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 incentives that can substantially reduce their cost of doing business.
In December 2006, the California Department of Housing and Community Development (Department) provisionally approved the application of the City of Long Beach for a redesignation of the Long Beach Enterprise Zone. Formal approval requires an Environmental Impact Report, which was submitted August 9, 2007, and notification of approval by the State is expected in November 2007.
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.
To establish a TEA, a City must submit an application for TEA designation to the Department. The application must identify the census tracts that will constitute the proposed TEA and demonstrate that the census tracts meet the eligibility criteria. In addition, the application must include certain specified documentation, including a resolution and a map of the TEA boundaries. A map of the proposed TEA for the Long Beach Enterprise Zone is attached as Exhibit A and the proposed TEA street address range is attached as Exhibit B.
This letter was reviewed by Assistant City Attorney Heather Mahood on October 10, 2007 and Budget Management Officer Victoria Bell on October 11, 2007.
TIMING CONSIDERATIONS
The TEA application is due to the State by November 1, 2007. City Council action is requested on October 23, 2007 to allow the City of Long Beach to proceed with the submission of the TEA application in a timely manner.
FISCAL IMPACT
There is no fiscal impact associated with this item.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE SUBMISSION OF THE APPLICATION TO THE CALIFORNIA HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT FOR A TARGET EMPLOYMENT AREA AS PART OF THE LONG BEACH ENTERPRISE ZONE
Respectfully Submitted,
MICHAEL P. CON\NAY
ACTING DIRECTOR OWCOMMUNITY DEVELOPMENT
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |