Extension of Agua Mansa Enterprise Zone

Browse Search

CITY COUNCIL FOR THE CITY OF COLTON For the City Council Meeting of April 3, 2001 TO: Honorable Mayor and Councilmembers APPROVAL: Henry Garcia, City Manager FROM: Robb R. Steel, Redevelopment Directo BJECT: Consideration and Approval of Resolution Requesting an Extension of the Agua Mansa Enterprise Zone Pursuant to the Provisions of Assembly Bill 2798. DATE: April 3, 2001 Background On October 14, 1986, the State of California designated the Agua Mansa Enterprise Zone, with a fifteen -year time limit. The designation is given to areas that are economically depressed and offers a variety of state tax incentives in order to help stimulate development and improve the economic situation. The Zone is made up of the Counties of Riverside and San Bernardino and the Cities of Colton, Rialto and Riverside. A Joint Powers Authority, the Agua Mansa Industrial Growth Association (AMIGA), governs the Zone. The Zone is set to expire on October 13, 2001. Originally, Colton's portion of the Zone encompassed a total of 1,613 acres, which are primarily located south of the 1-10, west of Mt. Vernon. In 1989, AB 251 was adopted, which allowed state enterprise zones to expand their boundaries by 15%. The City of Colton exercised this provision and expanded the Zone boundaries by 22.42 acres in 1991, 95 acres in July of 1994 and the remaining balance of 122 acres in December of 1994, bringing Colton's total area included in the Zone to 1,855 acres. Properties located along Mt. Vernon, Valley Boulevard and Citrus were included in the expansion. Discussion In 1998, AB 2798 was adopted, which allows enterprise zones that were designated prior to 1990 to apply for a five-year extension. The tax credits and incentives are valuable to businesses currently in the Zone and they are powerful tools for business attraction. The first step in the extension application process included undergoing an audit of the Zone. AMIGA received a score of 194 out of 200 for the audit. The second step is the submittal of an Economic Development Plan Update. The Plan was submitted to California Technology, Trade and Commerce Agency on March 13, 2001.