HomeMy WebLinkAbout11/7/2012 - STAFF REPORTS - 2.I. QALM SAS
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DATE: NOVEMBER 7, 2012 CONSENT CALENDAR
SUBJECT: APPROVE AND AUTHORIZE THE SUBMITTAL OF THE ALTERNATIVE
SITE FRAMEWORK APPLICATION AND RESOLUTION TO THE
UNITED STATES DEPARTMENT OF COMMERCE FOR THE
REORGANIZATION OF THE CITY OF PALM SPRINGS FOREIGN
TRADE ZONE (FTZ#236)
FROM: David H. Ready, City Manager
BY: Community & Economic Development Department
SUMMARY
This action is to authorize the submittal of the Alternative Site Framework (ASF)
Application and a Resolution approving the application to the United States Department
of Commerce to reorganize the Palm Springs Foreign Trade Zone's (FTZ) boundaries.
The reorganization expands the boundary service area to include communities to the
west and east of Palm Springs. The purpose of the boundary expansion is to increase
the potential number of businesses that are able to take advantage of the FTZ benefits
and improve the utility of the FTZ as a regional economic development tool.
RECOMMENDATION:
1. Approve and authorize the submittal of the Alternative Site Framework
Application and Resolution to the United States Department of Commerce.
2. Adopt Resolution No. "A RESOLUTION OF THE CITY OF PALM
SPRINGS AUTHORIZING THE SUBMITTAL OF THE ALTERNATIVE SITE
FRAMEWORK APPLICATION TO THE UNITED STATES DEPARTMENT
OF COMMERCE FOR THE BOUNDARY REORGANIZATION OF ITS
EXISTING FOREIGN TRADE ZONE NO. 236."
3. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
In 1999, the City of Palm Springs received a Grant of Authority establishing Foreign
Trade Zone #236 from the United States Department of Commerce, Foreign Trade
Zones Board. As Grantee of FTZ #236, the City's responsibility includes operating and
REM NO. A
City Council Staff Report
November 7, 2012-- Page 2
FTZ—ASF Application
maintaining the zone pursuant to its grant from the Foreign Trade Zones Board. The
City has met the activation requirements and is in compliance with the Foreign Trade
Zones Board and U.S. Customs and Border Protection regulations.
The FTZ has always been a valley-wide asset available to businesses involved in
international trade, including communities located to the east and west of the City's own
geographic boundaries. Although the FTZ #236 has always been a regional asset, and
has been promoted as such, very little FTZ activity has occurred under the current
structure because of the difficulty of processing minor boundary amendments required
under the original FTZ rules for users outside the original FTZ boundaries.
Currently, a business located within 60 miles or a 90-minute commute from the zone
boundaries can apply for zone status; however, processing a boundary modification can
take up to 18 months. Under the ASF structure, processing times are greatly reduced
for companies located within the expanded service area, which will allow prompt
activation for operation of a general purpose zone offering zone services for multiple
users.
Over the past two years the City of Palm Springs and the Riverside County EDA —
Office of Foreign Trade have worked on the expansion of the Zone boundaries under
the new ASF Program. The goal of the ASF program is to improve the Grantee's (City
of Palm Springs) ability to increase its activity by bringing the benefits of the FTZ to a
broad range of companies, and to develop a zone-site management structure that is
flexible, focused and feasible for everyone's benefit. The City Council approved a
contract with ITC Diligence to complete an application to reorganize the zone
boundaries under the ASF process through the Foreign Trade Zones Board. ITC
Diligence has been the City's operator for most of the Zone's existence.
This reorganization of the FTZ under the ASF program will capture businesses in all of
Palm Springs as well as the cities and unincorporated areas to the east and west of the
current zone boundaries — almost all of the Coachella Valley and as far west as the
Hemet/San Jacinto area. The County has recently completed a similar ASF modification
with the FTZ in San Diego, which benefitted businesses in the far Western portion of
Riverside County, and our reorganization eliminates the need for the County to try to
develop an additional FTZ in the middle of the County to serve the mid-County cities.
The draft application was submitted to the FTZ Board on October 11, 2012 for review
and comments. The FTZ Board has 30 days to review the application and within that
time will let the City know if the draft copy is sufficient or if additional information is
needed. Once the draft application is deemed sufficient, a final version will be
submitted to the FTZ Board for formal docketing, which opens a 90-day public comment
period. The Board's approval is anticipated shortly after the closing of the public
comment period, which is anticipated by March 31, 2013.
A new ASF "plan" involves a public process that will result in a more simplified
, . j, 02
City Council Staff Report
November 7, 2012 -- Page 3
FTZ—ASF Application
procedure for future site designations across a broad geographic area. In short, the
ASF program is like a bank account with acreage that can be allotted to "zone
operators" in a service area. If a zone operator does not activate in accordance to FTZ
Board Policy, the acreage goes back into the account for future zone prospects.
The expansion under the ASF Program is not a competitive application in the sense that
ASF applications are reviewed on their own merits and not competitively against one
another. There are also not a limited number of ASF approvals, such as the case, for
example, of State Enterprise Zone Applications. Since August, 2011 — 43 ASF
Applications have been approved in the Country and 16 are pending FTZ Board
approval. The program is designed to strengthen and enhance the Grantees' business
attraction efforts in their regions.
The only action necessary is to approve submitting the ASF application via the attached
resolution, which becomes part of the formal ASF application package. No additional
contract approvals are necessary.
FISCAL IMPACT:
As part of the ITC Diligence contract approved in 2011, the City of Palm Springs
approved $50,000 in total expenditure, with the County of Riverside contributing half of
the cost to prepare the ASF Application on behalf of the other cities and unincorporated
county area benefiting from the expansion ($25,000). The contract cost for the
application was encumbered in 2011-12 fiscal year and the unexpended balance was
rolled into the 2012-13 General Fund budget. (An additional benefit to the City as
Grantee is that the Grantee receives an annual administrative fee from each Zone user
ranging from $2,500 to $5,000 depending on the size and type of zone user. Therefore,
additional Zone users developed through the service area boundary expansion would
benefit the City through additional fees.)
Cathy Van rn, Economic Development John tLayd, Director
Administrator
David H. Ready, Cit ager Tom ilson V A stant City Manager
Attachments:
1. Resolution
2. Service Area Boundary Map
3. Draft ASF Application
03
RESOLUTION NO.
A RESOLUTION OF THE CITY OF PALM SPRINGS
AUTHORIZING THE SUBMITTAL OF THE
ALTERNATIVE SITE FRAMEWORK APPLICATION
TO THE UNITED STATES DEPARTMENT OF
COMMERCE FOR THE BOUNDARY
REORGANIZATION OF ITS EXISTING FOREIGN
TRADE ZONE NO. 236
WHEREAS, the Foreign Trade Zone Act of 1934, provides for the establishment,
operation and maintenance of Foreign Trade Zones to expedite and encourage
foreign commerce in ports of entry of the United States; and
WHEREAS, the City of Palm Springs, California submitted an application to the
US Department of Commerce Foreign Trade Zones Board (FTZ Docket 2-98 filed
01/12/98), requesting the establishment of a Foreign-Trade Zone at sites
adjacent to the Palm Springs International Airport, a Customs user fee airport;
and
WHEREAS, on February 3, 1999, the FTZ Board adopted the findings and
recommendations of the examiner's report and approved the City of Palm
Springs' application to establish a Foreign Trade Zone, designated on the record
as Board Order#1013, Foreign Trade Zone No. 236; and
WHEREAS, in December 2008, the Board adopted the Alternative Site
Framework (ASF) procedures (74 FR 1170), providing greater flexibility and
responsiveness for establishing and managing zone sites to serve individual
companies' needs; and
WHEREAS, the City of Palm Springs has prepared an Alternative Site
Framework Application to broaden the Foreign Trade Zone #236 service area
and provide access to the zone benefits to a broader range of companies.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The above findings are true and correct and are adopted findings of
the City Council of the City of Palm Springs.
SECTION 2. Pursuant to the Foreign Trade Zone Act of 1934 and the adoption
of the Alternative Site framework procedures, the City hereby authorizes and
submits the ASF Application to reorganize Foreign Trade Zone No. 236.
SECTION 3. The City of Palm Springs strongly supports the Foreign Trade
Zones Program as a means to enhance its international business and
04
employment opportunities, and utilization of the Altnerative Site Framework
procedure to provide flexible and expedited zone activation processing for
companies within the region.
SECTION 4. The City of Palm Springs (Grantee) shall comply with the Foreign
Trade Zones Act rules and regulations concerning the reorganization, operation
and maintenance of Foreign Trade Zone No. 236.
SECTION 5. The City Manager is hereby authorized to execute all necessary
documents relating to the Alternative Site Framework Application.
ADOPTED THIS 7TH DAY OF NOVEMBER, 2012.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on November 7,
2012, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
05
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ALTERNATIVE SITE FRAMEWORK
APPLICATION FOR
FOREIGN TRADE ZONE # 236
GRANTEE: THE CITY`OF PALM SPRINGS
OFFICIAL COPY
NOVEMBER, 2012
SUBMITTED BY: ITC-DILIGENCE, INC.
07
City of Palm Springs
David H. Ready, Esq., Ph.D.
City Manager
3200 East Talaquirz Canyon Way,Palm Springs CA 92262
Tel 760.322.8350 • Fax 76o.323.8207 • TDD 760.864.9527
David.Ready@pakmspringsca.gov • w .palmspringsca.gov
I
October 15, 2012
Andrew McGilvray
Executive Secretary I
Foreign-Trade Zones Board
U.S. Department of Commerce
1401 Constitution Ave., NW, Room 21013
Washington, DC 20230
Dear Mr. McGilvray:
i
The City of Palm Springs, as Grantee of Foreign Trade Zone #236 ("FTZ #236"),
formally requests a Major Boundary Modification through the Alternative Site
Framework (ASF) Reorganization process. The ASF Reorganization application is being
j submitted by the City of Palm Springs in accordance with Board Order 1013, which
authorizes the City's Grant of Authority.
The ASF application is submitted with the intent to increase employment opportunities
and investment in the Palm Springs-Coachella Valley and Eastern Riverside County
region. As Grantee of FTZ #236, the City of Palm Springs believes that the
Reorganization will allow the extension of Foreign Trade Zone benefits to a broad range
of companies outside of the current zone footprint. The Reorganization will also
encourage economic development and international trade activities within the region.
The Reorganization will serve the public utility purpose and become a major asset to
companies that are currently engaged in, or seeking entrance into international trade
and the global marketplace.
The Foreign Trade Zone program serves as a catalyst for industrial development and
supports the creation and retention of vital U.S. jobs. The establishment of a
reorganized zone in the Palm Springs-Coachella Valley region complements the
implementation of a regional, strategic blueprint to grow businesses and create jobs in
specific industry clusters. The Coachella Valley's Enterprise Zone, Innovation Hub,
Small Business Development Center, and the Rabobank Regional Business Center are
testaments to the successes experienced by public/private partnerships established to
improve the region's economic base.
i
08
PO Box 2743,Palm Springs CA 92263
The attached FTZ #236 Reorganization application focuses on implementing the
At
emative Site Framework" (ASF) structure. Under the proposed ASF structure, the
service area for the zone is defined, the current zone footprint is expanded, under-
utilized designated acreage is eliminated, new and productive acreage is added, and
the "Magnet Site" is appropriately justified.
The City of Palm Springs requests that `Site V (Palm Springs International Airport
located at 3400 Tahquitz Canyon Way in Palm Springs) be granted "permanent status,"
with the current 902 acres reduced to 500 acres. The Palm Springs International Airport
is located two miles east of the central business district of Palm Springs, and serves as
a gateway to the Coachella Valley region. In 2011, the Palm Springs International
Airport served an estimated 1.8 million passengers. This is a record high number for
passenger traffic. Airport activity is projected to grow and expand in the coming years.
I
Furthermore, the city of Palm Springs requests "Magnet Site" designation for Dowling
Orchard Business Park, located in the city of Beaumont. The location of Dowling
Orchard Business Park is within the service area of FTZ#236 and consists of 1,178,260
square feet (26.72 acres) of leasable industrial space. This site was selected because
of its location and access to major freeways. The site also has the potential to attract
manufacturers and advanced logistical service providers.
The City of Palm Springs hereby commits itself to cause the establishment of an
electronic interface with the U.S. Customs & Border Protection (CBP) through its
automated commercial system, when the specifications and requirements of that
interface have been developed and implemented. It is understood that this commitment
is applicable to its agents, the existing Zone Operators, and future activations within the
General Purpose Zone and Subzone sites.
The City of Palm Springs designates ITC — Diligence, Inc., a California Corporation, as
its consultant of record in connection with the Alternative Site Framework
Reorganization of Foreign Trade Zone#236. Any questions or comments regarding the
ASF Reorganization application should be addressed to David R. Harlow, LCB. ITC —
Diligence, Inc., 15354 Stafford Street, Industry, CA 91744. The telephone number is
(626) 333-3822.
Respectfully,
David H. Ready, Esq., Ph.D.
City Manager
Attachment: Alternative Site Framework Application
09
ALTERNATIVE SITE FRAMEWORK APPLICATION
Part One
10
Alternative Site Framework
APPLICATION -- PART ONE
(STANDARD INFORMATION REQUIRED
TO REORGANIZE YOUR ZONE)
APPLICATION LETTER (incorporating Executive Summary)
1. The core of the application is a letter from the grantee that summarizes the
application and transmits the full application (this format with attachments) to the
FTZ Board. The letter should summarize the authority being requested and how
the proposed reorganization would serve trade-related needs. If you are
proposing to add new sites, they should be discussed specifically in the letter
including explaining how they would meet a demonstrated need for FTZ services.
The letter must be currently dated and signed by an authorized officer of the
grantee corporation (see Question 10 under "Legal Authority for the Application"
below) and should bear the corporate seal.
The Executive Summary is attached as required.
PROPOSED SERVICE AREA
2. To define the Service Area for your FTZ, name the counties/localities in which
you propose to be able to request designation of FTZ sites in the future. Explain
how the Service Area complies with the "adjacency" requirement of the FTZ
Board's regulations (within 60 miles or 90 minutes' driving time from the limits of
your CBP Port of Entry), state enabling legislation and the grantee organization's
charter. Separately, in an attachment called "Support from Local Jurisdictions,"
attach documentation of support from each county in your proposed Service Area
(using the standard language provided in the relevant "Sample Service Area
Concurrence Letter" on the FTZ Board web site). If your focus is less broad than
a county-wide level, support may instead be documented from the appropriate
sub-county jurisdiction(s). Finally, if your CBP Port of Entry is served by more
than one FTZ grantee, contact the FTZ Staff for additional guidance on
addressing the issue in your application's documentation.
The City of Palm Springs, Grantee of Foreign Trade Zone # 236, has
established and identified its "Service Area" to include portions of eastern
Riverside County. The Service Area begins at the westerly boundary of the
City of Palm Springs and continues south along the Agua Caliente Indian
Reservation and continues southeast bordering the Cities of Rancho
Mirage, Palm Desert, Indian Wells and portions of La Quinta. The Service
Area boundary continues east to Highway 86 in Coachella and proceeds
north along the highway until it reaches Interstate 10 and continues west to
Golf Center Parkway in Indio.
From Indio, the Service area boundary continues north bordering the
Joshua Tree National Park, and continues northwest to the Riverside
County Line and then proceeds west along the southern edge of the
Morongo Indian Reservation and then returns to the Riverside County line,
proceeding to the western side of the City of Calimesa, continuing south
bordering the west edges of the Cities of Beaumont, San Jacinto and
Hemet. Continuing east the Service Area boundary reaches the San
Bernardino National Forest and then from Hemet continues north and east
to complete the Service Area at the City of Palm Springs western boundary.
The City of Palm Springs will actively promote, educate, activate, and
maintain compliance for businesses under the Foreign Trade Zone in all
regions of the service area. The term "Service Area" complies with all
adjacency requirements
(60 miles or 90 minutes) identified by the Foreign Trade Zone Program
Regulations and Customs Regulations.
The Palm Springs International Airport is located at the Port of Entry (2781)
in the City of Palm Springs. It is designated as an International Airport and
Logistics Hub that retains One (1) Customs User Fee Officer for support of
international flights and the FTZ Program.
Please see attached support letters from local jurisdictions in the County.
The State Enabling Legislation and the City Charter are also attached for
further consideration.
GENERAL JUSTIFICATION FOR REORGANIZATION
3. Explain the need for the proposed reorganization of your FTZ under the ASF,
including current and projected levels of international trade in the community.
Describe the local economy's strengths and weaknesses, in general, including
established and emerging industries and particular challenges. Indicate how
reorganizing your FTZ under the ASF ties to local/state/regional economic
development plans. Explain the anticipated economic impact, direct and indirect,
of reorganizing your FTZ under the ASF (including the ability to sponsor Usage-
Driven sites throughout your proposed Service Area).
The proposed ASF Reorganization is needed to expand and elevate the
Foreign Trade Zones Program in the eastern Riverside County region. The
ASF emphasizes a streamlined approach for existing Grantees to
reorganize their zones, which will better serve the international trade
community in the region, through an accelerated and flexible activation
process.
2 12
Currently, there is minimal zone activity within the existing zone boundary,
but the reorganization application complements the region's economic
development efforts to spur business development, job growth and
utilization of the FTZ program. These efforts include both public and
private partnerships engaged in international trade development.
Projected levels of international trade in Riverside County continue to
expand largely due to the County's commitment to the development of
activities associated with foreign trade. The Riverside County Economic
Development Agency established the Office of Foreign Trade in 2009. The
Office of Foreign Trade (OFT) has made significant contributions to the
business community by assisting firms with the technical aspects of
importing and exporting products, goods and services around the globe.
The OFT's objective is to create new jobs and investment within the region.
The OFT is strategically placed within the County's Economic Development
Agency to have direct access to the vast resources, support and
assistance from its team of highly dedicated professionals. This office also
exists to promote the Foreign Trade Zones Program and supports the City
of Palm Springs' Alternative Site Framework Reorganization Application.
The City of Palm Springs is an active member of the Coachella Valley
Economic Partnership (CVEP), a regional public/private organization
focused on creating a competitive environment for businesses to compete
and prosper throughout Coachella Valley. CVEP's mission is to help
companies grow jobs, expand the tax base in the region, and develop a
trained and educated workforce. The successes experienced in recent
years by CVEP's competiveness initiative is demonstrated by the
collaborative and strategic implementation of the Coachella Valley
Economic Blueprint, adopted in 2009, and the 2011 opening of the
Rabobank Regional Business Center (RRBC) in a building owned by the
City of Palm Springs and leased to CVEP.
In addition to the CVEP offices, the RRBC facility houses the Coachella
Valley Small Business Development Center (SBDC) and the Coachella
Valley Innovation Hub (Mub), as well as office incubator space for
emerging companies. The programs initiated by CVEP at the RRBC have
experienced great success in just 10 months of operation. For example,
2,400 business clients and visitors have been served at the RRBC,
resulting in an economic impact of over $110 million. A Stage II Incubator
facility, to be located at the Palm Springs International Airport is in the
planning stages to serve growing incubator clients, and more than 300
manufacturing jobs were saved through the collaborative retention efforts
between the City and CVEP. The collaboration under the RRBC roof has
also exposed the FTZ Program to a much broader range of companies,
resulting in more interest and awareness than ever before.
3 13
For the emerging iHub clients involved in international trade and the
commercialization of new products, the FTZ Program has the potential to
make a difference in their success.
The Nub, SBDC and CVEP work to provide a wide variety of programs,
services and incentives to start-up and existing businesses. The FTZ
Program, layered with other incentive programs and services, strengthens
the region's business attraction, retention and expansion goals. Industry
sectors targeted for attraction and expansion includes clean technology,
which encompasses solar energy, wind power, geothermal and smart grid
technologies; green building materials and techniques;
biofuels/biomaterials; and water filtration and conservation technologies.
Other targeted industry sectors include healthcare, life sciences, and
supply chain management and logistics.
To promote a greater understanding of opportunities in the region, the City
(Grantee) and CVEP links the business community with programs that
foster growth. The FTZ Program is a critical link and enhances the region's
ability to leverage programs to better serve the businesses engaged in
international trade activities. The ASF Reorganization offers a streamlined
approach to utilize the zone program and provides a value added incentive
to attract, retain and expand businesses in the Palm Springs region.
The Minor Boundary Modification process in conjunction with User Driven
Sites allows every business, every service provider, and every entity in the
Service Area the opportunity to take advantage of the benefits of the
program at a minimal cost and within a reasonable time frame. The FTZ
Program will become what it was originally envisioned to become, a true
benefit for all small, medium, and large businesses to compete in the
global marketplace and to create and retain U.S.jobs.
The FTZ Program is imperative to handle the growth of trade in the region.
The ports of Los Angeles/Long Beach received an estimated volume of 15.7
million TEUs annually that will exceed 30 million TEUs by the year of 2020.
LAX is averaging 2.8 million tons of cargo and is estimated to double in
2020. Due to the increased volume at the existing ports over the last 10
years, the Reorganization becomes more important now than ever. It is
important that Riverside County is prepared for this growth and
opportunity.
Additional benefits of the FTZ program include foreign and domestic
investment, and minimized costs for services. However, the abundance of
volume from Asia will create bottlenecks for the flow of goods if there is
not continued expansion. In 2010, the estimated population for the
Riverside County was 2.19 million with a total personal income of $64
million.
4 14
Riverside County outpaced the population increase of other regions in the
state and is one of the fastest growing regions in the nation. If the
programs and infrastructure do not match this pace, the opportunities will
not be realized. Current employment in the County of Riverside is nearly 1
million jobs, and is expected to reach 2 million by 2020. This will only be
possible with the advantages of resources like the FTZ Program.
In return, use of the FTZ program will increase with the growth of the
business population. Comprehensive reorganization of the existing zone
will better utilize and expand the FTZ Program in the Palm Springs —
Eastern Riverside County region.
The City of Palm Springs recently utilized $57 million of local, state and
federal stimulus funding to complete major freeway improvements along
Interstate 10 providing timely and efficient movement of people and goods,
which is vital to business success. The Southern California region, in
general, has identified the importance of maintaining the adequacy of its
highway system. Interstate 10, the major east/west transportation corridor
connecting Los Angeles with the Southwest and East Coast, dissects the
Palm Springs-Coachella Valley region.
The Reorganization will open the program to the businesses engaged in
international trade in all facets of its service area through automation,
consolidated processing, and expedited movement of goods. The
established user fee program will also offset the workload for U.S. Customs
and Border Protection. This Reorganization is vital to the recovery and
growth of the local economy. Currently, there are approximately 2,400
manufacturers in Riverside County.
Expanding industries that will continue to grow with international trade in
Riverside County include electronics technology, apparel, and final stage
manufacturing. The evolving and expanding global economy is dependent
upon automation to better control inventory, communication, and
distribution. The technology industry and its products have grown
dramatically in the region. With the elimination of quota, the expected
growth of this industry will expand greatly. Final stage manufacturing has
created a new niche industry for products that can be turned into finished
products with U.S labor. It has also created financial and logistical benefits
under the auspices of the FTZ Program. The County of Riverside is
strategically located for these industries to succeed and the infrastructure
has been procured to bring these facets together for an economic
development reality with the benefit of the FTZ Program.
5 � 1�
INFORMATION ON EXISTING ZONE SITES
4. For all of your existing FTZ sites, please fill in the table immediately below
(adding additional rows, as needed). Here is a description of the information to
fill in about each site:
Site Number -- This is the number assigned by the FTZ Board and should be
reflected in the FTZ Board's documents to you. You can confirm this information
by contacting the FTZ Staff.
Site Name and Address -- This is the name (for example, the Acme Industrial
Park) and the street address (or similar indicator) that is the primary indication of
the site's physical location.
Acreage within Current Site Boundaries -- Indicate the number of acres within the
current boundaries of the site. This figure should match the FTZ Board's records
regarding the site's acreage.
Site Site Name Acreage w/in Current
Number and Address Site Boundaries
# 1 Palm Springs International Airport, 902 acres
3400 E. Tahquitz Canyon Way,
Palm Springs, CA 92262
#2 Industrial Development Area, 14 acres
63950 Palm Springs Station Road,
Palm Springs, CA 92262
6 �.6
INFORMATION ON NEW OR MODIFIED ZONE SITES (IF APPLICABLE)
5. You only need to fill in the table below if there are 1) new sites that you are
proposing for your FTZ or 2) existing sites that you propose to modi in any way.
All new or modified sites should be included in this table (whether they are
proposed for Magnet or Usage-Driven designation). Add additional rows to the
table, as needed. Here is a description of the information to fill in about each
site:
Site Number -- For a modification to an existing site, this will be the number
already assigned to the site by the FTZ Board (as reflected in the FTZ Board's
documents to you). For any new site, the proposed number will follow the
instructions in the "How to Prepare Your Application" document.
Change to Site -- Fill in this field as follows:
- If the site being proposed will be entirely new, indicate "New."
- If the site already exists in your zone and you are proposing to remove it,
indicate "Remove."
- If the site already exists in your zone and you propose to retain the site but with
modified site boundaries, indicate "Modify."
- If the site already exists in your zone and you are simply proposing to renumber
it, indicate "Renumber" followed by the new number for the site (for example,
"Renumber to Site 5").
Site Name and Address -- This is the name (for example, the Acme Industrial
Park) and the street address (or similar indicator) that is the primary indication of
the site's physical location. For an existing site that you are modifying or
removing, if the name and address remain the same as listed in the table in
Question 4 above, simply indicate "Same as Existing."
Acreage within Proposed Site Boundaries -- Indicate the number of acres within
the proposed (rather than existing) boundaries of the site.
17
Site Change Site Name Acreage Win
Number to Site and Address Proposed
Site Boundaries
#1 MODIFY Palm Springs International Airport, 500 acres
3400 E. Tahquitz Canyon Way,
Palm Springs, Ca 92262
#2 REMOVE Industrial Development Area, 0
63950 Palm Springs Station Road,
Palm Springs, CA 92262
#3 NEW Dowling Orchard Business Park 26.72 acres
SUMMARY OF PROPOSED ZONE STRUCTURE
6. In the table below, list all general-purpose sites (both Magnet and Usage-Driven)
that you are proposing for inclusion as part of your FTZ at this time. Add
additional rows to the table, as needed. Here is a description of the basic
information you will need to provide about each site:
Site Number -- This number associated with a site should match the information
you provided in the tables for Questions 4 and 5 above.
Site Category — For sites you are retaining or proposing, indicate "Magnet' or
"Usage-Driven" designation, as appropriate.
Acreage within Site Boundaries -- Indicate the number of acres within the
boundaries of each site proposed as part of your future zone structure. For
existing sites that are not being modified, this figure should match the acreage
indicated for the site in the table for Question 4 above. For new or modified sites,
this figure should match the acreage indicated for the site in the table for
Question 5 above.
Activation Limit -- From the overall 2,000-acre activation limit that will apply to
your FTZ under the ASF, indicate the activation limit in acres that you propose to
apply to the individual site in question (in other words, the number of acres of the
2,000-acre activation limit that you propose to allot to the site).
Total Allotted Activation Limit -- At the bottom right corner of the table, enter the
sum of the activation limits proposed for the individual sites.
Site Site Acreage within Activation Limit
Number Category Site Boundaries (in Acres)
# 1 Magnet 902 acres 500 acres
#3 Magnet 26.72 acres 26.72 acres
Total Allotted 526.72 acres
Activation Limit:
8 18
7. Please explain the circumstances (including reference to the specific site
number(s)) if you are proposing to remove or renumber any existing site(s):
The City of Palm Springs plans to remove 402 acres from Site 1 — Palm
Springs International Airport. Site 1 currently consists of 902 acres, and
converting to 500 floating acres creates a more efficient approach to
organize the land and buildings available for non-aviation uses.
The Industrial Development Area (Site 2) located at the Palm Springs Rail
Station is being removed because the land is not available for general
purpose development, and will be retained by the City of Palm Springs for
future passenger rail expansion.
8. For any current and future sites of your zone, confirm that you commit to working
with Customs and Border Protection (CBP), as appropriate, to meet current and
future CBP automated-systems requirements (such as ACS or ACE) and to meet
any CBP security requirements related to activation?
FTZ #236 is committed to the Customs and Border Protection (CBP)
automated-system enhancements and requirements to better use its
resources as well as create efficiencies for activated zone users. The
Grantee will aggressively encourage and/or demand the use of automated
systems of its zone users, through software programs, such as the
Automated Commercial System (ACS), and Automated Broker Interface
(ABI).
9 19
OTHER REQUESTS (OPTIONAL)
The following two questions relate to optional flexibility that is possible for some Magnet
sites. You may put "N/A" in response to each of these questions unless you are
requesting the specific flexibility they address (in which case you will need to provide
detailed response(s)).
9. Provide responses regarding the following optional requests, if applicable:
a. There is a default sunset period of five years for each designated Magnet site
in a zone reorganized under the ASF. The ASF allows for a grantee to
request waiver of the sunset limit for one Magnet site. If you would like to
request waiver of the sunset limit for one of your Magnet sites, indicate the
site number and describe in detail why this site was chosen for permanent
status. Key considerations would be the publicly owned nature of a site and
public processes leading to the site's selection.
Site 1, the Palm Springs International Airport, located at 3400 E.
Tahquitz Canyon Way, Palm Springs, California requests permanent
status with no sunset limit. The Site is owned and operated by the City
of Palm Springs. The Airport Commission, appointed by the Palm
Springs City Council, consists of 11 members from nine Cities and the
County, reviews the operations of the airport and recommends policies,
and has recognized that there are certain buildings and acreage at the
Site that are better suited for uses other than aviation. At the
Commission's March 2012 public meeting a recommendation was
approved to set aside certain existing facilities consisting of
approximately 50,000 square feet under roof, for lease to non-aviation
industry sectors. In addition to aviation expansion, Site 1 has more
than 100 acres available for industrial development including
manufacturing and distribution. Site 1 also has "privately" owned
industrial buildings, consisting of approximately 45,000 square feet
available for FTZ use and activation.
The Site currently has an activated office/warehouse with limited zone
activity. The activated facility is located at 425 North Civic Drive, Palm
Springs, a city-owned building. The Reorganization and permanent
status of Site 1 will complement the work underway to expand
international business and investment in the region. Currently, the
international and domestic air service, the established activated zone
site, the development of a Stage II Incubator facility, and proximity to
major freeway access, creates a logistics hub that serves the area.
10 20
Site 1 will continue to evolve based on the continued commitment and
investment by the local jurisdictions and the growth and demand for
more services and resources, which is why it is imperative that
permanent status remain at this location. The FTZ Program has been
viewed as a long term investment and asset to the region and it is
important to the future growth of international trade in the Palm
Springs-Coachella Valley-Riverside County region.
b. If you believe that a sunset period of longer than five years is justified for one
or more specific Magnet sites, provide separately for each such site a detailed
description of the specific circumstances that you believe justify a sunset
period of longer than five years for the site in question.
Not Applicable
LEGAL AUTHORITY FOR THE APPLICATION
10. In an attachment called "Legal Authority for Application," submit:
a. A certified copy of the state enabling legislation regarding FTZs. (Consult the
separate application-instructions document for an explanation of options to meet
the regulatory requirement for a "certified" copy.) Attached
AND
b. The sections of the grantee's charter (or organization papers) that are
pertinent to FTZs. (For non-public grantees, consult the separate application-
instructions document regarding the additional requirement specific to non-public
grantees regarding demonstration of current legal standing.) Attached
AND
c. A certified copy of a resolution authorizing the grantee official to sign the
application letter. The resolution should indicate the nature of the application.
Attached
[The "Legal Authority for Application"attachment will follow your answers to Part One of
the application.]
�� 21
ALTERNATIVE SITE FRAMEWORK APPLICATION
Part One
Map of Proposed Foreign Trade Zone Service Area
22
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62
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as rt Hot Springs
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I V
Proposed Foreign Trade Zone Service Area
ALTERNATIVE SITE FRAMEWORK APPLICATION
Part One
Support from Local Jurisdictions
24
Board of Supervisors
District 1 Bob Buster
=" 951-955-1010
.b
District 2 John F.Tavaglione
Chairman 951-955-1020
1, ! t , t District 3 Jerf Stone
�o tT1.♦.L �lY.tw.`.'Vf I 1�. .[.'a 951-955-1030
,.: District d John Banff
trice Chairman 951.955-IW
District 5 Marion Ashley
July 5. 2012 951-%6-1050
City of Palm Springs
Grantee for FTZ#236
3200 Tahquitz Canyon Way
Palm Springs, CA 92262
Re: Alternative Site Framework Service Area Concurrence
The purpose of this letter is to document the support of this county for inclusion within the
Service Area of Foreign-Trade Zone (FTZ) #236. We understand that this means that the
grantee, the City of Palm Springs, will be able to apply to the Foreign-Trade Zones Scald for
authority to serve sites located within this county based on businesses` trade-related needs.
We also note that the zone will be made available on a uniform basis to companies within this
county, in a manner consistent with the legal requirement that each FTZ be operated as a
public utility.
Sincerely,
Thomas L. Freeman, Commissioner'
County of Riverside-EDA, CA., USA
County Administrative Center s Fifth Floor • 4080 Lemon Street • Riverside,California 92501 25
Internet-http:f/www.countyofinenude,us
ALTERNATIVE SITE FRAMEWORK APPLICATION
Part One
Legal Authority for Application
Certified copy of the State Enabling Legislation regarding FTZ's
26
ix
r
i d
�4 s
1 - - a -
tt T i Ps:
l6 tIt M. t l DS t - f
}
Assembly RM No SOD, Aq
Passed the Assembly May 13, 1935
A.
- r
f CU# Mark a draembly
y. Passed the Senate 31ay °3, 1935
J
Secret ay s8e or"o—
bM,ww rectivedby tl4e QOFemor,Ols-JUL'
D.1936,
f ,
Prioete d of as
k
1
w ,
CRApTER_Ib
An act authorizing public and priv4t# corPmIVtioue of and
in the State of California to make appliratians for the
right to establish, operate and maintain, and to establish,
operate and maintain foreign-trade topes in or adjacent
to ports at en&3,,in this State.
2U people of thO State of California do mad as follower:
Skmov L .ekny public corporation of the State of Cali-
fornia.as that term is Lexeinafter defined,is hereby authorized
to make application for the privilege of establishing, operating
and maintaining a foreign-trade zone in accordance with an
act of mess approved June 18, 1934, entitled "An act to
provide for the establishment, operation, and maintenance of
foreign-trade zones Ea ports of entry of the United States. to
expedite and encourage foreign commerce and for other pur-
poses" ( 81 U.S. State at L. eh. 590.)
SEC, 3. The term "public eorporatim,, for the purposes
of this set =aams the State of California or any political sub.
division thereof cr any incorporated municipality therein or
any Public agency of this State or of any political subdivision
thereof or of axT rnnnieipality therein, or any corporate
municipal instrumentality-of this State or of this State and one
..'..,s or more other.States.
8rc. 3. Any private corporation hereafter organized under
the lays Of this State for the purpose of estab bing, operat-
ing and maint2ining a foreign-trade zone in accordance with
the act of Congress referred to in seetion I hereof is likewise
berebY- allthMiZEd to looke application for the Privilege of
establishing, operating and maintaining a foreign--trade zone
in accordance,with the said act of Congress.
Stu. 4. Any public or private corporation authorized by
this act to make application for the privilege of estabiidda
Operating and maintaining such foreign-trade zone, whose
application is ted pursuant to the terms of the aforemen-
timed act of Csngress, is hereby authorized to establish such
foreign-trade zone and to operate and maintain the same,sub-
jeet to the conditions and restrictions of said act of Congress,
and any atuandments thereto,and under such rules and regula-
tions and for the period of time that may be prescribed by the
board established by said act of Congress to catty out the
provisions of ask act.
Ste. 5- Lf any section, subsection, sentence, clause, phrase
or word of this act is for any reason held to be uneoastitu-
tioaat, such division shall not affect the validity of the remain-
ing portions of this act. The Legislature hereby declares that
cs:
s£ r
4
it would have paved eaeh section, subsection, sentence,
and word of this act irrespeedve of the fact that are or more
p 'gee2iapa subseedons, sentences,clauses,phrases or words'
a1a-+ieo"Serad nneonstitntionad. "g
'JL`1 51935 t.
C. ZOO
x �xx STATE
..,..- _old Y6
of the id
r :1
5
. �]'fi A th rgevWt9� '
r,
+lf.:
d Approved:_ '`` --A. D.1935
g=
Oov
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,lls �
4
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30
ALTERNATIVE SITE FRAMEWORK APPLICATION
Part One
Legal Authority forApplication
Grantee's Charter
31
City of Palm Springs
Office of the Cats-Clerk
•T Sr' z
32 >q p. Janqu cz Carvon Wa Pahin SprmZs,GA 9226'
Tel:{I&u}. -: 8_CJ9 • k 160< 32 3"s32• TDD {7$0}efi<t me+; • lXE>°. ;vwm"pnlmapurr�sc3.�v�v
4tJpo
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t
STATE OF CALIFORNIA, }
i COUNTY OF PiVERSIDE
CITY OF PALM SPRINGS }
I, JAMES THOMPSON, City Clerk of the City of Palm Springs„ California, do hereby
j certify that the attached is a true, full and complete copy of the Charter of the City of
E Palm Springs, California, as adopted and amended by the people of the City of Palm
Springs, as filed with the Califomia Secretary of State, and is in full force and effect as
dddl of the date of this certification.
I declare under penalty of perjury pursuant to the laws of the State of California that the
foregoing is true and correct,
Dated: September 25, 2012
jPES THOMPSt�N, City Clerk
'
y of Pam Springs, California
Past Office Box 2743 • Paim Springs, California 9220-2743 32
CHARTER OF THE CITY OF PALM SPRINGS
We, the People of the City of Palm Springs, State of California, do ordain and establish
this Charter as the organic law of the City under the Constitution of the State of California.
i
1I4
ARTICLE I. INCORPORATION AND SUCCESSION
SECTION 1W Name and Boundaries.
The City of Palm Springs, hereinafter termed the City, shall continue to be a municipal
corporation under its present name of"City of-Palm Springs-" The boundaries of the City shall
be the boundaries as established at the time this Charter takes effect, and as such boundaries
j may be changed thereafter from time to time in the manner authorized by law.
i
SECTION Itil. Succession, Rights and Liabilities.
i The City of Palm Springs, shall continue to own, possess and control all rights and
property of every kind and nature owned, possessed or cotrtic ited by it at the time this Charter
takes effect and shall continuer to be subject to aft its debts, obligations, liabilities'and contracts.'
SECTION 102. Ordinances.
All lawful ordinances, resolutions, rules and regulations, and portions thereof, in force at
the time this Charter takes effect, and not in conflict or inconsistent herewith, are hereby
continued in force until they are repealed„ amended, changed or superseded by propar,
authority;
SECt'ION 101 Continuance of Present Officers and Employees.
The present officers and employees of the City shall continue to perform the duties of
their respective offices and employments without interruption and for the same compensations
and under the same conditions until the appointment or election and qualification of their
successors; but subject to removal, amendment, change, or control provided by the provisions
of this Charter. Nothing contained in this Charter., unless specifically otherwise provided herein,
shall affect'or-Impair the civil service, personnel, pension, or retirement rights or privileges of
officers or employees of the City, or of any office, department, or agency thereof, existing at the
time this Charter takes effect.
SECTION 104 Continuance of Contracts,
Except with respect to the term of certain franchises as provided to Section 1002 all
contracts entered into by the City or for its benefit prior to the effective date of this Charter and
then in effect, shall continue in full force and effect according to their terms.
33
ARTICLE II, POWERS OF CITY
SECTION 200. Powers,
The City shall have the power to make and enforce all laws and regulations in respect to
municipal affairs, subject only to such restrictions and limitations as may be provided in this
Charter and In the Constitution of the State of California, The City shall also have the power to
exercise, or act ,pursuant to any and all rights, powers, privileges or procedures, heretofore, or
hereafter established, granted or prescribed by any law of the State, by this Charter, or by other
lawful authority, or which a municipal corporation might or could exercise, or act pursuant to,
under the Constitution of the State of California; The enumeration in this Charter of any
particular power shall not be held to be exclusive of, or any limitation upon, the generality of the
foregoing provisions. This Charter shall be liberally construed to vest the City with all legal
authority and powers necessary to protect the health, safety, and general welfare of ail of the
} citizens of the City.
SECCION'2w, Procedures.
The City shot have the power to and may act pursuant to any procedure established by
! any law of the State,unless a different procedure is required by this Charter.
SECTION 2102. Form of Government.
The municipal government established by this charter shall be known as the "Council-
tvianagee form of government.
SECTION 201 intergovernmental Relations,
The City may exercise any of its authority and may perform any of its powers jointly, or in
cooperation with, one or more other cities, counties, states, the United States, or any political
subdivisions, civil divisions, or agencies thereof,or gather governmental entity.
SECTION 204. Establishment of Specialized Agencies or Authorities,
The City shall have the power to establish a redevelopment agency, housing authority,
economic development authority, special district, or other agency or authority of specialized
expertise or application to the full extent as may be,permitted by state or federal law, in order to
carryout this business of the City or otherwise advance the health, safety, or getters{welfare of
its citizens. Aft specialized agencies created by the City and in existence on the effeetive date
of this Charter shall continue to perform their duties and operate pursuant to their existing legal
authority, unless and until City Council may otherwise provide by ordinance or resolution.
SECTION 205, Sewer Services and Waste Water Treatment Facilities.
taf Notwithstanding section 10W of this Chapter or any other provision of
law, the City shall not sell, lease or otherwise transfer ownership or any other possessory
interest in the City's sewage works, including waste collection, treatment and disposal facilities,
to any entity other than an existing governmental aoa any that is itxpif raovernaer by a body in
which the majority of electors are voters of Palm Springs.
_3_
34
ARTICLE III. CITY COUNCIL
SECTION 300, Powers Vested in the City Council.
All powers of the City shall be vested in the city council except as otherwise provided in
this Charter.
sECT10N 301, Elective Officers.
The elective officers of the City shall consist of a city council of five members, one of
whom shall be the mayor. The members of the city council shall be elected from the city at
large at the time and in the manner provided in this Charter. All members of city council shall
serve for a term of four years and until their respective successors qualify,
The five members of the city council in office at the time this Charter takes effect shall
continue in office until the termination of their current terms.
Those candidates for city council offices for terms which expire on the fourth Tuesday
following June 7, 1994, and who are elected in the same general municipal election at which
this Charter is passed, shall serve a term lasting until no later than the fourth Tuesday following
the November }, 1997 general municipal election, Those city eouneilmembers who are serving
existing terms as of the effective date of this Charter shall serve terms until no later than the
fourth Tuesday following the November 7, 1995 election. All city council offices filled by general
municipal election occurring after the effective date of this Charter shall be for a farm of four
years,and she#be elected at the general municipal election each fourth year thereafter.
The term of each member of the city council shall commence on the fifth day following
the certification of his or her election. Ties in voting among candidates for office shall be settled
by drawing by lot or by special election as the city council shot, determine by ordinance or
resolution to be conducted pursuant to procedures which may be established by ordinance.
City council may, by ordinance or resolution passed no Eater than thirty (30) days prior to
election, determine whether ties in voting among candidates shall be salted by drawing by lot,
by special election, or by other means. (Approved by voters t teoCvth)
SECTION 302, TheMayor; Mayor Pro Tempore.
