HomeMy WebLinkAboutResolution 2011-13 Fiscal Year 11-12 Propoosal to Eliminate Enterprise ZoneCITY OF PALM DESERT
STAFF REPORT
REQUEST: ADOPT RESOLUTION NO. 2011-13 , A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA,
OPPOSING THE GOVERNOR'S FISCAL YEAR 2011-2012
PROPOSAL TO ELIMINATE ENTERPRISE ZONES IN
CALIFORNIA
SUBMITTED BY: Ruth Ann Moore, Economic Development Manager
DATE: March 10, 2011
CONTENTS: Resolution No. 2011-13
RECOMMENDATION
Waive further reading and adopt Resolution No. 2011- 13 .
BACKGROUND
Governor Jerry Brown's fiscal year 2011-2012 budget proposes the elimination of
Enterprise Zones and Redevelopment Agencies throughout the State of California to
close a State budget deficit. If approved, all Enterprise Zones and Redevelopment
Agencies will be eliminated.
The Coachella Valley Enterprise Zone Authority (CVEZA) is a regional economic
development organization that retains businesses, attracts new businesses, and helps
create jobs beneficial for the Coachella Valley. Companies that move to or remain in the
CVEZA use credit vouchers to hire employees. These companies have stated
specifically that the Enterprise Zone was a key component in their decision to locate in
the Coachella Valley. In 2010, 473 new positions were created by 169 local companies
in the CVEZA.
To date, the cities of Rancho Mirage, Coachella and Indio have passed similar resolutions
and La Quinta and Palm Springs will be considering resolutions later in the month.
Staff Report
Enterprise Zone Resolution
March 10, 2010
Page 2 of 2
Fiscal Analysis
Approval of the resolution will have no fiscal impact to the General Fund.
Su
nomic Development Manager
Department Head:
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VERIFIED BY --
Original on File with City Wrk's Office
M. Wohlmuth, City Manager
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RESOLUTION NO. 2011- 13
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, OPPOSING THE GOVERNOR'S FISCAL YEAR 2011-2012
PROPOSAL TO ELIMINATE ENTERPRISE ZONES IN CALAIFORNIA
WHEREAS, the origins of California's Enterprise Zone came through enactment of
two separate programs in 1984 — the Enterprise Zone Act and the Employment and
Economic Incentive Act; and
WHEREAS, the Enterprise Zone provides a geographically -targeted economic
development tool for poor and blighted communities by creating incentives for businesses
to hire new employees and purchase equipment for their businesses; and
WHEREAS, on November 11t", 2006, the Coachella Valley Enterprise Zone
Authority received its final designation as an Enterprise Zone from the California
Department of Housing and Community Development; and
WHEREAS, the cities and communities of the Coachella Valley experience high
normal and seasonal unemployment each year; and
WHEREAS, the economic crisis has exacerbated this situation, resulting in
unemployment rates exceeding 20% in some cities and communities within the Coachella
Valley; and
WHEREAS, these high unemployment rates serve to increase poverty, crime, and
foreclosures of homes, and lead to the disruption of public services to those in the
community most in need of assistance; and
WHEREAS, the Coachella Valley Enterprise Zone Authority has worked to combat
these social problems by using the Enterprise Zone's incentives to encourage new
businesses to locate within the Enterprise Zone and existing businesses to expand their
operations; and
WHEREAS, the Coachella Valley Enterprise Zone has worked with local
organizations and programs, including the Riverside County Economic Development
Agency, the Riverside County Workforce Development Center, the Coachella Valley
Economic Partnership and the Economic Development Departments of the valley's
municipal jurisdictions in an effort to encourage businesses to hire the most at -risk
individuals; and
WHEREAS, the Coachella Valley Enterprise Zone has issued a total of 2,053 Hiring
Credit Vouchers (with 473 being for New Positions) to 169 local businesses in 2010; and
WHEREAS, the Enterprise Zone has served to attract additional businesses,
including manufacturers to the Coachella Valley, and has helped many others stay in
business or expand their operations; and
WHEREAS, companies moving to or remaining in the Coachella Valley have stated
specifically that the Enterprise Zone was a key component in their decisions to locate or
remain within the Coachella Valley and California; and
WHEREAS, the City of Palm Desert within the Coachella Valley acknowledges that
the attraction of new businesses and the retention and expansion of existing businesses is
the most effective way of guaranteeing the long-term well-being of the cities and
communities of the Coachella Valley.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PALM DESERT AS FOLLOWS:
SECTION 1. That the City of Palm Desert within the Coachella Valley has come to
recognize the Enterprise Zone as the most impactful state incentive to create new jobs,
grow existing businesses, and compete with other states to attract outside investment to
California.
SECTION 2. That the City Council believes the Enterprise Zone has had a significant
positive effect on business activity and economic growth in the Coachella Valley.
SECTION 3. That the City Council believes that eliminating a critical business assistance
program in the state would be a significant setback to improving California's business
climate and its struggles to reach an economic recovery, and urges the state of California
to support the Enterprise Zone program.
PASSED AND ADOPTED by the City Council of the City of Palm Desert, California,
at its regular meeting held on the 10th day of March, 2011, by the following vote, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
JEAN M. BENSON, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA