(6)AR 041911 San Bernardino Valley Enterprise Zone (SBVEZ)

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Staff Report to the Mayor and City Council Expansion of SBVEZ Boundaries April 19, 2011 Page 2 ISSUES/ANALYSIS A feature of the state enterprise zone program is the ability to enlarge the zone boundaries by 15% of the total acreage of the original zone after final zone approval is granted. The number of expansion acres allowed in each jurisdiction is based on the percent of the total final zone acreage within each jurisdiction. Three jurisdictions are requesting expansion acreage at this time, with each request falling within the allowable number of acres. IVDA is a non land -holding participant in the SBVEZ, but acreage from the City of San Bernardino and the County of San Bernardino is being held for a future expansion should the Local Area Military Base Reuse Area (LAMBRA) expire during the term of the SBVEZ designation. Each jurisdiction is required to adopt a resolution agreeing to the request of each party to the MOU. In this expansion, the City of Colton proposes to expand its participation in the SBVEZ by 374 acres, the City of San Bernardino by 1,246.03 acres and the County of San Bernardino by 1,252 acres. Remaining expansion acres remain available and can be used at a later date. Criteria for expansion, in addition to the limited number of acres, includes areas of commercial or industrial zoning that are contiguous to existing designated enterprise zone areas. Staff was able to include the majority of all commercial and industrial areas in the City of Colton by counting acreage of streets that connect properly zoned areas of the city. Other jurisdictions in the SBVEZ were able to use this technique to expand their areas as well. Colton's expansion will leave 480 acres available for use in the future, should any unincorporated area annexations or zone changes occur. A Program Environmental Impact Report ("PEIR") was determined to be appropriate for the City of Colton's SBVEZ territory at the time of the original zone designation. The PEIR was certified by the Council on February 15, 2008. Staff has reviewed the original PEIR and analyzed the possible impacts of the addition of 374 acres. Staff has determined that pursuant to CEQA Article 11, Section 15162, a Subsequent PEIR is not needed, due to the fact that the expanded area will not change any conclusions of the original PEIR. FISCAL IMPACTS The City's commitment to participating in the SBVEZ included an initial investment of $55,621 and an annual investment of approximately $14,000 per year. Future contributions to the SBVEZ for marketing purposes is addressed in the MOU as requiring a budget to be determined and agreed upon by all of the jurisdictions. Discussions are underway to determine the appropriate amount and time period for the next SBVEZ marketing budget. ALTERNATIVES 1. Not approve the expansion of the SBVEZ at this time.