TITLE
Recommendation to adopt resolution approving a Targeted Employment Area for the Long Beach Enterprise Zone, and direct City Manager to submit the resolution and map to the State of California. (Citywide)
DISCUSSION
The California Enterprise Zone Program was developed to provide targeted geographic areas with a means to stimulate business growth and attract new companies, jobs and investments. Firms located within an Enterprise Zone are eligible for various State tax credits if they can meet certain criteria.
A provision of the California Government Code provides for a Targeted Employment Area (TEA) within an Enterprise Zone. Section 7072(i) of the Government Code defines a TEA as an area within a city that is composed solely of those census tracts that have at least 51 percent of its residents of low- or moderate-income levels. Its purpose 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.
The City of Long Beach Enterprise Zone received approval of a TEA, effective January 8, 2007. The statutes governing the Enterprise Zone Program require that each zone annually update its TEA within 180 days of new census data becoming available. The California Department of Housing and Community Development (HCD) has determined that the census data necessary to update TEAs, in accordance with the relative statutes, is available, using the United States Census Bureau’s American Community Survey Five Year Averages. HCD has also provided the list of qualified census tracts that will comprise the Long Beach Enterprise Zone TEA. It is currently estimated that the TEA will experience a decrease of 10 percent in populations and 15.5 percent in area.
To update the Long Beach Enterprise Zone TEA, the City must submit specified documentation, including a resolution and a map of the TEA boundaries that i...
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