(9)AR 021511 Opposition to Abolish Redevelopment Agencies and Enterprise Zones in California

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STAFF REPORT DATE: FEBRUARY 15, 2011 HONORABLE MAYOR AND CITNO�O TO: FROM: ROD FOSTER., CITY MANAGER PREPARED BY: MARK TOMICH, DEVELOPMENT SER SUBJECT: RESOLUTION — OPPOSITION TO ITEM NO. 09 VICES DIRECTOR/ STATE ADMINISTRATION PROPOSAL TO ABOLISH REDEVELOPMENT AGENCIES AND ENTERPRISE ZONES IN CALIFORNIA RECOMMENDED ACTION It is recommended that the City Council approve Resolution No. R-13-11, to oppose the efforts by the current state administration to abolish Redevelopment Agencies; and approve Resolution No. R-12-11 to oppose the efforts of the state to abolish Enterprise Zones in the State of California. GOAL STATEMENT The proposed action will support the City's goal to continue to provide mechanisms for job creation and retention, business growth, for the financing of public and infrastructure improvements, and affordable housing opportunities in the City of Colton. BACKGROUND As part of the 2011- 2012 budget proposal, the Governor has proposed permanently abolishing California's more than 400 local Redevelopment Agencies and the entire Enterprise Zone program administered by the California Department of Housing and Community Development, responsible for all 42 Enterprise Zones throughout the state. The proposed resolutions are intended to communicate to the Governor and State Legislature that the City of Colton is committed to keeping businesses in California and in the City and to maintain a mechanism to continue to provide local funding for local projects. ISSUES/ANALYSIS CNBC recently conducted a survey of "America's Top States for Business 2010", in which California ranked 48th out of 50, in the cost of doing business. In addition to being the state with the third highest cost of doing business, California ranks just above the bottom of the list, at 49th out of 50 in business friendliness. It is the goal of the City Council to maintain a business - friendly environment that reaches out to our existing businesses and attracts quality employers to the city to provide jobs for the residents of the City of Colton. With California being viewed as