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HomeMy WebLinkAbout22887 RESOLUTION NO. 22887 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS OPPOSING THE GOVERNOR'S FISCAL YEAR 2011-12 PROPOSAL TO ELIMINATE ENTERRPISE ZONES IN CALIFORNIA. WHEREAS, the origins of California's Enterprise Zone came through enactment of two separate programs in 1984 — the Enterprise Zone Act and the Employment and Economic Incentive Act; and WHEREAS, the Enterprise Zone provides a geographically-targeted economic development tool for poor and blighted communities by creating incentives for businesses to hire new employees and purchase equipment for their businesses; and WHEREAS, on November 11t", 2006, the Coachella Valley Enterprise Zone Authority received its renewed designation as an Enterprise Zone from the California Department of Housing and Community Development; and WHEREAS, the cities and communities of the Coachella Valley experience high normal and seasonal unemployment each year; and WHEREAS, the economic crisis has exacerbated this situation, resulting in unemployment rates exceeding 20% in some cities and communities within the Coachella Valley; and WHEREAS, these high unemployment rates serve to increase poverty, crime, and foreclosures of homes, and lead to the disruption of public services to those in the community most in need of assistance; and WHEREAS, the Coachella Valley Enterprise Zone Authority has worked to combat these social problems by using the Enterprise Zone's incentives to encourage new businesses to locate within the Enterprise Zone and existing businesses to expand their operations; and WHEREAS, the Coachella Valley Enterprise Zone has worked with local organizations and programs, including the Riverside County Economic Development Agency, the Riverside County Workforce Development Center, the Coachella Valley Economic Partnership and the Economic Development Departments of the valley's municipal jurisdictions in an effort to encourage businesses to hire the most at-risk individuals; and WHEREAS, the Coachella Valley Enterprise Zone has issued a total of 2,053 Hiring Credit Vouchers, with 473 being for New Positions to 169 local businesses in 2010; and Resolution No. 22887 Page 2 WHEREAS, the Enterprise Zone has served to attract additional businesses, including manufacturers to the Coachella Valley, and has helped many others stay in business or expand their operations; and WHEREAS, companies moving to or remaining in the Coachella Valley have stated specifically that the Enterprise Zone was a key component in their decisions to locate or remain within the Coachella Valley and California; and WHEREAS, the City of Palm Springs within the Coachella Valley acknowledges that the attraction of new businesses and the retention and expansion of existing businesses is the most effective way of guaranteeing the long-term well-being of the cities and communities of the Coachella Valley. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City of Palm Springs recognizes that the Enterprise Zone Program is one of the most valuable state incentives to create new jobs, grow existing businesses, and compete with other states to attract outside investment to California; and SECTION 2. The City of Palm Springs believes that the Enterprise Zone Program has had a significant positive effect on business activity and economic growth in the Coachella Valley; and SECTION 3. The City of Palm Springs believes that eliminating the most critical business assistance program in the state would be a huge setback to improving California's business climate and its struggles to reach an economic recovery, and is opposed to the State of California's attempt to eliminate the Enterprise Zone program. ADOPTED THIS 16TH DAY OF MARCH, 2011 David H. Ready, anager ATTEST: ames Thompson, City Clerk Resolution No. 22887 Page 3 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. 22887 is a full, true and correct copy, and was dul� adopted at a regular meeting of the City Council of the City of Palm Springs on the 15 day of March, 2011, by the following vote: AYES: Councilmember Foat, Councilmember Hutcheson, Mayor Pro Tern Weigel, and Mayor Pougnet. NOES: None. ABSENT: Councilmember Mills. ABSTAIN: None. ?me2s-Thompson, City Clerk f Palm Springs, California