HomeMy WebLinkAboutReso 96-076 - Amending its Policy No. 804 from a jobs Credit/Fee Deferral program to an Industrial Development Incentive Policy .. - `'" � �
RESOLUTION NO. 96- �6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING AMENDING ITS POLICY NO. 804 FROM A JOBS
CREDIT/FEE DEFERRAL PROGRAM TO AN INDUSTRIAL
DEVELOPMENT INCENTIVE POLICY.
WHEREAS, on February 1, 1994, by Resolution 94-26, the City Council adopted Policy No.
804 entitled Jobs Credit and Fee Deferral Program; and
WHEREAS, in addition to the Jobs Credit/Fee Deferral Program, the City has two other
incentives for industrial jobs creation—the economic development rate for electric service and the waiver
of traffic impact fees; and
WHEREAS, for the sake of consolidation and marketing, staff is proposing that these policies be
combined into one economic incentive package, as set forth in the policy attached hereto and made a
part hereof; and
WHEREAS, the City Council has considered this matter, and wishes to amend the Jobs
Credit/Fee Deferral Program to an Industrial Development Incentive Policy;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council that Policy No. 804
be amended to read Industrial Development Incentive Policy as attached hereto.
I HEREBY CERTIF'I' that the foregoing resolution was introduced, read and adopted at a
regular meeting of the City Council on the 16th day of April, 1996, by the following vote:
E��S: COUNCIL MEMBERS: P. Anderson, R. Anderson, Kehoe and Mc�eorge
NOES: COUNCIL MEMBERS: Murray
ABSENT: COUNCII. MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: Non�
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DAVID L. cGEO E, M yor �
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ATTEST: FORM APPROVED: �
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CONNIE STR�HMAYER, City Clerk W. LEONARD W _A.TE,.,City:Attorney.. ... _. . ...
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� � C/TY OF REDDING, CALIFORN/A
Council Policy
SUB�ECT Resolution Policy Effective
Number Number Date Page
Industrial Development Incentive Policy 94-026 804 02-01-94 1
Background
In furtherance of the City Council's goals involving economic development and job creation, the City
offers a number of financial incentives, either through its own resources or in accordance with the State
of California authorized Enterprise and Recycling Market Development Zone programs. These
incentives range from economic development rate incentives in the Electric Utility to expedited
processing of major development projects which generate jobs and provide economic stimulus in the
City.
Purpose
The purpose of this policy is to provide economic incentives in the area of job credits, fee deferrals,
tr�c impact fees, and permit processing to enable Redding to compete with other communities for
industry and jobs. The policy is also to facilitate the expansion of existing local industry by providing
. the same incentives for new job creation.
Eligible Activities
Industries engaged in manufactt�ring, assembly, and storage as defined below are industries eligible for
consideration under this program:
Establishments engaged in the mechanical or chemical transformation of materials or substances
into new products. The establishments are usually described as plants, factories, mills, and
characteristically use power driven machinery and materials handling equipment.
Establishments engaged in assembling component parts of manufactured products are also
considered manufacturing if the new product is neither a structure or a fixed improvement.
Also included is the blending of materials such as oils, plastic resins, or liquors.
The product of a manufacturing or assemb(y establishment is finished in the sense that it is ready
for utilization or consumption, or is semi-finished to become a raw material for further
manufacturing or assembly.
Warehouse and distribution centers that store, transport, or distribute manufactured or
assembled products.
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Council Policy
SUB.IECT Resolution Policy Effective
Number Number Date Page
Industrial Development Incentive Policy 94-026 804 02-01-94 2
Policies
1. �OB CREDITS AND FEE DEFERR.AL .
It is the policy of the City Council that a job credits program and a defened fee program be
established in the City of Redding in accordance with the following provisions:
a. An industrial or manufacturing employer, as defined above that obtains a
building pertnit for new construction, remodel, or rehabilitation within the City,
will be eligible for job credits if the business is located in:
► A redevelopment project area in the Enterprise Zone, $1,500 per full-
time employee.
► In the Enterprise Zone, $1,000 per full-time employee.
► In the remainder of the City, $500 per full-time employee.
_ The maximum job credits shall not exceed $500,000 per parcel or project.
b. In order to qualify for job credits, an employer must agree to create and
maintain not less than ten new full-time jobs or the number of new jobs upon
which t�e credit is based, whichever is greater, as follows:
i. Upon conclusion of the five-year effective period of the agreement, the
business shall have maintained at least 90 percent of the new jobs upon
which the credits are based. For each year that the number of jobs
maintained by owner is 90 percent or greater of the number stated, an
amount equal to 20 percent of the job credits shall be forgiven, provided
that not less than 20 percent of the job credits shall remain in effect
throughout the effective period of the agreement. Such new jobs shall
always be calculated as those in addition to the number of employees
existing on the effective date of the agreement.
ii. If at any time during the five-year effective period of the agreement, the
owner ceases conducting business at the project site, a percentage of the
� job credits shall be forgiven for each calendar year that the number of
jobs maintained by owner was 90 percent or greater than the number of
new jobs that was represented.
iii. If any time during the five-year effective period of the agreement, the
number of jobs maintained by owner falls below the number of existing
jobs at the time of the agreement, the agreement shall be considered in
default and the job credits or deferred fees shall be due and payable in
full.
iv. If a job for which a credit is issued is not filled within one year of
occupancy, the credit shall become due and payable.
