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Staff Report to the Mayor and City Council <br />Resolutions — Oppose Abolishing Redevelopment and Enterprise Zones <br />February 15, 2011 <br />Page 2 <br />one of the most expensive states to conduct business and a poor business friendly rating, the <br />proposed elimination of Redevelopment and Enterprise Zones will be devastating to the <br />economic recovery of both the City of Colton and the greater State. Presently, local <br />governments have very few economic tools for job retention, job creation and the production of <br />affordable housing. <br />The two most effective tools currently available to counties and cities are Redevelopment and <br />Enterprise Zones, which are being proposed for elimination at the beginning of the 2011-2012 <br />fiscal year. Redevelopment is most commonly used to finance public facilities, infrastructure <br />improvements and affordable housing. Enterprise Zone benefits are in the form of tax credits <br />which are available to businesses in the zone for hiring workers qualified under certain criteria <br />usually considered "difficult to employ", for the purchase of certain equipment, and other <br />incentives. <br />These two programs represent two of the few available sources of financing and incentives still <br />remaining in California and in the City of Colton. To lose these programs would be seriously <br />detrimental to doing business in the City of Colton. <br />FISCAL IMPACTS <br />There is no anticipated financial impact as a result of the adoption of the resolutions. <br />ALTERNATIVES <br />1. Do not participate in efforts to save Redevelopment and Enterprise Zones in the State of <br />California. <br />2. Participate in efforts to save Redevelopment and Enterprise Zones, but do not approve <br />Resolutions to that effect. <br />3. Provide alternative direction to Staff. <br />ATTACHMENTS <br />Resolution R-12-11 <br />Resolution R-13-11 <br />