HomeMy WebLinkAboutReso 94-026 - Adopting two policies relative to the enhancement of the economic development incentative program RESOLUTION NO. 94-�
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
ADOPTING TWO POLICIES RELATIVE TO THE ENHANCEMENT OF
THE ECONOMIC DEVELOPMENT INCENTIVE PROGRAM.
WHEREAS, the City Council of the City of Redding is charged
with the responsibility of establishing municipal policies to
I
guide the various functions of the City and, where necessary, to
establish procedures by which functions are performed; and
WHEREAS, regulatory policies established by the City Council
are usually adopted by Ordinance and included in the Municipal
Code. However, other policies are also established, which by
their nature do not require adoption by Ordinance; these policy
statements, adopted by Resolution of the City Council, need to be
consolidated in a reference document for easy access; and
WHEREAS, on August 4 , 1987, by Resolution No. 87-261, the
City Council adopted a Council Policy Manual to achieve said
objectives; and
WHEREAS, the City Council wishes to adopt two policies
relative to the enhancement of the Economic Development Incentive
Program;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of
the City of Redding that the following policies be and hereby are \�
adopted as the Council' s policies for the enhancement of the
Economic Development Incentive Program:
v S •
* Jobs Credit and Fee Deferral Program.
* Economic Development/Personal Property Tax Rebate
for Qualified Manufacturing Property.
BE IT FURTHER RESOLVED that said policies, copies of which
are attached hereto, be incorporated in the Council Policy
Manual.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
the City of Redding on the lst day of February, 1994, and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Anderson, Dahl, Kehoe, moss and Arness
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
CARL ARNESS, Mayor
City of Redding
A ST:
CONNIE STROHMA , City Clerk
FORMAPPROVED:
ALL A. HA , City Attorney
2
CITY OF REDDING, CALIFORNIA
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
JOBS CREDIT AND FEE
DEFERRAL PROGRAM 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 zone program. These incentives range from economic
development rate incentives in the Electric Utility through expedited processing of major development
projects which generate jobs and provide economic stimulus in the City.
PURPOSE
In order to compete with other states, and most particularly with other communities in California for
new industry and jobs, and in addition, in order to facilitate the expansion of local businesses and the
creation thereby of local job opportunities, it is necessary that the City provide further incentives in
the way of deferred fees and job credits to be applied against development fees otherwise payable
in the City of Redding.
POLICY
It is the policy of the City Council that a deferred fee program and a jobs credit program be
established in the City of Redding in accordance with the following provisions:
1. An industrial or manufacturing employer will be eligible for jobs credits as follows:
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 fee credit would not exceed $500,000 per parcel or project.
2. The credits would be applied only to charges that would generate revenues for the
General Fund and to fees charged by Enterprise Fund activities. In other words, both
the General Fund and the Enterprise and Utility Funds would subsidize industrial
a' development and job creation. In order to qualify for job credits or fee deferral, an
employer must commit to create and maintain not less than ten new full-time jobs
within one year from the date of project completion.
3. General Fund and Enterprise 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 payment, after job credits are applied, exceeds $50,000.
F-0091 -7/93
CITY OF REDDING, CALIFORNIA
Council Policy
SUBJECT Resolution Policy Effective
JOBS CREDIT AND FEE Number Number Date Page
DEFERRAL PROGRAM 2
Payment Schedule Amount
At the time of issuance of building Not less than 20 percent of the fee
permit. 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-year anniversary. Balance of the fee, plus interest.
4. In order to qualify for job credits or fee deferral, 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 infrastructure necessary to
serve the facility.
5. The City would not waive any special benefit district fees, construction taxes or
environmental mitigation fees.
6. Generally, job credits could be charged proportionally against 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 permits
► Plumbing permits
► Encroachment permits
► Preparation and recordation of employee credit and deferred agreements
► Traffic Impact fees (if applicable)
► Park Development or Park In-lieu fees (if applicable)
7. All interest charges for deferred fees would be levied at the Local Agency Investment
Fund rate. Any deferred fees would have adequate security acceptable to the City
Manager.
8. Job credits would be applied only to the one-time fees identified above; not to annual
or monthly service charges.
F-0091 -7/93
CITY OF REDDING, CALIFORNIA
Council Policy
SUBJECT Resolution Policy Effective
JOBS CREDIT AND FEE Number Number Date Page
DEFERRAL PROGRAM 3
i
9. As a condition of fee deferral for employee 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 jobs credits being due and
payable in full.
10. The employer receiving either the fee deferral or the job credit shall submit an annual
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.
11. The Office of the City Manager shall cause the forms, agreements, and contracts to
be prepared necessary to implement the program.
F-0091 -7193
CITY OF REDDING, CALIFORNIA
Council Policy
Resolution Policy Effective
46bW IC DEVELOPMENT/PERSONAL Number Number Date Page
PROPERTY TAX REBATE FOR QUALIFIED
MANUFACTURING PROPERTY 1
1
t
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 zone program. These incentives range from economic
development rate incentives in the Electric Utility through expedited processing of major development
projects to generate jobs and provide economic stimulus in the city. Additionally, the State of
California, effective with the 1994-95 fiscal year, authorized the rebate of personal property tax
revenue received from certain economic revitalization manufacturing property for a period of five (5)
years from the date the property was placed in service.
PURPOSE
In order to implement the action of the State Legislature and the Governor, it is necessary that the
City Council expressly authorize the rebate of personal property taxes for qualified economic
revitalization manufacturing property, as defined in the State Revenue and Taxation Code, for a
period up to five (5) years from the date property was placed in service. This additional economic
development incentive would be offered in accordance with the following provisions necessary to
facilitate the expansion of local businesses and the attraction of new industry and jobs to the
community.
i
POLICY
It is the policy of the City Council that a personal property tax rebate program shall be established
in the City of Redding in accordance with the following provisions:
1. Subject to approval by the City Council, an employer will be eligible for the personal
property tax rebate on economic revitalization manufacturing property (tangible
personal property) that meets the following requirements:
► The property is directly involved in the manufacturing process and not in a
preliminary or subsequent activity, or one that is incidental to manufacturing.
► Use of the property will lead to the creation of at least ten (10) new full-time
manufacturing jobs or positions at salary levels of at least $10.00 per hour
($20,000 per year). Such jobs or positions will remain in existence for a
continuous five-year period.
2. The personal property tax rebate will be made upon a showing by the employer that
the tax was paid.
3. The employer receiving the personal property tax rebate shall submit an annual report
to the City on the number of full-time employees which qualify the employer for the
rebate.
F-0091 •7/93
i
CITY OF REDDING, CALIFORNIA
Council Policy
WA IC DEVELOPMENT/PERSONAL Resolution Policy Effective
PROPERTY TAX REBATE FOR QUALIFIED Number Number Date Page
MANUFACTURING PROPERTY 2
I
4. The Office of the City Manager shall cause the forms, agreements, and contracts to
be prepared necessary to implement the program.
5. In accordance with the provisions of the California Revenue and Taxation Code, the
personal property tax rebate program shall sunset on January 1, 2000.
F-0091 -7193