The office of mayor shall be filled by direct at large election of the voters of the City. The
mayor shall serve for a term of four years and until his or her successor qualifies. The mayor
shall be the head of the City for all ceremonial purposes, The mayor may make and second
motions and shall have a voice and vote in all city council proceedings. The mayor shalt serve
as the primary, but not exclusive,spokesperson of the City. The mayor shalt perform such other
duties consistent with his or her office as may be prescribed by this Charter, or as may be
imposed by the city council.
At the first:regular city council meeting following a general municipal election,:in which
newly elected councilmembers are sworn and seated, and at the first regular city council
meeting following the anniversary of that date for any year in which no general municipal
35
ALTERNATIVE SITE FRAMEWORK APPLICATION
Part One
Legal Authority for Application
Certified Resolution authorizing the Grantee official to sign the Application Letter
36
RESOULTION NO.
A RESOLUTION OF THE CITY OF PALM SPRINGS
AUTHORIZING THE SUBMITTAL OF THE
ALTERNATIVE SITE FRAMEWORK APPLICATION
TO THE UNITED STAES DEPARTMENT OF
COMMERCE FOR THE BOUNDARY
REORGIANZIAITON OF ITS EXISTING FOREIGN
TRADE ZONE NO. 236
WHEREAS, The Foreign Trade Zone Act of 1934, provides for the establishment,
operation and maintenance of Foreign Trade Zones to expedite and encourage
foreign commerce in ports of entry of the United States; and
WHEREAS, The City of Palm Springs, California has made application to the
Board (FTZ Docket 2-98 filed 01/12/98), requesting the establishment of a
foreign-trade zone at sites adjacent to the Palm Springs International Airport, a
Customs user fee airport; and
WHEREAS, On February 3, 1999, the Board adopted the findings and
recommendations of the examiner's report and approved the City of Palm
Springs application to establish a foreign trade zone, designated on the record as
Board Order#1013, Foreign Trade Zone No. 236; and
WHEREAS, In December 2008 the Board adopted the Alternative Site
Framework (ASF) procedures (74 FR 1170), providing greater flexibility and
responsiveness for establishing and managing zone sites to serve individual
companies' needs; and
WHEREAS, The City of Palm Springs has prepared the Alternative Site
Framework Application to broaden the Palm Springs zones service area and
provide access to the zone benefits to a broader range of companies.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS
DOES HEREBY RESOLVE AS FOLLOWS:
SECTIOIN 1. The above findings are true and correct and are adopted findings
of the City Council of the City of Palm Springs.
SECTION 2. Pursuant to the Foreign Trade Zone Act of 1934 and the adoption
of the Alternative Site framework procedures, the City hereby authorizes and
submits the ASF Application to reorganize Foreign Trade Zone No. 236.
SECTION 3. The City of Palm Springs strongly supports the Foreign Trade
Zones Program as a means to enhance its international business and
employment opportunities, and utilization of the Altnerative Site Framework
37
procedure to provide flexible and expedited zone activation processing for
companies within the region.
SECTION 4. The City of Palm Spring (Grantee) shall comply with the Foreign
Trade Zones Act rules and regulations concerning the reorganization, operation
and maintenance of Foreign Trade Zone No. 236.
SECTION 5. The City Manager is hereby authorized to execute all necessary
documents relating to the Alternative Site Framework Application.
ADOPTED THIS 7T" DAY OF NOVEMBER, 2012.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on November 7,
2012, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
38
ALTERNATIVE SITE FRAMEWORK APPLICATION
Part Two
39
Alternative Site Framework
APPLICATION -- PART TWO
(INFORMATION ON NEW OR MODIFIED
"MAGNET" SITES, IF APPLICABLE)
IMPORTANT: You will only need to complete this section if you are proposing
Magnet designation for 1) a new site or 2) an existing site for which you are
proposing to modify the site's boundaries.
Different portions of Part Two will need to be completed depending on the situation:
New Site: For a new site (that is, a site that has not already been designated for your
zone by the FTZ Board), you will need to answer all questions in Part Two.
Reduce Existing Site Boundarv(ies): For an existing site that your are proposing to
modify in a way that simply reduces one or more of the site's existing boundaries, you
will only need to answer Questions M1 through M4 plus provide an updated site plan
(survey/schematic) as detailed in Question M15 below.
Expand Existing Site Boundarv(ies): For an existing site that you are proposing to
modify in a way that would expand any of the site's existing boundaries, you will need to
answer all questions in Part Two.
GENERAL JUSTIFICATION FOR NEW OR EXPANDED
SITES PROPOSED FOR "MAGNET" DESIGNATION
For new sites or any expansion of a boundary of an existing site, you will provide both a
general justification below and then site-specific information/documentation for each
affected site in separate attachments.
11. Discuss in detail the need for new or expanded sites to provide FTZ services to the
community, including specific expressions of interest from proposed zone users. Why is
your zone unable to meet businesses' needs for FTZ services even though your zone
has existing Magnet FTZ sites and the ASF enables designation of Usage-Driven sites
throughout the Service Area?
(If you are proposing new Magnet sites that would result in exceeding the ASF's goal of
six or fewer Magnet sites per grantee, also explain why your zone cannot otherwise
serve businesses' needs for FTZ services. That explanation should address why six
Magnet sites would be inadequate to meet businesses' needs, particularly given the
ready availability of Usage-Driven designation for any company ready to use FTZ
procedures throughout your Service Area.)
40
The current zone project, located at the Palm Springs International Airport, has
had minimal FTZ activity due to financial and logistical limitations. Like most
cities in the United States between 2000 and 2007, residential and retail
construction dominated most economic development activities. Since 2008, the
City of Palm Springs, the County of Riverside and other Coachella Valley cities
have invested in and partnered with the Coachella Valley Economic Partnership
(CVEP) to refocus resources on developing an Economic Blueprint strategy that
unites and encourages progressive and transformative processes for changing
and expanding the region's economy. The inclusion of cities outside the Palm
Springs-Coachella Valley region, as part of the ASF Application, expands the
vision of the Blueprint to help facilitate business development and job growth
efforts throughout Eastern Riverside County. The magnet sites identified in this
application are in alignment with specific areas in the region with a higher degree
of industry and job growth potential and an opportunity for businesses to utilize
the FTZ Program.
With the steady recovery of the national economy, Palm Springs has participated
in regionalization efforts through the adoption, implementation and
administration of the Coachella Valley Innovation Hub (NUB), Small Business
Development Center (SBDC) and Foreign Trade Zone (FTZ) Programs. These
programs create tactical advantages for businesses within the Coachella Valley,
and include "no fee" consulting services, office and industrial incubator
programs, access to SBA Lenders and Angel Investors, site selection assistance,
and employment training programs for new and existing employees.
Although the FTZ Program has been in place for over ten years, there has been
very little interest from import/export companies to activate as a zone user. The
public/private financial investment in the region to promote the attraction,
expansion and retention of international companies has led to regional
commitments to enhance existing marketing programs to include the FTZ
Program. The Alternative Site Framework (ASF) Reorganization will enhance the
regional commitment to grow and expand the participation of marketing the FTZ
program. The successful implementation of the ASF meets the regional vision set
by the Grantee and CVEP stakeholders, as well as provides the opportunity for all
types of international companies to take advantage of the zone benefits. More
importantly, it is another tool in the region's incentive toolbox to attract and grow
international companies.
FTZ #236 has selected a new magnet site in addition to the existing magnet site at
Palm Springs International Airport. The new magnet site was chosen to
strategically enhance the FTZ Program while maximizing the image of the
Coachella Valley in its endeavor to promote regionalization and expand industry
and job growth.
41
The proposed Magnet Site 3, Dowling Orchard Business Park, is located in the
City of Beaumont at the intersection of Interstate 10 and Highway 79. This
industrial park is newly developed and has been constructed to meet and exceed
the demands of the international trade industry and FTZ security requirements.
The logistical accessibility of the industrial park is ideal for high volume
container traffic, because of its proximity to Interstate10. The investment of the
landowner to further market the program in partnership with FTZ #236 will
enhance opportunities to attract future importers and exporters to the FTZ
Program.
Many businesses within Dowling Orchard Business Park have expressed interest
and are expected to pursue participation of the FTZ Program upon ASF approval.
There is over one million square feet of leasable building space specifically
identified to accommodate small, medium, and large businesses. The ASF will
greatly reduce the time and expense required for these businesses to achieve
zone benefits and increase the certainty that zone benefits will be granted.
12. Describe in detail the grantee's process for selecting each new site (or expansion of
an existing site) for which Magnet designation is proposed. Discuss the criteria applied
in that process and how those criteria relate to the local economic development plans
(Question 3 in Part One of the application format had asked for detail on those plans).
Indicate the public entities involved in the site-selection process, and their meetings and
documents related to the site-selection process.
The Grantee's process for selecting the sites started with Staff conversations
between the City of Palm Springs Community and Economic Development
Department and the County of Riverside Office of Foreign Trade. Shortly
thereafter, the Palm Springs City Council approved the preparation of the ASF
Application, and directed staff to reach out to the cities within the region to
determine interest and participation in the Reorganization process.
