2005 AGN MAY 17 I14 - Laserfiche WebLink

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Item #14 CITY OF COLTON For the City Council Meeting of May 17, 2005 TO: Honorable Mayor and Councilmembers / FROM: Candace E. Cassel, Redevelopment Director Lo SUBJECT: Consideration and Approval of City Council Resolution Authorizing the Expansion of the Agua Manse Enterprise Zone. DATE: May 5, 2005 In 1986, San Bernardino County, Riverside County, and the cities of Colton, Rialto, and Riverside established a Joint Powers Authority, AMIGA (Agua Mansa Industrial Growth Association) for the purpose of creating and managing the State's Agua Manse Enterprise Zone (AMEZ), which was also established in 1986. State enterprise zones offer various incentives to businesses located within a zone including: 1) employment tax credits; 2) employee salary reimbursements; 3) sales and use tax credits for purchase of new machinery; and 4) low cost loans and bonds. In 1990 the State of California enacted AB 251 providing for the expansion of enterprise zone boundaries up to 15% of a zone's original acreage. Although the 15% expansion was a one- time provision by the State, the entire expansion did not have to take place at once. Rather, it could be completed in increments over the life of the zone. Colton exercised its 15% expansion at three different times: Action Date City Resolution Colton Acreage Formation October 15, 1986 R-4600 1,613 Expansion July 2, 1991 R-67-91 22.4 Expansion July 19, 1994 R-87-94 95 Expansion December 6, 1994 R-131-94 122 The AMEZ originally was set to expire in October 2001, 15 years after is designation. In 2001, the AMEZ was approved for a 5 -year extension to October 2006. DISCUSSION/ANALYSIS For the past year, the City and the County have been working with a Fortune 500 company to expand its business into Colton. The location under consideration, however, falls immediately outside of the AMEZ. A map of the property under consideration and the abutting zone boundary is attached hereto as Exhibit "A".