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Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
Industriai Development Incentive Policy 94-026 804 02-01-94 3
c. General Fund and Enterprise and Utility Fund fees in excess of those for which
job credits can be applied may be deferred based on the following payment
schedule. Fees may be deferred only if the total fee obligation, after job credits
are applied, exceeds $50,000.
Poyment Schedule Amount
At the time of issuance of a building permit. Not less than 20 percent of the fee due
and payable.
First-year anniversary. 20 percent of the fee,plus interest.
Second-year anniversary. 20 percent of the fee,plus interest.
Third-year anniversary. 20 percent of the fee,plus interest.
Fourth- ear anniversa . Balance of the fee, lus interest.
d. In order to qualify for job credits and fee deferrals, all infrastructure necessary
to serve the new or expanded facilities must be in place. Job credits or deferrals
will not be applicable to on or off-site construction requirements for
infrastracture necessary to serve the facility.
e. The City will not waive any special benefit district fees, construction taxes, or
environmental mitigation fees.
f. Job credit will be divided proportionally among the following fees, otherwise
payable for qualified industrial projects.
► Sewer fees
► Water fees
► Storm drain fees
► Building permits
► Plan checks
� ► Electrical permits
► Grading permits
► Mechanical
► Plumbing permits
► Encroachment permits
► Preparation and recordation of job credits and deferred agreements
g. Interest charges for deferred fees will be levied at the Local Agency Investment
Fund rate adjusted quarterly throughout the period of deferral. Any deferred
fees will have adequate security acceptable to the City Manager.
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Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
Industrial Development Incentive Policy 94-026 804 02-01-94 4
h. Job credits will be applied only to the one-time fees identified above; not to
annual or monthly service charges.
i. As a condition of fee deferral for job credits, an employer must agree to remain
in business for five years in Redding with not less than ten employees. Failure
to meet these terms shall result in any fee deferral or job credits being due and
payable in full. Security for all job credits or fee deferrals shall be required.
j. The employer or owner receiving either the fee deferral or the job credits shall
submit an annuai report to the City on the number of full-time employees on the
anniversary date of occupancy. The City shall have the right to review such
company records as is necessary to verify compliance. Temporary jobs, part-
time jobs, or seasonal jobs shall not be eligible for job credits.
k. The Office of the City Manager shall cause the forms, agreements, and contracts
to be prepared necessary to implement the program.
l. To qualify for a job credit or fee deferral, the jobs must be new jobs to Shasta
County.
m. Recognizing that businesses often start hiring new employees before occupying
a building, an approved job credit shall be provided for jobs created up to one
yeaz before issuance of a building permit for the improvement on the which the
credit is based.
n. The City will not charge a fee for an application for job credits and fee deferral.
o. Job credits and fee deferrals may be issued to owners of speculative buildings
with each parcel treated as a separate agreement, provided the building owner
agrees to meet all of the requirements of this section, as if they also own the
business. A job credit is not transferrable between properties.
p. Job credits and fee deferrals shall be secured by a personal guarantee, a property
lien, or both in order to assure the full security of the credit or deferral during
the effective period of the agreement. Any credit or deferral secured by
property shall be based on an independent MAI appraisal with adequate value
to cover the full value of the credit or deferral in the form of a lien on the
property. Any credit or deferral secured by a personal or corporate guarantee
shall be based on a personal financial statement along with two years of tax
returns.
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V � CITY OF REDDING, CALIFORN/A
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
Industrial Development Incentive Policy 94-026 804 02-01-94 5
2. TRAFFIC Il�II'ACT FEES
The City of Redding has established a Trafiic Lnpact Fee to be used to help fund improvements
to City streets needed as a result of growth and development. In recognition that industrial
development creates jobs, the City Council hereby waives Traffic Impact Fees for industrial
development as defined above.
3. ELECTRIC RATE INCENTIVE FOR ECONOMIC DEVELOPMENT
As an incentive to new job creation, the City of Redding has established electrical rate incentive
schedules per City Council Resolution.
4. PERMIT PROCESSING
The City recognizes that time is e�remely important in the planning and scheduling of business
expansion and the hiring of new employees. To that end, the City will undertake the following:
a. Use Permits, Lot Splits, and Site Plan Review.
Permits, such as those that are consistent with the General Plan and zoning, shall be
processed as quickly as possible. To that end, the Development Services Director shall
assign a planner as a project manager to expedite the project and to process the
applications for each job credits or fee deferrai application. With the project planner,
a team from the various departments will be formed who will work on the project.
b. Building Permits.
Complete applications for building pemiits shall be processed according to the following
time lines:
(1) An initial plan check shall occur within ten (10) working days.
(2) Upon resubmittal, any resubmitted plan check will to be checked within five
working days.
(3) The City will provide 24-hour or sooner inspections on all inspection requests.
(4) At the building owner's request, the City will provide the option of using a
qualified outside structural engineer to do plan checks. The owner will be
responsible for paying the difference in any plan check fees if greater than..the.. ;....
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rty's ees or the same work. These additional fees��shall�not�be defened: `�
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Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
Industrial Development Incentive Policy 94-026 804 02-01-94 6
c. Plans for Public Improvements
The initial review of plans for public improvements shall occur within ten working days
of plan submittal.
5. PARK FEES
The City has established a Park Development Fee to raise funds to develop neighborhood,
community, regional, and special park facilities. As an inducement to industrial development,
the City Council has waived Park Fees for industrial development.
Amended April 16, 1996, by Resolution No. 96-076.
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