Workshops and seminars were sponsored by the Grantee and the County of
Riverside to spread knowledge and awareness about the FTZ Program to local
businesses, city representatives, and land developers. Later, a specific meeting
with City Representatives led to the identification of the magnet sites.
There were nearly 20 different proposed sites submitted by land developers and
city and county representatives. Each proposed site included detailed maps, lists
of businesses on the property, and land use and zoning designations. A physical
visit of each property was conducted along with extensive review of all
information provided. The Grantee and its consultant used specific criteria and
measures to help identify the proposed sites as ideal candidates for inclusion in
this application.
42
Criteria to select specific sites included an analysis of the sites built environment,
the zoning and land use compatibility, the proximity to the existing zone site, the
availability of leasable space, the interest and commitment of the landowner to
market the FTZ program, and the potential for existing and future businesses to
utilize the FTZ program.
The Grantee's consultant met separately with each entity for further evaluation
and consideration, which allowed for additional input as to the interest and
support of the Reorganization plan. Throughout the selection process, the
Grantee met with U.S Customs and Border Protection for openness and
transparency purposes.
Every site that was proposed in the ASF Application was considered
independently. Many sites were dismissed due to the standard of criteria that
was not met. In the end, Site 3 was most qualified to be included in the ASF
Application by meeting the evaluation criteria in the following areas: it is adjacent
to major transportation corridors; and under one owner committed to promote
the FTZ as part of their overall marketing strategy.
General Map(s):
13. In a "General Map(s)" attachment, provide one or more maps showing 1) the
modified/new sites in a regional context and 2) the modified/new sites in relation to your
existing FTZ sites. The original application may contain full-sized maps, all copies must
contain legible, letter-sized (8 1/2" X 11") reductions.
Attached
43
ALTERNATIVE SITE FRAMEWORK APPLICATION
Part Two
General Maps
Map of modified/new site in a regional context
44
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CTt
ALTERNATIVE SITE FRAMEWORK APPLICATION
Part Two
General Maps
Map of modifiedlnew sites in relation to existing FTZ site
46
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ep Dowling Orchard Business Park Palm Springs International Airport
�.3
ALTERNATIVE SITE FRAMEWORK APPLICATION
Part Two
Dowling Orchard Business Park
FTZ# 236: Magnet Site #3
48
SITE-SPECIFIC INFORMATION FOR NEW OR EXPANDED "MAGNET" SITES
This section should be filled out separately for each new site and each site for which
you propose expanded boundary(ies). Attach any documents needed for Questions
M14 through M16 (and M17, if applicable) directly behind the copy of this section for
each site.
M1. Indicate the site's distinct identifying number: 3 three This number should tie to
your site tables in Part One of the application. Be sure that the site's identifying number
complies with the instructions provided in the separate "How to Prepare Your
Application" document.
M2. List the site's address, including the jurisdiction in which the site falls (town, city,
county):
Site 3 consists of three (3) parcels, located at:
1. 415 Nicholas Road
2. 920 Fourth Street
3. NEC Fourth Street and Nicholas Road
The aforementioned parcels are located at the intersection of Interstate10 and
Highway 79 in the city of Beaumont, County of Riverside, State of California.
M3. List the total acreage within the proposed site's boundaries: 26.72 acres.
M4. If applicable, describe how the site relates to any existing site (permanent or
temporary)and explain the circumstances.
Not Applicable
M5. Briefly describe how this site (or expanded portion) met the grantee's site selection
criteria (which you described in your answer to Question # 12 in Part Two of the
application format).
Site 3 - Dowling Orchard Business Park has been identified by the Grantee as a
site with a high degree of FTZ potential. The Site meets the criteria evaluation
with its existing built environment, accessibility to major modes of transportation,
appropriate zoning, and landowner's commitment to the Reorganization plan.
49
Site 3 is a newly developed industrial park that has been positioned to meet and
exceed the demands of the international trade industry and the FTZ security
requirements.
There is over one million square feet of building space available to accommodate
small, medium, and large businesses. Many companies within this site have
expressed positive interest in the FTZ Program. The Grantee will work with the
businesses within this site to further educate and encourage involvement in the
FTZ Program upon ASF approval.
The industrial park is strategically positioned along Interstate 10, the primary
transportation corridor between Los Angeles and Phoenix, dissecting the Palm
Springs-Coachella Valley region. The location of Site 3 can best facilitate
manufacturing and distribution. There are additional properties available in this
area for growth and expansion when it becomes necessary.
The assembly and development of this industrial park was intended to create
easy access for the flow of goods in and out of the region. The investment to
ensure its success was significant by the land developer, and collaboratively
supported by the City of Beaumont. The City of Beaumont supported the
development of this site and offered city-supported incentives such as the
"Economic Stimulus Plan" to streamline construction efforts. The property
owner is committed to promote the FTZ Program as part of their marketing
strategy to attract tenants. The Dowling Orchard Business Park (Site 3) can easily
be identified as the first of many industrial business parks that are viewed as the
Gateway to the Coachella Valleys' regional effort to grow industrial based
businesses and jobs.
M6. Explain in detail why this site (or expanded portion) is needed to provide FTZ
services to your community:
The addition of Site 3 is an important part of the regional vision to attract new
business and create new jobs in the region. The necessity of "Pro-Business
Incentive Programs" provides the continuity of long-term success that is greatly
needed in this region. Programs such as the FTZ and its Magnet Site designation
offer an expedited advantage to businesses involved in international trade. Job
growth is imperative for the recovery of the economy. The FTZ Program offers an
opportunity for companies to utilize the benefits and minimize potential cash
constraints, and create inventory and organizational efficiency controls which
help to create new jobs and faster economic recovery.
The FTZ Program and the ASF Reorganization is a critical ingredient to
regionalization. Through strategic planning and financial commitment by its
membership, CVEP has set the pace to attract new industry and jobs, as well as
help develop an educated workforce in the region.
50
The availability of the FTZ Program, with the expedited activation capabilities,
gives the Magnet Site Owner leverage to compete for new businesses
considering a location in the Southern California region.
M7. Indicate the type of site (port, industrial park, warehouse complex) and its current
zoning.
Dowling Orchard Business Park is currently built out as an industrial park with
1,178,260 square feet under roof on 26.72 acres. It is zoned for manufacturing
and/ or industrial use.
M8. For the proposed site (or expanded portion), describe the existing and planned
buildings(including functions and square footage), existing and planned activities,
whether the site is master planned, stage of development/timetable for completion of
plans, and status of any applications for construction approvals:
The buildings within the proposed site are constructed for industrial and
manufacturing purposes. The Zoning also permits retail sales of products
manufactured or stored on site. There is currently a manufacturer of sporting
and fitness equipment located in the park, which sells some product in a retail
showroom.
Mg. List the companies that currently occupy the site (or expanded portion):
Company Name Square Feet Acres Activities
Updike 127,688 2.93 Multi-Tenant
Corporation Manufacturing
Distribution
World Pack 444,455 10.20 Multi-Tenant
Fulfillment Manufacturing
Distribution
BLDG C 606,117 13.91 Multi-Tenant
Manufacturing
Distribution
M10. Will space at the site (or expanded portion) be available to multiple businesses at
the site under public utility principles (under uniform rates and conditions)? Explain.
Site 3 is comprised of multi-tenant and multi-use buildings for accommodation of
small, medium and large businesses. The management and leasing structure of
the Dowling Orchard Business Park is based on standard real estate practices.
Public utility principles that include uniform rates and conditions apply to the site
or portions thereof relating to FTZ practices and activation. The public utility
principles include warehousing storage, handling, and
manipulation/manufacturing rates.
51
The landowner and potential FTZ operators are expected to adhere to the
conditions as set forth in the Grantee's zone schedule.
M11. Briefly describe the transportation infrastructure serving the site, including its ties
to the broader regional/national transportation system:
Site 3 is located within the heart of Riverside County and provides distribution
points thru Riverside and San Bernardino County. The main east-west highway in
Southern California and thru the Coachella Valley is Interstate 10, which Site 3 is
closely located. This site is less than 100 miles from the Port of Los'Angeles. It
is regionally accessible to the Palm Springs International Airport and rail systems
for national distribution.
On a broader scale, Site 3 is strategically located in one of the fastest growing
regions in the United States with accessibility to three major types of
infrastructure for national distribution - rail, airfreight, and trucking.
M12. Confirm that FTZ designation or the use of FTZ procedures is not a requirement
or a precondition for future activity or construction at the site.
The FTZ designation or the use of FTZ procedures is not a requirement or a
precondition for construction or future activity at the site.
M13. Who owns the site (or expanded portion)? (If the grantee or proposed operator
does not own it, provide a "Site Ownership" attachment pursuant to the guidance in the
separate application-instructions document.)
The site owner of Dowling Orchard Business Park is CT Realty Investors. The
"Site Ownership" Authorization Letter is attached for further consideration.
