places or the California Register of Historical Resources, both income - producing and non - income producing buildings, which could be used together with the 20% federal credit or separately, depending on the project and specific regulations, along with a 5% additional credit that would apply for projects containing a majority of low- income housing units, involving surplus government properties, or located in economically distressed areas, Base Realignment and Closure Act zones or Transit - Oriented Development areas: and WHEREAS, the projects will stimulate public and private investment, rehabilitation expenditures must meet specific criteria, to be screened by the California Governor's Office of Business and Economic Development ( "Go Biz ") to demonstrate return on investment to the state; and WHEREAS, the Assembly Bill will incentivize economic development and create construction and building industry jobs, enhance state tax revenues through economic activity, increase local revenues through increased property values, sales tax, and heritage tourism, stimulate the economy and sustainable development, and preserve the rich heritage of California communities; and WHEREAS, the Assembly Bill could be combined with other tax credits and incentives to leverage additional funding, including federal tax incentives and housing credits, to bring historic buildings up to code, increase energy efficiency, Resolution No. 2014 -052 Page 1 of 3 and provide for adaptive reuse while preserving the building's historic features, to use affordable housing credits to help low- income tenants with housing costs, and incentivize existing property owners in historic districts to rehabilitate their properties; and WHEREAS, similar incentives are used in more than 30 states to pay for initial rehabilitation costs; and WHEREAS, the California program would be a powerful tool to assist economically depressed urban areas with continued economic development in light of diminishing redevelopment dollars, while stimulating public and private investment, and celebrating and preserving California's heritage; WHEREAS, the Assembly Bill is supported by the California Preservation foundation, California Chapter of the American Institute of Architects, leading preservation organizations, property owners, developers, affordable housing advocates and builders; WHEREAS, there are over 600 historic properties in Santa Ana, California, including individual historic properties on the City's Historical Register, and those within the three national register historic districts that could benefit greatly from these incentives; NOW, THEREFORE, BE IT RESOLVED, Section 1. The City Council of the City of Santa Ana hereby proclaims its support for the passage of AB 1999, the California Economic Development and Historic Preservation Tax Credit Act. Section 2. 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 2 "d day of Septemb( Resolution No. 2014 -052 Page 2 of 4 APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney 0 a R. Car Attorney 08/27/14 SRC AYES: Councilmembers: Amezcua, Benavides, Martinez, Pulido, Reyna, Sarmiento, Tinaiero (7) NOES: Councilmembers: None (0) ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of Council, do hereby attest to and certify the attached Resolution No.2014 -052 to be the original resolution adopted by the City Council of the City of Santa Ana on September 2, 2014. Date: ��� Lcvy The Clerk of Council City of Santa Ana Resolution No. 2014 -052 Page 3 of 3