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HomeMy WebLinkAbout1568 - ORDINANCES - 5/5/1999 ORDINANCE NO. 1568 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING CHAPTER 3.38 TO THE PALM SPRINGS MUNICIPAL CODE, TO ESTABLISH A JOB CREATION INCENTIVE PROGRAM IN PALM SPRINGS. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES ORDAIN as follows: SECTION 1. Chapter 3 of the Palm Springs Municipal Code relating to Revenue& Finance, is hereby amended by adding Chapter 3.38 thereof, commencing at Section 3.38.010, as follows: Chanter 3.38 JOB CREATION INCENTIVE PROGRAM Sections: 3.38.010 Purpose. 3.38.020 Job Creation Incentive Program. 3.38.030 Form of Program Assistance. 3.38.040 Required Findings for Assistance 3.38,050 Program Assistance Discretionary. 3.38.010 Purpose (a) The purpose of the Job Creation Incentive Program is to (i) attract to the City eligible businesses and (ii) encourage significant expansion of eligible businesses already located in the City, in order to promote creation of jobs in the private sector. (b) The City Council finds and declares: (1) Private sector jobs, especially those in the manufacturing sector, are an important component of a diverse and vibrant economic base for the City. (2) Attracting businesses to the City, and encouraging existing manufacturing and other major businesses in the City to undertake expansion, that results in a significant number of new jobs to the City provides economic and social benefit to the City. (3) Development fees charged by the City related to new construction of, or expansion of existing, manufacturing, retail, or other commercial facilities are designed to offset the impact that such new facilities have on the City and its residents, but such development fees can act as a disincentive for manufacturing or other businesses to locate in the City or for existing businesses to expand facilities in the City. (4) Providing an economic incentive program that seeks to offset or reverse the disincentive caused by application of development fees to the development of new manufacturing or other commercial facilities or the expansion of existing manufacturing or commercial facilities is consistent with the City charter and the public purposes of engaging in economic 101 development efforts and is in the public interest of the citizens of the City and promotes the general welfare by seeking to secure a diverse economic base for the City. Ord. No. 1568 /�A Page 2 i 3 38 020 Job Creation Incentive Program. There is hereby established the;Job ' Creation Incentive Program. The City Council, by one or more resolutions may implement the Program authorized by this chapter by establishing, from time to time, all of the following by one or more resolutions: (1) An appropriation of funds, on not less than an annual basis, to be devoted to the Program. (2) The zoning classification(s)within the City in which the business must be located. (3) The businesses, defined by classifications established by governmental entities or recognized industry associations, that will be eligible for the Program. (4) The minimum number of new jobs created by an eligible company, at a specified minimum compensation level that must be created by a business on the eligible site, in order for that business to be eligible for Program assistance. (5) The maximum amount of Program assistance any one business may receive. ' (6) The eligible development fees to which the Program assistance may be applied. (7) Other criteria that may be used in applying the program to business expansions or new projects. (8) Program loan terms as referenced in Section 3.38.030. 3 38 030 Form of Program Assistance. The Program assistance authorized by this chapter shall be in the form of a loan to an eligible business. The loan shall be on terms as set by the City Council by resolution pursuant to clause (8) of Section 3.38.020. Such loan terms shall include the right of the City to place a lien against the businesses and/or landlord's property interest in the affected property and may include repayment provisions that do not require monetary repayment upon business performance meeting defined criteria. 3 38 040 Required Findings for Assistance. The City Council, prior to approving assistance to an eligible business, must make the following findings: (1) That the City and the eligible business have entered a written agreement detailing the responsibilities of both parties, including but not limited to a waiver a certain development fees by the City and the maintenance of minimum employment levels by the business; and (2) That the minimum number of new jobs created by an eligible company is at least one hundred (100), though the minimum full-time equivalent (FTE) positions created by the business may be less if the Council determines there are other economic benefits to the City from the project.; and Ord. No. 1568 Page 3 (3) That the total economic benefit to the community of the new jobs, as ' calculated by the City, exceeds the fee revenue lost to the City; and (4) That the broad public benefit created by the program, based on the performance criteria established by resolution, exceeds the private benefit; and (5) That the business would not have located or expanded in the City without the benefit; and (6) That the agreement assures that the business will remain in the City for a minimum of five (5) years or repay the funds; and (7) That the City has determined that there are no alternative measures to finance the improvements or create the benefit. 3.38.050 Program Assistance Discretionary. Notwithstanding the establishment of the Program pursuant to this chapter or the establishment by resolution of all of the Program implementation criteria pursuant to Section 3.38.020, the allocation of Program assistance to any applicant shall be at the discretion of the City Council. Nothing herein shall require the City Council to allocate Program funds to any applicant. 1 SECTION 2. This Ordinance shall be in full force and effect thirty(30) days after passage. SECTION 3. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance, and to cause the same or summary thereof, or a display advertisement, duly prepared according to law, to be published in accordance with law. ADOPTED this 5th day of May , 1999. AYES: Members Barnes, Hodges, Oden, Reller-Spurgin and Mayor Kleindienst NOES: None ABSENT: None ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By. City Clerk Mayor REVIEWED AND APPROVED AS TO FORM: / I HEREBY CERTIFY that the foregoing Ordinance 1568 was duly adopted by the City Council of the City of Palm Springs, California, in a meeting held on the 5th day of May, 1999, and a summary thereof was publ1q-haL— in the DESERT SUN, a newspaper of general circulation on April 30 &/U May 9, 1999. -- (�= Jl7DlTH SUMICH -City Clerk