Attach each of the documents listed below (items M14 through M16, plus M17 where
applicable).
M14. A clear copy of the appropriate legal description for the site (or expanded portion)
with label tying the description to the site number. Also, state if the legal description
covers a larger area than the proposed site.
The attached legal description does not cover a larger area than the proposed
site.
52
M15. A clear and detailed site plan (survey/schematic) showing existing and planned
structures. The site boundaries must be outlined clearly in red. Note that if streets or
similar landmarks are not legible on the site plan, you will also need to provide a
detailed street map with the proposed site's boundaries in red. Any map should be no
larger than letter-sized (8 1/2" x 11") and clearly labeled, with legends provided for any
markings.
Attached
M16. Signed letters of interest on letterhead from firms considered prime prospects for
use of this particular site (or expanded portion).
Attached
M17. If your state (such as TX, KY, AZ) has one or more taxes for which collections will
be affected by the proposed FTZ designation of the new site:
- attach an explanation of the specific local taxes that will be affected
AND
- attach correspondence from the affected parties (such as a local school board)
indicating their concurrence (or non-objection) regarding the proposed FTZ designation.
Not Applicable
53
ALTERNATIVE SITE FRAMEWORK APPLICATION
Part Two
Dowling Orchard Business Park
Site Ownership: CT Realty Investors
54
65 Entcrp.ise
Atis�o;rt6#a-CA 926,56
949-334-5770
minvest4
April 9, 2012
Mr. Andrew McGilvray
Executive Secretary
United States Department of Commerce
Foreign-Trade Zones Board
1401 Constitution Ave., NW Room 2814E
Washington, DC 20230
Re: FTZ#236—Magnet Site Landowner Authorization
Dear Mr. McGilvray:
This letter is an expression of interest and support of the City of Palm Springs, (Grantee
of Foreign Trade Zone#236) Alternative Site Framework Application. It is my belief that
the reorganization of the current zone is a benefit to the city of Palm Springs, the
Coachella Valley Region, and the County of Riverside.
My company is supportive of the opportunity to designate its property as part of the
zone reorganization and the opportunity to offer the benefits of the FTZ program to
existing and future tenants. As the legal landowner of property located at Beaumont
Logistics Center consisting of three (3) parcels, located at 1)415 Nicholas Road, 2) 920
Fourth Street, and 3) NEO Fourth Street, and Nicholas Road, Beaumont, California
I hereby authorize the Zone Grantee to include the aforementioned property as a
Magnet Site within the Foreign Trade Zone #236 Alternative Site Framework
Application. Enclosed is the legal description and site plan for the property to be
included in the reorganization application.
Again, thank you for'the-opportunity to be part of the Foreign Trade Zones Program. if
additional information is needed, please do not hesitate to contact me 949-330-5766.
Sincerely,
Mark Zenner
Vice President of Asset and Property Management
CC: Cathy Van Hom, City of Palm Springs, Grantee FTZ#236
David Hariow, ITC Diligence, Inc., Consultant
55
ALTERNATIVE SITE FRAMEWORK APPLICATION
Part Two
Dowling Orchard Business Park
Legal Description
56
LEGAL DESCRIPTION
The Real Property in the City of Beaumont,County of Riverside,and State of California as described as
follows:
PARCEL ONE:
PARCEL B OF LOT LINE ADJUSTMENT NO3 06-LLA-09 RECORDED AUGUST 02,2007 AS INSTRUMENT NO.
20G7-501539 OF OFFICIAL RECORD, MORE PARTICULARLY DESCRIBES AS:
THAT PORTION OF THE NORTH HALF OF THE NORTHWEST QUARTER OF SECTION 9,AND PORTION OF
THE SOUTH HALF OFTHE NORTHWEST QUARTER OF SECTION 9,TOWNSHIP 3 SOUTH, RANGE 1 WEST,
SAN BERNARDINO MERIDIAN IN THE CITY OF BEAUMONT,COUNTY OF RIVERSIDE,STATE OF
CALIFORNIA,WHICH LIES WITHIN THE FOLLOWING BOUNDARIES
BEGINNING ATTHE INTERSECTION OF THE NORTHERLY LINE OF PARCEL MAP NO.25MO AS
PER MAP FILED IN BOOK 165 PAGES 69,70 AND 71,OF PARCEL MAPS, RECORDS OF SAID
COUNTY WITH A LINE PARALLEL WITH AND 1130.00 FEET WESTERLY,MEASURED AT RIGHT ANGLES,
FROM THE WESTERLY LINE OF THAT CERTAIN PARCEL OF LAND DESCRIBED IN DEED RECORDED MAY
13, 2003 AS INSTRUMENT NO.2003-435769,OF OFFICIAL RECORDS;RECORDS OF SAID COUNTY;
THENCE ALONG SAID PARALLEL LINE,NORTH 00"23'03" EAST 1112:24 FEET TO A POINT IN THE
NORTHERLY BOUNDARY OF THAT CERTAIN PARCEL OF LAND DESCRIBED AS PARCEL"B"
IN DEED RECORDED JUNE 18,2003 IN INSTRUMENT NO.20133 07,OF OFFICIAL RECORDS;
RECORDS OF SAID COUNTY;
THENCE ALONG SAID LAST MENTIONED NORTHERLY BOUNDARY,SOUTH 80°27'35"EAST
328.11 FEET TO THE SOUTHWESTERLY BOUNDARY OF THE SOUTHERN PACIFIC RAILROAD AS
DESCRIBED IN DEED RECORDED IN BOOK 255 PAGE 379,OF OFFICIAL RECORDS,RECORDS OF SAID
COUNTY;
THENCE ALONG SAID SOUTHWESTERLY LINE,SOUTH 57047'08" EAST 948.75 FEET TO SAID WESTERLY
LINE OF ABOVE MENTIONED CERTAIN PARCEL OF LAND;
THENCE ALONG SAID WESTERLY LINE,SOUTH 00"23'03"WEST 929.96 FEET TO THE SOUTHERLY.LINE
OF THE NORTHERLY 330 00 FEET OF THE SOUTH HALF OF THE NORTHWEST QUARTER OF SAID SECTION
9;
THENCE ALONG SAID LAST MENTIONED SOUTHERLY LINE,NORTH 87'34'43"WEST 1030,66
FEET TO A LINE PARALLEL WITH AND 33.00 FEET EASTERLY, MEASURED AT RIGHT ANGLES,FROM THE
EASTERLY LINE OF PARCEL 3 OF SAID PARCEL MAP NO,25090;
THENCE ALONG SAID LAST MENTIONED PARALLEL LINE,NORTH OW23'03" EAST 330.21 FEET TO THE
NORTHERLY LINE OF SAID PARCEL MAP NO.25090
57
THENCE ALONG SAID LAST MENTIONED NORTHERLY LINE, NORTH 87-34'43`WEST 100.06
FEET TO THE "POINT OF BEGINNING"!
PARCEL TWO:
PARCELS 1 AND 2 OF PARCEL MAP NO.35023, IN THE CITY OF BEAUMONT, COUNTY OF RIVERSIDE,
STATE OF CALIFORNIA,AS SHOWN ON MAP FILED IN BOOK 229,PAGES 65 THROUGH 67,INCLUSIVE OF
PARCEL MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
APN:417 02"74-5 and 417-020-075-6 and 417-020-072-3
58
ALTERNATIVE SITE FRAMEWORK APPLICATION
Part Two
Dowling Orchard Business Park
Site Plan
59
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ALTERNATIVE SITE FRAMEWORK APPLICATION
Part Two
Dowling Orchard Business Park
Letter of Interest
World Pack Fulfillment, Warehouse and Distribution
62
W*rld c
Frrc at oexriu
August 2, 2012
Mr. Andrew McGilvray— Executive Secretary
Foreign-'trade Zones Board
€ ,S. Department of Commerce,
1401 Constitution} Ave.,
Room 1115
Washington, DC 20230
Fie. FTZ#236- Letter of Support
Dear Mr_ McGilvray.
This is an expression of support for the City of Palm Springs (Grantee of Foreign
Trade Zone #236) Alternative Site Framework Application. It is my belief that the
reorganization of the existing zone will enhance and encourage international
trade in our region and the United States.
The Foreign Trade Zones program is an important economic development tool
for existing and new business development in Palm Springs and the surrounding
county region. The Foreign Trade Zones program will help our local and regional
economy by:
• Facilitating and expediting international trade;
r Leveling the playing field with foreign companies;
• Encouraging and facilitating exports;
• Attracting offshore activity and encouraging retention of domestic activity;
• Assisting Palm Springs'economic development efforts; and
• Creating employment opportunities for Balm Springs and Coachella Valley
residents,
Thank you for the opportunity to submit this letter of support. Should you have
any questions, please feel free to contact me at(310-200-1856).
Sine r
Kenny oid
General Manager
1235 Quarry Street Corona,CA 92879 • Pnorw.951.647.1062 63
WCRZ0PACKLtBA . C '0M
,