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Home My WebLink About19542 - RESOLUTIONS - 6/16/1999 RESOLUTION NO. 19542 OF THE CITY OF PALM SPRINGS, CALIFORNIA, ESTABLISHING GUIDELINES FOR A JOB CREATION ' INCENTIVE PROGRAM IN PALM SPRINGS, CHAPTER 3.38 OF THE MUNICIPAL CODE. WHEREAS, private sector jobs, especially those in the manufacturing sector, are an important component of a diverse and vibrant economic base for the City; and WHEREAS, attracting businesses to the City and encouraging existing manufacturing and other major businesses to undertake expansion that results in a significant number of new jobs or other economic benefits to the City provides a community benefit; and WHEREAS, development fees charged by the City for new construction or expansion of existing manufacturing, retail, or other commercial facilities are designed to offset the impact such new facilities have on the City and its residents. Such fees can also act as a disincentive for such businesses to locate in the City or for existing businesses to expand facilities in the City; and WHEREAS, it is in the public interest and consistent with the City charter to implement economic incentive programs that would diminish the disincentive caused by the application of development fees to the construction and/or expansion of new and/or existing manufacturing or other commercial facilities; and WHEREAS, such economic incentive programs serve a public purpose and provide for the general welfare of the community,by securing a diverse economic base for the City; and WHEREAS, the City Council established a Job Creation Incentive Program by adopting Chapter 3.38 of the Palm Springs Municipal Code, to be implemented by one or more resolutions of the City Council. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, that the following guidelines for the Job Creation Incentive Program, are adopted: Section 1. The purpose of the program is to attract to the City eligible businesses and encourage significant expansion of eligible businesses already located in the City in order to promote the creation of jobs in the private sector and other direct or indirect economic benefits to the City by waiving or subsidizing development fees for such businesses based on the number of new full-time jobs brought to the community. Section 2. Funds for this program shall be appropriated annually in an amount deemed necessary. Section 3. Businesses eligible for participation in the program shall be located in the "A," "M-1," "M-1-P," "M-2," "C-M" and "C-2" zones of the City. Section 4. The job-creating businesses, as defined by classifications established by the 91 North American Industry Classification System (NAICS) of the U.S. Bureau of the Census (adopted April 9, 1997), eligible for the Program, are: Res. No. 19542 Page 2 Category NAICS 2-digit code Manufacturing 31 i3 Information 51 Professional, Scientific, and Technical Services 54 Management of Companies and Enterprises 55 ' Administrative and Support, Waste Management and Remediation Services 56 The Council may amend the list of eligible NAICS categories from time to time. Section 5. Certain non-manufacturing businesses not listed by category in Section 4 may also be eligible for participation in the program provided they meet the other eligibility criteria for participation and provide other significant, measurable economic benefits such as,but not limited to, increased sales tax and property tax, to the city. Section 6. The minimum number of new full-time jobs created by an eligibie manufacturing company shall be no less than one hundred (100). The number of jobs created by another type of benefit-producing business shall be one hundred (100) nominal jobs, equivalent to no fewer than forty (40) full-time positions. These employment levels shall be agreed to in writing and remain in effect during the period of the agreement between the City and the business. Section 7. The maximum amount of assistance (the earned incentive credit;) any one ' business may receive from this program shall not exceed $1,000 per job created, with the total amount of assistance not to exceed the total dollar amount of development fees assessed. The business is responsible for payment of all fees that may exceed the amount of earned incentive credit. Section 8. The eligible development fees to which the Program assistance may be applied, and the order in which they are applied, are: 1 Plan Check 2 Building Permit 3 Planning Fee 4 SMIP Tax 5 Microfilm 6 Construction Tax 7 Construction Permit 8 Dbl.Fee/Rmw/Misc. 9 Misc. Filing Fee 10 Sewer Inspection 11 Sewer Main ' 12 Sewer Agreement 13 Sewer Connection Fee 14 Drainage Fee 15 Permit Issuance 16 Public Arts Fee 17 School Fee 18 TUMF Fee Res. No. 19542 Page 3 The total dollar amount of fees owed by the business will be calculated by the City, and the Job Creation Incentive Program benefit, based on the number of pledged jobs, shall be applied toward the total fee amount in the order noted in this Section. Section 9. Other criteria for participation in the program may be established by separate resolutions of the City Council. Section 10. Prior to approving assistance to an eligible business under this program, the City Council must make the findings described in Section 3.38.040 of the Palm Springs Municipal Code. Section 11. The program assistance shall be in the form of a loan to an eligible business, made on the following terms: A. The City and the eligible business will have a written agreement detailing the responsibilities of both parties, including but not limited to the waiver of certain development fees by the City and the maintenance of minimum employment levels by the business for the period of the agreement, but no fewer than five years; and B. The City may include repayment provisions that may or may not require monetary repayment, depending on the business' performance meeting criteria defined in Section 6; such agreement shall be secured by a lien against the business and/or the property at which the business is located; and ' C. The company shall attest that the minimum number of new jobs created in Palm Springs meets the criteria established in Section 6 of this resolution, and that the business would not have located or expanded in the City without the benefit; and D. The City shall attest that the total economic benefit to the community of the new jobs, by its own calculations, exceeds the fee revenue lost, and that the broad public benefit created by the program in terms of payroll and taxes paid exceeds the private benefit (the amount of fee waiver), and that there are no other reasonable alternative measures available to the business to finance the improvements or create the public benefit; and E. The agreement shall assure that the business will remain in the City for a minimum of five (5)years at the established employment level, or repay the City based on a straight-line amortization of the assistance; the job commitment"amortizes" the City's loan to the business at a rate of 20% of the dollar amount of the benefit per year. � � 3 Res. No. 19542 Page 4 Section 12. All allocation of Program assistance to any applicant shall be at the discretion of the City Counc;" Nothing herein shall require the City Council to allocate Program funds to any applicant. ADOPTED this 16th day of June 1 1999. ' AYES: Members Barnes, Hodges, Oden, Reller-Spurgin and Mayor Kleindienst NOES: None ABSENT: None ATTEST: CITY 0 P M SPRING IFORNIA By: City Clerk City Mana er REVIEWED AND APPROVED AS TO FORM: WL